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Russian Oil Exports from the “Sakhalin II” Project Are in Crisis

June 12, 2024

Tanker operations from the Russian “Sakhalin II” project are facing a crisis, with two of its three tankers out of service since last April, placing a significant burden on the sole remaining operational vessel.

Typically, the project relies on 3-4 tankers for oil shipments, with all deliveries being directed to China since the beginning of 2023. The round trip, including unloading in China, typically takes about two weeks.

While the task is manageable with three tankers and can be handled in emergencies with two, relying solely on one tanker poses a considerable challenge.

It’s worth noting that the last cargo loaded onto the “Zaliv Vostok” tanker was in early April. After unloading its cargo in Ningbo, it docked at several locations near the Chinese island of Zhoushan. However, according to ship tracking data compiled by Bloomberg, the tanker is still in proximity to Xiaoqian Island.

On May 21, the “Zaliv Baikal” tanker loaded cargo and sailed to Ningbo as usual. Upon arrival, it encountered unusual circumstances, diverting its course to the small port of Zarubino in Russia, approximately 161 kilometers west of the port of Kozmino.

The two tankers spent approximately three days together before the “Zaliv Baikal” returned to Chushan, empty this time, according to the ship’s transponder signal, which was later updated.

Replacing malfunctioning tankers presents challenges; ships must be equipped with a front-loading system, an uncommon feature among the “Aframax” tankers utilized in the project.

While the reasons for the tankers’ breakdown remain unclear, it occurs amidst public statements from Sovcomflotstating that they are facing pressure due to Western sanctions.