Russian oil company Lukoil plans to invest USD 2.5 million in modernizing its lubricants refinery in Romania, according to the company’s Eastern European section chief Michael Weiss. He added that the company made investments worth USD 3.5 million in Romania last year.

LLK International, subsidiary of Lukoil, will complete the upgrade work at the Petrotel – Lukoil refinery late this year or early next year, according to information released by the company. The investments will fully automate the plant, as well as adding to packaging and storage facilities and equipment for mixing vegetable based oils. Following the modernization, the refinery will be able to produce the full range of Lukoil’s Genesis brand products.

Lukoil is the third largest player in the local oil market, behind Petrom, the largest company in Romania, and the Rompetrol group, controlled by Kazakh state owned company KazMunaiGaz.

The refinery at Ploiesti, Petrotel-Lukoil (in picture), generated business worth EUR 1.5 billion last year, up 31.5 percent compared to 2010, according to data from the Trade Register. Increased turnover from the refinery was in part due to reducing the number of employees. At the end of 2010, 732 people worked at Petrotel-Lukoil, while at the end of the last year 556 of employees remained.

Liam Lever, liam@romania-insider.com