Bulgaria can take over Lukoil refinery in case of emergency

, SEE Energy News

The Bulgarian Parliament adopted the amendments to the Act on administrative regulation of economic activities, related to crude oil and petroleum products. According to the amendments, the state can take operational control of Lukoil’s Burgas refinery in case of emergency.

Under the amended law, critical and strategic infrastructure sites which are crucial to national energy security, intended for the production, processing, treatment, storage and transportation of oil, including through pipelines, are subject to supervision by the Ministry of Economy.

Also, in the event of a threat to national security, abuse of monopoly position or international restrictive measures imposed, the state will be able to take over the operational control of the company by appointing a special representative to manage it.

The conditions to be fulfilled by the special manager are listed, including that they must have at least five years of professional management experience in economic activities related to oil and petroleum products.

The powers of the special manager are also explicitly set out: to take charge of the operational management of critical infrastructure, to take action to remedy breaches identified by the advisory board and to take action to safeguard the assets. The special manager shall not dispose of or alienate any of the company’s assets or incur any financial obligations except in the ordinary course of management and ordinary business.

Delyan Dobrev of GERB-UDF explained that these amendments provide a mechanism where if Lukoil decides to close the refinery, a special manager can be appointed without taking away ownership. He added that the company remains the property of the private investor, but the aim is to ensure the security of fuel supply in Bulgaria.

Sign up for updates & special reports