Belneftekhim eager to refine Gazprom Neft oil via tolling agreement, no deal yet

MINSK, 21 February (BelTA) – The Belarusian state petrochemical concern Belneftekhim has suggested refining oil for the Russian company Gazprom Neft in exchange for a percentage of the oil taken, BelTA learned from Belneftekhim Press Secretary Aleksandr Tishchenko after Belneftekhim representatives had negotiations with representatives of the Russian company's daughter enterprise IOOO Gazpromneft-Belnefteprodukt.

According to the source, representatives of Belneftekhim and Gazprom Neft met on 21 February to discuss oil refining via a tolling agreement. The Belarusian side suggested a 20/80 formula. Belneftekhim would like to take Russian oil without paying a premium and take one fifth of the volume of deliveries for itself as part of the tolling agreement.

The source specified that representatives of the Russian oil company managed to only confirm their readiness to make money, skim the cream off, to be exact, and ruled out any other ways of participating in forming the fuel market in Belarus.

“As a result of negotiations Belneftekhim notified representatives of Gazprom Neft's daughter enterprise that it would do its best to keep Gazprom Neft's refueling stations supplied with fuel taking into account interests of the domestic market of Belarusian consumers,” Aleksandr Tishchenko said.

At the same time Belneftekhim did not rule the possibility of resuming negotiations with Gazprom Neft. The same scheme will be offered to other oil companies as well. “It is a general condition as part of the tolling agreement,” Belneftekhim representatives added.