Bloomberg News

TNK-BP Halts Oil to Money-Losing Linik Refinery as Repairs Start

March 02, 2012

TNK-BP, BP Plc (BP/)’s Russian oil venture with a group of billionaires, halted oil supplies to its Linik refinery in Ukraine during maintenance, a week after threatening to shut the plant for losing money.

Deliveries to the refinery in the city of Lisichansk were suspended yesterday, the company’s Kiev press office said in an e-mailed response to questions today.

Linik can process 140,575 barrels of crude a day, according to data compiled by Bloomberg.

TNK-BP will consider whether the refinery, which lost $23 million last year, can be run profitably after closing the plant for three months for repairs, TNK-BP Chief Financial Officer Jonathan Muir told reporters on Feb. 29. Linik has continued to be unprofitable in the first quarter of this year, and lost $68 million in 2010, the Moscow-based venture said in an e-mailed statement on Feb. 24.

TNK-BP planned to close its plant in March for maintenance after repeated calls for the Ukrainian government to aid refiners, according to the statement.

To contact the reporters on this story: Daryna Krasnolutska in Kiev at dkrasnolutsk@bloomberg.net; Jake Rudnitsky in Moscow at jrudnitsky@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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