Lukoil acquires 45 per cent stake in Dutch refinery TRN for $725 million

20 June 2009

Russia's largest integrated oil producer Lukoil is acquiring a 45-per cent stake in the Dutch refiner, TRN, from France's Total for approximately $725 million after warding off a bid from the largest US refiner, Valero.

Moscow-based Lukoil, which is 20-per cent owned by US oil major ConocoPhillips, with around 1.1 per cent of global oil reserves and 2.3 per cent of global oil production, has been pushing Westwards after having established its preeminence in the former Soviet Blocks and a large part of Eastern Europe.

Lukoil's western thrust has the tacit support of the Russian government, as a way to increasing the country's foreign influence.

Incidentally, the announcement coincided with the arrival of Russian president Dimitry Medvedev to the Netherlands, on a state visit.

The move comes as a setback to Valero's efforts to secure a stake in Europe, where it has been keen to acquire refineries and leverage cross-Atlantic trading opportunities with its US fleet of plants.

Texas-based Fortune 500  Valero had said last month that it would acquire the Dow Chemical Company's 45-per cent interest in Total's TRN refinery.
However, Total exercised its right-of-first refusal as the refinery operator and owner of the remaining 55 per cent in TRN, and instead agreed to sell the 45- per cent holding to Lukoil, while retaining the rest.