The Bulgarian government is demanding more decision-making authority over Lukoil’s Neftochim Burgas refinery, a strategically critical site for the country and the wider Balkan region. The government has held a “golden share” in the refinery since it was sold to the Russian oil giant 25 years ago, which allows Bulgaria to appoint a representative to the board of the refinery. However, Caretaker Minister of Energy Vladimir Malinov argues that the current powers associated with the golden share are insufficient, and the country is now pushing for the right to veto any potential sale of the refinery.
This call for increased oversight follows media reports suggesting that Lukoil is considering selling the refinery to a Qatari-British consortium, an idea the company has denied. According to Malinov, Bulgaria insists on greater access to information regarding any changes in ownership, particularly in transactions involving companies that are seen as crucial to the country’s national security.
Lukoil has been under increasing pressure due to the European Union’s ban on Russian oil imports, which came into effect after Russia’s invasion of Ukraine in 2022. This ban has made it increasingly difficult for Lukoil to continue operations at the Burgas refinery. The company is reportedly in discussions to sell the refinery to the Qatari-British consortium, which includes Oryx Global and the London-based commodity trading house DL Hudson. Other potential buyers for the refinery are believed to have included the State Oil Company of Azerbaijan (SOCAR), Kazakhstan’s KazMunayGas, and Turkish oil company Opet.
The Burgas refinery, located on the Black Sea coast, is Bulgaria’s largest and plays a vital role in the region’s energy supply chain. In light of its importance, the Bulgarian government is keen to ensure that it retains influence over the refinery’s future, particularly in light of geopolitical tensions and the shifting energy landscape in Europe.
The sale of Lukoil’s refinery could signal a major change in Bulgaria’s energy sector. However, for the Bulgarian government, this decision goes beyond economics—it’s about securing its energy independence and ensuring that critical infrastructure remains under local control in an era of geopolitical uncertainty.
