MOSCOW -- LUKOIL, historically, is an oil producer and refiner first and a retailer second, a structure illustrated by the fact the company does not supply gasoline to many of its retail sites, including those in the United States. But that is an approach that is likely to change as Russia's biggest oil producer plans for large acquisitions that will include growth in the United States, according to a Russian news agency.
"We believe that we are ready to make large acquisitions on the European and U.S. markets," company president Vagit Alekperov told [image-nocss] Russian President Vladimir Putin on Monday, according to the news agency. "We are losing lots of money when we sell crude oil at the Urals brand price, but that will not happen if we reach our end-customers. Then these revenues remain in Russia."
Neither Alekperov nor LUKOIL Americas spokesperson Joseph Shwirtz elaborated on when or where those acquisitions might occur. LUKOIL officials have always said publicly that they're always interested in looking at the merits of any opportunities, Shwirtz told CSP Daily News. So if something presents itself, LUKOIL is happy to take a look at it and weigh the merits on a case-by-case basis.
He noted that almost all of LUKOIL's growth since coming to the United States in 2000 has come in the form of acquisition.
Most immediate growth, however, is expected in Eastern Europe, particularly Finland. "I am mainly speaking about oil refineries, Alekperov said. It allows us to switch from retail sales of crude oil to working with our end-users."
LUKOIL operates up to 600 stations in Western and Eastern Europe and another 2,000 in the United States in 13 states. Alekperov added that stations abroad have been a major source of revenue for the oil company.
LUKOIL is Russia's top oil company, with more than $30 billion in annual turnover, 2% of global oil production and 19% of oil refining in Russia. It owns four oil refineries in Russia and three facilities in Europe, with a combined capacity of 59.6 million tons of oil.
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