Romania’s Petrotel refinery in Ploiești is preparing to enter insolvency proceedings as management seeks to preserve the industrial site and create conditions for a future restart.
The refinery has been offline since October 2025, initially stopping for planned maintenance. Although the overhaul was subsequently completed, operations have not resumed because of complications linked to US sanctions affecting Russian parent company Lukoil.
Before the shutdown, Petrotel accounted for approximately 21% of Romanian domestic fuel production and is currently the only one of the country’s four operating refinery sites that remains offline.
Management is presenting insolvency as a restructuring mechanism rather than preparation for liquidation. The objective is to create a more stable legal framework for dealing with creditors, suppliers and sanctions-related restrictions while keeping the refinery technically capable of restarting.
Preserving skilled staff, maintaining supplier relationships and protecting the refinery’s technical integrity are key priorities during the prolonged shutdown.
Romanian authorities have closely supervised the company since 12 February, when the government introduced enhanced oversight related to restrictions imposed on Lukoil. The appointed supervisor is tasked principally with ensuring compliance with measures connected to the US Treasury’s Office of Foreign Assets Control.
Both Petrotel management and the state-appointed supervisor continue to favour restarting production. Options under discussion with Romanian authorities include a future ownership change that could reduce sanctions-related obstacles.
Given the refinery’s previous contribution of roughly one-fifth of Romanian production, preserving the plant also has implications for national refining capacity and fuel-supply security.
