The Kazakh national company, JSC "KazMunayGas," is seeking to acquire the Bulgarian oil refinery owned by the Russian PJSC "Lukoil," as reported by Bloomberg.
It has been reported that Litasco SA, the main shareholder of Lukoil Neftohim Burgas AD, along with its affiliated company, has already received binding offers from several potential buyers, including "KazMunayGas," according to sources cited by the publication. "The company is discussing financing for the potential acquisition with Vitol Group, the world's largest independent oil trader and a major player in Kazakhstan," Bloomberg states, referencing two sources.
According to the agency, KMG expects the sale process to take about a month. The price could be around $1 billion. At "KazMunayGas," as Bloomberg claims, there is hope that the Bulgarian government will support the company's bid, as the refinery was designed to process Russian oil, the quality of which is similar to that of crude oil from Kazakhstan.
Forbes Kazakhstan reached out to the press service of "KazMunayGas" for a comment.
"Lukoil" has been operating in Kazakhstan since 1995. The company has participated in several oil and gas projects, including the development of the Tengiz and Karachaganak fields, as well as in the Caspian Pipeline Consortium. A recent example of cooperation is the agreement between "KazMunayGas" and "Lukoil" for the development of the "Kalankas-sea, Khazar, Auezov" subsoil area in the Kazakh sector of the Caspian Sea, signed in February 2023. Thus, Russian "Lukoil" became a strategic partner of JSC "NC KazMunayGas" in the development of this subsoil area on the Caspian shelf. The right to subsoil use for the "Kalankas-sea, Khazar, Auezov" area was also granted to KMG in February 2023.