Moscow Oil Processing Plant may come to halt due to oil shortage

The Moscow Oil Processing Plant currently has oil left for two-three days of work, General Director of the plant Sergey Ilyin, who was elected by the Board of Directors on September 27 (the Board of Directors includes 6 representatives of Sibneft and 3 representatives of Tatneft), said in an address to the management of the Moscow Oil Company, which acts as an operator of the plant. According to the General Director, "the oil supplies confirmed by both parties will virtually be wiped out by October 22, 2002, and the plant has oil left for two-three days of work".

According to the General Director, the crisis (double management) that arose at the Moscow Oil Processing Plant, caused delays in oil supplies and may lead to a full stop of the entire plant in the near future. In view of this, Ilyin called on the representatives of the Moscow Oil Company, which manages the assets of one of the plant's shareholders, the Central Fuel Company, and the Moscow government to develop a compromise procedure of managing the plant and determine par oil supplies by all shareholders.

As it was reported earlier, two Boards of Directors are currently working at the Moscow Oil Processing Plant along with two General Directors who represent the interests of the Central Fuel Company, which holds a 38 percent stake in the plant's registered capital (51 percent of common shares), and Sibneft (37 percent of common shares) with Tatneft (around 10 percent of shares), which own a total of 56 percent of the plant's registered capital.