(refiningandpetrochemicals) -- Russian oil company TNK-BP Holding, the joint venture between BP and a group of Russian oil investors, is considering mothballing or selling its oil refinery in the Ukraine.
The company said it will undertake a radical restructuring of its operations in the country due to losses at Lisichansk Refinery, known as Linik. TNK-BP Ukraine reported a loss of USD68m in 2010 and USD23m in 2011.
The move will see Linik singled out as a separate business with TNK-BP concentrating on its marketing and retail operations in the country.Production at Linik was halted in March for repairs for an indefinite period of time.
Linik has refined nearly 25% of Ukrainian supplies in 2009 which were down to 13% in 2011 because of cheaper imports from Belarus. The reorganized business structure is expected to be approved by this May and be effective from July.