Petrotel refinery in Ploiești is preparing to enter insolvency proceedings, with management saying the process is aimed at preserving the industrial site and creating conditions for a future restart. The refinery is linked to Russian parent Lukoil, and restart efforts are tied to complications related to US sanctions. The company has been offline since October 2025.
Shutdown timeline and sanctions-linked restart constraints
The plant initially stopped in October 2025 for planned maintenance. After the overhaul was completed, operations did not resume due to issues associated with US sanctions affecting Lukoil. Prior to the shutdown, Petrotel accounted for approximately 21% of Romanian domestic fuel production. It is currently the only one of Romania’s four operating refinery sites that remains offline.
Insolvency framed as restructuring rather than liquidation
Management is presenting insolvency as a restructuring mechanism rather than preparation for liquidation. The stated objective is to establish a more stable legal framework for dealing with creditors and suppliers while addressing sanctions-related restrictions. At the same time, the refinery is intended to remain technically capable of restarting. Preserving skilled staff, maintaining supplier relationships and protecting technical integrity are described as key priorities during the prolonged shutdown.
Romanian oversight and compliance role for appointed supervisor
Romanian authorities have supervised the company closely since 12 February, when enhanced oversight was introduced in connection with restrictions imposed on Lukoil. A state-appointed supervisor has been tasked principally with ensuring compliance with measures connected to the US Treasury’s Office of Foreign Assets Control. Both Petrotel management and the appointed supervisor continue to favour restarting production.
Options discussed with Romanian authorities include a potential future ownership change intended to reduce sanctions-related obstacles. With Petrotel previously contributing roughly one-fifth of Romanian production, preserving the plant is also relevant for national refining capacity and fuel-supply security.
