Lukoil to invest in upgrading refining capacities

Lukoil, the Russian oil major, said that it plans to spend around US$20 billion on upgrades of refining capacities till 2021. Leonid Fedun, the company’s vice president said, “Our company needs to invest almost US$20 billion in order to reduce production of dark oil products to 5 million tons by 2021 from 17 million tons and at the same time increase gasoline production to 9.5 million tons from 5 million tons,” he said. However, this level of investment requires a stable political environment, Fedun said. “When there are no stable rules of the game, when there is no legislation that prescribes your behavior for the decade, we will make the investment, but it will be difficult in terms of returns,” he said. (October 7, 2011)