• NOV Downhole

 

Energy companies turn to Russia as African/Middle Eastern unrest continues

Global oil producers are looking to Russia to boost reserves amid unrest in northern Africa and the Middle East, despite the high prices and weak margins that are forcing run cuts in Europe.

On 3 March, Total SA announced an agreement to buy 12% of OAO Novatek for approximately US$ 4 billion. The French explorer plans to raise its holding to 19.4% within three years, while also joining the Yamal LNG project. Russia’s vast resource base and relative soiciopolitical stability are making it an increasingly attractive nation for energy development.

However, spot differentials on Russian medium sour Urals slipped for a second day on 3 March, falling below US$ 3 discount levels.

Tamoil, the Libyan oil company, has announced a reduction in operations at its 72 000 bpd refinery in Switzerland, making it the first refiner in Europe to confirm run cuts due to negative margins.

Besides economic run cuts, some European refineries are undergoing maintenance work. Royal Dutch Shell has halted a crude distillation unit and restarted a gasoline producing fluid catalytic cracker at its Pernis refinery in the Netherlands until April. Furthermore, two of Total’s refineries in France are undergoing continued work, while the company’s UK based Lindsey refinery has kept one crude distillation unit shut since last year.

Published on 04/03/2011


Hydrocarbon Engineering

Would you like a FREE trial of Hydrocarbon Engineering magazine?

With 12 issues per year containing unparalleled coverage of the global refining, gas processing and petrochemical industry including regional reports, case studies and detailed technical articles.

Get your FREE magazine now »

No credit card required

 
 

Related articles

Libyan supply update

The IEA releases information regarding the reduced supply of crude from Libya and its effect on the wider oil market.

Write your own comments

*
*
*

Recommend magazines

  Hydrocarbon Engineering  LNG Industry  Oilfield Technology  World Pipelines