Naftogaz told how much they can earn from storing imported oil

Ukraine can take advantage of the situation in the global oil market and earn $ 1-3 million per month in fuel storage by providing its own system. This was stated by Chairman of the Board of NAK Naftogaz Ukrainy Andriy Kobolev, the press service of the company reports.

 “The issue is not only the low price. Due to the crisis, because of the pandemic, there is a serious drop in consumption in the world and an excess of oil needs to be done somewhere,” Kobolev noted.

According to him, Ukraine can provide potential customers with several options for storing excess oil. Firstly, oil refineries and terminals. In particular, the Pivdenny oil acceptance terminal.

The second option Kobolev called the oil transportation system, which can be used for storage partially. However, the head of Naftogaz noted that now this is not regulated by law. “In order to provide storage services, we need to obtain permission from a customs licensed warehouse. Because most of this oil will not be stored in Ukraine in the future,” Kobolev said.

He specified that Urals oil suppliers should be interested in the storage service and for this they should be given the opportunity not to pay VAT, but to pay exclusively for storage.

Kobolev believes that if such a regime is allowed, then Naftogaz will be able to attract additional customers and, according to preliminary estimates, revenues could reach $ 1-3 million per month. “I think it’s worth fighting for it. And we hope for an understanding of both the minister and the government,” Kobolev added.

    Last week, Naftogaz’s executive director Yuriy Vitrenko said that Ukraine should take advantage of the situation in the global oil market and provide its own oil transportation system for oil storage.
    Ukrtransnaft believes that the oil transportation system, firstly, is not designed for oil storage. Secondly, according to the law, oil of imported origin can be located on the territory of Ukraine only in import and transit modes. At the same time, the company began purchasing oil to replenish its reserves.

    On April 12, OPEC +, which includes OPEC countries, Russia and other oil-producing states, agreed to reduce oil production by 9.7 million barrels per day in May-June. But for now, the market remains crowded with oil, which is reflected in its prices.
    Today, April 27, Brent crude oil is trading at $ 24.01, WTI - $ 15.21 per barrel.