TNK-BP Ukraine is cutting half of its staff and making its Linik (TLNICRUD) oil refinery a separate unit as part of a “radical” business change after net losses in the past two years.
TNK-BP, Russia’s third-biggest oil producer, will cut administrative spending in Ukraine, focus on marketing and keep a representative office, the Kiev-based division said in an e- mailed statement today.
The Linik refinery will be made into a separate unit after being halted in March for repairs for an indefinite period because it was unprofitable, TNK-BP Ukraine said today. The Ukrainian operations had a net loss of $68 million in 2010 and $23 million last year, according to the statement.
The new business structure is set to be approved by May 1 and come into effect from July 1, according to the statement. TNK-BP’s board will consider mothballing the refinery, the company said.
TNK-BP may seek to sell Linik, the Kommersant-Ukraine newspaper reported today, citing market participants.
To contact the reporter on this story: Kateryna Choursina in Kiev at firstname.lastname@example.org
To contact the editor responsible for this story: Claudia Carpenter at email@example.com