Lukoil lends 150m euros to Petrotel refinery

Petrotel-Ploiesti refinery, controlled by Russian petroleum group Lukoil, intends to contract a 150 million-euro loan from its majority shareholder Lukoil Europe Holdings, registered in Holland, with the sum to be used as working capital. The proposition will be analysed by the company’s Board of Directors on March 6, according to Mediafax press agency. The company could, on the same day, change its financial auditors and opt for professional services provider KPMG. The group also announced it would make an additional investment into building a thermal power station on the platform of the Petrotel refinery, bringing total investments to over 100 million dollars (68 million euros), from the original sum of up to 85 million dollars (57.8 million euros). According to company representatives, the increased investment is a result of fluctuations on the forex market, and the higher demand from China and India for technology and equipment for thermoelectric power stations, countries that are making huge investments in this field. The power station is scheduled to launch operations in 2009. The refinery will use the energy produced, whilst any excess power will be distributed throughout the national grid.