(Energy Analytics Institute, 14.Aug.2020) — Ecuador’s state oil company EP PetroEcuador awarded the third spot market sale of 2020 for a volume of 6,480,000 barrels of Oriente crude oil of approximately 24-degree API, to Trafigura PTE LTD.
Trafigura won the bid with a per barrel differential of -$3.33, EP PetroEcuador announced 14 August 2020 in a statement on its website.
“We seek to maximize revenues for the state with the greatest transparency and competitiveness,” EP PetroEcuador General Manager Pablo Flores said in the statement.
“This type of competition allows us to have an active presence in the international market and in this way continue to improve the prices of Ecuadorian crude, regardless of the type and nature of the company that offers the best condition for the country,” said Flores.
A total of 56 internationally recognized and qualified companies, as per the rules established by the Suppliers Registry of the International Trade Management, participated in the tender.
A total of eight valid offers were presented with the following differentials: Core Petroleum LLC . (-$4.58/bbl), Petrochina International (-$4.90/bbl), Phillips 66 Company (-$8.16/bbl), PTT International Trading PTE LTD. (-$7.22/bbl), Shell Western Supply and Trading Limited (-$5.87/bbl), Trafigura PTE LTD. (-$3.33/bbl), Unipec America INC. (-$4/bbl) and Vitol INC. (-$4.51/bbl).
According to the terms and conditions of the tender, the volume offered will be exported in 18 shipments of 360,000 barrels +/- 5% each, which will be delivered during the period from October to December 2020.
This new sale of Oriente crude in the spot market will be governed by the West Texas Intermediate (WTI) benchmark crude price.
By Piero Stewart. © Energy Analytics Institute (EAI). All Rights Reserved.