TNK-BP ups stake in Lisichansk refinery

KIEV, Ukraine, July 10 (UPI) -- TNK-BP closed the necessary transactions to take near-complete control over the shares in the Lisichansk refinery, a top producing refinery in Ukraine.

The refinery, located near the eastern border in Ukraine, is the newest such facility in the nation. TNK-BP said the refinery is capable of processing 8 million tons of crude feedstock each year for domestic and export markets.

"Ukraine is one of key operating regions for TNK-BP," said Mikhail Fridman, the interim chief executive at TNK-BP. "By investing more in refining, we make an important step towards growth of our Ukrainian business."

In the announcement of the shareholder acquisition near 100 percent, the Anglo-Russian venture said it anticipated further modernization of the refining assets held in Ukraine.

The Lisichansk facility was commissioned in 1976 and emerged as the flagship refinery for TNK-BP. By 2004 the facility was processing 6.6 million tons of product, the largest volume in Ukraine.

The announcement comes amid plans by the oil company, the third largest in Russia, to increase its capital investment program.

Timothy Summers, the chief operating officer at TNK-BP, said the allocation of roughly $400 million for capital investments was based on the notion that such activity could progress as the economy improves.