Lukoil's refinery in Burgas sees difficulties substituting Russian oil

MOSCOW. May 5 (Interfax) - Lukoil's oil refinery in Burgas, Bulgaria, sees difficulties with fully switching to non-Russian oil, the local BTV television channel quoted a representative of Lukoil Bulgaria as saying.

The company said the refinery was designed to process Russian Urals crude and did not currently have any real alternatives. It would be technically possible to refine oil from the Middle East and North Africa, but that would reduce the refinery's capacity, and Lukoil Bulgaria has not attempted to raise the share of "non-standard" crude above 50% due to technological constraints.

Lukoil said logistics from Russia, as the nearest point, were the easiest to predict, given that the company receives oil tankers every three or four days. A tanker from the Middle East, for example, would take 25-30 days, and it is much harder to ensure its timely arrival. In addition, more complex logistics will push the cost of the crude up.

The company said 63% of the crude refined in Burgas in Q1 2022 was of Russian origin. Only Russian crude is being refined at present as market supply of alternative blends is very limited due to heightened demand for those blends caused by the possibility of an embargo on Russian oil.

BTV quoted Bulgaria's finance minister as saying 50% of the crude being refined at Burgas was of non-Russian origin.