LUKoil agreed to buy Turkish fuel distributor Akpet for $500 million on Monday, securing 5 percent of Turkey's oil-product retail market as it continues its downstream expansion. LUKoil, the country's second-largest oil producer, plans to double its Turkish market share to 10 percent within a decade after acquiring eight oil-product terminals with total capacity of 300,000 cubic meters, president Vagit Alekperov said.
"LUKoil bought Akpet for a little bit more than $500 million," Alekperov told a news conference in Istanbul after signing the deal with Akpet's owners.
Last month, LUKoil took its first major step into the West European refining business with the $2.1 billion purchase of a 49 percent stake in Italian refiner ERG's Isab di Priolo refinery on Sicily.
![[EUROASIA] LUKoil to Buy Akpet, a turkish distributor](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiY_RtxuPAs4ulk-5sg1kLNcLqniR7WhFqBWGo6avGS0Se3OMlTTRtCFKebyCTsSBeHxwlNRUOrN9TJT4x_Zwqhup4LhHgHODHWk14JO7RAcDKhE8mdjb3n7I2-gQZVzxNOIlJ5_Q/s400/luk_2.jpg)
The company, owned 20 percent by U.S. oil major ConocoPhillips, plans to invest $25 billion in refining and retail over the next decade, excluding acquisitions. Its acquisition of Akpet, which operates 693 gas stations in Turkey, also gives LUKoil control of five liquefied natural gas storage tanks with total capacity of 7,650 cubic meters.
It also secures Akpet's three jet-fuel terminals, with capacity of 7,000 cubic meters, and a motor-oil production and packaging plant with capacity to produce 12,000 tons per year.
"The deal fits in well with LUKoil's downstream strategy. LUKoil is proving to be consistent, closely following its strategy of acquiring refining and marketing assets in Europe," Citigroup analyst Alexander Korneyev said in a note.
He said the acquisition price of $700,000 per filling station, excluding other assets, was a fair price — especially compared with the $3 million per station paid when LUKoil bought 75 outlets in Bulgaria this year.
The Akpet acquisition was made by LUKoil's wholly owned subsidiary, LUKoil Eurasia Petrol.
"LUKoil bought Akpet for a little bit more than $500 million," Alekperov told a news conference in Istanbul after signing the deal with Akpet's owners.
Last month, LUKoil took its first major step into the West European refining business with the $2.1 billion purchase of a 49 percent stake in Italian refiner ERG's Isab di Priolo refinery on Sicily.
The company, owned 20 percent by U.S. oil major ConocoPhillips, plans to invest $25 billion in refining and retail over the next decade, excluding acquisitions. Its acquisition of Akpet, which operates 693 gas stations in Turkey, also gives LUKoil control of five liquefied natural gas storage tanks with total capacity of 7,650 cubic meters.It also secures Akpet's three jet-fuel terminals, with capacity of 7,000 cubic meters, and a motor-oil production and packaging plant with capacity to produce 12,000 tons per year.
"The deal fits in well with LUKoil's downstream strategy. LUKoil is proving to be consistent, closely following its strategy of acquiring refining and marketing assets in Europe," Citigroup analyst Alexander Korneyev said in a note.
He said the acquisition price of $700,000 per filling station, excluding other assets, was a fair price — especially compared with the $3 million per station paid when LUKoil bought 75 outlets in Bulgaria this year.
The Akpet acquisition was made by LUKoil's wholly owned subsidiary, LUKoil Eurasia Petrol.
Source: The Moscow Times|
No comments:
Post a Comment