Hungarian firm MOL bids for Bulgarian refinery giant Lukoil
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 Russia's Lukoil, plays a key role in the Balkan fuel market. MOL is one of seven bidders and the only one representing the EU.
The Neftohim Burgas refinery is the largest industrial plant in Bulgaria and, concurrently, the largest refinery in the Balkans. Until now, it has been controlled by Russia's Lukoil, which owns 99 per cent of the shares. However, the company is facing 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 crude in 2024, significantly limiting Lukoil's operations in the region. The plant processes oil from Kazakhstan (CPC Blend) and Norway.
Hungary's Prime Minister Viktor Orban confirmed at a press conference that MOL is participating in the tender to purchase the refinery. If the Hungarian group becomes the new owner of the plant, it will have to comply with Bulgarian regulations that exclude the processing of Russian oil. Currently, MOL uses Russian crude, which may pose a challenge given the new operational rules at the Burgas refinery.
The buyer must commit to the ban on importing oil from Russia
The Burgas refinery is a key supplier of fuel and petroleum products in Bulgaria. Its future owner must obtain approval from the Bulgarian government to conduct business and commit to adhering 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 manages to finalise the transaction, entering the Balkan market could be a significant step in expanding its operations internationally.
