(MENAFN- Trend News Agency) BAKU, Azerbaijan, March 7. The suspension of
supplies of Russian oil to the Lukoil refinery in Burgas from March
2024 does not mean the company's losing the opportunity to supply
this refinery with raw materials, a source familiar with the matter
told Trend .
“The refinery still belongs to Lukoil, and its trading structure
Litasco has simply stopped supplying oil of Russian origin to this
plant since March but supplies oil from other countries, in
particular Iraq, Tunisia, and Kazakhstan. No one except Litasco“It
does not have the right to supply this refinery with oil,” the
source noted.
Back in December 2023, the Bulgarian Parliament unanimously
approved laws restricting the export of gasoline derived from
Russian oil beginning January 1, 2024. Furthermore, the law
stipulated that the processing of Russian-origin oil at the Lukoil
refinery (the only large refinery in Bulgaria) in Burgas would end
on March 1, 2024.
Besides, in December of last year, Lukoil announced plans to
reconsider its business in Bulgaria "due to political decisions by
the Bulgarian leadership."
"Lukoil has been investing in Bulgaria for over 20 years, with
its investments in the refinery in Burgas exceeding $3.4 billion,
making it the largest enterprise in the region. The company has
established 220 gas stations and nine oil depots in the country.
Our potential strategy review is related to political decisions,"
noted the company's statement.
The oil processing capacity of the Burgas refinery exceeds
eight-nine million tons per year, producing a full range of
petroleum products and serving as the main fuel supplier for the
Bulgarian market.
"Bulgaria is seeking buyers for the Burgas refinery on the Black
Sea, but there are no clear conditions. Currently, no company can
guarantee uninterrupted oil supply to this plant and is not ready
to purchase it," emphasized the source.
Regarding the prospects of supplying oil to the Burgas refinery
from SOCAR Trading, an affiliate of the State Oil Company of
Azerbaijan (SOCAR), the source mentioned that although SOCAR has
been operating in Bulgaria for almost a year, it holds a 10-year
license only for gas trading, not oil.
"Litasco holds the monopoly right for the Burgas refinery. As
for SOCAR Trading, it can sell gas to consumers in Bulgaria from
various sources, including Azerbaijan," explained the source.
Bulgaria considers SOCAR as one of the potential buyers for the
Burgas refinery, but the Azerbaijani side is concerned about the
complex logistics involved.
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