Rosneft Resumes Operations at Tuapse Refinery in November

Rosneft is set to resume operations at its Tuapse oil refinery located on Russia’s Black Sea coast starting in November, after shutting it down for a month due to unfavorable refining margins, according to industry sources cited by Reuters. The refinery has been idle since October 1, reflecting broader challenges facing the oil sector amid low profitability.

In November, the facility is anticipated to process up to 480,000 metric tons of crude oil into various fuel products. With a capacity of 240,000 barrels per day, the Tuapse refinery primarily caters to export markets, producing naphtha, high-sulfur diesel, fuel oil, and vacuum gasoil directed mainly towards Turkey, China, Malaysia, and Singapore. Notably, it does not supply Russia’s domestic gasoline or diesel markets.

The recent operational halt at Tuapse has contributed to increased idle refining capacity across Russia, with estimates indicating a 67% rise in expected downtime in October compared to initial plans, largely due to scheduled maintenance at other major refineries.

The refinery has also been a target of Ukrainian drone strikes this year, with significant damage reported following attacks in January and July. These targeted assaults on Russian energy infrastructure have become common, utilizing drones as the primary attack method.

However, a recent Financial Times report suggests that Russia and Ukraine may be entering preliminary Qatar-mediated discussions aimed at preventing further attacks on each other’s energy facilities, potentially signaling a shift in the ongoing conflict dynamics.

Story via OilPrice.com