Varandey oil exports drop twofold

Varandei oil terminal

The special designed offshore ice resistant oil terminal exported only 3,91 million tons of crude oil in 2011, nearly half of the year before.


The Varandey oil terminal of the coast of Nenets Autonomous Okrug is designed to handle much more oil than was shipped out last year. With reference to the Arkhangelsk Port Authority, Portnews reports about the 2011 decrease.

The terminal has a huge tank farm onshore receiving oil by pipes from the onshore Yuzhno-Khylchuyu oil fields. From the tanks, the oil are pumped 22 kilometers offshore to the fixed loading platform where tankers are loaded with the oil.

Russian oil shipment expert, Alexei Bambulyak with Akvaplan-Niva in Norway told BarentsObserver last autumn the reason for less oil export out of the Varandey terminal is the overestimation of the reserves at Yuzhno-Khylchuyu oil field.

- The production at the oil field decreased much earlier than expected and since that field is the main supplier of oil to Varandey, the export decreases correspondingly, Bamulyak said.

The Varandey terminal is operated by LUKoil.