Page 8 - AsianOil Week 21 2022

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Bangladesh considers offer

of crude sales from Russia

POLICY RUSSIA, facing sanctions and a boycott by risk falling foul of sanctions. Furthermore, Bang-
some countries and companies of its hydrocar- ladesh has agreements with Saudi Arabia and
bon products, has proposed selling its crude the UAE for most of their oil imports. Offsetting
oil to Bangladesh. This was disclosed by Bang- those deals to take advantage of cheap Russian
ladeshi Minister of Power, Energy and Mineral crude could have an impact on those relation- If Bangladesh
Resources Nasrul Hamid this week during a ships, Hamid told reporters.
press conference in Dhaka. Bangladesh’s sole refinery – the Eastern should decide
“We have received a proposal from Russia Refinery – does not have the capacity to refine
expressing their interest to sell crude oil to us,” additional crude. Dhaka has two contracts with to purchase
Hamid said. “The Bangladesh Petroleum Cor- Saudi Arabia and the United Arab Emirates to
poration is now exploring how it can import the supply practically of the plant’s 34,000 barrel per discounted
oil and pay the bills.” day (bpd) capacity. The country imports more Russian
Since invading Ukraine in late February, Rus- than 90% of its national consumption of crude
sia has faced an international political and eco- and oil products, which amounts to around crude, it could
nomic backlash that has resulted in far-reaching 6.3mn tonnes per year (tpy). The balance comes
sanctions. This includes certain countries and from condensate gathered at the country’s gas lead to some
companies stopping purchases of Russian oil, gas fields. Current fuel reserves are considered to be
and coal. The US and UK have banned imports sufficient. complications.
of Russian oil and the European Union is con- Hamid said that for now the government
sidering how and when it might ban it. Refiners had no plans to raise domestic fuel prices, but
across various countries are also avoiding Rus- warned that price adjustments could come in
sian crude purchases. This has forced Russia to the future. He said current prices appear to be
sell its oil at major discounts. affordable.
If Bangladesh should decide to purchase “Oil and gas prices are in a volatile situation
discounted Russian crude, it could lead to some right now in the world market. The rate at which
complications. For one, it may prove difficult the product is sold in the morning changes by
arranging payment for the oil, as Dhaka could the afternoon,” he said.™

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