Azerbaijan Open to Potential Acquisition of Lukoil Neftohim Burgas

Azerbaijan's Ambassador to Bulgaria, Huseyn Huseynov, conveyed in an interview with "Euronews Bulgaria" that Azerbaijan remains receptive to considering the acquisition of Bulgaria's Lukoil Neftohim Burgas oil refinery. However, as of now, there has been no concrete proposal put forth for consideration, as stated by the Ambassador. His remarks have been echoed in various media outlets in Azerbaijan, Russia, and Ukraine in recent days.

Despite the establishment of an office by the Azerbaijani state oil company SOCAR in Sofia earlier this year, Ambassador Huseynov emphasized the necessity for a specific proposal from Sofia, detailing terms and conditions, for earnest consideration by SOKAR and the Azerbaijani state.

The context of this prospective acquisition stems from Bulgaria's decision to gradually limit Russian oil imports. This legislative move by the Bulgarian parliament aims to reduce Russian crude utilization in the Lukoil refinery to 80% by the close of 2023, followed by a complete cessation in October 2024. Additionally, Bulgaria has imposed a 60% tax on profits for the Burgas refinery, offering a reduction to 15% post-asset sale.

Finance Minister Asen Vassilev had previously disclosed Lukoil Neftohim's intent to sell its largest Southeast European refinery situated in Burgas. Notably, the refinery necessitates an investment of 500 million euros for modernization, particularly to process lighter non-Russian oil varieties.

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