LUKOIL Neftohim Burgas AD has fully accomplished its social commitments and its charity programme for 2023.
The Company paid its employees their annual bonus as well as an additional one-time bonus on the occasion of the 60th anniversary of the refinery. In addition, an annual indexation of salaries is planned from 1 January 2024.
LUKOIL Neftohim Burgas' Charity programme has been implemented jointly with the municipalities of Burgas and Kameno. Within the framework of the "My City, My Neighbourhood, My Street" programme, the Company built and renovated several children's playgrounds, repaired and furnished schools and kindergartens with modern equipment, ensured the purchase of electric bicycles with a software system for the city of Burgas, carried out an overhaul of the square and parking lot in front of the "Prosveta - 1927" Community Centre.
LUKOIL Neftohim Burgas traditionally supports projects and initiatives of social importance. Over the last 23 years, the total value of donations, sponsorship and charity actions reached BGN 32 million.
The recent legislative initiatives and decisions of the Bulgarian regulators aimed at destabilising the operation of the Burgas refinery force LUKOIL to reconsider the phased plan for transition to the processing of non-Russian feedstocks agreed earlier with the Government, to look for new suppliers and alternative logistics routes, to take urgent measures on the technological adaptation of the installations. LUKOIL Neftohim Burgas will apply all possible efforts to ensure the accident-free operation of production, preserve the social and charity programs, protect the interests of the employees of the enterprise, motorists and all citizens of Bulgaria.
In view of the significant change in the operating conditions of the LUKOIL Group companies in Bulgaria, the Company has commenced work to review its strategy with respect to this asset. Various options will be analysed with the involvement of international consultants, including the sale of the business.
The LUKOIL Group has been actively investing in the development of its assets in Bulgaria for more than 20 years. In particular, investments in the Burgas refinery, exceeding USD 3.4 billion, have turned it into one of the most environmentally efficient and technologically advanced refineries in Europe. In addition, a modern distribution network has been established, including 220 petrol stations and 9 oil depots, as well as enterprises for bunkering ships and aircraft. The Group's operations in Bulgaria have traditionally maintained high world standards of corporate and social responsibility.
The revision of the strategy is a consequence of the adoption by the Bulgarian state authorities of discriminatory laws and other unfair, biased political decisions towards the refinery, which have nothing to do either with the civilized regulation of a large business or with increasing the revenue part of the country's budget.
The artificially fanned political storm around the enterprise of a large international commercial structure, which is not subject to sanctions by the European Union and the United States, and which fulfils all its obligations to the state and its workers, harms the business of LUKOIL, the investment climate in Bulgaria, inexorably destroys the image of the Republic in the eyes of global business, negatively affects the revenues of the state budget.
LUKOIL will inform the country's authorities and the LUKOIL Syndicate of Bulgarian Petrochemists about further Company actions with respect to assets in Bulgaria.
The history of the Bulgarian oil refining industry began with the production of the first Bulgarian gasoline on September 2, 1963 in the Burgas Neftohim plant.
60 years is a dignified age that speaks of timeless values and traditions, continuity of generations, sustainable development of the enterprise and its team. In the continuous pursuit of technological excellence, the most modern and progressive technologies have always been incorporated in the plant. In the last two decades alone, since the company joined the LUKOIL Group, $3.4 billion has been invested in the refinery's large-scale modernization, and LUKOIL Neftohim Burgas has become one of the leaders in European oil refining.
The reconstruction of existing process units, commissioning of new deep conversion facilities and their integration into the refinery's process scheme resulted in a record increase in the annual oil processing depth from 74 to 97%, production of light products from 64 to 81%, the technological complexity index from 6.5 in 2012 to 14.7 in 2020. The energy intensity index EII according to the SA methodology has decreased from 92 to 86 units. These production records have been achieved with equally impressive achievements in the areas of industrial safety and environmental performance, and here too the company holds an industry-leading position
Building on the experience of generations of oil refiners and petrochemists, the rich technical and intellectual potential, for six decades the company team has been constantly looking for and discovering new opportunities for growth, boldly taking on the most complex projects and successfully implementing them. The expertise and accumulated experience of the company's specialists have established it as a centre for technology transfer, a base for the development and implementation of engineering and technological innovations.
LUKOIL Neftohim Burgas JSC celebrated the anniversary of the enterprise with a palette of festive events: open days for veterans and children of oil refiners, visits to the Company museum for citizens of Burgas region, tourist hikes and anniversary Olympics, international scientific and technical conference of young specialists and many others.
The culmination of the celebrations was traditionally the festive concert in the Summer Theatre of Burgas. Among the guests of the event were members of the Public Partnership Council, business partners, public figures. The Chairman of the Board of LUKOIL Neftohim Burgas JSC Eugene Maniakhine and the President of the LUKOIL Syndicate of Bulgarian Petrochemists Pavlin Vakovski congratulated the oil refiners, the veterans, and partner organizations on the 60th anniversary of the beginning of production operations of Neftohim Burgas and addressed words of gratitude to the thousands of petrochemists who have linked their lives with the refinery and continue to work for the sustainable future of the enterprise.
President of the volleyball club "Neftohimik 2010" Ognyan Tomov at a meeting with Chairman of the Board of LUKOIL Neftochim Burgas Eugene Maniakhine and CEO of LUKOIL Bulgaria Ivo Hoskens presented the Champions Cup, which the team won for the 6th time.
"The development of our club and the next victory of the team would have been impossible without the invaluable help from LUKOIL. Both athletes and fans understand this. There are thousands of us together. This means thousands of thanks," said Ognyan Tomov. He also spoke about the team's plans to participate in the Volleyball Champions League and preparation for the new Republican season.
"Supporting the beloved team of Burgas, whose history is an integral part of of our history, is a matter of honor and responsibility for us. In the year when LUKOIL Neftohim Burgas celebrates its 60th anniversary, your successes are the best gift for the anniversary," said Eugene Maniakhine, Chairman of the Board of LUKOIL Neftohim Burgas.
"Your achievements are a pride for us. We are happy to continue our joint work in this 25-th anniversary year for LUKOIL-Bulgaria in order to provide the best conditions for the preparation of the team. We hope that this will lead to further success both in the domestic championship and in international tournaments," added Ivo Hoskens, CEO of LUKOIL-Bulgaria.
"Neftohimik" originated as a volleyball section in the state sports society, created at the refinery at the beginning of its construction. After the transition of the plant to the structure of LUKOIL, the company became the main sponsor of the volleyball and basketball sections of "Neftohimik". With this, the era of success of the men's volleyball team began - the six-time champion of Bulgaria, the five-time winner of the Bulgarian Cup and the four-time winner of the Super Cup.
The support of Bulgarian sports is the main focus of the Corporate Social Responsibility program of LUKOIL Group in Bulgaria. Over the past 20 years, the Company has invested more than BGN 40 million in support of Bulgarian sports. For more than two decades, LUKOIL has been investing in the development of Bulgarian sports clubs from scratch to championship titles, supporting projects of sports federations and individual athletes to achieve high results, helping to build and maintain new sports facilities.
LUKOIL Neftohim Burgas JSC starts the implementation of the LIFE WATEROIL. Representatives of the company presented the Project to the public at a Round Table organized in on-line format.
The Project includes actions that will reduce the use of fresh water from the Mandra dam (south of Burgas) by utilizing the process condensate of the Vacuum Residue Hydrocracking unit, and by replacing the aeration system of the wastewater treatment facilities with a more efficient one. This will reduce the consumption of electric power and fuel in the refinery, as well as cutting down the СО2 emissions to atmosphere by 1 000 tons per year. The Project actions also include the introduction of the Eurovix technology for refinery wastewater treatment employing specific bioenhancers.
The LIFE WATEROIL is co-financed by the European Union within the LIFE Program and is an initiative that will improve the environment of the region.
Associate partners in this Project are Burgas Municipality, Burgas University “Professor d-r Asen Zlatarov” and EUROVIX SPA – a leading Italian company in the industry of applied biotechnologies. Burgas Municipality and the Faculty of Technical sciences of Burgas University “Professor d-r Asen Zlatarov” will support the monitoring of the environmental efficiency of the new facilities, as well as the assessment of the emission reduction and air quality improvement. Special attention will be paid to monitor the impact on the Mandra-Poda reserve area.
A best practice of wastewater treatment will be introduced based on the results of Project implementation, as well as a new methodology of identification of unpleasant odours sources using the effective olfactometry standard.
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Following its mission to be a responsible produces of hydrocarbons LUKOIL takes active effort to reduce the carbon footprint of its operations, taking part in biodiversity protection and other environmental initiatives. LUKOIL Neftohim Burgas JSC consistently implements LUKOIL policies ensuring environmental safety of its production by application of best available techniques for efficient use and saving water and energy resources.
In February 2020 LUKOIL Neftohim Burgas JSC commissioned an innovative technology using a new type of nanocatalyst – with higher selectivity and performance. Nano-technologies are considered a key area of 21st century science. Н-САТ is an advanced development licensed by the US company Headwaters Technology Innovation (HTI), which works in an strategic alliance with the technology leader Axens – the licensor of the H-Oil hydrocracking unit which is in the heart of the Heavy Residue Processing Complex at the LUKOIL refinery in Burgas. The complex is the largest catalytic hydrocracking unit in Europe with a throughput capacity of 2.5 mln. tons of oil feedstock per annum. It is the fourth unit in Europe and the sixth one in the world to use the innovative H-CAT nanocatalytic system.
The highly professional team of LUKOIL Neftohim Burgas has mastered the complex H-Oil technology in record time and achieved enviable results winning the recognition and respect of their colleagues in the area of oil refining. The research done by the refinery’s process engineers, the careful selection of the oil feedstock and the operation mode optimization made it possible to achieve a remarkably high vacuum residue conversion rate of 73%. The introduction of the Н-САТ technology is one more step to further enhancement of process performance, increasing the conversion rate by 6%. And this is not the only advantage the refinery will get as a result of this forward-looking investment. The nanocatalyst will improve the unit’s energy efficiency and ecological indicators, as well as increase the run-between-turnarounds period. By introducing this technology LUKOIL Neftohim Burgas JSC has demonstrated once again its capacity to become a technology leader in oil refining.
Today, within the celebration program dedicated to the 55th anniversary of Bulgarian oil refining, LUKOIL PJSC presented the results of its actions in the area of sustainable development. The event was attended by the members of LUKOIL Neftohim Burgas Public Council for Partnership, representatives of LUKOIL Bulgaria Ltd, the governmental and local administration, Burgas academic and cultural circles, members of Parliament and journalists. The event participants were introduced to LUKOIL Group programs and some interesting projects contributing to the social and economic development of the regions where Company operates.
The construction of the oil refinery and petrochemical complex near Burgas in the 60ies of the 20th century played a crucial role in Bulgaria’s economic profile over the following decades. The development of the oil processing complex have always involved innovative technology and technical solutions, making Bulgaria a significant player in European oil refining.
Today LUKOIL Neftohim Burgas is a modern oil-refining enterprise implementing the best available technologies, providing high production performance, meeting the highest standards of industrial and labour safety, ecology and corporate social responsibility. The company carries out charity and donation initiatives, investing in construction of social infrastructure in Burgas and Kameno municipalities, and supporting projects of great public significance.
A presentation of LUKOIL’s Environmental Program and the booklet titled „ECOlogical Culture“ was held on 8th June 2017 in the Black Sea town of Burgas (Bulgaria) during an ecoforum, in which the Vice-president of Oil Refining, Gas Processing and Petrochemistry of PJSC LUKOIL Rustem Gimaletdinov, representatives of Bulgarian authorities, environmental organisations and local and prominent members of the community took part.
The LUKOIL Neftohim Burgas refinery (part of the LUKOIL Group) has achieved significant reduction of harmful emissions into the atmosphere, while the industrial safety and equipment reliability indicators of the facility are among the best in European oil-refining industry. With the commissioning of the Vacuum Residue Hydrocracking Complex the refinery has reached the unique oil conversion depth of 90%.
As part of the Year of Ecology, PJSC LUKOIL holds a series of presentations of its environmental program in Russian and foreign regions of its operations. Such presentation have already taken place in Norway, Uzbekistan and the Stavropol region (Russia).
On the Earth Day ecologists of LUKOIL Neftohim Burgas JSC (a member of the LUKOIL Group) became teachers of the “Man and Nature” school subjects.
Animal and plant species characteristic for Burgas region, some extinct or endangered representatives of the Bulgarian and the world’s flora and fauna were presented to the fourth-graders of Vasil Aprilov Primary school, Mihail Lakatnik Primary School in Burgas and Hristo Botev Primary School in Dolno Ezerovo. The students learned about species, which live only in Bulgaria, while some of them can be seen only in the area around Burgas. With great interest, the children discussed the influence of man on nature and the ways we can protect the environment. They formulated the main message of the lessons: the responsible attitude of modern man for protection of the fragile natural balance is of crucial importance in the industrial times we live in.