Shell Sells Forties at Stable Price; Libya Waha Oil Field Halts

Royal Dutch Shell Plc (RDSA) sold North Sea Forties crude at the same differential as yesterday. Vitol Group sought to sell Russian Urals in the Mediterranean without success.

Libya’s Waha Oil Co. halted almost all of its 340,000 barrels of daily production as storage tanks reached full capacity amid port closures, an official said today. The country’s Mellitah export terminal reopened.

North Sea

Shell sold Forties cargo F0903 for Sept. 7 to Sept. 9 loading to Phillips 66 (PSX) at $1.25 a barrel more than Dated Brent, unchanged from yesterday, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window.

Chevron failed to sell Forties for Sept. 6 to Sept. 8 at $1.50 more than Dated Brent, while BP Plc (BP/) didn’t manage to buy a lot for Sept. 2 to Sept. 7 at plus $1.05, the survey showed.

No bids or offers were made for Brent, Oseberg or Ekofisk crudes. Reported crude trading typically occurs during the Platts window, which ends at 4:30 p.m. London time.

Brent for September settlement traded at $109.59 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $109.57 in the previous session. The October contract was at $108.36, a discount of $1.23 to September.

The share of Buzzard crude in Forties rose by 10 percentage points to 64 percent in the week to Aug. 11, the highest since the week to Aug. 12 last year, according to BP.

Forties cargo F0918 will be exported on Oct. 2 to Oct. 4, three days later than planned, while shipment F0902 will be deferred by one day to Sept. 6 to Sept. 8, said three people with knowledge of the loading program.

All 14 Forties cargoes scheduled to load in August were deferred because of planned and unplanned outages in North Sea oil fields and a pipeline.

The net effect of the delays is an increase in September loadings to a daily rate of 400,000 barrels, and a decrease in those scheduled for August to 213,000, according to the revised loading programs obtained by Bloomberg. Shipments this month as a result dropped to the lowest in 10 months, data compiled by Bloomberg show.

Mediterranean/Urals

Vitol failed to sell 80,000 metric tons of Urals for Aug. 28 to Sept. 2 at 65 cents a barrel more than Dated Brent on a delivered basis to Augusta, Italy, the survey showed. This is the first offer since July 24 when the crude traded at the same price.

Fields operated by Waha, a joint venture between Libya’s state-run National Oil Corp. and international oil companies, stopped at the end of last week as sit-ins by guards seeking better conditions cripple the nation’s export facilities, Abdel Hakim Al Hansheer said at a press conference in Tripoli today. The Mellitah terminal is “back to 100 percent,” an engineer at Libya’s Arabian Gulf Oil Co. said by phone from the city.

PKN Orlen bought via a tender 100,000 tons of Urals for Aug. 29-Sept. 2 delivery to Butinge oil terminal in Lithuania from OAO Lukoil at a premium of 65 to 75 cents a barrel to Dated Brent, according to three people with knowledge of the matter who asked not to be identified because the information is confidential.

Turkiye Petrolleri AO issued a tender to sell 600,000 barrels of Azeri Light for Sept. 14 to Sept. 16 loading from Ceyhan, according to a document obtained by Bloomberg News. The tender closes tomorrow at 5 p.m. local time.

Exports of Azeri Light from Georgia’s Black Sea port of Supsa in September will increase to five cargoes of 600,000 barrels each, one more than in August, a final loading schedule obtained by Bloomberg News showed.

This is also one more than the four lots totaling 2.37 million barrels planned in a preliminary program that was released on Aug. 9.

West Africa

Vitol offered Nigerian Qua Iboe and Escravos grades outside the Platts window. It sought to sell Qua Iboe for Sept. 10 to Sept. 15 at $5.30 a barrel more than Dated Brent and Escravos for Sept. 5 to Sept. 10 at a premium of $5.50. Both offers were 20 cents more than two days ago.

Alen oil field in Equatorial Guinea will reach full operations by the end of the third quarter, Glencore Xstrata Plc said today in a statement. The field started production at the end of the second quarter, ahead of schedule, and is producing 50,000 barrels a day.

Noble Energy Inc. operates Alen field, which it owns with Glencore, GEPetrol, the country’s state oil company, Atlas Petroleum International and PA Resources Group.

To contact the reporters on this story: Sherry Su in London at lsu23@bloomberg.net; Laura Hurst in London at lhurst3@bloomberg.net

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

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