By The Financial District
Apr 71 min
Russian oil firm Lukoil faces significant challenges repairing its largest refinery due to the withdrawal of a crucial American company, UOP, after Russia's invasion of Ukraine, Robert Harvey reported for Reuters.
Lukoil estimates nearly $100 million in monthly revenue losses from the refinery's outage. I Photo: LUKOIL Facebook
The absence of UOP, which specialized in repairing the refinery's catalytic cracker, has led to a production halt since January, affecting gasoline output.
The NORSI refinery, located in Russia's Nizhny Novgorod region, has slashed gasoline production by 40% due to the catalytic cracker's inoperability, impacting approximately 11% of Russia's total gasoline capacity.
Lukoil estimates nearly $100 million in monthly revenue losses from the refinery's outage.
Compounding these issues are Ukrainian drone attacks on Russian refineries, which forced closures amounting to 14% of capacity in the first quarter of 2024. The combination of sanctions and attacks underscores the significant challenges faced by Russian oil firms in maintaining refinery operations.