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ERL completes test of Russian Crude Oil

Decision to import likely to be confirmed on Monday

Published : Saturday, 10 September, 2022 at 12:00 AM  Count : 695

CHATTOGRAM, Sept 9: All types of necessary testing of 50-litre Russian heavy crude oil have been completed at the Eastern Refinery Limited (ERL), country's lone refinery.
Muhammad Lukman, Managing Director of ERL confirmed the matter to the Daily Observer, on Friday.
He said, "five member expert committee formed for this purpose is now preparing a full length report of testing which is expected to be completed on next Monday."
So, the import of Russian crude oil is likely to be confirmed on Monday after submission of the report to Bangladesh Petroleum Corporation (BPC).
Meanwhile, the 50 litres of Russian Crude oil arrived in ERL on September 1, while testing started since the following day.
Russian state-owned oil supplier Zarubezhneft JSC sent the samples of crude oil to Bangladesh Petroleum Corporation (BPC).
The Bangladeshi agent of the Russian company is National Electric BD.
Meanwhile, BPC sources said, if the ERL can refine the crude, Bangladesh might initiate negotiations to import this sort of Russian crude oil for the first time to refine into petroleum products.
Separately, BPC is considering importing refined petroleum products, too, as Russian Rosneft Oil Company has offered Bangladesh to supply gasoil (diesel), jet fuel and gasoline (octane) at much lower prices than international market rates.
The BPC is the lone importer of all the three types of oil that the Russian company has offered to export.
Dhaka is now exploring opportunities to import oil from Russia.  However, the controversy and debate raging around neighbouring India's move to import refined oil from Russia emphasise the need for caution.
Currently, India imports Russian oil despite the US sanctions while Bangladesh has a long-term contract with India to import refined oil from its refinery at Numaligarh in the Indian state of Assam.
The Rosneft has sent specifications of gasoil, jet fuel and gasoline they intend to export.
But their specifications are of lower grade than which the BPC imports currently from other countries.
Bangladesh currently imports 0.005-percent-sulfur gasoil, A-1 jet fuel and 95 RON gasoline (octane) from its existing global suppliers, mostly of Middle East origin.
BPC is currently importing refined petroleum products above the international market rates, with premium added up.
In such a desperate situation, Bangladesh government has also constituted a high-powered committee to scrutinize the Russian oil-export offer in detail and take necessary action soon.
The BPC will have to continue importing oils until December this year under the existing contracts with the suppliers.
If the government decides to initiate oil import from Russia before December, the BPC will have to import a minimum quantity from the current contractual suppliers as there is space of adding or deducting import quantity by up to 10 per cent.
However, the Eastern Refinery Limited was established in Pakistan period in 1967. The ERL can produce all types of petroleum products including HSD (Diesel), HOBC (Octane), SKO (Kerosene), MS (Petrol), Furnace oil, Lubricants, bitumen, LP gas, JP etc. ERL is fit for refining the crude oil of Abu Dhabi and Saudi Arabia.
During the current year, BPC under the Energy and Mineral Resources Division will import 16 lakh metric tons of crude oil from Saudi ARAMCO and ADNOC, Abu Dhabi under the Direct Procurement Method (DPM).  BPC will further import another 58.50 lakh metric tons of refined oil for this year.











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