CAPITAL: Sofia

MONETARY UNIT: Lev

REFINING CAPACITY: 115,240 b/cd

OIL PRODUCTION: 1,000 b/d

OIL RESERVES: 15 million bbl

GAS RESERVES: 210 bcf

The Bulgarian privatization agency approved the sale of its 58% interest in the refiner Neftochim to Russia`s OAO Lukoil for $101 million.

Earlier the government dropped its 5% oil import tariff to lower costs for Neftochim and make it more competitive. Cheap imported gasoline had made it tough for Neftochim to compete.

Neftochim was one of several assets that Bulgaria sold to qualify for loans from international lending agencies and eventual membership in the European Union. Revenues also helped the government restrain its budget deficit.

In addition to the purchase price, Lukoil pledged refinery upgrades costing $408.3 million, using 10 million tonnes of Western Siberia oil reserves as collateral.

Lukoil outbid the Balkan Oil Consortium, which offered $85 million cash and $344 in investments.

In another privatization move, the government sold a 51% interest in state-owned gasoline distributor Petrol for $52 million to the International Consortium-Bulgaria, owned by Yukos Petrolium Bulgaria, Austria`s OMV AG, and Petrol Holding.

Petrol was to continue to buy gasoline from Neftochim. The buyers were to invest $90 million over 5 years to upgrade Petrol`s 456 gas stations and 61 terminals.

Separately, OMV planned to build 80 stations in the next 5 to 7 years to capture 10% of the gasoline market. Cost would be about $100 million.

OMV sold subsidiary OMV (Bulgaria) Exploration EOOD to Petreco SARL, Luxembourg, for $1.5 million plus $500,000 at start-up of production from Galata gas field. OMV Bulgaria had a 16 2/3% interest in the 49 bcf field.