Finland Times

An Estonian oil producer announced on Monday the closure of two plants due to dramatic fall of oil price in the world market and high cost of raw oil shale from state-owned mines.

The decision by Viru Chemistry Group (VKG), the second largest oil producer in Estonia, may lead to the dismissal of nearly 200 workers at those plants.

Eesti Energia, a state-owned oil company and Estonia's largest oil producer, has been dominating the sales price of oil shale from its mines, which is consumed by the VKG for its shale oil production.

The price of oil shale are two to five times higher than that of 2009, according to VKG chairman Priit Rohumaa.

VKG's decision to shut down two plants will cause a loss of about 15 million euros (18.75 million U.S. dollars) in tax revenue to the state, according to Rohumaa.

VKG, the largest oil shale re-processing company in Estonia, employs more than 2,300 people.