Petrol shortage

Lukoil begins to feel sanctions

Het hoofdkwartier van Lukoil in Moskou. Shutterstock, 2025

Nine days before they take effect, US sanctions against Lukoil are already starting to bite. The European divisions of the Russian oil company are gradually starting to face gasoline shortages, while their future remains unclear.
Anyone doing business with Russian oil sellers like Lukoil and Rosneft after 21 November risks US sanctions. The former in particular, which operates in several European countries, is thus at risk of being squeezed. It is Lukoil’s intention to sell its non-Russian interests, but it has not succeeded for now. A takeover bid from Switzerland’s Gunvor was already scrapped again under US pressure, due to that oil trader’s Russian roots.

This does shorten the time for a solution, which is also being felt at Lukoil petrol stations. Finland already ran out of fuel there, and Bulgaria even fears for its entire petrol stock. After all, that country’s largest refinery and main storage tanks, as well as part of its pipelines, are owned by the Russian oil company.

Supremacy

In Iraq, meanwhile, Lukoil is no longer managing to exploit the large West Qurna oil field at a normal rate. Normally it has to pump 480,000 barrels of oil a day there, but the company is now failing to reach that limit. For this reason, Iraq is blocking all payments to Lukoil, which is hurting Lukoil quite badly financially. It is officially invoking force majeure to explain the failure.

With the 21 November deadline breathing down its neck, Lukoil must hurry to sell all its international operations. If it fails to do so, it would see at least 14 billion euros of book value disappear. Rumours that the Kremlin would mount a bailout, force state oil company Rosneft to take over Lukoil meanwhile are swelling.

‘Sale talks ongoing’

In Belgium this week, the local office reported “advanced talks on a new sales agreement” for its 180 petrol stations. “The fuels sold at our stations are purchased on the international market. They are operated by local independent entrepreneurs, who guarantee reliable service on a daily basis,” spokeswoman Els Ruysen told De Standaard.

Not much is moving yet in the Netherlands either, where the company has some 70 petrol stations. “Following the withdrawal of Gunvor’s proposal, advanced talks would take place with other parties, with the aim of reaching a new sales agreement as soon as possible,” nos.nl quotes Lukoil Netherlands’ official response. Meanwhile, the filling stations would continue to operate “normally and stably”. Nothing is known either about the fate of Zeeland Refinery in the port of Vlissingen, of which Lukoil owns 45 per cent of the shares.

Read also:

This article was automatically translated from the Dutch language original to English (British).

Author: Matthieu Van Steenkiste

Source: MobilityEnergy.com

E-mail

Related posts

Cracks in Green Deal Is the energy transition slowing down? Lower House also against EU ban on new fuel cars in 2035

Political support for the European sales ban on new fuel cars from 2035 is rapidly crumbling. Yesterday, the Lower House voted in favour of a motion by PVV MP Heutink calling on the cabinet to argue against the ban in Brussels.
growing demand De Haan realises wash boxes at BP petrol stations in Nieuw-Vennep and Volendam

Two BP locations in De Haan Tankstations’ own network will be equipped with wash boxes. Three covered wash bays will be built at the BP in Nieuw-Vennep and four at the BP in Volendam.
'Greener future' Growing number of petrol stations offer HVO100: now also available at five locations Mol Schuddebeurs

HVO100 can be filled up at more and more filling stations in the Netherlands. The various formulas want to use the fuel made from waste vegetable oils and residual waste to make the supply at the pump ‘greener’ and more sustainable. Also at Mol Schuddebeurs, HVO100 is now available at five refuelling locations.
'Concerns about oversupply' ‘OPEC+ steps away from pattern and does not increase oil production further’

Oil cartel OPEC+ has decided not to pump any more oil in the first quarter of next year. In doing so, the countries are moving away from their previous pattern of steadily increasing oil production, which potentially depressed pump prices in the Netherlands slightly. ANP reports.