Kazakhstan, Russia agree compensation for contaminated oil: Kazakh minister

AKIPRESS.COM - Kazakhstan and Russia have agreed on compensation of $15 per barrel for the contamination of Kazakh crude shipped through the pipelines of Russia's Transneft (TRNF_p.MM), Kazakh Energy Minister Kanat Bozumbayev told Reuters on Thursday.
Three industry sources told Reuters earlier this year that compensation based on that figure would amount to $76 million, including payment for quality loss, demurrage and storage costs, Reuters said.
"They just need to finalize the negotiations with producers and that is it," Bozumbayev said on the sidelines of an energy conference, adding that Transneft would not demand additional proof of losses from Kazakh shippers.
News of the contamination broke in late April when buyers from the Baltic port of Ust-Luga and along the Druzhba pipeline to Germany, Poland, Hungary, Slovakia, Ukraine, Belarus and the Czech Republic discovered chemicals in the oil.
Up to 5 million tonnes of tainted Russian oil had by then been shipped from Ust-Luga via Druzhba to central Europe before flows were suspended. The volumes included some 700,000 tonnes of Kazakh oil mainly bought by trading house Vitol.
Earlier on Thursday, Bozumbayev told the Kazenergy conference that Kazakh oil output would remain stable at around 1.8-1.9 million barrels per day until 2023, after which it might grow significantly.