(Energy Analytics Institute, Piero Stewart, 4.Sep.2019) — Ecuador’s state oil company EP PetroEcuador awarded the export of 1,080,000 +/- 5% barrels of 17-degree API Napo crude oil to Repsol Trading S.A., which is dedicated to the refining and commercialization of hydrocarbons, and which offered a per barrel differential of (-3.17) to West Texas Intermediate (WTI).
The Napo oil sale will be governed by the WTI benchmark, and since the oil it is considered heavy, the price is lower compared to the WTI, EP PetroEcuador announced Sep. 4 in an official statement.
After a five-year hiatus, Ecuador resumed sale of its Napo oil, under the spot sales modality in the international market. The crude oil marketing mechanism allows the company to obtain a better price for Ecuadorian oil, depending on market conditions, EP Petroecuador said.
Approximately 53 qualified companies were invited to participate in the tender, which produced (10) excuses and twelve (12) offers from the following companies: Arkham S.A., China Zhenhua Oil CO. LTD., Core Petroleum LLC., National Petroleum Company (Enap), Glencore LTD., Petrochina International CO. LTD., Phillips 66 Company, Trafigura PTE. LTD., Repsol Trading S.A., Unipec America INC., Valero Marketing And Supply Company and Vitol INC.
The tender envelope opening ceremony was attended by authorities from the International Trade Management Department, the Head of Control and Money Laundering at EP PetroEcuador, the Ecuadorian Petroleum Public Fleet Company (EP FLOPEC) and participating companies.
According to the terms and conditions of the tender, the volume offered will be exported in three shipments of 360,000 barrels, which will be delivered between September and October of 2019.
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