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News	Kokel, Nicolas Burgas Refinery 2025/05/05 01:04 PM Lukoil Considers Sale of Bulgaria’s Burgas Refinery Amid Sanctions and Market Shifts View Main Message Lukoil Neftohim Burgas Oil Refinery May 5, 2025 -- Russia’s Lukoil is actively exploring the sale of its Burgas refinery, Bulgaria’s largest and only operational oil refinery, as mounting sanctions, new Bulgarian regulations, and shifting crude oil supply dynamics reshape the country’s energy landscape. The 190,000 barrel-per-day facility, officially known as Lukoil Neftochim Burgas, has been a cornerstone of Bulgaria’s fuel supply since Lukoil acquired it in 1999. Now, the company is seeking to exit under growing economic and political pressure. The push to sell comes after Bulgaria banned the use of Russian crude in March 2024 and imposed a 60% tax on the refinery’s profits, a rate that will only drop to 15% if the asset is sold to a non-Russian owner. The European Union’s broader sanctions against Russia over the war in Ukraine have further complicated Lukoil’s position, forcing the refinery to pivot to Kazakh, Middle Eastern, and other non-Russian oil sources. These changes have squeezed margins and made continued Russian ownership increasingly untenable. Lukoil has confirmed it is reviewing its Bulgarian strategy with the help of international consultants and is considering various options, including a full sale of its Bulgarian business. Several potential buyers have emerged. Kazakhstan’s state oil company KazMunayGas has publicly confirmed its interest, reportedly offering around $1 billion for the refinery. The company already supplies about 40% of the crude processed at Burgas and owns significant refining assets in Romania, making the acquisition a strategic fit. Hungary’s MOL Group and a Qatari-British consortium led by Oryx Global and DL Hudson have also been reported as bidders, though Lukoil has denied that any deal is finalized. The refinery’s strategic location on the Black Sea, with access to the Rosenets port, makes it a valuable asset for regional fuel supply and export. However, the combination of sanctions, a ban on Russian crude, and new tax burdens have weighed on its valuation and complicated negotiations. Analysts note that while the reported $1 billion price tag is below some comparable deals, the regulatory environment and need for further modernization-estimated at €500 million-are likely factors in the discounted value. As of May 2025, the sale process is ongoing, with binding offers accepted but no final agreement announced. #lukoil #burgas #bulgaria #molgroup #kazmunaygas #oilrefinery #russiancrude #ural
News	Kokel, Nicolas Reliance Ltd. 2024/12/14 08:47 AM Rosneft and Indian company Reliance sign record Russian oil supply contract. View Main Message Photo: Russian crude oil tanker. Credit: Defense.in 13^th Dec2024 \| News aggregation Russian state oil company Rosneft has signed a landmark 10-year agreement to supply 500,000 barrels of crude oil per day to India's Reliance Industries (RIL), marking the largest energy deal ever between the two countries. The agreement, valued at approximately $13 billion annually at current prices, represents 0.5% of global oil supply. Under the terms of the deal, Rosneft will deliver 20-21 Aframax-sized cargoes of various Russian crude grades and three cargoes of fuel oil monthly to Reliance's Jamnagar refining complex, the world's largest, in Gujarat. The supplies are scheduled to begin in January, with an option to extend the agreement for an additional 10 years. The pricing structure includes differentials to Dubai crude prices, with Russian Urals crude, which makes up the majority of the supply, to be priced at a $3 per barrel discount. Light sweet grades like ESPO, Sokol, and Siberian Light will carry premiums ranging from $1 to $2 per barrel. This agreement significantly expands the existing relationship between the two companies. From January to October, Reliance had been importing an average of 405,000 barrels per day of Russian oil, an increase from 388,500 barrels per day during the same period last year. The new arrangement will account for approximately half of Rosneft's seaborne oil exports from Russian ports. The deal was approved during Rosneft's board meeting in November and both companies will conduct annual reviews of pricing and volumes to account for market dynamics. #russia #india #rosneft #reliance #jamnager #refinery #urals #crudeoil #espo #sokol

Kokel, Nicolas

Burgas Refinery

2025/05/05 01:04 PM

Lukoil Considers Sale of Bulgaria’s Burgas Refinery Amid Sanctions and Market Shifts

Lukoil Neftohim Burgas Oil Refinery

May 5, 2025 -- Russia’s Lukoil is actively exploring the sale of its Burgas refinery, Bulgaria’s largest and only operational oil refinery, as mounting sanctions, new Bulgarian regulations, and shifting crude oil supply dynamics reshape the country’s energy landscape. The 190,000 barrel-per-day facility, officially known as Lukoil Neftochim Burgas, has been a cornerstone of Bulgaria’s fuel supply since Lukoil acquired it in 1999. Now, the company is seeking to exit under growing economic and political pressure.

The push to sell comes after Bulgaria banned the use of Russian crude in March 2024 and imposed a 60% tax on the refinery’s profits, a rate that will only drop to 15% if the asset is sold to a non-Russian owner. The European Union’s broader sanctions against Russia over the war in Ukraine have further complicated Lukoil’s position, forcing the refinery to pivot to Kazakh, Middle Eastern, and other non-Russian oil sources. These changes have squeezed margins and made continued Russian ownership increasingly untenable.

Lukoil has confirmed it is reviewing its Bulgarian strategy with the help of international consultants and is considering various options, including a full sale of its Bulgarian business. Several potential buyers have emerged. Kazakhstan’s state oil company KazMunayGas has publicly confirmed its interest, reportedly offering around $1 billion for the refinery. The company already supplies about 40% of the crude processed at Burgas and owns significant refining assets in Romania, making the acquisition a strategic fit. Hungary’s MOL Group and a Qatari-British consortium led by Oryx Global and DL Hudson have also been reported as bidders, though Lukoil has denied that any deal is finalized.

The refinery’s strategic location on the Black Sea, with access to the Rosenets port, makes it a valuable asset for regional fuel supply and export. However, the combination of sanctions, a ban on Russian crude, and new tax burdens have weighed on its valuation and complicated negotiations. Analysts note that while the reported $1 billion price tag is below some comparable deals, the regulatory environment and need for further modernization-estimated at €500 million-are likely factors in the discounted value.

As of May 2025, the sale process is ongoing, with binding offers accepted but no final agreement announced.

#lukoil #burgas #bulgaria #molgroup #kazmunaygas #oilrefinery #russiancrude #ural

Kokel, Nicolas

Reliance Ltd.

2024/12/14 08:47 AM

Rosneft and Indian company Reliance sign record Russian oil supply contract.

Photo: Russian crude oil tanker. Credit: Defense.in

13^th Dec2024 | News aggregation

Russian state oil company Rosneft has signed a landmark 10-year agreement to supply 500,000 barrels of crude oil per day to India's Reliance Industries (RIL), marking the largest energy deal ever between the two countries. The agreement, valued at approximately $13 billion annually at current prices, represents 0.5% of global oil supply.

Under the terms of the deal, Rosneft will deliver 20-21 Aframax-sized cargoes of various Russian crude grades and three cargoes of fuel oil monthly to Reliance's Jamnagar refining complex, the world's largest, in Gujarat. The supplies are scheduled to begin in January, with an option to extend the agreement for an additional 10 years.

The pricing structure includes differentials to Dubai crude prices, with Russian Urals crude, which makes up the majority of the supply, to be priced at a $3 per barrel discount. Light sweet grades like ESPO, Sokol, and Siberian Light will carry premiums ranging from $1 to $2 per barrel.

This agreement significantly expands the existing relationship between the two companies. From January to October, Reliance had been importing an average of 405,000 barrels per day of Russian oil, an increase from 388,500 barrels per day during the same period last year. The new arrangement will account for approximately half of Rosneft's seaborne oil exports from Russian ports.

The deal was approved during Rosneft's board meeting in November and both companies will conduct annual reviews of pricing and volumes to account for market dynamics.

#russia #india #rosneft #reliance #jamnager #refinery #urals #crudeoil #espo #sokol

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