The Lukoil refinery in burgas, one of Bulgaria’s moast significant industrial assets, has temporarily halted operations for planned repairs, sparking a heated debate about its future ownership. delyan Peevski, a prominent political figure, has called for the Bulgarian state to purchase the refinery, emphasizing its strategic importance. Peevski stated, “There are a lot of problems there. Lukoil goes out in planned repairs, it will stop for a few months. Let’s see if there will be fuels for the market. Here the state has to intervene promptly to check if there are enough stocks, what happens, what happens, Isn’t this a provocation again from Russia to us – to stop Lukoil before they sell it to someone, I hope not to a faded person.”
The refinery, which generated BGN 8.6 billion in revenue in 2023, is the highest-revenue company in Bulgaria, marking a nearly fourfold increase from the previous year. Its profits also surged from BGN 129.5 million in 2022 to BGN 203 million in 2023. Additionally, Lukoil’s fuel trade operations contributed BGN 6.3 billion in revenue and BGN 128.2 million in profit.
Peevski’s proposal for state acquisition has faced opposition from political rivals. The “We Continue the Change” party expressed concerns that nationalization could serve Peevski’s personal interests. Nikoli Denkov, co-chairman of the party, remarked, “What he wants is without listening to the commissions, without discussing in plenary, to immediately proceed with Lukoil. Imagine taking 3 MD. Despite all the talk of holes in the budget, then we buy lukoil to fall into the hands of Peevski, and maybe of a minister of energy, who has a family business under the Lukoil brand.”
Simultaneously occurring, GERB leader Boyko Borisov accused the PP-DB coalition of inflating fuel prices, claiming, “The checks showed us that every day the PP and the DB were stealing Bulgarians from income with 1 levs of gasoline and oil. Many billions stolen.” Though, PP co-chairman kiril Petkov dismissed these allegations, stating, “Obviously gasoline and diesel will fall with BGN 1 today. We listened to Mr. Borisov today. Delyan’s lion will go down all gas stations and will be able to buy cheap fuel.”
The Sword Party has also advocated for state ownership of Lukoil, proposing that Bulgaria regain control of this strategic asset. Party leader Radostin Vasilev argued, “The goal is for Bulgaria to regain possession of a strategic site of national security.” He added that their proposal would ensure billions of levs in annual revenue and stabilize fuel prices, guaranteeing that “the fuel will not be BGN 3.50 or BGN 4.”
As the debate intensifies,the future of the Lukoil refinery remains uncertain. With potential buyers like Hungary’s MOL and Kazakhstan’s KazMunayGas in the mix, the Bulgarian government faces a critical decision that could reshape the country’s energy landscape.
Key Financial Highlights of Lukoil Neftochim Burgas (2022-2023)
| Metric | 2022 | 2023 |
|———————|——————-|——————-|
| Revenue | BGN 2.2 billion | BGN 8.6 billion |
| Profit | BGN 129.5 million| BGN 203 million |
| Fuel Trade Revenue | BGN 6.3 billion | BGN 6.3 billion |
| Fuel Trade Profit | BGN 128.2 million| BGN 128.2 million|
The stakes are high,and the outcome will undoubtedly impact Bulgaria’s energy security,economy,and political dynamics. As the nation grapples with this pivotal decision, one thing is clear: the Lukoil refinery is more than just an industrial asset—it’s a cornerstone of Bulgaria’s future.
