Page 9 - FSUOGM Week 22 2022

FSUOGM PERFORMANCE FSUOGM

Russian refiners ramp up

production in May

RUSSIA RUSSIAN refineries processed some 19.96mn week to mostly halt the flow of Russian oil prod-
tonnes of oil in May, equivalent to 4.72mn bar- ucts by the end of the year, as part of efforts to
The gain was due to rels per day (bpd), up 9.3% month on month, ratchet up pressure on Moscow to end its war in
increased throughput energy ministry data published on June 1 shows, Ukraine.
at Gazprom Neft and as the country’s refiners handled more crude In related news, the Russian state parliament’s
Bashneft refineries. that could not be exported because of difficulties committee for energy has proposed creating a
relating to fallout from the war in Ukraine. state reserves system to stockpile fuel oil for the
The gain was the result of increased through- country’s power generation companies and to
put at refineries owned by Gazprom Neft and deal with the country’s excess fuel oil production.
Bashneft, as well as Taif, ForteInvest and smaller “Due to the introduction of sanctions, ship-
plants. Bashneft’s refining complex in Ufa, Bash- ments of fuel oil by oil companies to consumers
kortostan, and Gazprom Neft’s plants in Moscow are significantly curtailed and there is an excess
and Omsk all completed maintenance prior to of this product in storages, which can be used
last month. ForteInvest also mostly wrapped up for the work of power generation companies and
maintenance at its refineries in Orsk, while the guaranteeing the country’s energy security,” the
Taif refinery, which halted operations in early committee said in a statement.
April because of a lack of market for its naph- Meanwhile, Russia is looking to scale up
tha output, resumed processing at the end of last domestic production of catalysts, as Western
month. sanctions on refining equipment have made it
Smaller Russian refineries also gained from difficult to import this commodity. Russia could
increased demand for distillates for spring sow- not only produce enough catalysts to cover its
ing works, and ramped up runs to 60-70% of own needs but also export them, if its import
capacity in May, up from 50% in April. substitution drive is a success, Tamara Kan-
Prospects for future runs remain highly delaki, chairman of the committee on economics
uncertain, given lower demand for Russian at the Oil Refiners and Petrochemical Associa-
products overseas. EU leaders also agreed this tion, told S&P Global. ™

PROJECTS & COMPANIES

Equinor completes Russian exit

NORWAY NORWEGIAN oil and gas producer Equinor (PSA) in the northern Timan-Pechora basin.
has completed its withdrawal from Russia, the Equinor did not say whether it had received
The transfer draws a company announced on May 25, after transfer- any funds in return for its shares in the project.
line under Equinor's ring its shares in all joint ventures to state-owned But it did say it would be booking a $1.08bn
three decades working Rosneft. impairment charge in relation to its exit, which
in Russia. The transfers draw a line under Equinor’s it noted had been completed in line with Norwe-
three decades of working in Russia. Equinor gian and EU sanctions against Russia.
announced it was leaving the country on Feb- Without Equinor’s support, Rosneft may
ruary 28, four days after Moscow began its struggle to maintain production at the chal-
invasion of Ukraine. At the end of 2021 it was lenging North-Komsomolskoye heavy oilfield
producing 25,000 barrels of oil equivalent per in Western Siberia. The company’s withdrawal
day (boepd) in the country, from assets valued also raises questions about the difficult-to-re-
at $1.2bn. cover Domanik limestone oil formation, where
In its statement on May 25, Equinor said it the pair are currently undertaking a three-year
had transferred interests in four joint ventures pilot programme.
in Eastern and Western Siberia to Rosneft, and Equinor is the first of the international oil
had been released from all future commitments majors to successfully leave Russia. BP, Shell and
and obligations. It has also signed an agreement ExxonMobil have made similar commitments,
to sell its 30% interest in the Zarubezhneft-op- but are yet to close any divestments or other
erated Kharyaga production-sharing agreement share transfers. ™

Week 22 02•June•2022 www. NEWSBASE .com P9