site.btaState Aviation Operator Contracts Shell&MOH Aviation for Fuel Supply

Bulgaria's State Aviation Operator (SAO) has signed a contract for the supply of aviation fuel with Shell&MOH Aviation, the Ministry of Transport and Communications said on Friday.

The press release specified that the price is similar to the one charged by the previous supplier.

Earlier on Friday, Prime Minister Nikolay Denkov told journalists in Parliament that there is no risk of SAO suspending operations.

The State Aviation Operator (until February 2021 Aviation Detachment 28) provides VIP transport for the President, Prime Minister and other holders of senior public office.

SAO's aviation fuel supply contract with Lukoil Aviation Bulgaria EOOD expired on February 29. "We promptly located a new supplier, and there is no risk of SAO being grounded," Transport and Communications Minister Georgi Gvozdeykov pointed out. He argued that "the matter is subject to speculation, with incorrect distorted information being circulated in public so as to spread panic".

He was apparently referring to media reports on Thursday about a letter from SAO Director General Zlatko Zlatkov to the Ministry, warning that the operator may have to suspend flights because the lifting of a derogation for Russian oil and petroleum products, effective March 1, leaves it without a source of aviation fuel at an affordable price.

In the Minister's words, SAO' sent him a different letter than what appeared in the media. "It contains a final part explaining the entire situation and, perhaps on purpose, that part was not presented to the public or was presented in a distorted manner to whip up tensions and once again spread propaganda that the lack of Russian fuel will shock both the market and the State, which is not going to happen," Gvozdeykov said.

Mediapool reported that so far Lukoil has been selling SAO fuel at a little over USD 1,000/tonne, and Shell's price is approximately the same. The problem is that Shell&MOH Aviation will discontinue its business in Bulgaria in June.