Motor Oil, which has been refining entirely different types of crude oil for the past three months, is exploring scenarios for reducing its dependence on Gulf crude, even if the Strait reopens and the crisis ends.
This also demonstrates the technological capabilities of the Agioi Theodoroi refinery to adapt immediately to changing circumstances, as before the war, Iraqi crude accounted for nearly two-thirds of the blend it used and represented 36% of the group’s total raw material purchases, which reached 3.5 billion euros last year.
“This situation forced us to try things we didn’t even know we’d need to try. We’ve brought in 3–4 shipments from the U.S., crude from Egypt, from the North Sea, and new types of Libyan crude. “We will definitely make a shift,” Deputy CEO Petros Tzannetakis noted yesterday during the briefing for analysts on first-quarter results .
Among the new crude grades processed by the Agioi Theodoroi refinery are also Arab Light —the main grade exported by Saudi Arabia— WTI cargoes, as well as volumes transported via the pipeline connecting the fields of northern Iraq (Kirkuk) with the Turkish port of Ceyhan on the Mediterranean.
“Even if the crisis in the Strait ends, we will shift our crude sources, reducing our dependence on Iraq,” he noted, making special mention of the high margins maintained on products such as jet fuel and diesel.
It is significant that the new blend of lighter crude processed by Motor Oil also results in a different mix of refined products, with the company having increased production of aviation fuels (jet fuels)—which already accounted for 16% of last year’s sales—and, more notably, diesel (8%), for which demand has skyrocketed following the closure of the Strait of Hormuz.
Otherwise, he expressed optimism about Motor Oil’s performance, which, as he said, demonstrates not only high profitability but also flexibility in the face of geopolitical challenges, while noting that the environment for refining remains supportive. Margins are being bolstered by the ongoing tightness in the product market, and this overall positive effect continues to more than offset increased costs, maintaining Motor Oil’s outperformance.
He also highlighted the ongoing investments in Motor Oil’s service station network, noting that total investments for the group this year are estimated at €650 million (+12%) compared to last year, and the steady increase in operating profitability for the circular economy sector. When asked when the merger with Heron of the GEK-TERNA Group would be finalized, he said this would be completed by the end of 2026.
Also of interest is his response to a question regarding whether MOI is consideringissuing new bonds, with him noting that the refinancing of a Eurobond maturing in July is highly likely.“We will make final decisions within the next two to three weeks,” said the deputy CEO, to whom, however, most questions concerned the crisis in the Straits.
The group, he said, is constantly “locking in” new cargoes, with refining needs covered at least through the end of June.“We always plan about 4–5 weeks ahead as long as the situation of uncertainty persists,” he noted.