Following widespread floods that have led to a halt in production, Russia’s Orsk oil refinery has declared force majeure on fuel supplies from April 8, as indicated in a document issued by plant owner Forteinvest and viewed by Reuters. The refinery’s shutdown was prompted by ecological concerns and the need to ensure labor safety, with Forteinvest emphasizing the decision to mitigate potential risks.
Last year, the Orsk refinery processed 4.5 million metric tons (90,000 barrels per day) of oil. The floods, which impacted various cities and towns in Russia and Kazakhstan, were a result of the third-longest river in Europe bursting its banks, leading to the evacuation of approximately 110,000 people and inundating parts of the Russian city of Orenburg. Upstream on the Ural, floodwaters breached an embankment dam in the city of Orsk.
Amid these developments, Russia’s energy ministry downplayed the impact of the force majeure on the market, stating that most of the Orsk refinery units had already been shut down for planned maintenance before the floods. It indicated that only 0.1% of the planned motor fuel production for April in Russia would be affected.
Forteinvest provided additional insight, mentioning that the Orsk refinery continues to dispatch fuel from its stockpiles to meet the region’s needs. However, the company cautioned that there might be delays in the timing of product shipments, while reaffirming its commitment to fulfilling its obligations.