By Christian Schmollinger
Jan. 14 (Bloomberg) -- PV Oil Co., Vietnam’s state-owned oil marketing company, cut its offer price for Bach Ho crude loading from April to September after buyers rejected the initial level, said traders who received the offer.
PV Oil Co. reduced its offer to a premium of $5.03 a barrel over its benchmark from $5.16 a barrel, said two traders involved in talks with the company and who asked not to be identified because of confidentiality agreements. A company official who asked not to be identified confirmed the offer price.
Bach Ho’s premium is based on the price of benchmark Indonesian grade Minas crude oil derived from assessments published by two oil-pricing services, the Asian Petroleum Price Index and Platts. Royal Dutch Shell Plc, Sumitomo Corp., Chevron Corp. and China International United Petroleum & Chemicals Ltd., or Unipec, are among buyers of the crude grade.
The latest price is lower than the record $8.09 a barrel premium that buyers paid PV Oil for supplies for loading between October 2008 and March 2009. PV Oil received a premium of $6.53 a barrel for cargoes to be loaded in the six months from April to September 2008.
PV Oil typically sells crude oil in cargo sizes of between 400,000 barrels and 600,000 barrels. Vietnam’s output has been declining after reaching a record 415,000 barrels a day in 2004 because of falling production from Bach Ho. The field has been operating since 1986.
The country’s output fell 5.7 percent in 2008 to about 305,000 barrels a day, state-run producer Vietnam Oil & Gas Group said Dec. 30.
Bach Ho oil is pumped from a field off Vietnam’s coast by a Russian-Vietnamese joint venture. Bach Ho is a so-called medium- sweet crude oil, with 0.035 percent sulfur by weight. The crude oil is processed in refineries in China, Singapore and Japan.
To contact the reporters on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net.
Posts
No comments:
Post a Comment