Petrotel Lukoil considers insolvency to protect assets

Management at the Petrotel Lukoil refinery is considering filing for insolvency to protect its assets and facilitate a potential restart of operations. Internal documents indicate that the company views insolvency as the only way to safeguard the business against creditor enforcement requests and to provide the necessary breathing room to resume activity.

The refinery, which accounts for approximately 20% to 21% of Romania’s total refining capacity, has been inactive since October 2023 due to scheduled technical maintenance. Operations have not resumed due to international sanctions and difficulties in securing crude oil supplies.

Internal notes suggest that invoking insolvency procedures could offer legal protection and a path toward relaunching activities despite the embargo imposed by the U.S. Treasury’s Office of Foreign Assets Control (OFAC). The company aims to protect its remaining assets in hopes of either selling the refinery or operating once sanctions are lifted or modified.