November 17, 2022 14:13 GMT
Italy ISAB Refinery Plans No Halt On 5 Dec
Italy is urging ISAB refinery owner Lukoil to keep supporting output until the government brokers a sale but talks for a sale to a non-Russian buyer drag on, sources told Reuters.
- Lukoil’s ISAB refinery imports Russian seaborne crude oil and Italy is fearful the refinery will stop producing once the EU oil embargo comes into effect on 5 Dec.
- The plant has had to rely solely on Russian oil provided by Lukoil after its creditor banks halted financing and stopped providing guarantees needed to buy oil from alternative suppliers.
- The refinery is not planning to stop production from 5 Dec as the Italian government pledged to rescue the ISAB plant, which accounts for around 20% of Italy's refining capacity.
- "We will ensure that the plant remains operational," Industry Minister Adolfo Urso said on Thursday without detailing the government's plans.
- On Friday government and refinery representatives will meet in Rome to discuss the issue.
- Lukoil unit Litasco this month rejected a preliminary bid from US. fund Crossbridge.