...

Applying quality bank will take 3 to 8 months: Transneft

Oil&Gas Materials 13 April 2009 17:05 (UTC +04:00)

Azerbaijan, Baku, April 13 / Trend , E. Ismayilov/

Russian Transneft says applying quality bank system for the oil shipped from Novorossiysk depending on its type will take 3 to 8 months, a source in Transneft said by telephone from Moscow while commenting on opinion by Russian Energy Ministry about advisability of creating quality bank for the oil transported via Transneft and shipped from Novorossiysk, Tuapse and Primorsk.  

"We, as executors, are ready to implement this project for several months. We have different variations of term such as six and eights months. A decision must be adopted on this issue," a source said.

Applying quality bank of oil in Novorossiysk port does not require construction of additional reservoirs to keep crude.

"Each reservoir has its own capacity. We can use different capacity for each type of oil," a source said.

Launching quality bank requires also applying co-efficient of value of oil by different producers depending on crude quality.

Azerbaijan transports oil to Novorossiysk via Baku-Novorossiysk. After mixed with other oil, it is sold as Urals.

"The problem is also of economic nature as well. Applying quality bank means organizing new production. The Taxes Ministry says if we mix oil, it will be a new product and proposes to lay 18-percent VAT on it," a source said.

He said there are also proposals to sell oil in a pure form which Russia does not receive.

"It is also proposed to separate Azerbaijani and Caspian oil from the remaining oil. But mutual relations within the country [Russia] are the main point here. Azerbaijani oil is of high quality. The main problem is the oil produced in Tataristan and Bashkiria [supplied to Novorossiysk] which have high sulfur content," a source said.

The SOCAR exported roughly 610,000 tons of oil via the Baku-Novorossiysk in Q1 compared to 249,000 for the same period of 2008. Over 224,000 tons were exported in March.

About 1.2 million tons of Azerbaijani oil was exported via the Baku-Novorossiysk in 2008, the same volume exported in 2007.

Do you have any feedback? Contact our journalist at: [email protected]

Latest

Latest