Russia's NORSI refinery stops oil processing after drone attack, sources say

• NORSI processes around 15 million metric tons of crude annually, producing about 5 million tons of gasoline, over 5 million tons of diesel, 2 million tons of fuel oil, and 500,000 tons of bitumen
• All of Lukoil's major Russian refineries are now offline: NORSI (Aug 26), Perm refinery (after Aug 21 drone attack), and Volgograd refinery (suspended July 31)
• The extent of damage and timeline for repairs remain unclear, with sources reporting damage to processing units, inter-unit infrastructure, and general plant facilities

Summary

Russia's NORSI oil refinery, the country's fourth-largest refinery and second-largest gasoline producer, suspended crude oil processing on Wednesday, August 26, following a Ukrainian drone attack in the Nizhny Novgorod region. The facility is owned by Lukoil.

Key Details:

• The drone strike damaged multiple processing units, inter-unit infrastructure, and general plant facilities
• Duration of the suspension remains unclear as the extent of repairs needed is undetermined
• NORSI's annual capacity: 15 million metric tons of crude oil processing, producing approximately 5 million tons of gasoline, over 5 million tons of diesel, 2 million tons of fuel oil, and 500,000 tons of bitumen

Broader Impact:

All of Lukoil's major Russian refineries are now offline. The company's Perm refinery was hit by a drone attack on August 21, while its Volgograd refinery suspended operations on July 31.

Market Implications:

The complete shutdown of Lukoil's Russian refining capacity represents a significant disruption to Russia's petroleum product output, particularly gasoline and diesel production. This concentrated attack pattern on Russian energy infrastructure could tighten refined product markets and potentially impact global fuel supplies, especially in regions dependent on Russian petroleum exports. The timing and coordination of these attacks suggest a strategic campaign targeting Russia's refining capabilities, which could have lasting effects on the country's ability to process crude oil domestically.

Lukoil has not yet responded to requests for comment on the incident.