The Bulgarian parliament has voted in favour of ending Lukoil’s concession to operate the Rosenets oil terminal, reported Reuters.
Out of 240 parliamentarians, 144 supported the bill, which will now allow Lukoil to continue operating the oil terminal when the concession expires but pay fees to the Bulgarian Government.
According to the bill, the Russian oil and gas company’s concession will come to an end within a week.
Located near the port of Burgas, the Rosenets oil terminal is the only dedicated oil terminal on the Bulgarian Black Sea coast.
Since 2011, this terminal has been under Lukoil’s management through a 35-year concession granted to the Russian company.
The terminal feeds Neftochim Burgas, the sole refinery in Bulgaria, which is owned by Lukoil and has a processing capacity of 196,000 barrels per day.
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A resolution that allows the government to run the refinery for up to a year was approved by the Bulgarian parliament in January this year.
In the proposal before the parliament, Bulgaria’s ruling parties argued that ending the concession would stop Russia from exploiting facilities in Bulgaria to fund its war in Ukraine.
With the move, the Bulgarian lawmakers hope to facilitate the country’s entry to the Schengen borderless area of the EU.
Meanwhile, the Lukoil Neftochim refinery intends to seek court protection from the parliament’s decision.
In May this year, Lukoil subsidiary LITASCO completed the sale of the Italy-based ISAB oil refinery to GOI Energy.