(Energy Analytics Institute, Piero Stewart, 19.Feb.2020) — Ecuador’s state oil entity EP Petroecuador awarded its first spot market sale of 2020 to refining company Phillips 66 Company.
The deal is for approximately 1,080,000 barrels of 24-degree API crude oil, EP PetroEcuador announced 19 February 2020 in an official statement.
EP PetroEcuador invited 53 international oil companies (IOCs) qualified to participate in the bid, according to the Supplier Registry of International Trade Management.
Of the IOCs, ten excuses and eight offers were submitted by the following companies: Phillips 66 Company, Shell Western Supply and Trading Limited, Treasury Refining And Marketing Company, Valero Marketing And Supply Company, Vitol INC, Trafigura PTE. LTD., PTT International Trading and Unipec America INC.
Phillips 66 won the bid with an offer of a negative $2.78 per barrel differential relative to the West Texas Intermediate (WTI) benchmark price for 42-degee API oil.
According to the terms and conditions of the bid, the volumes offered will be exported in three shipments of 360,000 barrels +/- 5% each, which will be delivered during March of 2020.
“All the hydrocarbon marketing processes carried out by the national government seek to implement policies that allow for better economic benefits for the country through transparent negotiations in the export of Ecuadorian crude oil in the international market,” said EP PetroEcuador General Manager Pablo Flores in the statement.
The envelope opening ceremony was attended by authorities from the International Trade Management, EP PetroEcuador’s Head of Control and Money Laundering, representatives from EP Ecuadorian Petroleum Fleet Company (EP FLOPEC), according to EP PetroEcuador.
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