Teboil’s crisis|Many Teboils may become Seo if merchants are able to break away from current contracts. “Let’s try to get as many as possible from this group into our own camp,” says the CEO.
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Energy cooperative Seo is negotiating with independent Teboil dealers about moving the stations under the Seo flag.
Teboil is in crisis after the US imposed sanctions on its Russian parent company Lukoil, and the chain is starting to wind down its operations.
Arto Viljanen, the CEO of Seo, says that things are progressing, but it is not simple for merchants to leave Teboil because of the contracts.
The transition period for the sanctions will end on Friday of next week, after which they will kick in full force.
Finnish energy cooperative, or Seo, confirms that it is negotiating with independent Teboil dealers about moving the stations under its own banner.
“If this is generally characterized, then things are progressing and are strongly under work. If for individual trading places [siirtymiä] arises, then we won’t make them public, but probably at some point we will voluntarily inform what we have accomplished”, says Seo’s CEO Arto Viljanen HS:lle.
Teboil is in crisis because the United States imposed sanctions on its Russian parent company Lukoil. Teboil’s fuel and money taps have stopped, and the chain has started downsizing of its operations.
That’s why some traders are looking for a way to move under another brand.
“Let’s try to get as many as possible from this group into our own camp,” says Viljanen.
HS already told at the end of Octoberthat Seo is interested in negotiating with independent Teboil gas station dealers.
I was boiling the agreements made with keep some traders stuck in the current situation.
“It is noticeable that the separation from Teboil is not as simple as you would imagine it to be. If the transition was easier, it would have happened more,” believes Viljanen.
In addition to breaking contracts, jumping requires, in Viljanen’s words, “will and courage”. Seo itself has not negotiated the transfer of marketplaces directly with the main company Oy Teboil Ab.
In sanctions so far there has been a transition period that ends on Friday of next week. Then they will hit full force and will be the last straw for Teboil, unless the ownership of the oil company Lukoil is reorganized or the United States changes its policy.
The Reuters news agency reported on Thursday that the US capital investment giant Carlyle is investigating the possibility of buying Lukoil’s overseas holdings.
According to Viljanen, the Teboil dealers who are leaving are in a hurry to leave, but there has been no sign of panic from the contacts. Traders carefully weigh the options.
If Seo’s ticket is impounded, will the station receive fuel delivery right away?
“At the same time, it is exaggerated, but of course we can deliver it with a fairly quick schedule.”
In Finland, there are also places where Seo and Teboil are close to each other, in which case the cooperative does not see it as meaningful to establish another store right next to it.
Provided Teboil would disappear from the map, according to Viljanen, Finland would be left with three large chains: Neste, St1 and Abc. After them is Seo.
At the beginning of last year, there were 171 Seo stations and 80 Teboils, when only occupied positions are taken into account. The figures appear From the transport service industry industry report.
Viljanen believes that, looking at “pure mathematics”, the chain can increase its market share or even double it.
“It gives opportunities, but nothing is obvious.”
According to Utissuomalainen Teboil traders have also called in the direction of the S group, i.e. in practice the ABC chain.