Summa has gone from Rotterdam

The Russian company has terminated the contract for the construction of an oil terminal in the Netherlands.
Origin source
Shtandart company, which is controlled by a group of "Sum" Ziyavudin Magomedov, and the Port of Rotterdam terminated the contract for the construction of oil Tank Terminal Europoort West Terminal (TEW). Yesterday, all the necessary documents have been signed by the parties. This "News" told two sources close to the parties to the transaction.

According to sources of "Izvestia", the closure of the project due to the changed market conditions in Europe, as well as a "turning to the East," the Russian company. On the one hand, considerable volumes of Russian oil is now redirected from Europe to China, and on the other - very European refining market is going through hard times. So, its margin on Fitch's assessment, is at its lowest level in recent years. Last year it fell to $ 3.3 / bbl., Down from $ 4 in 2013 and $ 6.8 in 2012. This leads to the closure of a number of refineries in Europe, including in Rotterdam, where its plant in late 2014 redeveloped in store for the oil company Kuwait Petroleum.

- Of course, the trend may be reversed in a few years - the source, "he says Fromesty. " - However, given the current oil market situation and the overall macroeconomic situation, the investor and the Dutch side had taken a joint decision to stop the project. In the future, the port can again set the site up for sale.

Parties to complete the project without conflict and in good relations, emphasizes the source. According to him, a group of "Sum" could theoretically apply for a new competition, but it will depend on the terms and conditions and the prevailing market conditions. In Rotterdam, the group will bunkering business (filling vessels with fuel and oils). The press service of the "sum" declined to comment, noting that the official announcement will be coming soon.

The right to build the terminal at the port of Rotterdam Shtandart won in 2011, beating competitors in the tender: the Dutch of Vopak, the Chinese and BrightStart of Sinopec, as well as the Russian Global Ports. The group came to the Netherlands for the long haul, even financed the restoration of landmark historical monument - the House-Museum of Peter I in Zaandam, which is home to the Russian emperor when he studied shipbuilding. AT2013 port handed Shtandart land for construction of the terminal area of ​​55 ha in the long-term lease. By 2015, all permits for construction of the terminal was obtained. Capacity of the terminal was to be 3 million cubic meters of simultaneous storage, joint investment in the project is estimated at close to $ 1 billion. The loss group from the closing of the project source "Izvestia" is estimated at several million euros, which were used to pay the rent, the implementation of environmental requirements as well as checking the site for the presence of bombs during the second world war.

Recall that in June, the Ministry of Energy expressed the need to carry out additional economic evaluation of the feasibility of the project on creation of an oil hub in Rotterdam. According to Deputy Energy Minister Kirill fellows, creating a hub for the storage of Russian oil could create a competitive export deliveries of Russian producers of domestic ports. He also noted that in Europe now, and so there is a free additional capacities for storage of oil.

Experts called the logical solutionie "Amount" to abandon the project.

- This is quite a timely solution, - says Director of Development Agency Portnews Nadezhda Malysheva. - The company has already announced the construction of new terminals in the Far East, focused on China. In view of the sanctions it is quite logical to withdraw from the project in Rotterdam, redirecting investments to implement the much less risky projects.

As another reason of closing the project, experts called the refusal of the Russian government on the promotion abroad of Russian Urals crude oil. Currently, the price of Russian oil brand depends on the price of Brent, whose production volumes are reduced. To Urals could become the new international standard was needed not only to a certain level of quality and stable raw materials, but also the presence of a large international hub of logistics, which would be carried out with his delivery. It was assumed that this would be a hub of Rotterdam - it is the largest oil port in Europe and has a good port infrastructure, coupled with a network of pipelines. However, due to the foreign policy situations project had to be frozen. In addition, the head of "Gazprom oil" Alexander Dyukov, speaking about the possibility of the use of Rotterdam for the formation of the reference of Russian oil grade, pointed out that this problem can be solved and in Russian ports - Ust-Luga and Primorsk.

- It is an old dream of Russian officials to Urals oil trading irrespective of Brent, - says a leading analyst of the National Energy Security Foundation Igor YUSHKOV. - And, in fact, the entire construction of the terminal project has been sharpened by it. However, the deterioration of the foreign policy situation has frozen the idea.

Group "Amount" - Russia's diversified holding uniting assets in port logistics, engineering, construction, telecommunications and oil and gas sectors. Located under the control of the entrepreneur Ziyavudin Magomedov. "Amount" controls the Far Eastern Shipping Company (Group FESCO), Yakutsk Fuel and Energy Company. Engineering business "Amounts" is presented by companies "Stroynovatsiya", "Inteks" and "GlobalElektroSthe Tools ". The group also includes a telecommunications company "Summa Telecom." In addition, the "Amount" on a parity basis with the state company "Transneft" controls Novorossiysk Commercial Sea Port is Russia's largest. "Sum" is also a shareholder of JSC "United Grain Company" (50% minus one share, and the rest - from the Federal Property Management Agency).