Lukoil planning to sell oil refinery in Bulgaria to Qatari-British consortium - FT

MOSCOW. Nov 6 (Interfax) - Lukoil plans to sell an oil refinery in Bulgaria to a Qatari-British consortium by the end of the year, the Financial Times said, citing sources.

Lukoil selected a consortium made up of Oryx Global, which is controlled by Qatari businessman Ghanim Bin Saad Al Saad, and London-based commodities trading house DL Hudson, the Financial Times said.

Oryx declined to comment. DL Hudson did not respond to a request for comment.

The ban on Russian oil imports to the EU has complicated Lukoil's operations in Bulgaria.

The company began operating in Bulgaria in October 1999 when it became the owner of a controlling share in the refinery at Burgas, which has a capacity of 8.8 million tonnes a year. The company also manages a network of more than 500 filling stations in Bulgaria.

Bulgaria and several other EU countries are exempt from the ban on importing Russian oil until the end of 2024. However, the government decided to give up using Russian raw materials in March 2024. A ban on exporting petroleum products produced using Russian oil has been in force since January 2024. Bulgaria recently introduced a 60% tax on profit for the Burgas refinery. It will be reduced to 15% only after the asset is sold. A 500 million euro modernization of the enterprise is due to be carried out so that the facility can refine lighter grades of non-Russian oil.

Lukoil has begun reexamining its strategy for the operations of the group's enterprises in Bulgaria in view of the significant changes to conditions, the company said. "We will analyze various options with the help of international consultants, including selling the business," it said.