(Energy Analytics Institute, Piero Stewart, 28.Nov.2019) — Ecuador’s state oil and gas company EP Petroecuador awarded Glencore Ltd. a contract to import 1,050,000 barrels of Cutter Stock.
Glencore won the contract by presenting a positive $1.77 per barrel differential, EP PetroEcuador announced Nov. 28 in an official statement.
In accordance with contract’s terms and conditions, the Cutter Stock volumes will arrive to Ecuador through five shipments of 210,000 barrels +/- 2% each, and the first delivery will be between 10-12 December 2019.
The benchmark for the Cutter Stock is Platts No. 2 Midpoint Prompt Pipeline for the US Gulf Coast. The Cutter Stock will be used in the mixing process related to the preparation of fuel oil and will be enough to fulfill demand through February 2020, according to EP PetroEcuador.
A total of 30 companies were invited to participate in the international tender for the supply of this product, of which six (6) excuses and four (4) offers were received from Freepoint Commodities Llc., Glencore Ltd., Trafigura Pte. Ltd. and Vitol Inc.
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