Russian crude not refinable in the country: ERL

Published : 24 Sep 2022 09:44 PM

Eastern Refinery Limited, the country's only state oil refinery, tested 50 liters of crude fuel oil samples brought from Russia.  ERL says it is not possible to refine Russian crude oil in its facilities.

Eastern Refinery Managing Director Mohammad Lokman confirmed the submission of the sample report.

The sample oils were handed over to Eastern Refinery Managing Director Mohammad Lokman in five jars of 50 liters of crude oil by representatives of the Bangladeshi agent of the Russian company, National Electric BD Ltd on September 1. Later, a 5-member committee headed by Raihan Ahmed, General Manager (Operation and Planning) of the State Oil Refinery was formed for testing the samples.  The Eastern Refinery Authority submitted a 20-page report to the BPC Chairman's office after the sample testing.

 The technical committee of Eastern Refinery Limited submitted a report to Bangladesh Petroleum Corporation last Tuesday.

Mohammad Lokman said, "We have submitted a report to the Bangladesh Petroleum Corporation (BPC) after testing Russian crude oil samples at many stages.  We constituted a five-member committee to prepare the report.  Our authority BPC will take all the decisions.

BPC official said, "The report submitted by the Eastern Refinery on the testing of Russian fuel oil states that it is not possible to refine Russian crude oil in their facility."  This oil is very heavy oil.  The kind of oil we want is mostly diesel in our country.  Refinement of this oil will reduce the amount of diesel.  We will get about 33 percent diesel.  But we currently process Arabian Light Crude Oil or Murban Crude Oil.  From there we get about 42 percent diesel.  Also we get more petrol from Arabian Light Crude Oil or Murban Crude Oil.  We do not have the capacity to process this heavy oil of Russia.  If we go to refine this oil, we will lose our technical and financial.  So it is not possible to refine Russian oil.

 Prime Minister Sheikh Hasina ordered to review how oil can be imported from Russia at ECNEC meeting on August 16.  Planning Minister MA Mannan told the media after the meeting that if the neighbouring country India can, why cannot Bangladesh?

 It is known that the country is looking for customers to buy oil in any way because of the various sanctions of America and Europe on Russia.  In the middle of this month, the Russian oil production and marketing company Rosneft sent a proposal to sell refined oil to Bangladesh again.  

Earlier Bangladesh was not interested in buying oil, but now Bangladesh is considering the matter.  BPC formed committee to discuss oil import from Russia. Russia's state-owned fuel oil supplier 'Zarubezhneft JSC' sent 50 liters of oil to Dhaka as a sample of their crude fuel oil on August 24.  Later it was sent for testing to Eastern Refinery Limited located in Chattogram .  After testing the Russian sample, the country's only state-owned oil refinery, Eastern Refinery Limited, says that it is not possible to refine Russian crude oil in their facilities.