BP Sells North Sea Forties Crude; Elgin-Franklin Fields Restart

BP Plc sold a cargo of North Sea Forties crude to Royal Dutch Shell Plc. Total SA restarted its Elgin-Franklin oil and natural-gas fields after the Elgin platform was halted yesterday because of a technical fault.

Indian Oil Corp., the country’s biggest refiner, issued a tender seeking to buy low-sulfur crude oil loading in December.

North Sea

Forties crude traded from BP to Shell for Oct. 20 to Oct. 22 loading, according to a survey of traders and brokers monitoring the Platts trading window. The consignment was sold at a premium of 60 cents a barrel to the cash cost of North Sea crudes for November. That compares with BP’s offers yesterday for late-October Forties shipments at premiums of $1.11, 96 cents and 97 cents a barrel.

Reported North Sea trading typically occurs during the Platts window, which ends at 4:30 p.m. London time. Before the window, Forties loading in 10 to 21 days was at 71 cents a barrel more than Dated Brent, down from 95 cents yesterday, according to data compiled by Bloomberg.

Brent for November settlement traded at $105.87 a barrel on the London-based ICE Futures Europe exchange at the close of the window, up from $103.23 yesterday. The December contract was at $104.19 a barrel, $1.68 less than November.

Total said its North Sea Elgin-Franklin oil and gas fields started after a fault halted production.

“Elgin-Franklin restarted this morning and we are now ramping back up to normal production levels,” Brian O’Neill, an Aberdeen, Scotland-based company spokesman, said in an e-mail.

Mediterranean/Urals

OAO Lukoil’s trading unit Litasco failed to buy a 100,000- metric ton cargo of Russian Urals crude in northwest Europe at a $1 discount to Dated Brent.

The last offer for the grade in the Mediterranean was on Oct. 5, when Shell didn’t manage to sell an 80,000 metric-ton shipment at a discount of 50 cents a barrel to Dated Brent, the survey of Platts showed.

OMV AG booked a 1 million-barrel oil tanker to sail from Libya to Italy in mid-October, according to four shipbroker reports. The Vienna-based energy company, which is the largest in Central Europe, hired the Valtamed to ship crude from Libya to Trieste, Italy, according to data compiled by Bloomberg.

The vessel, scheduled to load on Oct. 15, was chartered for the cross-Mediterranean voyage at a rate of 95 industry-standard Worldscale points, Athens-based Optima Shipbrokers Ltd. said in a report yesterday. Optima didn’t specify the ship’s cargo.

West Africa

Indian Oil Corp. sought to buy crude for December, according to official documents obtained by Bloomberg News. Last month, the company bought 7 million barrels of West African crude for loading in November via two tenders.

Nigerian benchmark Qua Iboe was at a $3.58 a barrel premium to Dated Brent, compared with $3.63 yesterday, Bloomberg data showed.

To contact the reporter on this story: Sherry Su in London at lsu23@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.