November 29, 2019 / 10:51 AM / 13 days ago

Russia's Transneft sets aside 23 bln rbls for tainted oil compensation

MOSCOW, Nov 29 (Reuters) - Russian oil pipeline monopoly Transneft has set aside 23 billion roubles ($360 million) for compensation related to tainted oil, it said in its quarterly report on Friday.

In April, Western buyers discovered that supplies of Russian crude had been contaminated with organic chloride, a chemical used in oil recovery that can damage refining equipment. Tainted oil was shipped via the Druzhba pipeline and the Baltic Sea port of Ust-Luga.

Transneft has promised to compensate Russian and Kazakh oil companies whose oil was contaminated, which, in turn, should then agree on payments with their customers. Last month, Transneft signed a first settlement deal with Lukoil covering Hungary and Slovakia.

Transneft has also said on Friday that its third quarter net profit was at 38.2 billion roubles, down from 79 billion roubles the same period a year ago but revenues were slightly up to 272.5 billion roubles from 252.7 billion roubles last year.

$1 = 63.8345 roubles Reporting by Maria Kiselyova Writing by Katya Golubkova; editing by David Evans

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