Will Russian oil companies be obliged to send part of output to refineries?

Will Russian oil companies be obliged to send part of output to refineries?

Russia's government has ordered the ministries for energy, finance and economic development to consider obliging oil companies to send at least 17.5% of their annual production to domestic oil refineries, according to a protocol of a meeting chaired by the country's Deputy Prime Minister Dmitry Kozak.

Andrei Polishchuk from Raiffeisenbank said there are no requirements for supplies to domestic refineries now and large oil companies already supply a big part of their production, Kommersant business daily reported.

In 2017, Russia’s oil production stood at 546.8 million tonnes of oil and gas condensate and primary oil refining amounted to 279.9 million tonnes.

A representative of Kozak said there were no decisions on requirements yet. The Energy Ministry said the issue is being studied. Major oil companies declined to comment.

If implemented, the initiative will mostly affect independent oil producers, which do not have own refineries and do not sell their oil to other companies’ refineries, but for exports, the daily wrote.

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