Ukrtatnafta Scales Refining Down After Halt in Tatneft Deliveries

KYIV. Oct 23 (Interfax) – CJSC Ukrtatnafta has scaled down operations at its flagship Kremenchuk oil refinery in the Poltava region of Ukraine owing to a suspension in crude oil deliveries from Russia’s Tatneft (RTS: TATN).

“Today the refinery is operating at lower capacity. The Russian pipeline has suspended transport,” Ukrtatnafta CEO Pavel Ovcharenko, who was reinstated recently by the Sumy court of appeals, told journalists in Kyiv.

The refinery’s stockpiles are sufficient for production at a lower capacity for another 12 days, he said.

However, Ovcharenko said that the refinery would be supplied today with oil from Ukrnafta by direct contract.

In addition, Ukrtatnafta is currently in negotiations for deliveries with Russian oil companies, which have set timetable for oil deliveries to Ukraine, he said. “These are Lukoil (RTS: LKOH), TNK(RTS: TNKO)-BP, Surgutneftegas (RTS: SNGS), Rosneft (RTS: ROSN), Gazprom Neft (RTS: SIBN) and several smaller companies,” Ovcharenko added.

He also said that the company would take part in an auction for sales of Ukrainian produced oil, set to take place on Tuesday at the Ukrainian Interbank Currency Exchange (UICEX).

Ukrtatnafta plans to receive 200,000 tonnes of Ukrainian oil and 300,350 tonnes of Russian oil in November, Ovcharenko said.

Ovcharenko also said he hoped the situation regarding oil supplies in November to the Kremenchuk refinery would be solved in the coming days.

Tatneft, the main supplier of crude to the refinery, halted supplies to Ukrtatnafta on Friday morning.

It was reported earlier that the Sumy court of appeals has reinstated Pavlo Ovcharenko as CEO of Ukrtatnafta. Ukrtatnafta CEO Serhiy Hlushko, however, said the refinery had been seized and that he had been removed.

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