KazMunayGas Eyes Purchase of Lukoil’s Burgas Oil Refinery for $1 Billion
State-owned Kazakh oil company KazMunayGas has expressed interest in acquiring Lukoil’s oil refinery in Burgas, Bulgaria, according to a report by Bloomberg. The news comes as Lukoil’s subsidiary, Litasco, has already received multiple offers from potential buyers.
Sources close to the deal have revealed that KazMunayGas is in talks with Vitol, one of the world’s largest commodity traders, to secure financing for the acquisition. If successful, the deal could be valued at over $1 billion, Bloomberg’s sources indicate.
This potential acquisition is not the first time Kazakhstan has invested in the region. Through its state-owned company, Aescu, it already holds a 75% stake in Romania‘s Rompetrol.
Lukoil has been seeking a buyer for its Bulgarian refinery since Bulgaria stopped purchasing Russian oil following parliamentary decisions, despite Brussels’ derogation. The refinery has since processed crude oil from various sources, including Kazakhstan.
KEBCO, the oil variety processed by the Burgas refinery, shares similar characteristics with Urals, the most traded Russian oil grade.
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