Belarus may acquire oil field in Russia in exchange for oil refineries’ assets – expert
<p> MINSK, Nov 9 - PrimePress. Belarus may acquire an oil field in Russia in exchange for assets of its oil refineries, Igor Yushkov, expert at the financial university under the Russian government, leading analyst for the National Energy Security Fund of the Russian Federation told Eurasia Expert. </p> <p> </p> <p> As previously reported, during a phone talk with Lukashenko on November 4, 2020, Russian President Vladimir Putin agreed that this acquisition was possible, and this will be a matter of further consideration. </p> <p> </p> <p> According to Yushkov, Lukashenko wants the oil field to cut the spending on Russian oil, which has been increasing over the past few years due to the tax maneuver in the Russian oil industry. </p> <p> </p> <p> Belarus wants to sel ect an oil field, a company or a project that would enjoy the mineral extraction tax relief, as Russian companies do, or make this tax lower than the usual one, says the expert. This will allow Belarus to buy oil cheaply and maintain the status quo in the export of oil products. </p> <p> </p> <p> “This will not be addressed at the state level anyway. Russia has undistributed deposits, but only small and medium-sized ones, since all large ones have already been appropriated. And there are deposits that are not being operated, usually explored, but left untouched. Of course, Belarus does not need them. The Belarusian leadership needs cheap oil right here, right now,” Yushkov said. </p> <p> </p> <p> Therefore, this is more like about a purchase of an operated oil field fr om a Russian company. “Russian companies will hardly agree to sell, but can make an asset exchange deal: a stake in the Belarusian oil refining sector in exchange for extraction rights,” he said. </p> <p> </p> <p> The expert believes that this is “the only possible condition that meets Belarus’ aspiration.” Gazpromneft and Rosneft own 49% of the Mozyr refinery, so, for instance, if they acquire a controlling stake there, the exchange is possible, Yushkov said. </p> <p> </p> <p> Belarus currently operates two oil refineries: Mozyr Oil Refinery OJSC (Gomel Oblast) and Naftan OJSC (Novopolotsk, Vitebsk Oblast). </p> <p> </p> <p> Mozyr Oil Refinery is one of Belarus’ two oil refineries. </p> <p> It has been operating since 1975; transformed into an OJSC in 1994. The government of Belarus holds 42.757% of its shares; 42.581% belong to Slavneft owned by Rosneft and Gazprom Neft. MOR Plus LLC that represents interests of the company employees holds 12.252% (the state’s share was increased to 98.4% in 2006), other shareholders – 2.41%. </p> <p> </p> <p> Launched in 1963, Naftan is Belarus’ largest refinery and one of the largest in Europe. In 2008, Naftan incorporated another Belarusian refinery Polimir. 99.83% of the company belongs to the state. Naftan is capable of producing about 400,000 tonnes of diesel fuel per year. Naftan produces euro-4 and euro-5 diesel fuel, petrol and lubricants, which are exported to the EU, the Middle East and the United States. End </p>
2020-11-10
Primepress
Belarus may acquire oil field in Russia in exchange for oil refineries’ assets – expert
MINSK, Nov 9 - PrimePress. Belarus may acquire an oil field in Russia in exchange for assets of its oil refineries, Igor Yushkov, expert at the financial university under the Russian government, leading analyst for the National Energy Security Fund of the Russian Federation told Eurasia Expert.
As previously reported, during a phone talk with Lukashenko on November 4, 2020, Russian President Vladimir Putin agreed that this acquisition was possible, and this will be a matter of further consideration.
According to Yushkov, Lukashenko wants the oil field to cut the spending on Russian oil, which has been increasing over the past few years due to the tax maneuver in the Russian oil industry.
Belarus wants to sel ect an oil field, a company or a project that would enjoy the mineral extraction tax relief, as Russian companies do, or make this tax lower than the usual one, says the expert. This will allow Belarus to buy oil cheaply and maintain the status quo in the export of oil products.
“This will not be addressed at the state level anyway. Russia has undistributed deposits, but only small and medium-sized ones, since all large ones have already been appropriated. And there are deposits that are not being operated, usually explored, but left untouched. Of course, Belarus does not need them. The Belarusian leadership needs cheap oil right here, right now,” Yushkov said.
Therefore, this is more like about a purchase of an operated oil field fr om a Russian company. “Russian companies will hardly agree to sell, but can make an asset exchange deal: a stake in the Belarusian oil refining sector in exchange for extraction rights,” he said.
The expert believes that this is “the only possible condition that meets Belarus’ aspiration.” Gazpromneft and Rosneft own 49% of the Mozyr refinery, so, for instance, if they acquire a controlling stake there, the exchange is possible, Yushkov said.
Belarus currently operates two oil refineries: Mozyr Oil Refinery OJSC (Gomel Oblast) and Naftan OJSC (Novopolotsk, Vitebsk Oblast).
Mozyr Oil Refinery is one of Belarus’ two oil refineries.
It has been operating since 1975; transformed into an OJSC in 1994. The government of Belarus holds 42.757% of its shares; 42.581% belong to Slavneft owned by Rosneft and Gazprom Neft. MOR Plus LLC that represents interests of the company employees holds 12.252% (the state’s share was increased to 98.4% in 2006), other shareholders – 2.41%.
Launched in 1963, Naftan is Belarus’ largest refinery and one of the largest in Europe. In 2008, Naftan incorporated another Belarusian refinery Polimir. 99.83% of the company belongs to the state. Naftan is capable of producing about 400,000 tonnes of diesel fuel per year. Naftan produces euro-4 and euro-5 diesel fuel, petrol and lubricants, which are exported to the EU, the Middle East and the United States. End