Russia's Transneft Continuing Talks With Rosneft on Compensation for Contaminated Oil

MOSCOW (Pakistan Point News / Sputnik - 11th March, 2020) Russian oil pipeline monopoly Transneft is continuing to talk with oil giant Rosneft on compensation for last year's losses related to contaminated oil in the Druzhba pipeline, Maxim Grishanin, Transneft's first vice president, said on Wednesday.

In late April 2019, the Druzhba pipeline system, which pumps oil for export via Belarus further to Europe, was contaminated with chlorides. Compensation to the affected companies is being paid by Transneft, for which 23 billion rubles ($322 million) were reserved.

"We are negotiating," Grishanin told reporters when asked whether Rosneft's compensation had been settled.

In late October, Transneft said it had either settled or was discussing compensations for contaminated oil with almost all companies affected, including Rosneft. In November, Rosneft, the largest Russian oil producer, said that it had not yet completed the calculation of losses from the incident since claims of the company's contractual partners were continuing to be received through the third quarter.