July 5, 2022

Dubai Week

Complete Dubai News World

Financial Times: Saudi Arabia will increase oil production on one occasion

Financial Times: Saudi Arabia will increase oil production on one occasion

The United States, Britain, Australia and Canada imposed a complete ban on Russian oil purchases, while G7 countries, including Japan, pledged on May 8 to ban or phase out Russian oil imports.

For its part, the European Union agreed on May 30 to ban maritime imports of Russian oil for six months for crude oil and eight months for refined products.

Refineries in Eastern Europe and Germany are barring oil from passing through the Drugba pipeline (the world’s longest pipeline), which allows them to continue receiving Russian imports.

However, Poland and Germany have said they will phase out all pipeline purchases by the end of 2022.

The embargo will affect 90% of Russia’s oil imports to the European Union.

Even before the ban was approved, at least 26 major European refineries and businesses had stopped spot purchases or announced plans to reduce Russian imports by 2.1 million barrels a day, Reuters reported.

Meanwhile, China and India, which have refused to condemn Russia’s action, continue to benefit from Russia’s over-offering of a discount on crude oil.

India has received 34 million barrels of discounted Russian oil since Moscow invaded Ukraine, and is expected to receive about 28 million barrels in June, according to data from financial research firm Refinitiv Icon.

Current and former buyers of Russian crude oil include:

Buyers will not stop:

Bharat Petroleum (BPCL.NS)

Bharat Petroleum, a state-run refinery in India, bought 2 million barrels of barrels of Russian urals from Trophygura in May, according to two sources familiar with the matter.

The company regularly buys to support the 310,000 bpd Cochin refinery in South India.

Hindustan Oil (HPCL.NS)

According to trade sources, India’s state refinery bought 2 million barrels of Russian oil in May for loading.

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Indian Oil Corporation (IOC.NS)

India’s largest refinery has purchased more than 6 million barrels of oil since February 24 and has a contract with Rosneft to supply 15 million barrels of Russian crude oil by 2022.

Mangalore Refinery and Petrochemical (MRPL.NS)

The state-run refinery in India bought 1 million barrels of Russian Urals crude oil in May for tender loading from a European dealer, a rare purchase triggered by a discount on the offer.

ISAB

Italy’s largest refinery, owned by Switzerland-based Lidasco and controlled by Lockett Oil, continues to buy Russian crude oil, while the Italian government is exploring the possibility of temporarily nationalizing the company.

Luna

The Luna refinery in East Germany, owned by the French company “Total Energy”, continues to buy Russian crude oil, which is transported through the Trukpa pipeline.

Mero

Germany’s largest refinery, 24% owned by the Russian company “Rosneft”, continues to buy Russian crude, which accounts for 14% of its total revenue.

“MOL”

The Hungarian oil company said it would take at least 2-4 years to fully convert its refineries in Slovakia and Hungary to alternative crude oil processing, which currently accounts for about 35% of its total revenue.

Nayyara Energy

The private Indian refinery, owned by Rosneft, bought Russian oil after a gap of one year, buying about 1.8 million barrels of urea from Trophigura.

“Neftochem Burgas”

The Bulgarian refinery, which is owned by Russia’s Lukoil, continues to refine Russian crude oil, accounting for about 50 percent of its revenue, government officials said.

PCK SCHWEDT

The German PCK Schwedt refinery, which owns 54% of Rosneft, continues to buy Russian crude oil transported through the Trukpa pipeline.

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German government officials have said they will replace Russian crude oil with German crude oil from the port of Rostock or neighboring Polish ports in order to run the refinery.

Pertamina

The Indonesian state-owned energy company Bertamina is considering buying crude oil from Russia as it seeks oil for a newly refurbished refinery.

Huawei

Synobek, the state-run company in China, Asia’s largest refinery, continues to buy Russian crude oil under previously signed long-term agreements.

Buyers stop doing business with Russia

British Petroleum (BP)

He said the British oil company had left Russia and would no longer enter into new agreements with Russian companies for loading into Russian ports unless “necessary to ensure the safety of supplies”.

Inios

Japan’s largest refinery (5020.T) has stopped buying crude oil from Russia and plans to import alternatives from the Middle East.

ENI

The Italian state-owned Energy Group has suspended 30.3% of Russian oil purchases, including Germany’s Bayernwell refinery.

EQUINOR

The Norwegian state-owned company stopped trading in Russian oil and left Russia, falling $ 1.08 billion in its first-quarter earnings report.

“GALP”

The Portuguese oil and gas company has stopped buying all new petroleum products from Russia or from Russian companies.

Glencore (GLEN.L)

It said it would not enter into any new business related to goods of Russian descent until advised by government officials involved in mining and international trade.

Hellenic Petroleum (HEPr.AT)

Greece’s largest oil refinery has stopped buying Russian crude, and has been replaced by additional supplies from Saudi Arabia and other countries.

NESTE

Since the beginning of April, the Finnish refinery has replaced about 85% of Russian crude oil with other raw materials and said it would not enter into new agreements to buy Russian oil.

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OMV Bedroom

Romania’s largest oil and gas company, controlled by Austria’s OMV, has said it is preparing to stop importing Russian crude, which represents about 30% of the annual needs of the Petroprasi refinery.

PKN Orlan

Poland’s largest refinery has stopped buying Russian crude oil on the spot market and switched to North Sea oil, with long-term supply contracts previously signed expiring later this year.

Russian crude oil accounts for about 30% of its intake.

“Frame”

Sweden’s largest refinery, owned by Saudi billionaire Mohammed Hussein al-Amudi, has converted 7% of its North Sea barrels into Russian barrels.

Repsol (REP.MC)

The Spanish company stopped buying Russian crude oil on the spot market.

Shell (SHEL.L)

Russia, the world’s largest oil trader, has stopped buying crude and refined goods.

Trophigura

The Geneva-based global commodity trader plans to stop buying all crude oil from Rosneft and “specifically” reduce the volume of refined products it buys from Rosneft when strict EU rules come into force on Russian oil sales.

Total

The French energy company, which operates the Puna refinery in East Germany, has suspended new contracts to buy Russian oil and plans to phase out its purchases in early 2023.

VARO Energy

The Swiss refinery, which owns 51.4 percent of the German refinery Bayernwell, said it would no longer enter into new agreements to buy Russian crude oil.