Logo of Phnom Penh Post newspaper Phnom Penh Post - Russian crude oil imports not on refinery’s wishlist

Russian crude oil imports not on refinery’s wishlist

An oil worker inspects a pumping jack during drilling operations in an oilfield operated in the village of Otrada, Russia, earlier this year. Bloomberg
An oil worker inspects a pumping jack during drilling operations in an oilfield operated in the village of Otrada, Russia, earlier this year. Bloomberg

Russian crude oil imports not on refinery’s wishlist

Russia is looking to expand its crude oil exports to ASEAN countries – including Cambodia – despite the Kingdom being years away from having refinery capabilities.

The announcement made by the Russian Energy Minister Alexander Novak during last week’s Russian-ASEAN summit, comes at a time when Western-backed sanctions and a global fall in oil prices have caused the oil and natural gas giant to seek out new markets.

According to the minister, Russia is looking to create an oil swap scheme with numerous untouched markets.

“Today deliveries are being made as part of swap operations to Malaysia and Singapore. In a perspective, we are also considering deliveries to Thailand, the Philippines and Cambodia,” he said, according to Russian media.

The oil swap schemes could be developed in both long-term and short-term contracts.

“We don’t have reasons for waiving supplies in case there is demand and commercial benefit. We’re ready to supply to the countries that need oil and oil products, this direction is interesting to us,” he said.

Hann Kheing, managing director of the Cambodia Petrochemical Company (CPC), which is building Cambodia’s $2.3 billion landmark oil refinery in Kampot province, said it was unlikely that the company would look towards Russian crude when the facility is completed in 2018.

“Our capacity of 5 million tonnes annually will be very little for the Russian market. And even if the crude remains cheap, long distance shipments are not economical. I don’t think we will take Russian oil because the logistics costs are very high,” he said.

He added that smaller shipments from the Middle East or potentially Northern Europe would make more economic sense.

Chea Socheat, director general of the Ministry of Mines and Energy, said CPC needs to carefully study any agreements for crude oil supply.

“It depends on the company’s decision, but they should consider importing crude from global suppliers very carefully to make sure the transportation costs and the quality of the crude is the most economical for the refinery,” he said.

MOST VIEWED

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • Chinese firms unveil preliminary results on metro, monorail for capital

    Minister of Public Works and Transport Sun Chanthol and representatives from China Road and Bridge Corp (CRBC) and its parent company, the state-owned China Communications Construction Co Ltd (CCCC), met on June 24 for talks on results of the firms’ preliminary study on a potential metro

  • ACLEDA, WU to enable global money transfers

    Cambodia's largest commercial bank by total assets ACLEDA Bank Plc and global money transfer firm Western Union (WU) have partnered to offer customers cross-border money transfers to 200 countries via “ACLEDA mobile” app. In Channy, president and group managing director of ACLEDA, said the June 22 agreement

  • Cambodia detects new Covid cases after 52 days: PM

    After 52 days of zero new Covid-19 cases, Cambodia has now detected new infections, according to Prime Minister Hun Sen. In his special audio address to the nation late on June 28, Hun Sen said the new cases were detected on people who had undergone PCR tests

  • Higher education leaders tour US

    With support from the US Department of State, 10 Cambodian leaders in higher education participated in the 10-day International Visitors Leadership Programme (IVLP) in three US states from June 19 to July 1. They included nine university rectors and directors of higher education institutions who are members of

  • Gold-covered boundary stone found within Angkor Thom’s West Gate

    The Apsara National Authority (ANA) announced that their working group in charge of restoration work at Angkor Thom's Takav Gate or the West Gate recently found an ancient stone slab commonly known as a boundary stone. The boundary stone is 53 cm by 53 cm and 12 cm