Bulgaria, Nationalization of Lukoil’s refinery is not planned

, SEE Energy News

Bulgarian caretaker Minister of Energy Rossen Hristov said that the nationalization of Lukoil’s refinery in Burgas is not planned as there are many better options for the refinery.

Minister Hristov said that, in case Lukoil is unable to continue production at the refinery, a much better option than nationalization would be to find a suitable buyer for it.

He pointed out that work was underway to resume the oil pipeline project between Burgas and Alexandroupoli in Greece to secure alternative oil supplies, but it would take years. He insisted on finding solutions to keep the refinery running, adding that in order to have affordable fuel in Bulgaria, Burgas refinery must work.

Earlier this week, it was announced that, as of 1 January 2023, Lukoil Neftochim Burgas and Lukoil Bulgaria will move their business, revenues and taxes to Bulgaria from the Netherlands and Switzerland. Namely, Lukoil has agreed to start paying its taxes in Bulgaria on condition that it is allowed to keep processing predominantly Russian oil and export its petroleum products. Lukoil officials said that if the export of petroleum products is restricted, the company may consider closing the refinery.