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Lukoil, MOL to sign tainted oil settlement

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maradon 333/Shutterstock.com

Russian oil producer Lukoil and Hungarian energy company MOL will sign a settlement regarding tainted oil during Russian President Vladimir Putin’s visit to Budapest this week, international news wire Reuters reports, citing four industry sources.

Image: Shutterstock.com

In April of this year, an organic chloride contamination in the oil flowing through the Druzhba pipeline, which connects oilfields in Siberia with a set of European countries including Hungary, was discovered. Up to five million tonnes of crude may have been affected.

The contamination disrupted Russian oil exports and led to long negotiations about compensation. Reuters says that the compensation fee received by MOL is highly unlikely to be disclosed. However, Russian oil transportation company Transneft has said compensation won’t exceed USD 15 per barrel.

Last month, Kazakhstan reached a preliminary compensation deal over the incident, although the final agreement is yet to be signed, the report adds.

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