MOSCOW (MRC) -- Russia's top oil
producer Rosneft will have to spend up to USD100 million to improve standards at
ageing refineries it bought last year, industry sources have told Reuters.
took control of the sites in October when it bought a 50 percent stake in
Bashneft for USD5.7 billion as part of Russian privatization efforts.
it must address safety concerns after a string of incidents over the last year,
including a fire last week, and investigations by Russian industrial safety
At least six people died in a fire at a Bashneft
plant last July. The company said no one was hurt after a fire at its Ufa
refinery last Thursday.
"According to preliminary information, the
reasons behind persistent accidents have been breaches in industry safety
standards related to organization and carrying out maintenance, servicing,
technical diagnosis and checks," Rostekhnadzor said in a statement.
source at the company said it would need USD100 million to upgrade the plants.
Another source, familiar with Bashneft's plans, confirmed the scale of possible
Rosneft said it had prepared a program "to eliminate the
irregularities which have been found. To eliminate some irregularities,
reconstruction and technical re-equipment of the industrial units is
"A significant number of the facilities have been in an
unsatisfactory condition," it said.
As MRC informed earlier,
Rosneft has signed a contract to supply 96 MMt of crude oil to PV Oil, an
affiliate of state oil and gas PetroVietnam, starting in 2017.
became Russia's largest publicly traded oil company in March 2013 after the
USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer
at the time.