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Russia to monitor upstream, downstream oil with a system
Russia’s energy ministry is developing a united monitoring system to review the county’s oil production, transportation and refining in order to make the industry more transparent and reduce the illegal oil trade,
a? ministry spokeswoman said Tuesday. The ministry announced the “Oil
Control” concept in a statement late Monday, saying that the
government’s commission on the fuel and energy complex approved the
concept on Thursday. “The details of the Oil Control system are
currently under development and there isn’t a deadline yet for when it
will be ready,” the spokeswoman? said. The system is to provide accurate
information about the production, distribution and movement of crude
and oil products across Russia, as well as crude and oil products export
and transit, including sea and rail terminals, the pipeline system and
tank farms. The system is also to balance all production, distribution
and demand for crude and oil products to eliminate losses to the state
budget from illegal production, refining and export, the ministry said.
“It will be a unified system that will monitor all input and output,
rather than the current system in which various agencies monitor
individual parts of the industry,” the spokeswoman said. The Oil Control
system is expected to make the Russian oil market more transparent and
reduce the size of Russia’s shadow oil market, thereby reducing losses
to the federal budget, the ministry said. The ministry plans to work on
preventing crude oil theft and to better control Russia’s so-called
mini-refineries, or small-scale refineries, which have been accused of
producing sub-standard oil products and not paying taxes.
“Mini-refineries will need to report their activities within the
framework of the system, but they are not the only target, or even the
most important target,” said the ministry spokeswoman, without
elaborating.?
Source: Platts
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