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Sibir Energy plans to invest over $250 mln in Moscow retail expansion

Sibir Energy PLC said it plans to invest more than $250 mln over the next five years to expand its retail fuels network to over 200 units in Moscow and the Moscow Region.

The investment, via Sibir’s downstream subsidiary Moscow Oil and Gas Co (MOGC), will be funded from internally generated cash resources. Under the plan, MOGC will build over 120 new MTK-branded petrol stations featuring modern fuelling facilities, convenience stores and car washes.

Additionally, 80 existing retail assets operating under the MTK and ‘Nefto’ brands will be consolidated under the MTK brand. The expanded and upgraded network is expected to sell over 1.5 billion liters of motor fuels a year and result in one of the largest networks of convenience stores in the region, Sibir said. MOGC will rationalize its fuels storage and distribution network, closing a number of terminals and upgrading strategic facilities. (petrolplaza)