You're reading: Lukoil to invest $100 m in development of Ukrainian filling stations by 2017

Foreign Investment Enterprise Lukoil-Ukraine plans to invest around $100 million in the modernization of its filling station chain, the acquisition of new stations, the reconstruction of oil bases, and improvements to quality control by 2017. 

The company’s general director Andriy Havrylets unveiled these plans at a press conference in Kyiv on Thursday.

“By the end of 2012, we plan to reconstruct 28 filling stations, as well as another 40 filling stations in 2013. We plan to move all filling stations in the chain to the same corporate requirements,” he said.

Havrylets also said that Lukoil-Ukraine plans to build at least five new filling stations in 2013 in Dnipropetrovsk, Zaporizhia and Khmelnytsky.

Lukoil currently operates 281 filling stations and eight oil bases in Ukraine.

Havrylets said that the company’s share on the Ukrainian market for total stations comes to around 4%. The market share for fuel sales is around 8%. “We plan to boost [the share] of total sales to 10% in the coming five-seven years,” he said.

He added that Lukoil-Ukraine plans to post profits in 2016.

In turn, the company’s directors for retail sales, Dmytro Florinsky, said that Lukoil-Ukraine will sell 500,000 tonnes of petroleum products in the country this year.

It was earlier reported that Lukoil-Ukraine started optimizing its filling station chain this past summer in order to move these outlets to the same corporate standards and create a unified chain, which meets the requirements of modern retail operations. The company plans to replace fuel-dispensers and pipelines at the stations, implement urban improvements, make changes to station facades, repair building interiors, and set up new sales equipment according to the firm’s style. Lukoil-Ukraine plans to modernize at least 30 filling stations a year.

Foreign Investment Enterprise Lukoil-Ukraine was founded in November 1999. The company engages in the wholesale and retail sale of petroleum products. The company has operations in 24 Ukrainian regions.