Chevron, Statoil Fail to Sell Forties; Girassol Exports Deferred

Chevron Corp. and Statoil ASA failed to sell North Sea Forties crude even after they lowered their offers from the end of last week. No bids or offers were made for Russian Urals in Europe.

Nigeria, Africa’s largest oil producer, plans to reduce exports of benchmark Qua Iboe crude to 10 cargoes of 950,000 barrels each in September, two less than August, a loading plan obtained by Bloomberg News shows.

Crude exports scheduled for July and August from Total SA’s Girassol field in Angola are being delayed after an incident.

North Sea

Chevron offered a Forties cargo for Aug. 5 to Aug. 7 loading at parity to Dated Brent, compared with a premium of 25 cents on July 20, while Statoil failed to sell at 5 cents more than the benchmark for Aug. 10 to Aug. 12, down 15 cents from the previous session, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window.

BP Plc didn’t manage to sell Forties for Aug. 13 to Aug. 15 at 25 cents a barrel more than Dated Brent, and Royal Dutch Shell Plc was unable to sell at a premium of 10 cents for Aug. 7 to Aug. 9, the survey showed.

Vitol Group failed to buy Forties for Aug. 14 to Aug. 18 at 5 cents a barrel less than Dated Brent, while Phibro, a unit of Occidental Petroleum Corp., didn’t find sellers for the blend for Aug. 13 to Aug. 18 at a discount of 15 cents, according to the survey.

Reported crude trading typically occurs during the Platts window, which ends at 4:30 p.m. London time. Before the session, Forties loading in 10 to 25 days was at 3 cents a barrel less than Dated Brent, the lowest since July 3, compared with a premium of 4 cents on July 20, data compiled by Bloomberg show.

Brent for September settlement traded at $103.62 a barrel on the ICE Futures Europe exchange in London at the close of the window, down from $106.50 on July 20. The October contract was at $102.86, a discount of 76 cents to September.

Cnooc Ltd. agreed to pay $15.1 billion in cash to acquire Canada’s Nexen Inc. in the biggest overseas takeover by a Chinese company. Nexen operates the Buzzard field, the biggest in the Forties system.

China’s largest offshore oil and gas explorer is paying $27.50 for each common share, a premium of 61 percent to Calgary-based Nexen’s closing price on July 20, according to its statement to the Hong Kong stock exchange today. Nexen’s board recommended the deal to its shareholders.

Mediterranean/Urals

Urals was 55 cents a barrel less than Dated Brent in northwest Europe, the lowest since July 2, compared with a discount of 25 cents on July 20, according to data compiled by Bloomberg.

OAO Surgutneftegas sold two Urals crude cargoes of 100,000 metric tons each via a tender to Repsol YPF SA for loading from the Baltic Sea port of Primorsk, according to three traders who participate in the market.

One shipment is for Aug. 4 to Aug. 5 and the other for Aug. 8 to Aug. 9, according to the people, who declined to be identified because the information is confidential.

West Africa

Nigeria plans to reduce exports of benchmark Bonny Light crude to five cargoes of 950,000 barrels each in September, according to a loading plan.

The nation will also export six shipments of Forcados, four Brass River, four Usan, three Antan, two Abo, one lot each of EA, Okwori and Pennington, separate plans showed. Cargo sizes range from 300,000 barrels to 950,000 barrels.

Total, which operates the Girassol field, declared force majeure from July 17 to July 19 after a “a minor technical incident”, Florent Segura, a spokesman for the company, said by phone today from Paris. Force majeure protects a company from liability when it can’t fulfill a contract for reasons beyond its control.

Girassol cargoes for loading in the second half of July were deferred by six to seven days and those for August were delayed by three to four days, according to the loading program.

CPC Corp., a Taiwan state-owned oil company, issued a tender to buy low-sulfur crude oil for loading in September, a document obtained by Bloomberg News shows. The tender closes at 10 a.m. local time on July 24, with offers valid until 7 p.m. on July 26.

Qua Iboe for loading from Nigeria rose 2 cents to $1.12 a barrel more than Dated Brent, data compiled by Bloomberg show.

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

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