PRAGUE (Tx21.Com.Cn news)--A further phase of petrochemical expansion at Unipetrol could be complicated by an announcement from Russia's Lukoil that it is eyeing a stake in refiner Ceska Rafinerska, a source at the Czech company said on Friday.

Unipetrol hopes to obtain more petrochemical feedstock rights for its Unipetrol RPA Litvinov production complex by negotiating the purchase of Shell Overseas Investment's 16.33% stake in the refiner, should it decide to sell.

However, Lukoil has announced that its business strategy now includes the objective of buying into a Czech refinery.

“This could become an obstacle, but we'll continue to pursue our own interest, especially as we have a first right of refusal on the shares,” said the Unipetrol source.

Unipetrol holds 51.23% of Ceska Rafinerska. Italy's Eni also owns 32.44%. Lukoil could conceivably overcome Unipetrol's right of refusal on the Shell shares by offering a higher price.

The current Unipetrol RPA Litvinov 2007-2010 three-year expansion plan is to increase ethylene capacity from 485,000 tonnes/year to 545,000 tonnes/year, polypropylene capacity from 204,000 tonnes/year to 285,000 tonnes/year and high-density polyethylene (hdPE) capacity from 280,000 tonnes/year to 330,000 tonnes/year.

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