Hungary's MOL bids for Bulgaria's largest oil refinery
The Hungarian oil company MOL has submitted an offer to purchase the largest refinery in Bulgaria, located near the port of Burgas. The Neftohim Burgas refinery, owned by Russian Lukoil, plays a crucial role in the Balkans' fuel market. MOL is one of seven bidders and the only one representing the EU.
The Neftohim Burgas refinery is Bulgaria's largest industrial facility and the Balkans's largest refinery. Until now, it has been controlled by Russian Lukoil, which holds a 99 percent stake. However, the company faces operational difficulties due to the legal blockade on importing and processing Russian oil in Bulgaria.
Bulgaria, the first EU country, banned the import of Russian raw materials starting in 2024, significantly restricting Lukoil's operations in the region. The plant now processes oil from Kazakhstan (CPC Blend) and Norway.
During a press conference, Hungarian Prime Minister Viktor Orban confirmed that MOL is participating in the tender to buy the refinery. If the Hungarian company becomes the plant's new owner, it will have to comply with Bulgarian regulations that exclude processing Russian oil. Currently, MOL uses Russian raw materials, which may pose a challenge under the new operational rules at the Burgas refinery.
The buyer must commit to the Russian oil import ban
The refinery in Burgas is a key supplier of fuel and petroleum products in Bulgaria. Its future owner will need approval from the Bulgarian government to operate and commit to the ban on importing and processing Russian oil.
Six other companies have expressed interest in acquiring the refinery, in addition to MOL. If MOL succeeds in closing the transaction, entering the Balkan market could be a significant step in expanding its international activities.
