Galychyna Refinery Stops For Repairs

The company stopped production on August 12, for a capacity overhaul that will take ~40 days. The measures will allow the refinery to increase output of light oil products (hydrocarbons refined from oil other than oil fuel) by 1.5% – 2%. Overall, Galychyna refinery plans to invest ~USD 20 mln in CapEx in 2005. Concorde Capital: Given that the Kherson and Odesa refineries already stopped for repairs, idling of the three out of seven Ukraine?s refineries may create a shortage of oil products on the market, which will further raise prices. This is positive for Galnaftogaz (GLNG: BUY), which is able to purchase oil products abroad, and Ukrnafta (UNAF: HOLD), which receives oil products under a tolling agreement from the Naftokhimyk Prykarpattya refinery.