new Delhi: ONGC Videsh Limited (OVL) is lining up alternative channels to sell its share of oil from the Sakhalin-I project in Russia’s Far East, when traders developed cold feet – after initially warming up – after Moscow sent troops into Ukraine. On his first offering since.
OVL offers 700,000 barrels of cargo sokolo Crude received no bids, with traders expressing ‘sorry’ at the last minute, Reuters reported on Friday.
People aware of the development described it as a “hiccup”, adding that measures to work around the problem are expected “within a few days”. However, he acknowledged that OVL, which acquired a 20% stake in the project in 2001, would have to take a hit on shipments in the “current environment” arising from US sanctions.
“Oil is not subject to sanctions. Only the US has stopped Russian oil imports. But banks are wary of handling transactions involving Russian goods. Traders are terrified by the US punishing them on some minor basis,” said a trading house K executive told TOI, requesting anonymity.
OVL has small ‘Ice Class’ ships of 110,000 deadweight tonnage Aframax Tankers to transport Sakhalin crude from the D-Kastry terminal in Khabarovsk to Asian buyers such as South Korea, Japan and China.
The executive said, “Crude oil can be transferred to other destinations in large ships at the port of Yuso in South Korea. Not all Russian banks are subject to sanctions. India has banks without Western exposure. They can handle payments.” Huh.”
An alternative could be that OVL, including its refining sibling, approach the oil ministry to instruct Indian refiners. MRPL – Explorer to buy both subsidiaries of ONGC – Sakhalin Crude.
Other Russian benchmark crudes, Sokol and the Urals, have seen deepening discounts of up to $14 a barrel against Brent or Dubai markers, as spreads in eastern ports by the US, irrespective of the port of load, are being trapped.
Sokol is a lightly sweetened crude oil similar to US West Texas Intermediate Oil, while Ural is a blend of the heavily soured oil of the Ural and volga Light oil fields of Western Siberia. Sokol is shipped from Khabarovsk and transported to the Urals via the Baku-Novorossiysk and Druzhba pipeline systems.
OVL offers 700,000 barrels of cargo sokolo Crude received no bids, with traders expressing ‘sorry’ at the last minute, Reuters reported on Friday.
People aware of the development described it as a “hiccup”, adding that measures to work around the problem are expected “within a few days”. However, he acknowledged that OVL, which acquired a 20% stake in the project in 2001, would have to take a hit on shipments in the “current environment” arising from US sanctions.
“Oil is not subject to sanctions. Only the US has stopped Russian oil imports. But banks are wary of handling transactions involving Russian goods. Traders are terrified by the US punishing them on some minor basis,” said a trading house K executive told TOI, requesting anonymity.
OVL has small ‘Ice Class’ ships of 110,000 deadweight tonnage Aframax Tankers to transport Sakhalin crude from the D-Kastry terminal in Khabarovsk to Asian buyers such as South Korea, Japan and China.
The executive said, “Crude oil can be transferred to other destinations in large ships at the port of Yuso in South Korea. Not all Russian banks are subject to sanctions. India has banks without Western exposure. They can handle payments.” Huh.”
An alternative could be that OVL, including its refining sibling, approach the oil ministry to instruct Indian refiners. MRPL – Explorer to buy both subsidiaries of ONGC – Sakhalin Crude.
Other Russian benchmark crudes, Sokol and the Urals, have seen deepening discounts of up to $14 a barrel against Brent or Dubai markers, as spreads in eastern ports by the US, irrespective of the port of load, are being trapped.
Sokol is a lightly sweetened crude oil similar to US West Texas Intermediate Oil, while Ural is a blend of the heavily soured oil of the Ural and volga Light oil fields of Western Siberia. Sokol is shipped from Khabarovsk and transported to the Urals via the Baku-Novorossiysk and Druzhba pipeline systems.