Allowed to utilize crude oil and diesel reserves, despite earlier refusal of Azeri oil deemed contaminated, by OMV Petrom.
Romania Taps into Oil Reserves to Avert Fuel Crisis
In August 2020, Romania declared a crisis-level emergency and authorized OMV Petrom to use oil reserves, following the discovery of contaminated Azerbaijani crude oil destined for the Petrobrazi refinery. The contaminated oil, containing dangerously high levels of organic chlorides, could have severely damaged the refinery infrastructure and caused a national fuel supply disruption.
The contamination was detected during routine quality control checks, leading to the cancellation of scheduled crude oil deliveries to Romania’s Port of Constanța. To ensure the continuity of fuel supply and prevent operational shutdowns, the Romanian Ministry of Energy activated strategic reserves and authorized the release of tens of thousands of tons of oil and diesel from emergency stocks.
Authorities and Romanian intelligence strongly suspected the contamination was an act of sabotage, possibly by Russian actors, aimed at destabilizing European energy security amid geopolitical conflicts. The contamination was believed to be caused by intentionally injecting chlorine into the Baku-Tbilisi-Ceyhan pipeline, which transports crude oil from Azerbaijan to Romania through several countries.
The emergency declaration and authorization to use strategic oil reserves were precautionary measures to mitigate the impact of potentially harmful, contaminated crude oil supply on Romania's energy infrastructure and ensure national fuel availability.
Minister Bogdan Ivan declared a state of emergency at the level of crisis to allow OMV Petrom to use its strategic reserves. The Ministry authorized the release of 80,000 tonnes of crude oil and 30,000 tonnes of diesel from OMV Petrom's reserves. The amounts temporarily used account for less than 5.5% of the national emergency stocks.
Despite the temporary loss of access to 184 kt of imported crude oil, the supply of petroleum products to the Romanian market is ensured and operates without disruptions. The Ministry of Energy reported that the national emergency stocks, which total over 2 million tonnes, will be replenished within 60 days.
The measures taken in advance ensured the uninterrupted supply of petroleum products to the Romanian market. No disruptions in the supply of petroleum products have been reported. The release of emergency stocks avoided a major disruption on the national fuel market.
The suspicious contamination incident involving Azerbaijani crude oil, with its high levels of organic chlorides, prompted concerns in the energy industry, potentially affecting the national supply of fuel, and requiring strategic intervention in the finance sector. As a result, the Romanian Ministry of Energy authorized the release of tens of thousands of tonnes of oil and diesel from emergency stocks, highlighting the importance of robust planning and preparedness in the oil-and-gas industry to secure energy supply and avoid crises.
