Lukoil’s subsidiary Lukoil Neftochim Burgas AD has secured a $570 million loan from five international banks to finance the modernization of its Burgas, Bulgaria, refinery along the Black Sea.
The Burgas project is being executed under a lump-sum turnkey contract for the engineering, procurement, and construction of Phase 1 of a heavy residue hydrocracking complex.
The complex will be built at the refinery that Technip currently has Lukoil’s bid for.
The contract is worth more than $1.2 billion.
The upgrades will allow the refinery to increase output of Euro 5 diesel fuel by 1.2 million tons per year, as well as to cease production of high-sulfur fuel oil.
The refinery will have a key feature, a tar hydrocracker with a planned capacity of 2.5 million tons per year.