Russia’s Transneft Reaches First Deal on Dirty Oil Compensation
- Transneft, KazTransOil said to agree on $15-a-barrel rate
- Transneft has no plans for exclusive approach for payouts
An oil tanker passes a Soviet-era sign for the Druzhba oil pipeline on a roadway near the village of Nikolayevka.
Photographer: Andrey Rudakov/BloombergThis article is for subscribers only.
Russia’s crude-pipeline operator has agreed to pay its Kazakh counterpart a fixed per-barrel compensation rate of about $15 for oil that was contaminated by chemicals, according to two people with knowledge of the matter.
The accord between Transneft PJSC and KazTransOil JSC is the first of its kind related to Russia’s dirty-oil crisis, which became the worst disruption to the country’s crude exports in decades after organic chlorides were found in supplies to European refineries through the Druzhba pipeline and cargoes shipped from the Baltic port of Ust-Luga.