MOL successfully tests Arabic oil at Slovnaft refinery

The Slovak refinery division of the Hungarian MOL - Slovnaft – has successfully tested alternative crude at its refinery in Bratislava in the fourth quarter of 2022, Report informs referring to the Hungarian company.

“A test run on Arab Light crude was successfully completed in the Slovnaft refinery, where all preparations have been completed to increase the crude intake of non-Russian oil grades,” reads a report by MOL.

The presentation for investors notes that due to the increased risks of interruptions in the supply of raw materials in the context of the Russian-Ukrainian conflict, as well as the need to comply with EU sanctions against Russia, MOL is implementing a program to diversify raw materials. Thus, in June 2022, the company began evaluating 27 projects to reduce dependence on Russian oil.

Previously, the share of Russian raw materials processed at the group’s (landlocked) refineries was 75-80%. It is assumed that from February 2023 this share will decrease to 65-70% and from December 2023 to 50-55%. From 2025, the company intends to completely switch to raw materials from other suppliers.

In May 2022, the head of MOL, Zsolt Hernádi, stated that the company would not be able to quickly abandon Russian oil: “This is not an ideological issue, but a logistical, technological and chemical one. It will take 2-4 years and $500-$700 million for MOL to be able to be more flexible and fully independent in Hungary and Slovakia.”

He noted that in the event of a complete embargo on Russian oil, even with alternative supplies, the Danube oil refinery would reduce production by 20%, and the refinery in Bratislava by 30%.