Lukoil, a Russian oil company, ramped up its imports of Kazakhstani oil for its refinery in Bulgaria due to a ban on purchasing Russian oil. In May 2024, Kazakhstan became the primary oil supplier to Bulgaria, with Lukoil Neftohim Burgas receiving about 80,400 barrels per day of Kazakhstani high-sulfur Kebco and CPC Blend, an eightfold increase from January.
In May, the refinery's total intake reached 130,000 barrels per day, the highest monthly rate since the beginning of the year. The refinery has a processing capacity of 195,000 barrels per day. Besides Kazakhstan, oil supplies also came from Iraq (42,100 barrels per day) and Libya (29,100 barrels per day). Additionally, the refinery obtained 34,400 barrels per day of medium sour crude from Norway’s Johan Sverdrup oil field in April.
Lukoil stopped supplying oil to the refinery at the start of 2024. Although the EU allowed Bulgaria to continue buying oil from Russia until the end of the year, Bulgarian legislation enacted in late 2023 prohibited the import of Russian oil starting March 1.
In October 2023, Bulgaria's Ministry of Finance imposed a 60% tax on the refinery, which would be reduced to 15% if the refinery were sold to an international entity. Lukoil Neftohim Burgas, acquired by Lukoil in 1999, is Bulgaria's sole major oil refinery, with $3.4 bn invested since the acquisition. The refinery produces vehicle fuels, liquified hydrocarbon gas, and polymers. Lukoil also operates 220 gas stations, nine oil depots, and maritime and aviation bunkering operations in Bulgaria.
Experts suggested that selling the refinery is probable, though complicated, as potential buyers might seek significant discounts. Lukoil could face challenges in retrieving the funds post-sale. In late 2023, Azerbaijani Ambassador to Bulgaria Huseyn Huseynov expressed Azerbaijan's willingness to consider purchasing the refinery if an offer was made. American Aecus, led by Greek businessman Dimitrios Dotsios, also showed interest, as reported by Intelligence Online. Lukoil has not excluded the possibility of selling the refinery.
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