CFR Calatori and LukOil sign $59m deal

LukOil Downstream, Russian LukOil Group’s division handling fuel distribution and sale in Romania, will supply 100,000 tonnes of diesel oil to CFR Calatori in an about $59 million deal this year. LukOil Downstream was awarded the contract on Monday, following a tender organised by the Romanian Commodities Exchange. Another bidder was SNP Petrom, but it was only interested to sell 25,000 tonnes of diesel. The entire amount of diesel would be imported from the other refineries of LukOil Group, Neftochim-Bulgaria and Odessa-Ukraine, because Petrotel Ploiesti was not running at the moment, due to retooling works, LukOil Downstream general manager Andrei Chirilescu said. LukOil will sell the diesel at 19.5 million ROL ($591) per tonne, VAT and excises inclusive. The excises per tonne of diesel reach 6.64 million ROL, that is about $200. The diesel will be delivered in four quarterly tranches (25,000 tonnes each). Petrom remains a backup solution, in case LukOil Downstream fails to comply with contractual provisions. It will have to supply 25,000 tonnes of diesel for 20 million ROL (some $610) per tonne. ZF