You're reading: Khan: TNK-BP keen to restart oil refinery, ready to consider all proposals

TNK-BP is ready to consider any proposals on a partnership for Lysychansk oil refinery (private joint-stock company LINIK, Luhansk region), German Khan, executive director at TNK-BP told reporters in Kyiv on Thursday.

"We’re ready for any proposals," he said.

He said that the company has not obtained any proposals on the acquisition of the refinery.

"Any potential buyer will face the same situation we have now. Today we’re not expecting any realistic offer from the point of view of a purchase of LINIK," he said.

Khan said that in comparison to other companies, TNK-BP could supply its own oil to LINIK, although this does not bring profits from the refinery’s operations.

He said that it is not economically profitable to launch the refinery to refine one million tonnes of oil from the resources of national joint-stock company Naftogaz Ukrainy on a tolling basis.

"There was that idea. As far as I understand it’s not being discussed anymore," he said.

Khan said that the launch of the refinery to refine Naftogaz Ukrainy’s oil on a tolling basis makes sense if an annual program for 3-4 million tonnes of oil were approved.

TNK-BP plans soon to order a project on the freezing of LINIK, while the TNK-BP filling station chain in Ukraine will be provided with fuel thanks to supplies of fuel from Belarus, Lithuania and other manufacturers that are ready to offer attractive conditions.

Khan said that the company believes that retaining the oil refining sector in Ukraine is possible only if comprehensive measures are introduced, in particular, a complete switch to new fuel standards, ensuring of long-term rules of market operation and guarantees for investors. TNK-BP said that one of the possible measures could be the introduction of duties on imported fuel.

Khan on Thursday met Economic Development and Trade Minister of Ukraine Petro Poroshenko, First Vice Premier Valeriy Khoroshkovsky and Energy and Coal Industry Minister Yuriy Boiko. Oil refining in Ukraine and the holding of a tender for a Yuzovska field PSA were discussed at the meeting. Khan said that the Ukrainian ministers had assured TNK-BP that the next tender would be transparent.