Gazprom Neft sees developing refining capacity in Russia as a priority - Dyukov
MOSCOW. April 21 (Interfax) - Gazprom Neft believe that developing its refining capacity in Russia is a priority, the company's CEO, Alexander Dyukov, said in a interview on the Russia-24 television channel.
"The main priority for us is refining capacity inside Russia - the modernization of refineries and brining them in line with technical regulations for motor oils," he said.
"We have three plants in Russia, which we are managing. There has been success in their development and putting together a modernization program. We have partially already moved to produced euro-4 and euro-5 fuel production but the final move should happen in 2014-2015. Preparations for this are going at a full pace," Dyukov said.
Gazprom Neft's chief added that the company is mulling the acquisition of refining projects from Italy's Eni.
It was earlier reported that Gazprom is looking into acquiring 8.3% in a refinery in Schwedt, Germany from Eni. In addition, Eni might sell 32% in Czech company Ceska rafinerska to Gazprom. The Czech company owns oil refining assets. However, Dyukov earlier said that acquiring a stake in Ceska rafinerska is not a priority for the Russian gas giant.
Commenting on Gazprom's incomplete acquisition of the Elephant production project in Libya from Eni, Dyukov said that project's agreement comes into forecast when several requirements are met. "For instance, the agreement foresees approval on the part of Libya. But, at present [owing to the political crisis in Libya] there is nobody to reach an agreement with. Therefore, it's difficult to a straight-ahead answer if there will be agreement or not," Dyukov said.
Gazprom and Eni signed an agreement for strategic partnership in November 2006. The agreement foresaw an asset swap: Eni joined the production project SeverEnergia while the company should have also sold Gazprom its assets outside of Russia. Since Eni's project in Libya has been delayed owing to the civil conflict there, both companies are now studying other assets for a swap.
