Rosneft, Russia’s oil giant, plans to resume crude oil processing at its Tuapse refinery on the Black Sea in November after a month-long pause due to low refining margins, according to industry sources speaking to Reuters on Thursday.
The refinery, which primarily serves export markets, has been offline since October 1, with the halt attributed to poor refining margins, sources reported earlier this month. Traders told Reuters that, once operations resume, the facility could process up to 480,000 metric tons of crude oil into fuel in November.
The Tuapse refinery has a capacity to process 240,000 barrels per day (bpd) and focuses on exporting naphtha, high-sulfur diesel, fuel oil, and vacuum gasoil, with main markets in Turkey, China, Malaysia, and Singapore. The refinery’s production does not supply gasoline or diesel to Russia’s domestic market.
The shutdown of Tuapse, prompted by low profitability, contributed to an overall increase in idled refining capacity across Russia this October. Earlier this month, Reuters estimates indicated that Russia expected to raise its idle refining volumes by 67% over earlier projections, largely due to scheduled maintenance at key refineries.
The Tuapse refinery has also faced several Ukrainian drone attacks this year, resulting in damage to the site. The most recent attack occurred in July, following a similar strike in January, which targeted Rosneft’s largest Black Sea refinery.
Drone strikes on Russian energy infrastructure have intensified this year, with Ukrainian drones frequently targeting oil refineries and other energy sites. However, a report from the Financial Times earlier this week suggested that Russia and Ukraine have begun preliminary discussions, mediated by Qatar, aimed at stopping attacks on each other’s energy facilities.
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