BP Bids for Urals Crude; FPS Pipeline Halt Causes Forties Delays

BP Plc (BP/) failed to buy Russian Urals crude even after bidding at a higher level than yesterday’s trade. There were no bids or offers for North Sea Forties blend.

Throughput via the Forties Pipeline System was halted for a few hours early this morning because of an “instrument trip,” a BP official said by phone today. The closing caused three Forties cargoes to be deferred again, two people with knowledge of the matter said.

North Sea

No bids or offers were made for Brent, Oseberg or Ekofisk crudes, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed.

Reported crude trading typically occurs during the Platts window, which ends at 4:30 p.m. London time.

Brent for September settlement traded at $107.36 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $106.74 in the previous session. The October contract was at $106.03, a discount of $1.33 cents to September.

Production at some of the 80 oil fields that feed into the FPS pipeline is gradually being restored, BP said. The pipeline returned from 5 days of maintenance on Aug. 6.

Forties lots F0802, F0804 and F0805 will now load one to four days later than last scheduled, the people said, asking not to be identified as the information is confidential.

The Nexen Inc.-operated Buzzard field is scheduled for a two-weeks of maintenance later this month, the International Energy Agency said in a monthly report today. Nexen didn’t reply to a phone call and two e-mails seeking comment.

Mediterranean/Urals

BP didn’t manage to buy 100,000 metric tons of Urals at 80 cents a barrel above Dated Brent for loading Aug. 21 to Aug. 25 and delivery to Rotterdam, the survey showed. The bid is 10 cents more than a trade yesterday for a later loading cargo.

Azeri Light shipments from Georgia’s Black Sea port Supsa will be little changed in September, according to a loading schedule. The program consists of three 600,000-barrel cargoes and one 570,000-barrel lot. This compares with four shipments of 600,000 barrels each this month.

Exports of Iraqi crude may be reduced for four to six months given the scope of infrastructure work at southern terminals and the “country’s poor record of delivering projects on time,” the IEA said today.

West Africa

Four cargoes of Nigerian Bonny Light crude will be exported next month, according to a loading program obtained by Bloomberg News. The cargoes are 950,000 barrels each. No consignments were originally scheduled to load in September.

A force majeure on Bonny Light, remains in place, Ross Whittam, a spokesman for Royal Dutch Shell Plc (RDSA), said today by phone in London. Whittam declined to comment whether the Nembe Creek pipeline, which supplies the Bonny terminal is operating

To contact the reporters on this story: Laura Hurst in London at lhurst3@bloomberg.net; 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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