Russian crude could still be dirty by the middle of 2020



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While Poland's biggest refiner publicly criticized the deterioration in the quality of Russian oil, a suspect in the pipeline contamination investigation, which severely disrupted Russian supplies, sought asylum in Lithuania.

Earlier in the day, Reuters quoted an official from PKN Orlen, Poland's largest refinery, as saying that the quality of Russian crude oil was deteriorating – despite the ongoing clean-up that followed the scandal of contamination of April that disrupted supplies and triggered a tense reaction among buyers.

At the same time, Roman Ruzhechko, one of the main suspects of the ongoing Russian investigation into the contamination, asks for political asylum in Lithuania – where PKN Orlen also owns a refinery, reported separately Reuters .

A little over a week ago, Lukoil, Russia 's second – largest producer, managed to restore supply volumes after contamination of the Druzhba pipeline disrupted oil supplies. supply of Russian crude at the end of April.

The oil was contaminated with organic chlorine, a substance used in the production of oil to increase production but dangerous in high quantity for the refining equipment. Quantities of the chemical have been found to be much higher than the maximum amount allowed.

After opening an investigation into the incident, Russia concluded that the contamination was deliberate and Ruzhechko is one of the main suspects.

In fact, Russia believes that it is a criminal plot coordinated in part by the small oil company of which Ruzhechko is a leader.

Russian Transneft owns and operates all oil pipelines in the country, including Druzhba, and Ruzhechko is suspected of overseeing a company that was injecting toxic chemicals into the network. Related: Iran takes its revenge: seizes a British oil tanker

But the same company has also received documents from Transneft attesting that its deliveries of oil were clean, according to sources quoted by Reuters.

It is unclear whether Lithuania will extradite Ruzhechko, who was arrested by authorities on Interpol 's arrest warrant. Yesterday, his three-month detention was allowed and Russia has 40 days to formally request his extradition.

In the meantime, the head of the Polish pipeline told Reuters that Russian oil "was deteriorating, but that it was still worth treating."

Russia is now preparing to dilute contaminated oil stuck in the pipeline with clean crude oil, but this strategy is questioned, Russian oil companies claiming that it would weaken the quality and price of exports for a longer period. long.

According to some Russian oil companies, it may be necessary until the middle of next year to completely purge the pipeline using this strategy.

Instead, Russian oil companies argue that the pipeline should be completely emptied and that the contaminated crude should be sold at a very advantageous price.

Sources speaking to Hellenic Shipping News on condition of anonymity stated that it was unlikely that their objections would prevent Transneft from executing its dilution plan starting next week.

By Julianne Geiger for Oilprice.com

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