SOUTH EAST EUROPE: Kazakhs from Rompetrol confirm: negotiating with Lukoil to buy Bulgarian refinery
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Kazakhstan’s national oil company, KazMunaiGas, is considering the possibility of acquiring the Bulgarian oil refinery Lukoil Neftohim Burgas AD, which belongs to the Russian company Lukoil, Kazinform news agency reports, confirming discussions that have already appeared in the press.
The Kazakh agency is the first to publish KazMunaiGas’ position on the matter.
“JSC NC KazMunaiGas has been invited by LUKOIL to participate in the tender for the acquisition of the Bulgarian LUKOIL Neftokhim Burgas refinery. The details are currently being discussed,” the company told the Kazakh agency.
“It was also noted that, given that KazMunaiGas owns two oil refineries in Romania – Vega and Petromidia (KMG’s share is 54.63%), this will expand the company’s capabilities on the international energy market,” the Kazakh agency writes.
This is the first time that one of the parties has confirmed discussions about this transaction.
A week ago, Bloomberg reported that Kazakhstan’s state oil company, KazMunayGas, which controls Rompetrol, had submitted a bid to buy Bulgaria’s Lukoil refinery, according to two people familiar with the negotiations.
The Kazakh company is discussing financing for the potential acquisition with Vitol Group, the world’s largest independent oil trader and a major player in Kazakhstan. The deal, valued at $1 billion, is expected to close within a month if the two sides reach an agreement.
Bloomberg also noted that, unlike other bidders, the Kazakhs would have an advantage – their crude oil would be a good match for the Bulgarian refinery.
“KazMunayGas is seeking support for its bid from the Bulgarian government, arguing that the refinery was designed to process Russian oil of similar quality to Kazakh crude,” our sources said. If its offer is accepted, the company says it will supply Kazakh oil to the refinery on the best possible terms, arguing that other companies that have previously shown interest cannot offer such a stable supply,” Bloomberg wrote.
