OREANDA-NEWS. May 17, 2010. The President of Ukraine Viktor Yanukovich met with TNK-BP Executive Director German Khan, Executive Director Viktor Vekselberg, and President of LLC TNK-BP Commerce Sergey Lizunov. In the wake of the 10th anniversary of TNK-BP in Ukraine, company executives briefed the President on the results of TNK-BP’s work in the country and plans going forward, reported the press-centre of TNK-BP.

“TNK-BP is an example of successful investment in Ukraine”, said Viktor Yanukovich. The President noted that the country’s authorities are committed to creating a favorable climate to attract foreign investment in Ukraine’s economy.   

German Khan informed the President that TNK-BP invested close to USD1bn in the development of its Ukrainian business over the past ten years. “We are marking an important date for our company. TNK came to Ukraine ten years ago. We have since managed to turn the Lisichansk Refinery into the industry leader, ensuring capacity utilization and delivering major upgrades to the plant. We created a well—developed retail network that operates in most of Ukraine’s regions. TNK-BP currently provides 5,000 jobs in Ukraine and is one of the biggest taxpayers in the country. The total amount of taxes and duties contributed to Ukraine’s budget reached USD 3.5bn in the last five years alone. Within the next five years TNK-BP plans to invest close to USD 800 million in its Ukrainian enterprises, including USD 140 million during this year”, noted German Khan.

The company’s operations in Ukraine began in 2000, when TNK acquired a stake in the Lisichansk Refinery. The new investor managed to improve the refinery’s operations, ensuring capacity utilization and implementing a large-scale refinery modernization program. Six new units were commissioned, enabling production of high octane fuels, jet fuel and bitumen, including an isomerization unit. A major environmental project (wastewater treatment plant) and a major energy efficiency project (short-cycle adsorption plant) were constructed. The program also included an upgrade of the elemental sulfur production unit. The Lisichansk Refinery is currently capable of processing more than 7 million tons of crude feedstock per annum.

Notes to editors:
TNK-BP Group business in Ukraine is represented by the following key subsidiaries:

LLC “TNK-BP Commerce” – the managing center, wholesale petroleum product trading in the Ukrainian and foreign markets, implementing a coordinated investment policy, ensuring the maximally efficient use of assets;

CJSC “LINIK” (Lisichansk Refinery) – crude feedstock processing and petroleum product making;

UG LTD “KERSCHER” – retail sales of petroleum products via a network of fuel stations, fuel station management.

TNK-BP is implementing a large-scale environmental protection program in Lisichansk Refinery. As of today, company achievements include commissioning of a refinery steam condensate collection and treatment plant, rainfall runoff transfer pump station, sulfurous/alkaline discharge utilization plant; reconstruction of the first stage of the elemental sulfur production unit and construction of a process condensate treatment block. TNK-BP also commissioned an advanced biochemical wastewater treatment package that cost USD 10 million.