Russia's crude oil exports to the European Union in January fell to around 600,000 barrels per day (bpd) from 1 million bpd in December as seaborne volumes dried up except to Bulgaria, International Energy Agency (IEA) data showed, said Hydrocarbonprocessing.
The EU imposed a ban on seaborne Russian crude oil imports from Dec. 5 and G7 countries set a price cap on Russian seaborne exports at USD60 per barrel over Russia's invasion of Ukraine in February 2022. Bulgaria has secured a two-year exemption from the ban.
To offset the loss of EU trade, Russia has boosted crude exports to Asia. Its crude exports to China rose by 300,000 bpd in January to a record high of around 2.3 million bpd, the IEA said in a report published on Feb. 15. Exports to India, which increased imports of Russian crude significantly last year, were broadly steady at 1.6 million bpd.
Ghana and Indonesia emerged as new destinations for Russian crude exports in January, the IEA added. Exports to Turkey rebounded from a December low of 40,000 bpd to 180,000 bpd in January, but were still well below the average of 350,000 bpd previously.
The EU has sought to offset the loss of Russian crude with increased buying from the Middle East, West Africa, Norway, Brazil and Guyana, the IEA said. In December, Norway increased production capacity at its Johan Sverdrup oilfield to 720,000 bpd from 535,000 bpd, and its operator Equinor is looking at the possibility of boosting it to 755,000 bpd.
Sverdrup, Western Europe's largest oilfield, produces medium-heavy crude that is a suitable replacement for Russia's Urals. Landlocked Hungary plans to cooperate with Croatia to increase the capacity of the Adriatic pipeline that brings non-Russian crude to Hungary, while Bulgaria is seeking to revive a pipeline project to import crude via Greece.
We remind, Rosneft will parnter with Indonesia to contribute USD24 B on a greenfield refinery in East Java province.
The refinery will have 14 refining units for vehicle fuels as well as seven units for petrochemicals. The purpose is to construct a facility which can process heavy crude oil and high sulfur crude oil.
mrchub.com