
The denouement of the story around the only oil refinery in the European Union, which is still owned by the Russian company – Lukoil – is close. It’s about Lukoil Neftohim, located in Bulgaria’s Burgas and being the biggest refinery in the country.The companies bidding to buy it, as DW has learned, will be named on January 20. On Lukoil’s website the Bulgarian NPZ is not mentioned in the foreign projects. Despite the sanctions, Lukoil continues to
manage a strategically important object, playing a key role in the energy supply of the region. The principal owner of the enterprise is the Litasco
company registered in Switzerland. A that Lukoil’s NPZ in Bulgaria may be sold because of “significant changes in the conditions of activity”, the Russian company declared as early as the end of 2023 year. The matter is that from March 2024 year Bulgaria stopped purchasing oil in Russia, which previously supplied up to 90% of the country’s energy carrier. In October 2024 year the speed sale
of the asset was announced by the then Minister of Finance Bulgaria Asen Vasiliev. According to a source DW in the Pro-European Coalition “Continuing Changes – Democratic Bulgaria.” which was involved in promoting the law about the possibility of establishing state control over the enterprise, Russia, obviously, is interested in selling the asset
exclusively to “its” investors. This is the reason that the possible possible bidders for Lukoil Neftohim are not mentioned big players like Shell or TotalEnergies. It is known that the Hungarian group MOL is a candidate for Lukoil Neftohim .Hungary Viktor Orban and Foreign Minister Peter Sijjarto. Of that MOL will try to get the
asset, Orban has said himself Orban. Bulgarian experts called MOL the favorite. But, about the content of his offer practically nothing is known. Teme temporarily on the arena went another one pretender. In early January about the intention to buy Lukoil
Neftohim was announced by Kazakhstan’s KazMunaiGaz. The company explained its interest by aiming to expand its presence in the international energy market. It already owns two refineries in Romania – Vega and Petromidia. According to Bloomberg data, the sum of the deal could could be about $1 billion, although no cash settlement is most likely not planned. Experts interviewed by DW suggest that the
deal may could include an asset swap. Director of Kazakhstan’s PACE Analytics Askar Ismailov believes that Lukoil could get a share in the Pavlodar Petrochemical plant. Financial analyst Rasul Rysmambetov predicts that “Lukoil” will be offered Atyrau NPZ. In addition, Media Media previously reported about interest in NPZ from the side of a number of Bulgarian players. They mentioned, in particular, the founder of Prista Oil Plamen Bobokov and the company Insa Oil. According to Data Financial Times, in the end of 2024 year Lukoil apparently requested the
approval of Vladimir Putin for the sale of the asset to the consortium Oryx Global of Katar businessman Ganim bin Saad al Saad and the British company DL Hudson. In addition, about the interest
in Lukoil Neftohim from the sides of Azerbaijani goscompany Socar said the Azerbaijani ambassador in Bulgaria Husein Huseynov. There were earlier fears that the process of selling Lukoil Neftohim could be complicated because of the political the instability caused by the forming of a new government in Bulgaria. The confirmation of the cabinet was only 17 January – three months after the parliamentary elections. The Bulgarian state owns the so called “golden share” Lukoil Neftohim. It guarantees access to determined information
about the activities of the plant, but does not grant the right to decisions affecting changes in property. In January 2023 the Parliament of the Country amended the legislation that, in theory, allows the business to be controlled in the case of a threat to national security,
public order and the supply of critical resources, implementing the mechanism of temporary management. The application of such a mechanism is not being discussed at the moment. “The government respects private private ownership – from this point of view the Bulgarian state cannot decide about the change of ownership
of the plant. – – announced in December temporary acting Minister of Energy Vladimir Malinov. – – But, considering the significance of the plant for national and energy security of the country, we are closely monitoring the process.” Before Lukoil operated in many European countries, though this direction has never
been a priority for the company. Even in 2014 year, after the annexation of Crimea by Russia, it became clear that this part of Lukoil’s business had no future. In 2014 year Lukoil sold 240 gasoline filling stations and six oil depots in Ukraine. Then the Russian company sold filling stations in the countries Baltia, Czech Republic, Slovakia, and Hungary. In 2017 year Lukoil withdrew from the capital of the country.Ukrainian plant Karpatneftekhim. The sale of assets in neighboring countries Lukoil shareholder Vagit Alekperov
explained “serious anti-Russian sentiment”. Nevertheless, at the beginning of the full-scale invasion of Russia in Ukraine Lukoil had saved business in the EU. Including, for example, the large NPZ ISAB in Sicily, which produced more than 20% of the gasoline consumed by Italy. The ban on maritime supplies of oil from Russia, implemented in December December 2022 year, paralyzed the operation of the enterprise. The authorities discussed the possibility of its nationalization, but
in the endLukoilfoundabuyerCyprus-basedG.O.I.Energy.ItalianmediasuspectedthatthiscompanycouldbeconnectedwithRussia,butitcould notbeproved.Lukoil still has assetsinRomaniaandMoldova.TimesRumorsoftheirsalearereported,butuntiltheyhavebeenconfirmed.Finally,along with theNPZinBurgastheRussiancompanycontinuestoownalargenetworkofgas stationsinBulgaria.According toBloomberg data,Lukoilwouldwanttogetabout$3,3bn-that ismorethanthreetimesmorethanhecouldreceiveforLukoilNeftohim.