Page 8 - FSUOGM Week 32 2019

FSUOGM PIPELINES & TRANSPORT FSUOGM
Rosneft seeks damages from Transneft over dirty oil crisis
RUSSIA
Rosneft and Transneft have bad history.
RUSSIA’Sstate-ownedoilproducerRosne has said it will seek compensation from national pipeline operator Transneft for output losses incurred in the so-called dirty oil crisis earlier this year.
Russian oil production slumped in April a er millions of barrels of crude in the Druzhba export pipeline were found to have been con- taminated with organic chlorides – chemicals used to boost oil recovery that can damage re n- ing equipment if not removed.
Commenting on the crisis in an earnings report on August 9, Rosne said it would calcu- late losses from production decline in to order to work out damages claims. e company had had to lower output as Transne ’s network was unable to handle the supply, it said.
“A calculation of losses can be completed a er a complex estimation of implications ... including forced reduction of oil output in that period due to reduction of intake of oil into the Transne network ... reception of full and doc- umented claims from contractors and readdress- ing them to Transne ,” Rosne said.
Transne said in July it would o er no more
than$15perbarrelincompensationforcontam- inated oil.
The dirty oil crisis has brought tensions between Rosne and Transne to a head. e pair have sparred on several occasions in recent years over various issues, including oil trans- port tari s, Chinese crude exports and Ros- ne ’s delay in starting up a re nery in the Far East. Rosne boss Igor Sechin and his Transne counterpart Nikolai Tokarev – both members of President Vladimir Putin’s inner circle – are believed to dislike each other on a personal level as well.
In the a ermath of recent crisis, Transne also restricted oil intake in July from Yugansk- ne egaz, Rosne ’s largest upstream subsidiary, claiming the producer had not speci ed where the oil should be transported.
Rosne production dipped 1.4% month on month in July, according to the energy min- istry’s CDU-TEK data centre. Extraction at Yuganskne egaz has since rebounded, reaching a new daily record of more than 198,000 tonnes (1.45mn barrels per day (bpd)) on August 7, according to a Rosne statement. ™
Serbia completes first leg of TurkStream
SERBIA
All four sections are due for completion this year.
SERBIA has completed the construction of the first section of the 403-km leg of Gazprom’s Turkish Stream (TurkStream) gas pipeline in the country, local media reported on August 12.
Gazprom plans to invest RUB58.8bn ($900mn) on expanding the TurkStream pipe- line through Serbia in 2019. Gazprom has determined the itinerary of the second line of the Turkish Stream pipeline will span Bulgaria and Serbia starting from 2020, then go through Hungary and Slovakia starting from 2021 and the second half of 2022, respectively.
e rst section stretches from the Bulgarian border to the city of Cuprija.
Currently, construction works are underway on the second part from Cuprija to the Danube River in Serbia’s north, Blic reported.
e third section stretches from the Dan- ube to Gospogjinaca, and the fourth is from the
Gospogjinaca to the border with Hungary near Horgos.
The four sections are planned to be com- pleted by the end of 2019. ™
P8
w w w . N E W S B A S E . c o m
Week 32 14•August•2019