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Statement of Transneft Press Service

Date of publication: 4 June 2019

Today Mr. Igor Sechin has made a number of statements regarding the restricted oil pumping over the Druzhba oil pipeline.

It was noted that the recent incident had led to the replacement of Russian oil in European markets, causing damage to the petroleum industry of the Russian Federation.

Emotions aside, it should be stated that the amount of oil accepted into the system during five months of this year was 2.2 million tonnes more than in 2018. In the same vein export to markets beyond the CIS over the Transneft system increased by 3.1 million tonnes year-on-year. Therefore, the statement about Russian oil replacement is out of tune with reality.

Interestingly enough, all through 2019 Rosneft has failed to fully distribute the oil fed into the system of oil trunk pipelines. For example, in January 2019, the amount of oil with no routing orders amounted to 570,000 tonnes, in February this figure grew to 610,000 tonnes; in March the amount was 925,000 tonnes, and in April it stood at 1,070,000 tonnes! More than a million tonnes of this company’s undistributed oil that is in the system of oil trunk pipelines does not only aggravate the situation with the allocation of resources, but largely contributes to the reduction of crude accepted from other producers.

Furthermore, it has become quite characteristic of Rosneft recently to arbitrarily change the volumes of crude oil to be delivered to Rosneft’s refineries against the earlier planned amount. Despite the planned volume of oil delivery to RN-Tuapse Refinery for March, April and May of 2019 standing at 2,300 thou tonnes, the actual refining was as low as 660 thou tonnes. Across all Rosneft’s refineries oil deliveries during 5 months of this year contracted by 1.9 million tonnes year-on-year.

In view of the restricted oil transportation over the Druzhba OTP, Transneft is redistributing the volumes in the direction of export terminals. The June 2019 shipment schedule in ports for Rosneft provides for the extra 130,000 tonnes on top of the planned 880 thou tonnes in Novorissiysk; extra 370,000 tonnes on top of the planned 1,500 thou tonnes in Primorsk, extra 300 thou tonnes on top of 1,000 thou tonnes in Ust-Luga and 75,000 tonnes on top of 1,000 thou tonnes in Kozmino.  Russian oil delivered via pipelines is being replaced by the same Russian crude delivered by sea.

As of today, supplies to Hungary, Slovakia and the Czech Republic have been resumed.  Oil deliveries to Belorussian refineries restarted on 4 May 2019. Not later than 10 June 2019, oil deliveries will be resumed in the direction of Polish and German refineries.

We’d like to draw the attention of Rosneft’s employees to the need of preparing more unbiased and truthful information for public addresses of their chief executive.


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