According to dealers and LSEG data in January Bulgaria will replace the import of Russian oil with crude oil from Kazakhstan, Iraq and Tunisia.
This was revealed by Reuters.
Bulgaria has derogation from the European Union embargowhich allows it to continue importing Russian oil by sea in 2024.
But Sofia has restricted exports of all refined products made from Russian crude starting this month, making it nearly impossible for its only refinery to run on Russian oil, and decided to stop all imports of Russian crude from March.
Bulgaria buys oil to power its refinery in Burgas, which has a capacity of 190,000 barrels per day and is operated by the Russian company Lukoil. In 2023, Bulgaria is the fourth largest buyer of Russian oil by sea, purchasing over 100,000 barrels per day.
But this month to the port of Burgas will not reach oil from Russia. Since Lukoil is no longer able to supply the Burgas refinery with its own Urals oil, it has to use oil from other sources, raising the refinery’s costs.
The profitability of the plant is also affected by the regulations imposed by the Bulgarian government a 60% tax on refinery profits.
According to LSEG data, so far in January Burgas is due to receive two cargoes of 70,000 tons of KEBCO crude oil from Kazakhstan, one cargo of 76,000 tons of Basrah Light, one cargo of 50,000 tons of CPC Blend and 33,000 tons of oil from Tunisia.
75% of the oil in “Lukoil Neftohim” is still Russian
Checks on payments to the state for Russian oil continue
KEBCO, a Kazakh grade exported from Russian ports with the same quality as Urals, is the most likely substitute for Russian oil in Bulgaria, traders say, adding that its supply is limited and its price is significantly higher than Urals .
Oil exports from the Iraqi Kurdistan region are discontinued since spring of last year.
Lukoil stated that they are reviewing their strategy regarding the assets in Bulgaria and will consider the possibility of selling them.
Lukoil has been under pressure in recent months, categorical Nikola Stoyanov
He does not rule out an increase in fuel prices
“Lukoil” and the Ministry of Economy and Industry of Bulgaria did not respond to requests for comment.
2024-01-12 21:49:42
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