Russia's Surgutneftegaz awards annual tender for diesel, fuel oil exports
This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine.
Russian energy company Surgutneftegaz awarded its annual tender for diesel and fuel oil exports in 2025 at higher prices than a year ago, three sources familiar with the tender said.
Following the imposition of Western sanctions in response to Russia's military actions in Ukraine, Russia has developed an alternative network to market its fuel and many Russian companies have turned to selling via direct negotiations.
Russia is still a major diesel and fuel oil supplier to international markets, although it has been forced to sell its energy at a discount compared with fuel that is not under sanctions.
Surgutneftegaz has continued to sell its oil products via annual tenders. It has, however, dropped six-month tenders for crude oil, which it now sells only on the spot market, the sources said. They asked not to be named because they were not authorized to speak publicly.
Surgutneftegaz awarded low-sulfur diesel and straight-run fuel oil for loading in January–December 2025, the sources said.
Two of the sources said one trading firm won both lots but did not name the firm.
Diesel was sold at discount of $100–$110 per barrel on free on board (FOB) Primorsk basis, the sources said. The discount was roughly $30 per barrel narrower compared to the one achieved in a previous tender for products loading this year, according to one of the sources.
Another source said that fuel oil was sold at discount of $50–$60 per barrel FOB Ust-Luga. This was also an improvement on volumes sold for loading this year, but traders did not provide details.
The oil products sold through the tender were sold with discounts to northwest Europe benchmark prices for 10-ppm diesel and fuel oil, traders said.
Surgutneftegaz also tendered to sell gasoline for loading in 2025, but sources said bans on gasoline exports from Russia meant that it was unlikely to do so.
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