* Russian oil exports down as domestic refinery output up
* Russia to ramp up eastbound oil exports
By Vladimir Soldatkin
MOSCOW, Jan 13 Russian pipeline monopoly
Transneft said it expected to cut crude oil exports
by more than 1 percent this year to 225 million tonnes (4.5
million barrels per day) due to an increase in domestic
production of refined products.
Russia has been cutting oil exports, despite an overall
increase in crude output, as its refineries have embarked on a
$55 billion modernisation programme to produce better quality
Transneft Chief Executive Nikolai Tokarev said on Monday
that Russian refineries had increased product output by 9
million tonnes last year.
"And this is not the end of it. The rise in refining output
products will continue," he told a briefing.
He declined to present a more detailed breakdown of the
planned destination of exports, saying that "it is a sensitive
Russian oil exports declined by 2.5 percent to 228.5 million
tonnes in 2013, according to Energy Ministry data.
The increase in Russian oil refining volumes and a rise in
exports of diesel and gasoline have already hit cash-strapped
refineries in Europe.
Meanwhile, top Russian oil producer Rosneft last
year agreed to almost triple crude supplies to China in the
coming years from more than 300,000 bpd currently. The deal sent
ripples through the trading community and raised fears that
Russian oil exports to the West would contract.
Last year, eastbound flows of Russian oil, away from
saturated European markets, rose by almost a fifth to 740,000
Tokarev said the trend of Russia supplying less oil to
Europe was already apparent but declined to elaborate.
Tokarev said Transneft expected Russian oil producers to
increase crude supplies to its pipeline system, for both
domestic and export destinations, by 4 million tonnes to 485
million tonnes in 2014.
Transneft receives around 95 percent of all oil produced in
Russia into its pipeline system.
Tokarev said the Black Sea port of Novorossiisk may export an
additional 35 million tonnes of oil products per year (750,000
bpd) by 2020 thanks to the construction of new product pipelines
from several refineries, including a Volgograd refinery owned by
Russia's No.2 oil producer Lukoil.