Russia’s second-largest oil producer, Lukoil, is planning to generate approximately $2 billion from the sale of its Burgas oil refinery in Bulgaria, according to a report by the RIA news agency. The report, which was released late on Thursday, cites statements made by Bulgaria’s Prime Minister, Rosen Zhelyazkov.
When approached for clarification or comment on the matter, Lukoil did not provide an immediate response.The company has been facing increasing pressure to divest from the 190,000-barrels-per-day (bpd) refinery due to ongoing international sanctions imposed on Russia as a result of the conflict in Ukraine.
Bulgaria has taken steps to reduce its reliance on Russian oil, ceasing imports of Russian crude and implementing strict regulations on the export of refined products derived from Russian crude at its only refinery. Additionally, the Bulgarian government has introduced a significant tax measure, imposing a 60% levy on the refinery’s profits.
Lukoil has acknowledged that it is reassessing its strategic approach concerning its assets in Bulgaria. In November, Litasco, the company’s trading division, announced that it was working alongside independent advisors to explore various options, including potential deals with several established market participants.
In 2023, Bulgaria ranked as the fourth-largest purchaser of seaborne Russian oil, acquiring more than 100,000 barrels per day.More recently, Kazakhstan’s state-owned oil and gas company, KazMunayGaz, disclosed that Lukoil had extended an invitation for it to participate in the tender process to acquire the Burgas refinery. Additionally, Hungarian oil and gas conglomerate MOL has confirmed its submission of a bid for the facility.
Hungarian Prime Minister Viktor Orban has stated that MOL is among seven companies vying for ownership of the refinery.
