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Poland's Lotos Continues To Refine Dirty Oil From Russia, Did Not Calculate Losses Yet
Umer Jamshaid Published December 12, 2019 | 09:37 PM
Polish oil refiner Grupa Lotos continues to process contaminated oil at its Gdansk refinery and has not yet calculated the amount of compensation that it will claim from Russian suppliers, the company's spokesman told Sputnik on Thursday
On Wednesday, Polish fuel group Orlen said it had claimed compensation from Russian oil suppliers. In turn, PERN, the Polish operator of the Druzhba oil pipeline, believes that at the current rate of consumption, the refinement of contaminated oil might continue until late 2020.
"The company continues to calculate the resulting costs and intends to demand compensation from Russian suppliers," Lotos spokesman said, adding that the company was interested in taking advantage of all the opportunities provided by law.
The Gdansk refinery continues to use contaminated oil, which is diluted by good quality oil so that the chloride content is below 10 parts per million, which is normal, the spokesman said.
The company noted that the additional costs associated with the processing of contaminated oil partially appeared, and will partially appear in the future.
The delivery of Russian oil to Eastern Europe via the Druzhba pipeline was temporarily halted in late April after it was discovered that the fuel was contaminated with organic chlorides. In May, the transfer of oil was resumed in Belarus, Ukraine, Slovakia, Czech Republic and Hungary. Poland partially resumed pumping on June 10, and oil deliveries were restored in full on July 1.
Transneft should compensate for the damage due to oil pollution, however, foreign companies receiving Russian oil should send their claims on the quality of raw materials to shippers, that is, Russian oil companies with which they have contracts. Then, these Russian companies forward their claims to Transneft. It has reserved 23 billion rubles ($365 million) for compensations associated with oil contamination.
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