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Austrian OMV detects chloride contamination in Azeri oil

OMVs detect contamination before refinery arrival

Eni, a company in Italy, also discovered contamination in its oil system

Last week, news of contamination led to a four-year low in price differentials.

By Robert Harvey

LONDON, 28 July - Austrian oil group OMV found organic chloride in Azeri crudes that were scheduled to be delivered to its refineries. It said it prevented any disruption. Last week, organic chloride contamination was found in Azeri BTC cargoes. This caused price differentials to reach a 4-year low. It also delayed loadings at Turkey's BTC Ceyhan Terminal for several days.

OMV stated in a statement released on Friday that the crude contaminated was discovered by its quality control procedures. The company said that the contaminated crude had not yet reached its refineries and that there had been no interruption in its refining or fuel supply to the market. OMV stated that it was working to secure other crudes from alternative sources in order to "ensure continuity of fuel supply" but did not specify what it intended to do with Azeri crude.

The industry uses organic chlorides to increase oil extraction by cleaning oilwells and accelerating the flow of crude oil. However, the compounds need to be removed before the oil can enter pipelines.

OMV stated that in large concentrations they can be hazardous to refinery equipment. Eni, the Italian oil company, said last week it detected organic chloride in oil in its system. (Reporting and editing by Robert Harvey, London)

(source: Reuters)