Hungarian oil and gas company MOL has officially expressed interest in acquiring Lukoil's refinery in Bulgaria. This was confirmed by Hungarian Prime Minister Viktor Orban, who stated during a briefing in Budapest that MOL had submitted a bid for the refinery in Burgas and was among seven potential buyers. Orban's remarks followed his visit to Bulgaria, where he met with President Rumen Radev and GERB leader Boyko Borissov.

Hungarian media reported that the Russian company plans to sell the refinery through an open auction, with MOL being the sole European Union-based bidder. The Bulgarian National Television (BNT) cited Orban's comments, emphasizing that MOL's involvement could raise concerns due to its ties to the Hungarian government, which is known for its increasing interest in Balkan affairs.

Analysts have noted the potential for Russian financing in the deal, as MOL's financial resources may be insufficient for such a large acquisition. According to the publication Oilprice, Russian connections could lead to scrutiny by European authorities, potentially blocking the transaction. The publication also highlighted that Hungarian ownership of Lukoil's assets could bolster Moscow’s influence in the Balkans.

The sale of Lukoil's refinery has been under discussion for months, with earlier reports suggesting that a Qatari-British consortium was the preferred buyer. The Financial Times reported in November that the consortium, comprising Oryx Global, led by Qatari businessman Ghanim Bin Saad Al Saad, and London-based commodities trader DL Hudson, had reached an agreement to purchase the refinery. However, Lukoil publicly denied the report, describing it as inaccurate and misleading.

A representative of one of the interested companies, speaking anonymously to Club Z, revealed that the potential sale could include all of Lukoil’s Bulgarian assets, not just the refinery. This would encompass its distribution network, sales department, and gas stations. Despite the speculation, there is currently no binding offer, and the sale is not at an advanced stage. Experts estimate the sale could be valued at approximately 5 billion leva, though Lukoil has not disclosed a price.

Another notable contender for the acquisition is the Azerbaijani state company SOCAR. With a refinery in Turkey and close ties to Turkish President Recep Tayyip Erdogan, SOCAR has the financial resources, technological expertise, and operational experience needed for such a purchase. The company already collaborates with Bulgaria, supplying natural gas through the Greece-Bulgaria interconnector.

Meanwhile, the Bulgarian caretaker government has replaced the state representative at Lukoil, further adding to the uncertainty surrounding the refinery's sale.

Sources:

• Club Z
• BNT