Small petrol stations demand extended deadlines for the introduction of level gauges The owners of small filling stations demanded a postponement of the deadline for the installation of level gauges in fuel tanks by at least a year and a half. "They will have to allocate about BGN 20,000 in advance, in order to introduce the new measurement system, which is actually pointless," said the chairman of their branch organization, Ivaylo Nikolov. "Currently, the control system is sufficient because the fuels are delivered with an excise document, stating the precise amount, type and price of the goods.” The companies submitted a demand to Minister Simeon Djankov on 21 December, 2011 requesting a dialogue on the issue. Officials from the Association of Traders at Small and Medium Filling Stations explained their demand saying that this would allow more time to Bulgarian companies to develop and produce a similar measuring device, which would cost twice less than the currently available expensive systems, imported from abroda. Two Bulgarian companies - Tanteks -90 Ltd, Pazardzhik, and Datecs Ltd are working on the new system. The American and German level gauges cost ˆ 3,000, but their price exceeds BGN 20, 000 with the installation and maintenance costs. “With a daily turnover of BGN 1,000 and a profit rate from the sale of all fuels of 3.8%, the money is not enough for the installation of these devices,” said Dinko Dedev member of the organization. “The funds, which we allocated for the introduction of the digital signature first, and then, for the devices directly connected to the National Revenue Agency (around BGN 1,200), were thrown in vain,” complained company managers. “There is no guarantee for the necessity and the effectiveness of the new measure. We are not against control, but we request a postponement because the deadline for the introduction of the devices was shortened and rescheduled by the Ordinance from 31 December, to 31March, 2012. Currently a total of 2,000 small and medium-sized filling stations hold a market share of 60%. They are mainly located in small towns and settlements.
Source: Class (04.01.2012)

One of the most anticipated decisions of the Commission for Protection of Competition (CPC) is history - there is a cartel in the fuel trade wholesale in Bulgaria. According to the official announcement CPC found that there was a prohibited agreement on fuel price determining between Lukoil Bulgaria, Rompetrol Bulgaria, Naftex Petrol and OMV Bulgaria. The ruling cannot be appealed. In the course of 30 days the parties will have access to all materials collected in the course of the inquiry. They also have the right to make written objections vis-a-vis the claims and the right to be heard by the CPC in a public session before a resolution is passed in essence. CPC will pass a resolution in essence after discussing the objections and the written evidence. At the end of 2011 the CPC was asked to check if there was a cartel among fuel traders. The right-wing Union of Democratic Forces (UDF) urged the government to undertake immediate measures to protect competition and reduce fuels proces, UDF said in a press release. UDF recalled that after the appeal on Thursday of UDF and the Democrats for Strong Bulgaria, CPC voted on the report on the fuel market submitted back on March 6. On Thursday UDF Chairman Martin Dimitrov said at a news conference in Parliament that the CPC has been stalling a report on the fuel market. The anti-trust watchdog had been expected to present a report on a probe into a suspected cartel agreement in the fuel trade to the Economic Committee on Thursday. Dimitrov said a draft report, which had been under preparation for a year now, was submitted to the CPC for discussion and adoption on March 6 but had not been adopted yet and the hearing had been postponed.
Source: Capital (19.03.2012)

The Chairman of the Commission on the Protection of Competition (CPC) Petko Nikolov told the parliamentary Economic Policy Committee that the investigation of a possible fuels cartel in Bulgaria would take another 3 months. He announced that the CPC has already collected sufficient proof of a cartel agreement between Lukoil Bulgaria, OMV Bulgaria, Rompetrol Bulgaria and Naftex Bulgaria.
Source: Standart (22.03.2012)

The four companies, against which the Commission for Protection of Competition started proceedings for suspected cartel in fuel prices, have not submitted written objections to the procedure. A month ago the antimonopoly commission began proceedings against Lukoil Bulgaria, Rompetrol Bulgaria, Naftex Petrol and OMV Bulgaria. Although the deadline for objection should have expired, the CPC said that companies have a few more days in which to voice their opposition to the investigation. The decision of the antimonopoly watchdog was issued to the four companies in the middle of last month and they had 30 days to file written objections. The fine for a cartel under the Law on Protection of Competition is 10% of the company’s annual turnover. Most often, however, sanctions are appealed and companies pay considerably smaller amounts.
Source: Sega (18.04.2012)

Part of the petrol companies that are currently under investigation over a cartel agreement have admitted their violation, the head of the Commission on the Protection of Competition (CPC) Petko Nikolov announced. In the spring of 2012 the anti-monopoly commission announced that it had proof of a price agreement between Lukoil Bulgaria, OMV, Naftex Petrol and Rompetrol. The companies appealed against the accusations, but some of them had asked to improve their work and correct their flaws. This way their attempt to avoid the fines in exchange for “good behaviour”. The CPC has approached DG Competitiveness on the matter. It is yet unclear what the outcome would be and when it would be made known, as the European Commission might come up with an opinion that does not match the standpoint of Bulgarian authorities and this would delay the procedure further.
Source: Sega (14.06.2012)

For a consecutive year Bulgarian refinery tops the Capital’s list for the biggest companies in Bulgaria - "Capital 100". Lukoil Neftochim Bourgas’ revenues for 2011 increased by 23% and reached BGN 6.7 billion, which is a result comparable to these registered before the start of the crisis. Increase in oils’ prices in the last year actually provided for goods results of the two Bulgarian companies of the Russian group Lukoil. Results for 2011, however shows that in the in the top tier, there is a new champion- copper extracting smelter based in Pirdop-Aurubis Bulgaria.In recent years the company increased its revenue ten times, as only last year its growth is over 45% reaching BGN 4.7 billion. In its final version ranking of the top ten companies was as follows: Lukoil Neftochim, Aurubis Bulgaria, Lukoil Bulgaria, NEK, OMV Bulgaria, Bulgargaz, Naftex oil, CEZ Electro Bulgaria, Overgas and Mobiltel. For a consecutive year pre-requisite for falling among the top ten are revenues of more than BGN 1 billion. In 2011 that was possible for Overgas, as well, which enters the club of corporate giants in BTC’s place. Revenues of the companies in telecommunication sector shrink. Total revenues of the top 10 companies increased by 18.7 percent in 2011, which is comparable to the progress of the top 100 companies, registering an increase of 18.4%.
Source: Capital (05.07.2012)

French oil and gas group Total has won a government tender for deep-water gas drilling in the Black Sea, Bulgarian Economy and Energy Minister Delyan Dobrev said on Thursday. "French company Total won the tender for exploring gas fields in the Khan Asparuh block in the Black Sea," Dobrev was cited by state BTA news agency as saying. Total won the five-year tender for the 15,000-square-kilometre (5,791-square-mile) block off Bulgaria's Black Sea coast near the border with Romania in competition with British Melrose resources. Total said on Thursday that it will work on the field together with Austrian OMV and Spanish Repsol. "This is our big hope for diversification as all analyses show that the (gas) potential of the deep Black Sea is subtantial," Dobrev said.
Source: Capital (13.07.2012)

French Total to explore for gas in the Black Sea “The French company Total will explore for oil and gas in the Khan Asparuh deposit,” announced Minister of Economy, Energy and Tourism Delian Dobrev. The company will work in partnership with Austria’s OMV and Spain’s Repsol. Prime Minister Boyko Borissov congratulated Dobrev on the choice of the exploration company. “I am pleased to hear that the Ministry of Economy, Energy and Tourism has held a very transparent tender,” said PM Borissov. “The fact is that the best companies operating in this field will participate. This means real diversification, much more real than the interconnector link with Turkey that we project." According to PM Borissov, the drilling is expected to confirm the existence of a considerable quantity of deposits, which will enable our country to diversify its gas sources and will also help in negotiating the price of Russian natural gas. “Bulgaria will be getting a royalty of between 2% and 30%, depending on the size of the deposits,” PM Borissov pointed out. “The tender procedure held by Bulgaria was very fair and transparent. We and our partners are eager to explore the Khan Asparuh field,” said a representative of Total. “Large-scale research and geological surveys have already been made. There will be at least two wells at a considerable depth. We are excited about the possibilities for long-term cooperation in the exploration of oil and gas,” he added. The French energy giant won the tender for the exploration of the deep Khan Asparuh field spreading on 14,440 sq km, which was invited in January 2012. Minister Delian Dobrev commented that Bulgaria’s hopes to diversify the Russian monopoly in gas supply to our country are focused on this field. According to him, this is confirmed by both the quantities of gas found a few kilometres from the Bulgarian border, in Romanian territorial waters, and the great interest in the tender.
Source: Class (13.07.2012)

The cabinet approved the authorization of Total E&P Bulgaria BV’s search and exploration of oil and gas in the Block 1-21 Asparuh Khan in the Black Sea. Along with registered in Bulgaria branch of the French giant, participation in the search will take as well the Austrian OMV and the Spanish Repsol. Within 5+2+2+1 years Total E&P Bulgaria BV must complete a work program, under which may invest USD 500 million. All costs for the exploration work in the block are at the expense of the foreigners. If the sea exposes an economically viable for mining field, Total will get a concession for oil and gas.
Source: Standart (26.07.2012)

Lukoil Bulgaria EOOD has not abused its dominant market position in the wholesale trade of petrol A95 and diesel fuel, ruled the Competition Protection Commission (CPC) after a nearly year-long investigation into possible abuse of a dominant market position which started last August. CPC looked into trade arrangements between the company and its wholesale customers, with special attention to Lukoil's discount policy. The goal was to determine whether favourable conditions were actually given as a "loyal client" reward, forcing the recipients to buy fuel exclusively from the dominant supplier - a scheme that essentially drives out competition. Over the five-year period covered by the inspection, discounts made by Lukoil Bulgaria EOOD didn't have such effects, as proven by the relatively high and growing share of imported fuels, CPC report read. The Commission found that Lukoil Neftochim Burgas AD and Lukoil Aviation Bulgaria EOOD were not in breach of the Competition Protection Act. The preliminary inquest revealed that the companies bear the characteristics of enterprises with a dominant position in their respective markets, but they are innocent of abusing this position by unjustly refusing to supply aviation fuel to airports and airline carriers in Bulgaria, CPC concluded.
Source: Class (31.07.2012)

BCCI: There are signs of economic recovery in Bulgaria “There are some, albeit timid, signs of recovery of the Bulgarian economy,” Tsvetan Simeonov, President of the Bulgarian Chamber of Commerce and Industry (BCCI), said when presenting on Friday the ranking of the Top 100 Bulgarian companies for 2011. The ranking was based on the following criteria: change in net sales proceeds, profit per BGN 100 equity capital and profit per BGN 100 sales proceeds. An additional condition for companies is to have completed 2011 with a profit exceeding BGN 100,000. “Sale proceeds of the best companies in Bulgaria increased by 252% last year when the economic growth was 1.7%,” specified Simeonov. In 2011, companies’ proceeds totaled BGN 1.1 bn, compared to BGN 312 mln in 2010 and the average profit of companies increased by 886%, reaching BGN 651,000. In terms of profitability, firms reported an average profit of BGN 112 to equity profit of BGN 100 and an average profit of BGN 50 per sales proceeds of BGN 100. The average profit of companies in 2011 in terms of the second indicator is BGN 1.2 mln. The Top 100 most dynamic companies achieved an average growth of 252%, while the country’s economy grew by just 1.7% last year, showed BCCI’s figures. According to its data, the average profit of the leading business companies in the country reached BGN 651,000. In terms of regions, Sofia is the leader with 38 firms represented in the Top 100, followed by Plovdiv with 7, and Russe and Varna – with 5 each. According to BCCI, trade is the most profitable sector with a profit of 37%, followed by the service sector (28%) and the textiles sector (11%).
Source: Class (24.09.2012)

Gazprom enters even more explicitly on the oil marlet in Bulgaria via purchase of a fuel base. The deal is for half of Gastrade’s warehouse in Kostinbrod. Rumours are that the price of the deal is to the amount of EUR 25 million, though there is no official data, yet. The Russian company started its entrance on the Bulgarian markets via its Serbian subsidiary Nis petrol. Gastrade keeps the other half of the warehouse, the part for propane butane, where it still has stable standing. The gas storage part is the largest such facility on the Balkans.
Source: Capital (15.10.2012)

Teodora Georgieva is the new director of Nabucco Gas Pipeline Bulgaria Teodora Georgieva is the new Managing Director of Nabucco Gas Pipeline Bulgaria Ltd., the company announced on Friday. Georgieva will replace Mario Kosev. Reinhard Mitschek, Managing Director of Nabucco Gas Pipeline International, said: “We are pleased to welcome Ms. Georgieva in Nabucco. Her experience in Bulgaria’s gas industry will give a significant advantage to the Nabucco project. She will be the perfect complement to the already considerably advanced project in Bulgaria. I would also like to thank Mr. Kosev for his valuable contribution”. “Nabucco is a project of great importance to Bulgaria in terms of economic benefits and diversification of energy supplies. I expect to get along well with the highly qualified project team and investors,” Teodora Georgieva said in turn. “The Nabucco project has greatly advanced in Bulgaria and I hope my managerial experience and financial expertise will contribute to its further development,” she said. Teodora Georgieva has a significant experience in the Bulgarian gas industry of more than two decades. After joining the team of OMV Bulgaria in 1999 as Chief Financial Officer, she was promoted to Managing Director of the Company in 2004 and occupied the position until 2012. Georgieva graduated in Finance from the University of National and World Economy in Sofia in 1994
Source: Class (19.11.2012)

RWE about to quit Nabucco, could sell stake to OMV German utility RWE (RWEG.DE) is about to quit the Nabucco gas pipeline project and could sell its 16.1 percent stake in the scheme to fellow shareholder OMV (OMVV.VI), Focus reported, citing industry sources. A possible deal to transfer RWE's stake to the Austrian energy company could still happen before the end of the year, the magazine said on Sunday. RWE, Germany's No. 2 utility, said in May it was reviewing strategic requirements regarding the Nabucco project which would carry Caspian area gas over almost 4,000 km to Europe. Ambitions of the project's consortium which also includes Hungary's MOL MOLB.BU through its gas pipeline operator FGSZ, Turkey's Botas, BEH of Bulgaria and Romania's Transgaz ROTGN.GX, have been tempered by anticipated cost overruns and possible overcapacity.
Source: Capital (04.12.2012)