CAPITAL: Sofia

MONETARY UNIT: Lev

REFINING CAPACITY: 133,500 b/cd

OIL PRODUCTION: 800 b/d

OIL RESERVES: 15 million bbl

GAS RESERVES: 210 bcf

Bulgaria`s Cabinet adopted an energy strategy which proposed investments of more than $946 million before the end of the first stage in 2001.

Bulgaria would restructure and gradually privatize its state-controlled energy sector. Liberalization of energy prices would occur after 2001.

The state would retain ownership of natural gas trunk lines but yield local distribution systems to private ownership.

The changes were designed to improve Bulgaria`s eventual eligibility for European Union membership.

The state privatization agency planned to sell refiner Neftochim and state fuel distributor Petrol, which owned about 75% of the nation`s service stations.

Bulgargas planned to invest $300-400 million in domestic gas pipelines by 2001, including construction of 104 miles of gas pipelines in 1999.

That did not include a proposed pipeline from the Black Sea port of Burgas to the Greek port of Alexandroupolis.

The 160 mile line would allow Caspian Sea region oil production to be exported to Western markets, bypassing crowded shipping in the Bosporus Straits. The $850 million line would move about 35 million tons/year of crude.

Bulgaria also was backing a proposal to receive gas supplies from Turkmenistan via a pipeline which would cross Bulgaria en route to Germany.

It would move 20-30 billion cu m/year, and Bulgaria would own the section within its borders.

Bulgaria depended on Russia for all its gas, about 6.5 billion cu m/year. It frequently had been in dispute with Russia`s Gazprom over prices and deliveries.

A court declared the idle Plama refinery to be insolvent with debts of nearly $120 million.

The refinery was the second largest in the nation. Efforts to restart the plant were hampered by protests from the 2,200 workers` protests and claims by creditor banks.