Romania implements an emergency status due to polluted oil originating from Azerbaijan
In a series of unexpected events, contaminated oil from Azerbaijan has caused operational disruptions, shipment delays, price impacts, and emergency responses at refining facilities across Europe.
The contaminated batch of raw oil was loaded at the port of Jeihan in Turkey and transported via the Baku-Tbilisi-Ceyhan pipeline. Both British Petroleum (BP) and Italian Eni SpA reported receiving contaminated oil from Azerbaijan. BP acknowledged potential contamination problems related to organic chlorides in some shipments from Azerbaijan, while Eni SpA confirmed it acquired some of the contaminated oil.
Organic chlorides, chemicals used to increase oil extraction, can cause significant damage to refinery equipment when present in large quantities. As a result, the discovery of this contamination caused delays and stoppages in loading oil at the BTC Ceyhan terminal for several days, including a force majeure declaration by the BTC pipeline company that suspended some shipments due to contaminated crude.
The contamination issue led to serious disruptions in the supply of raw oil, as reported by the Romanian authorities. The contaminated oil shipments forced refinery adjustments and the use of national reserves to maintain stable fuel supply. OMV Petrom, a Romanian oil company, requested the release of 80,000 tons of raw oil and 30,000 tons of diesel fuel from emergency reserves to ensure the continuity of the refinery's operations.
The current situation has resulted in 184,000 tons of imported raw oil becoming unavailable for the Petrobrazi oil refinery supply chain. The Ministry of Energy reported that organic chlorides were found in a batch of 92,000 tons of raw Azeri oil received by Romanian OMV Petrom between July 16 and 18.
The potential detrimental effect of organic chlorides on oil refineries and equipment was also reported by Bloomberg. British Petroleum, the largest oil producer in Azerbaijan, warned of some batches of Azeri oil being contaminated with organic chlorides. In response, OMV Petrom, BP, and Eni SpA have all decided to refuse batches of raw oil due to the contamination.
This incident is not limited to these companies, as other oil companies have also reported receiving contaminated oil from Azerbaijan. The contaminated oil issue has caused price declines of Azeri crude oil to a four-year low due to quality concerns, and has led to emergency measures in some downstream countries to maintain stable fuel supply.
In conclusion, the contaminated Azeri crude received by various refiners has caused operational disruptions, shipment delays, price impacts, and emergency responses at refining facilities reliant on this supply. The situation underscores the importance of maintaining stringent quality control measures in the oil industry to prevent such incidents from occurring.
The contaminated Azeri crude received by various refiners, such as BP and Eni SpA, has led to operational disruptions and refinery adjustments, including the use of emergency reserves to maintain a stable fuel supply. This contamination issue has been a matter of concern in the general news, politics, and business sectors, causing price declines of Azeri crude oil and triggering emergency measures in some downstream countries. The energy industry, particularly the oil-and-gas business, must prioritize stringent quality control measures to prevent similar incidents in the future. Finance is also impacted, as the contaminated oil shipments resulted in losses for several companies, making it a significant topic in financial news.
