World Bunkering > News > Summer 2010 > News and views

COMPANY NEWS

Rosneft opts for open oil products trade

Olga Bogacheva

As of February 2010, Rosneft has cancelled monthly oil products tenders on the domestic market. All available products offered as “free departure station” (FDS) will now be traded via exchange only.

As a result of positive customer response to the openness, comfort and transparency of exchange trading, Rosneft has cancelled FDS tender procedures for motor fuel, residual oil, bitumen and aircraft fuel. The small amount of tender sales compared to exchange trade is a further reason for the decision to suspend the tender system .

Currently Rosneft sells over 100,000 tonnes of oil products per month via the St Petersburg international commodity exchange (SPIMEX); and this figure is growing. Trading is considered strategic; the decision to proceed to daily trade in the near future was adopted. Other petrochemicals and oil produced by Rosneft refineries will also be open traded.

According to Rosneft Information Service, Rosneft was the first among Russian vertically-integrated oil companies to develop the open trade of oil products following an order from the Russian government in 2008. In 2009, 1.15 million tonnes of oil products were sold at exchange. Negotiations with agents and potential customers were held to invite the maximum number of companies to trade via the exchange. Since then, sales have increased multifold.

A number of special efforts are made to engage end-customers in trading. In particular, the minimum motor fuel lot has been reduced to 60 tonnes. This provides manufacturers who have low fuel consumption with the opportunity to buy oil products without intermediaries. Sergey Bogdanchikov, Rosneft president said: “Rosneft actively participates in open trade development in our country. Switching from bids to open trade is the next step towards the civilization of the domestic oil products market.”

Fuel sales up for Primorsk Resources

Primorsk Resources bunkering company supplied 25,500 tonnes of fuel during the first quarter of 2010, giving it a market share of 33% in the port. Total bunker fuel sales in 2009 were 110,000 tonnes.

Primorsk sea port is an oil-loading port at the end of Baltic pipeline; it is the largest oil and oil products transhipment port in the north-west of Russia. In 2009 turnover reached 79.1 million tonnes (5% more than in the previous year); the number of vessels calls was 935; oil transhipment reached 74,875,200 tonnes. The remaining turnover consisted of diesel fuel. Primorsk Resources has been supplying bunkering fuel in Primorsk since 2003.

Bunker tanker launched at Nevsky

Nevsky shipbuilding and ship repair yard has launched a new bunker tanker for Haugland Tankers , a subsidiary of Bergen Tankers. The 850 dwt coastal bunkering tanker, second in the series, was launched on schedule on April 6, 2010. Following installation and start-up, and sea trials on Ladozhskoye Lake, the vessel will be delivered to Haugland. It is expected to operate in Oslo and Bergen ports.

Skadar to supply Atomflot

Skadar bunkering company won an electronic bid to supply fuel oil to FGUP Atomflot on April 2, 2010. Atomflot, a subsidiary of Rosatom State Corporation, operates and maintains the Russian civil atomic fleet. The ship base is located in Murmansk. Olga Sudova, Skadar’s logistics manager, represented the company throughout the bidding process. She was specially trained in the “Theory and Practice of Open Trade” programme arranged by the Russian Association of Marine and River Bunker Suppliers.

Sudova said: “We are satisfied with the bid result. Our company got a new client and reasonable prices. We are going to expand our participation in open trade and electronic bids.”

Skadar was established in 1998 and is one of the largest fuel suppliers in Murmansk, with monthly sales of some 16,000 tonnes of oil products. This is a rare occasion where the company has managed to maintain its position after the vertically integrated oil companies (Rosneft and Lukoil) entered the local market. A good reputation, reliable suppliers, high product quality and the ability to satisfy the requirements of each client contributed to this result. In 2009, Skadar leased the 1,188 dwt barge Tovra to improve service efficiency. Following the successful introduction of the barge, Skadar leased the 3,264 dwt Dvina in April 2010.

Lukoil extends tanker lease

The Murmansk branch of Lukoil Bunker has extended the lease of the MAKA-owned tanker Desna tanker by six months as of March 2010. The company will continue operations with two bunkering tankers, Aginskoye and Desna.

Dan-Bunkering strengthens Russian links

Worldwide fuel supplier Dan-Bunkering says it is looking to intensify business in Russia, where it is already a major player on the Novorossiysk and Tuapse fuel markets. The company is considering further expansion of its Kaliningrad office, in order to meet increasing demand. Dan-Bunkering says that its Kaliningrad office has particularly strong relations with Far Eastern Russian ports, which the office aims to develop further. “This position gives the client a first-class service and they can without doubt leave their Russian deliveries in our hands,” says managing director Henrik Zederkof.

PORT NEWS

St Petersburg market drops in 2009

The total volume of bunkers delivered in 2009 in St Petersburg port was 1.65 million tonnes, including 1.49 million tonnes of heavy fuel and 165,000 tonnes of light fuel. This shows a significant drop in activity of about 30% compared to 2008. Lukoil Bunker was the market leader with 370,000 tonnes of fuel delivered. Second place was occupied by Gaspromneft Marine Bunker, which delivered 360,000 tonnes, the third was Baltic Fuel Company (established in 2008 after a merge of MBK and Contour) with 206,000 tonnes, then followed Nevsky Mazut with 170,000 tonnes.

Crisis over in Primorye ports

The crisis is over in Primorye – this much is clear from the list of vessels expected in the Primorye ports (Vladivostok, Nahodka and Vostochnys) in the first quarter of 2010. The major activities of these ports are coal, metals and lumber transportation – all of them bringing sales to the bunkering market. Fishing boats leave port regularly, buying a significant amount of fuel and lubricants.

The price difference between Primorye and Singapore remains stable: bunkering in Primorye is cheaper by $50-60 per tonne in respect of fuel oil and by $90-100 for lubricants. Each vessel that calls is making the effort to buy the cheapest bunkering fuel in the Asia-Pacific region. Despite this, the number of bunkers-only calls dropped significantly after several instances of quarantine pests on board calling vessels; the vessels had to spend several hours at the port to pass sanitary treatment.

Cutoms procedures posed another obstacle to the rapid bunkering of vessels making bunkers-only calls. A vessel may enter Vladivostok or Vostochny ports for bunkering on any day, but in Nahodka it may have to stay off the harbour for the whole weekend because the relevant customs office is closed. Bunkering companies have to notify the customs in writing about expected vessels to ensure that a customs officer will be assigned to handle the operation.

Market players expect that implementation of an electronic declaration procedure will make these delays a thing of the past.

ASSOCIATION NEWS

Russian Association of Marine and River Bunker Suppliers stood up for market operators’ interests

The Court of Appeal has confirmed the Arbitrary Court of Moscow’s judgment on the admission of the Federal Anti-Monopoly Service’s (FAS) decision on oil spill response. As a result, FAS’ order that additional conditions imposed on oil spill response contractors in St Petersburg must be dropped has been confirmed.

The decision came in response to the Association requesting a FAS examination of orders from St Petersburg sea port authority concerning compulsory and additional certification of oil spill response teams working at the port. These orders were made following instructions from the Central Attestation transport Commission of Russia (CAC).

Until the middle of 2008, oil spill response at St Petersburg sea port was performed by more than a dozen organisations certified according to Russian legislation. All oil spill response teams were certified by the interdepartmental attesting commission (MAC). But in May 2008 Rosmorrechflot and St Petersburg port administration required additional compulsory certification of oil spill response teams according to the procedure established by Transport Ministry of Russia.

FAS stated that establishing special requirements for oil spill response organisations had a negative impact on competition in the oil spill response market.

Rosneft Bunker and Neftehim Bunker join Association

The Russian Association of Marine and River Bunker Suppliers held its board meeting on March 25 in Petersburg. Two new members, RN-Bunker and Neftehim joined the Association.

RN-Bunker, a subsidiary of Rosneft, was founded in April 2008. It operates in Azov, Archangelsk, Astrakhan, Vanino, Vladivostok, Vostochny, Kaliningrad, Korsakov, Krasnoyarsk, Murmansk, Naberezhnye Chelny, Nahodka, Nizhniy Novgorod, Novorossiysk, Olya, Posye, Prigorodnoye, St Petersburg, Samara, Sovetskaya Gavan, Syzran, Rostov-on-Don, Tuanse, Ust-Kut, Habarovsk, Holmsk and Yaroslavl. Neftehim was established in 2009 as a subsidiary of Neftehim Ltd. It carries out bunkering operations and other services in St Petersburg port and the north-western region of Russia.

According to Vitaliy Kovalev, Association president, members of the Association together control about 70% of bunkering services in Russian ports.

Russian Bunker Forum

The third Russian Bunker Forum, titled “Current Stuation and Perspectives on the Russian Bunkering Market” will be held in St Petersburg on 24-25 June 2010. It has already became a tradition that forums organised by the Russian Association of Marine and River Bunker Suppliers are attended by the best professionals, high-ranking government officers, specialists from related industries; thus, discussions here are always interesting and productive. This forum is dedicated to issues arising on the local bunkering market which are significantly different from those faced by Europe and the rest of the world. Many experts consider it the most interesting and useful event for the Russian bunker industry.

The Forum is supported by Gaspromneft Marine Bunker, LUKOIL-Bunker, Transbunker, Infotec Flex, Russian Fuel Union and others. The following issues will be discussed:

• Industry performance during the world economical crisis – markets, trends, forecasts.
• Bunker fuel quality at Russian markets. Trends arising from growth of oil processing depth, reduction of sulphur content, other economic problems. Sub-standard fuel supply – legal and economic penalties.
• World quality standards and Russian technical regulations: “Requirements for motor and aircraft petrol, diesel and marine fuel, jet aircraft fuel and residual fuel oil”.
• Insurance of bunkering companies’ interests during crisis. Trends in relations between insurers and insurants.
• Arrears in payment. Failure to pay for bunker fuel. Debt collection, vessel arrest under relevant claims in different countries. Practical ways to solve problems arising from vessels arrests.
• Single-hull tanker phase-out in compliance with Annex 21 MARPOL. Current situation, problems and highlights.
• Open trading of oil products.