OREANDA-NEWS. July 15, 2008. The Belarusian Oil Company (BOC) plans to increase the exports of oil products on the FOB terms to 50% by the end of 2008.

The company has signed several contracts with customers including long-term contracts on the delivery of oil products on the FOB terms via the ports of Latvia and Estonia. The supplies on such terms (i.e. goods delivery on board in the port of shipment) are one of the priority areas in upgrading the efficiency of exports of the Belarusian oil products. “In August we intend to sign some more long-term contracts on the FOB terms,” the Belarusian Oil Company said.

Today, the exports on the FOB terms account for nearly 25% of the BOC deliveries, other exports are executed on the DAF terms (delivery to the border).

The BOC sells about 400-450 thousand tonnes of oil products per month. The Belarusian Oil Company has already consolidated the major exports of the domestic oil refineries. In September 2008, the company is projected to handle almost 100% of Belarusian oil exports.

As BelTA informed earlier, the Belarusian Oil Company has opened a subsidiary BNK (UK) Ltd in London to sell oil products to end consumers in North-Western Europe. The goal is to start using the mechanism of insuring price risks and attracting financial resources.

According to BOC specialists, the organisational issues and technicalities are being addressed now. The company is expected to start working in q3 or Q4 this year.

Belarusian Oil Company was registered in the Republic of Belarus on May 17, 2007. The shareholders are Belorusneft, OAO Naftan, Mozyr Oil Refinery, and Belarusian Oil Trading House. Belarusian Oil Company was founded following the President’s instruction to optimise oil purchases and the export of petroleum products. Belarusian Oil Company is expected to specialise in bulk purchases of oil, oil processing at Belarusian oil refineries and exporting petroleum products. Belarusian Oil Company held the first trading session in petroleum products using Belneftekhim’s e-trade system on June 29.