(Energy Analytics Institute, 30.Jun.2020) — EP PetroEcuador awarded the second spot market sale of 2020 to US refining company Phillips 66 Company.
The sale is for 3,600,000 barrels of Oriente crude oil of approximately 24-degrees API. Phillips 66 offered the best differential with a value of -$1.77 per barrel, EP PetroEcuador announced 30 June 2020 in an official statement .
“All the hydrocarbon commercialization processes carried out by the company seek to implement policies that allow for achievement of better economic benefits for the country through transparent negotiations for the export of Ecuadorian crude oil in the international market, thus managing to maximize the company’s income, with more and more participants,” announced EP PetroEcuador’s General Manager Pablo Flores in the statement.
EP Petroecuador invited 56 internationally recognized companies that were qualified in the supplier registry of the international trade management, of which seven (7) valid offers were submitted from: Phillips 66 Company, Tesoro Refining & Marketing Company , Vitol Inc., Trafigura Pte. Ltd., Petrochina International, Lukoil Pan Americas LLC and Unipec America INC.
This opening of offers was attended by authorities from the International Trade Management, representatives from EP PetroEcuador’s head office for the prevention of money laundering and Ecuador’s Petroleum Fleet Public Company (FLOPEC) as well as participating companies who verified the transparency of the process and complied with strict sanitary protocols. Additionally, several bidding companies were able to witness the opening session remotely, EP PetroEcuador said in the statement.
According to the terms and conditions of the bid, the volume offered will be exported in 10 shipments of 360,000 barrels +/- 5% each, which will be delivered during the period from July to September 2020.
This sale of Oriente crude in the spot market will be governed by the West Texas Intermediate (WTI) crude benchmark.
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By Piero Stewart. © Energy Analytics Institute (EAI). All Rights Reserved.
