September 28, 2022

Spanish oil operator Meroil has no plans to promote its 50% stake in a three way partnership with Russia’s Lukoil in a Barcelona oil terminal as a result of battle in Ukraine, a high govt instructed Reuters on Friday.

Meroil is assured its 10-year-old venture is not going to be affected by any potential new sanctions towards Moscow and isn’t involved about any reputational injury, Director Common Miguel Paya stated, arguing that the tie-up with Lukoil was very restricted and the terminal didn’t obtain Russian oil or ships.

Many Western firms have damaged enterprise ties with Russian companies or shunned their merchandise or wound up Russian operations following the nation’s invasion of Ukraine.

Shell, the world’s largest petroleum dealer, and Italy’s Eni are amongst power teams which have suspended the acquisition of oil from Russia, whereas British oil main BP exited its 19.75% stake in Russian oil large Rosneft.

Lukoil, Russia’s second-largest oil producer, stated earlier this month it was involved by the “tragic occasions in Ukraine” and supported the negotiations to finish the battle.

The Meroil-Lukoil deal was sealed in 2010 and the Barcelona terminal – with a storage capability of 360,000 cubic meters of refined oil and with a concession till 2047 – opened in 2012.

“Every thing stays the identical … they’re calm. They proceed working and so will we,” Paya stated referring to Litasco, Lukoil’s Swiss buying and selling arm that holds a 50% stake within the Barcelona plant.

He stated his understanding is that any potential sanctions towards Lukoil wouldn’t have an effect on their JV, however conceded the scenario was unpredictable.

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“There’s not a lot we are able to do about it,” he stated, including Meroil had no say over Lukoil’s stake.

The three way partnership firm, named Meroil Tank, reported a 1.5 million euro ($1.64 million) web revenue in 2020, in accordance with the most recent public data.

($1 = 0.9122 euros)