Croatia: Lukoil to withdraw from Croatian market

, SEE Energy News

According to Croatian media, Russian oil company Lukoil has terminated the lease of storage capacity at JANAF’s oil terminal in Omisalj. The company was supplied from its refinery in Sicily, Italy and oil terminal in Omisalj was used as a sort of regional hub.

This decision leaves room for speculations whether Lukoil is leaving the Croatian fuel market. The company leased 10,000 cubic meters of diesel storage capacity and it currently operates 52 petrol stations (about 30 in ownership, the rest in franchise) in Croatia and has 396 employees.

In the past five years, the company recorded losses in Croatia, its revenues showed a downwards trend and the termination of oil storage capacity lease contract could be the drop that spilled the cup. According to its new strategy, the company will seize operation in several European countries and the former CEO of Lukoil Croatia previously said that the company is considering leaving the Croatian market.