Rosneft can buy the whole oil capacity of the ESPO, but it is not for sale

Yesterday it became known about a new solution to the problem of lack of space in the ESPO pipeline. Rosneft, which requires its capacity to pump oil to China, can simply buy out the oil from other companies that relied on supplies in an eastern direction on this route. First of all, we are talking about Lukoil, Surgutneftegaz and the Irkutsk Oil Company. The Ministry of Energy supports the idea. However, it doesn’t suit the competitors of Rosneft, and oil companies will continue to fight for the independent pumping via ESPO. The result can be a reduction in the margins of the state-owned company on the Chinese contract.

Rosneft can buy the entire volume of oil, which will be pumped through the Eastern Siberia - Pacific Ocean oil pipeline until 2017, sources familiar with the situation told the Kommersant. This is one of the solutions to the problem of the lack of space in the pipeline – this year Rosneft should additionally pump more than 6 million tons of oil to China, and the infrastructure on the Chinese side is not ready. Yesterday, the Deputy Energy Minister, Kirill Molodtcov confirmed the existence of this problem and such a solution. He assured that the capacity of the port of Kozmino, where the pipeline ends, will be enough to service the additional volumes. So far, the official assures, there are no problems with the pumping.