7 Sep 2018 17:33

Lukoil thinks about Litasco transformation in terms of traded oil volumes

MOSCOW. Sept 7 (Interfax) - Lukoil thinks about the transformation of its international trader Litasco in terms of volumes of traded oil, Lukoil First Vice President Alexander Matytsyn told journalists.

"The possibility of selling shares to Litasco's management is being considering as an incentive scheme to raise the company's efficiency. Work is underway, the work is not simple. Many trading companies are currently undergoing specific changes; changing terms, changing market. We are not just trying to act, but to act efficiently," he said.

"I cannot give timeframes as we are not just talking about Litasco, but about its possible reformatting, whether it should focus exclusively on in-house volumes or work with third parties," Matytsyn said.

Third party oil and petroleum products usually account for more than half of Litasco's volumes, he said.

Matytsyn did not specify which way Litasco's business might be transformed, saying that the market had changed and was becoming more challenging for trading operations.

He told Interfax that no board meetings regarding a potential Litsaco sale should be expected in the near future. Litasco has undergone a staff rotation, he said.