November 21, 2008

Russia to switch to annual oil export schedules

Reuters reported that Mr Viktor Khristenko Energy Minister of Russia's has approved a resolution allowing oil firms to switch to annual oil export plans from the previous quarterly schedules in a move designed to improve long term planning.

A ministry's resolution obtained by Reuters and signed by Mr Viktor Khristenko calls on oil firms and countries shipping oil via Russia, such as Kazakhstan to submit annual oil export schedules 35 days before the start of the period.

The reported added that the resolution, however, says that changes to the annual plan will still be available on a quarterly basis depending on the throughput capacity of the national pipeline monopoly Transneft. The resolution did not say when it would come into force, but traders said the trial annual schedule is already being compiled and may come into force as of the second quarter.

A trader with a Russian major said "It may seem a big change, this switch, but in fact not much will change given that quarterly schedules will remain in place."

Some Russian oil firms have also requested a re introduction of the practice of oil flow coordination on specific routes.