BP, Shell tighten up self-imposed restrictions on purchases of Russian-origin oil products
BP, Shell tighten up on their Russian oil restrictions, 27 April 2022
The companies showcased their tougher policies today through bids on a trading platform to book jet fuel cargoes. In a bid for a 2,000-4000t jet fuel barge, BP stipulated a condition "that the goods shall not be, in whole or in part, produced" in Russia. Shell had a similar clause in a bid for a 27,000t jet fuel cargo.
"It is a condition of this bid that the goods sold and delivered by [the] seller will not be of [Russian Federation] RF origin, nor have blended with any product that was produced in RF, nor will the transport of the goods sold commence from or involve transit through RF," Shell said...
The new clauses bring Shell and BP in line with the position adopted last month by their peer TotalEnergies. "We are working to phase out Russian oil and gas from our supply chain while protecting the energy and fuel supplies that millions of people rely on every day," Shell told Argus..."We are making good progress and have taken a further step to tighten our trading terms to help achieve this"...
The new restrictions may prove challenging to implement on all transactions though, as it can be difficult to obtain full transparency on all the components that enter an oil product blend. Shell may also have to make isolated exceptions in order to meet supply commitments in Europe...