Sechin: the situation in the refining sector in Europe may decline in 2017

Sechin: the situation in the refining sector in Europe may decline in 2017


A significant deterioration in the refining industry in Europe could happen as early as 2017, the benefits received by those refineries, which have long-term contracts for the supply of oil, said the President of “Rosneft” Igor Sechin.

VERONA (Italy), 22 Oct. A significant deterioration in the refining industry in Europe could happen as early as 2017, the benefits received by those refineries, which have long-term contracts for the supply of oil, said the President of “Rosneft” Igor Sechin.

“The European refining industry still faces serious constraints that limit its profitability in the long term. This weak demand, growing competition from external suppliers. Significant deterioration in the financial situation of the refining industry in Europe can be expected in 2017”, — said Sechin, speaking at the fourth Eurasian forum in Verona.

The head of “Rosneft” noted that at the present time, by reducing the cost of raw materials margin European refining has increased, but on the whole European oil refining is experiencing not the best times. “Since 2010 in Europe closed down refining capacity of around 100 million tons, 20 million tons are planned to close or sell,” he said.

“Having long-term contracts for the supply of raw materials of a certain quality, the refinery will be able to better and more efficient to build a strategy on the modernization with a focus on the demand”, — said Sechin.

According to him, competitive advantage is given to those plants that have a stable supply of raw materials with characteristics which are most focused on processing capacities of the enterprise.