Russia's LUKOIL stops production at Odessa refinery

11:21, 02 October 2009
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On Thursday, market sources...

LUKOIL (LKOH.MM), Russia`s second-largest oil producer, has stopped oil product output at its Odessa refinery in Ukraine due to crude shortages, a company spokesman said on Friday, according to Reuters.

"Oil products output has stopped," the spokesman, Dmitry Dolgov, said, adding that the company was preparing a statement to clarify its position.

On Thursday, market sources said crude deliveries to the Odessa refinery were halted on Oct. 1, as Ukrainian state pipeline operator Ukrtransnafta refused to supply crude to the refinery via the Kremenchug-Odessa pipeline. [ID:nL1604033]

Ukrtransnafta said on Friday it had proposed LUKOIL change supply routes to Odessa, citing "national interests" and the need to feed Ukraine`s Kremenchug refinery, owned by Ukrtatnafta.

LUKOIL has argued that alternative supply routes would complicate the refining economics.

In 2007, Russia stopped crude supplies to Kremenchug after a dispute over management of the refinery.

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