KazTransOil and Transneft reach consensus for contaminated oil

EPA-EFE/ANDREI LIANKEVICH/FILE PICTURE

A worker stands on a platform at the first pump station on Belarus territory of the Druzhba pipeline, near the village of Bobovichi, Belarus.

KazTransOil and Transneft reach consensus for contaminated oil


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NUR-SULTAN, Kazakhstan – Kazakhstan’s KazTransOil and Russia’s Transneft have reached an agreement on compensation for damage to Kazakh consignors for the shipment of contaminated oil in the Russian port of Ust-Luga, the press service of KazTransOil said on 25 June.

“We reached an agreement with the Russian partners on the reimbursement of costs to Kazakh shippers for shipping low-grade oil in the port of Ust-Luga,” the press service quoted KazTransOil General Director Dimash Dosanov as saying.

KazTransOil, as a national operator for the main oil pipeline, ensures the interests of Kazakhstan and consignors in the transportation of oil through the company’s oil pipeline system.

From April to May, an emergency situation arose in the Transneft trunk pipeline system. A high concentration of organochlorine compounds appeared in the transported oil, which led to the shipment of low-grade oil for Kazakhstan shippers to tankers in the port of Ust-Luga. As a result, oil with a high content of organic chlorides got into the Druzhba main oil pipeline.

“For the first time, all participants in the pipeline market are faced with the problem of oil pollution by organochlorine. Transneft reacted and did everything possible to eliminate the consequences, ” Dosanov said.

Transneft has proposed a compensation mechanism that will significantly simplify calculations and payments for substandard oil.

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