Bulgaria

BULGARIA: Lukoil-Bulgaria OKs Keeping Prices in Check

Helene Ryding — Wed, 07 Dec 2005 21:34:00 GMT

2005-11-17 18:18:44

Lukoil-Bulgaria, the local branch of Russian oil giant Lukoil, has agreed to keep its domestic fuel prices in check for the next six months, the Economy and Energy Ministry said Thursday.

The government and Lukoil-Bulgaria signed a memorandum obliging the company to raise domestic fuel prices at a rate slower than the EU average -- a target that Lukoil said it would achieve by lowering its profit margin. The six-month agreement included no price-fixing commitment, so that consumers could benefit from a possible decrease in oil prices, said Elena Yotova, a spokeswoman for the ministry.

The government will launch talks on similar agreements with other fuel distributors as well, the ministry said in a statement.

Lukoil-Bulgaria is the commercial outlet for Lukoil's refinery in Bulgaria's Black Sea port of Burgas, and runs one of the largest gas station chains in the Balkan country. On Wednesday, Lukoil said it will invest US$1 billion (euro857 million) in its Bulgarian businesses over the next 6 years -- US$750 million (euro643 million) in the Burgas refinery and US$250 million (euro214 million) in the expansion of its fuel retail network.

Bulgaria -- a tiny country of 8 million -- counts heavily on Russian oil and gas supplies.

Source: AP www.seeurope.net

REGION: South Eastern Europe Energy Community Treaty Signed

Helene Ryding — Mon, 07 Nov 2005 01:27:00 GMT

2005-10-26 13:20:58

Eight Balkan countries will join forces in Athens with the European Union today to establish a single regulatory framework for transporting energy in Southeastern Europe, in a bid to advance the region’s position on the world power map.
A treaty was signed by British Trade and Industry Minister Alan Johnson on behalf of the EU and by ministers from Albania, Bosnia, Bulgaria, Croatia, the Republic of Macedonia, Romania, Serbia and Montenegro and Turkey.

It will help ensure that countries in the region adopt EU single market regulations on energy regarding petrol, natural gas and electricity markets.

Development Minister Dimitris Sioufas described the treaty, which Greece also signed, as an historic agreement that will help unify the energy sectors. “The signing of this treaty creates new conditions for the economy, peace, stability and security in the wider region,” Sioufas said.

The treaty also aims at creating a stable regulatory environment that will boost energy investment in the region.

The World Bank has estimated that 21 billion euros will be poured into energy investments in the region because of the pact. The unification process has also drawn the interest of countries that are not directly part of it.

According to the Development Ministry, the United States and Canada have also given financial support to the treaty. Greece has played a central role in the issue as the country pushes ahead with plans to develop its link with different energy grids.
Apart from agreeing to run a natural gas pipeline from Turkey to Greece, which will then go on to Italy, the government has also signed a deal for a pipeline to carry Russian oil through Bulgaria to northern Greece.

www.seeurope.net

BULGARIA: TPP to be Sold Off to Russian State Company

Helene Ryding — Fri, 14 Oct 2005 06:05:00 GMT



	2005-10-11 14:38:51

	The privatisation deal with Russian state-owned company RAO EES for the thermal power plant (TPP) in Varna will be finalised within the week, according to "Dnevnik a.m." reports. The sell-off contract will be endorsed this week. The privatisation deal is close to a wrap-up after no less than 5 extensions to the deadline for the sell-off negotiations. Initially, Bulgaria had put up for sale the TPPs in Varna, Rousse and Bobov Dol. The offers of the candidate buyers were unsealed in April. RAO EES led the bids for the stations in Rousse and Varna. Greece's PPC pitched 70.9 mln euro for TPP Bobov Dol but that facility was later dropped from the procedure under pressure form the trade unions and the owners of coal mining companies. Bulgaria's Commission for the Protection of Competition later barred the Russian company from buying both power stations and RAO EES decided to pursue only the acquisition of the Varna TPP. The PA is appealing the ruling of the anti-trust watchdog. The privatisation deal for TPP Varna is expected to yield proceeds of around 578 mln euro, including the cost of a capital raise. Source: Dnevnik English edition
	www.seeurope.net

Participants Being Chosen for Burgas-Alexandroupolis Project

Helene Ryding — Fri, 30 Sep 2005 16:40:00 GMT

2005-09-29 11:07:48

A project to build the Burgas-Alexandroupolis oil pipeline has reached the stage where participants are being chosen, Russian Chamber of Industry and Commerce President Yevgeny Primakov said Wednesday. "One of the priorities for cooperation between Russia and Greece is cooperation in the energy sphere, let's not drag out the implementation of the Burgas-Alexandroupolis project," he said.

Primakov told Interfax that the consortium of companies that will finance this project has not yet been set up, but this process is underway.

Asked whether the deadline for setting up an operator company for the project by the end of the year will be met, Primakov said: "We've said we will, so we will set it up."

"At the moment we only have political agreement for the project, and we also plans to turn Greece into a distribution center for electricity and for gas to the Balkans," Primakov told journalists.

The Burgas-Alexandroupolis project involves creating a new, additional route to transport oil from Black Sea ports to markets in Europe, the U.S. and the Asia-Pacific region, through Bulgaria and Greece.

The pipeline may have a capacity of 35 million tonnes per year, which may be increased to 50 million tonnes per year.

Representatives from the Russian, Greek and Bulgarian governments signed a cooperation memorandum for this project on April 12 this year.

Source: Interfax International