Lukoil could resume product shipments from Bulgarian refinery Monday
MOSCOW. Aug 1 (Interfax) - Russia's Lukoil could resume petroleum product shipments from its Burgas refinery today.
The company's press office told Interfax that the Sofia Administrative Court had suspended a ruling by the Bulgarian Customs Service to suspend a license to store fuel at the refinery.
"The Sofia court has suspended the decision to withdraw the license. The seals should be removed today, and the shipments should begin," the spokesman said.
The Burgas refinery should be operating at full capacity by the end of this week, he said.
As reported, the Bulgarian Customs Service on July 22 suspended the refinery's license to store fuel. The Burgas refinery is the biggest in the Balkans, encompassing the Rosenets oil terminal, and this meant the enterprise could not produce or sell fuel. The license was suspended because Lukoil had not established means to account for fuel as needed for the determination of the amount of excise. Expectations are that the refinery will halt operations July 29.
The Bulgarian agency Novinite, citing this decision, writes that the court had sufficient information available to demonstrate possible damages to the accused party, including damages not accruing to repair. Another deciding factor was the fact that Lukoil had contracts to supply diesel fuel to Holding Bulgarian State Railways EAD and Sofia Public Transport Company EAD. Furthermore, according to a letter from Bulgarian Aviation Group, there are no alternative sources of aviation fuel.
The Customs Service plans to contest the court's decision.
Lukoil Naftokhim Burgas supplies 100% of the fuel to Bulgaria's railways under a five-year contract clinched last year. Lukoil Aviation Bulgaria is the sole supplier of aviation kerosene to the airport in Sofia.
Lukoil Naftokhim Burgas has operated as a part of Lukoil since October of 1999. it has oil-refining and petrochemicals complexes and a plant that makes polymers. It is sited fifteen kilometers away from the Black Sea port of Burgas. Its designed refining capacity is 8.8 million tonnes per year.