Lukoil Restores Supplies to Bulgarian Railways, Jet Fuel Still Problem

Business » ENERGY | August 1, 2011, Monday // 17:38
Bulgaria: Lukoil Restores Supplies to Bulgarian Railways, Jet Fuel Still Problem The suspended tax warehouse operator permits of Lukoil Neftochim continue to unsettle state-owned transport companies. Photo by BGNES

Lukoil Bulgaria EOOD has restored fuel supplies to Holding Bulgarian State Railways EAD, according to an August 01 media statement of the state-owned railway operator.

After talks between the managing bodies of the two firms it was confirmed that fuel shipments would be renewed, while Holding Bulgarian State Railways EAD was expected to find a quick solution to the debt problem to the fuel supplier.

Bulgaria's national train company owes BGN 2.5 M to Lukoil.

At the same time, Lukoil Aviation Bulgaria EOOD issued a media statement, assuring that it was doing everything possible to meet its obligations to customers and partners despite the difficult situation after the suspension of supplies from Lukoil Neftochim ordered by the Customs Agency.

"As soon as the halt in deliveries was announced, we provided exact information about the imminent aviation fuel crisis to both our contract partners and the respective government units and we took steps to redirect fuel to Burgas Airport, which would have otherwise been forced to close", the fuel supplier said Monday.

The company stressed that it had no exclusive supply contract with any airport, adding that the fuel market, aviation fuel included, had always been liberalized and open to all participants under equal conditions.

According to the document, Lukoil Aviation Bulgaria EOOD had contracts for the provision of jet fuel produced by the Lukoil Neftochim refinery to 100-plus Bulgarian and foreign companies servicing flights to Bulgaria's civilian airports, for which it duly paid excise duty and VAT.

"On July 30, 2011, we received a notification about the unblocking of 1397 tons from the mandatory reserves of Lukoil Neftochim Burgas AD. We bought these reserve quantities under the procedure provided by law and they were dispatched to the airports. Regardless of the measures already taken, we believe that the situation remains quite complex, because these volumes can only cover the needs of the Burgas Airport under normal operation conditions for about three days. Lukoil Aviation Bulgaria EOOD exerts maximum efforts to manage to import fuel as soon as possible", the statement went on to say.

The company also warned that the consumption of aviation fuel in August was set to reach July peaks, which made it highly improbable that the country would have enough of the commodity in store to ensure the smooth functioning of the airports.

"We are sorry for the inconvenience", the jet fuel distributor stated in conclusion.

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Tags: Lukoil Neftochim, Lukoil, Lukoil Aviation, jet fuel, Bulgarian State Railways, BDZ

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