Belarusian Oil Company to take over oil products export in H2 2008

Starting H2 2008 Belarusian Oil Company will be the sole exporter of Belarusian oil products, the company’s Director General Vladimir Zubkov told media on April 10. He noted, the company had been tasked with consolidating the export of Belarusian oil products. In Q1 2008 the company accounted for up to 80% of the export of Belarusian oil products. “The figure is expected to reach 100% starting H2 2008,” said Vladimir Zubkov. He said, in order to export oil products the company uses the electronic trade system of Belarusian Oil Trading House, tenders, and direct contracts with customers. The signed contracts testify that the effectiveness of Belarusian oil products export has increased, said the official. At present the company accounts for some of Belarus’ oil import. The share will gradually increase. At present the company buys up to 75,000 tonnes of oil per month. “In the future we plan to increase the purchases up to 250,000 tonnes per month. After reviewing the performance in H1 and Q3 more specific plans for increasing the purchases will be defined,” added the Director General. He noted, the purchases are funded using loans. The company actively cooperates with Belarusian and foreign banks. Efforts are exercised regarding the financing by VTB Bank, ABN Amro, Raiffeisen and others. ZAO Belarusian Oil Company was registered in the Republic of Belarus on May 17, 2007. The shareholders are Belorusneft, Naftan, Mozyr Oil Refinery and Belarusian Oil Trading House. The company was set up following an instruction of the head of state with a view to optimising oil purchases and the export of oil products. The company is tasked with bulk oil purchases, oil processing at Belarusian oil refineries, and the export of oil products. The first batch of products made by the company was traded using the electronic trade system of Belneftekhim concern on June 29, 2007.