Page 10 - FSUOGM Week 23 2022

FSUOGM COMMENTARY FSUOGM

Kazakhstan seeks to distinguish its

oil from Russian supply

Kazakhstan is establishing its own oil blend name, given the increasing unpopularity of

Russia's Urals brand.

KAZAKHSTAN KAZAKHSTAN is renaming its oil export brand “Due to recent significant geopolitical
in order to differentiate it from Russian crude changes … and to avoid negative effect of the
WHAT: supplies that are due to be sanctioned, Reuters changes on Kazakh oil exports via Russian
Kazakhstan wants to reported on June 3. ports, from June 2022 the following name for
rename its oil KEBCO, Kazakh oil is currently termed Urals oil, as the grade applies: KEBCO (Kazakhstan Export
to distinguish it from it shares similar qualities with Russia’s main oil Blend Crude Oil),” one Kazakh oil producer,
Russian supply. export blend, and both are mixed together in CNPC-Aktobemunaigaz, told Reuters. The
the Caspian Pipeline Consortium (CPC) and company transits its oil to market via Russian
WHY: other pipelines that stretch from west Kazakh- ports.
Kazakh oil exports have stan to Russia’s Black Sea coast, where supplies Four sources at Kazakh oil companies also
been hit by sanctions are loaded onto tankers. Since war broke out in confirmed the plan to rename the grade. Kazakh-
on Russia and buyers Ukraine, however, Kazakhstan has encountered stan’s energy ministry will ask for authorisation
shunning Urals oil. some difficulties exporting its oil, as some buyers from the government to use the new name offi-
have shunned it because of the association with cially, Reuters said.
WHAT NEXT: Russian oil. Kazakhstan sends 20% of its oil to market
Differentiating its oil The EU adopted its sixth set of sanctions via Russian ports, amounting to 13.3mn tonnes
could help Kazakhstan against Russia last week, which include a ban on (267,000 barrels per day (bpd)) in 2021. Traders
fetch a higher price for its all seaborne Russian oil supplies, while also pro- confirmed that Kazakh oil was being repeatedly
oil, especially given Urals' hibiting European insurers and financiers sup- mistaken for Russian barrels.
record discount to Brent porting the transport of these shipments. If its “It’s a necessary measure, so that our oil is
right now. oil continues to be termed as Urals, Kazakhstan not sanctioned, while its name clearly shows the
risks falling foul of these sanctions. country of origin in the documents,” one trader

P10 www. NEWSBASE .com Week 23 08•June•2022