Russian firm Lukoil is reportedly planning to invest more than $60m over the next three years in its ISAB refinery on the Italian island of Sicily, as part of its modernisation plans.
Citing Lukoil first deputy CEO Vadim Vorobyov, Reuters reported that the investment will be used to build two hydrotreater projects to improve the quality of fuel produced at the refinery.
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Following the completion of the modernisation, the 320,000bpd ISAB refinery will be able to produce Euro V grade diesel.
Euro standards are designed to impose limits on the permissible levels of sulphur and other chemicals in fuels to regulate pollutants from automobiles.
Lukoil took full ownership of the refinery after purchasing the remaining 20% interest from Italian company ERG in 2014 in a $550m transaction. Lukoil and ERG signed an agreement in 2008 to set up a joint venture to operate the ISAB complex.
The refinery processes a range of products, including diesel, gasoil, gasoline, virgin naphtha, liquefied petroleum gas (LPG), jet fuel and petrochemicals.
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By GlobalDataThe ISAB complex contains two refineries connected by a pipeline with a total annual capacity of 16 million tonnes.
Other facilities include storage tanks with a capacity of 3,700 thousand cubic metres and three marine terminals.
In September 2017, the news agency reported that Lukoil was seeking buyers for the ISAB refinery as part of a review of its overseas operations.
An Interfax report quoted a State Oil Company of the Azerbaijani Republic (SOCAR) official as saying the company is interested in the refinery.
However, Vorobyov told Reuters that Lukoil is not looking to sell the asset for now.
