Lukoil Sells Urals Crude; Force Majeure at Three Libyan Ports

BP Plc failed to buy North Sea Forties crude at a higher price than yesterday. OAO Lukoil sold Russian Urals blend in Northwest Europe at a larger discount to Dated Brent.

Libya declared force majeure on crude exports from Mellitah, Hariga and Zawiya terminals because of continued strikes, according to a statement from state-owned National Oil Corp. The restriction doesn’t apply to oil products imports.

Exxon Mobil Corp. will load the first cargo of Kashagan crude on Oct. 30 from the CPC Black Sea terminal, according to a loading program obtained by Bloomberg and two traders with knowledge of the project.

North Sea

BP bid Forties for Sept. 26 to Sept. 28 loading at 95 cents a barrel more than Dated Brent, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. This compares with a premium of 80 cents for a bid it withdrew yesterday.

Brent for October settlement traded at $112.47 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $111.78 from the previous session. The November contract was at $111.29, a discount of $1.18 to October.

ConocoPhillips will conduct repairs on the Ekofisk 2/4 J oil platform within the next week, which will cause a partial halt to production, Kris Sava, a Houston-based company official, said in an e-mailed response to questions today, without giving details about the duration or how much output will be affected.

Maintenance at North Sea Kinneil processing plant will last two weeks longer than planned and end on Oct. 1, three people with knowledge of the works said, asking not to be identified because information is confidential. Kinneil processes crude from the Forties pipeline before it is sent to Hound Point for export. BP officials in Aberdeen didn’t reply to a voice mail or an e-mail seeking comment.

Urals/Mediterranean

Lukoil sold 100,000 metric tons of Urals for Sept. 23 to Sept. 27 to Vitol Group at $1.10 a barrels less than Dated Brent delivered to Rotterdam, according to the survey. The discount is 15 cents wider than its offer yesterday.

Eni SpA didn’t manage to find buyers for the blend for Oct. 1 to Oct. 5 loading at a discount of 80 cents to Dated Brent, the survey showed.

Total SA (FP) failed to sell 80,000 tons of Urals for Sept. 26 to Sept. 30 loading for a second day even after it lowered its offer by 15 cents to a discount of 25 cents a barrel to Dated Brent on a delivered basis to Augusta, Italy, the survey showed.

The 93,500 ton Kashagan crude shipment will be shared between Exxon Mobil and Royal Dutch Shell Plc, according to the program. This will be the first time that crude from the Kashagan oil field in Kazakh waters is exported via the Caspian Pipeline Consortium terminal, the traders said, asking not to be identified because the information is confidential.

CPC, operator of the only oil-export link in Russia that has shared foreign ownership, is scheduled to keep October crude exports from the Black Sea next month at 659,197 barrels a day, little changed from 664,724 barrels a day in September. Loadings will be the lowest since March.

The preliminary October program comprises nine cargoes of 134,000 to 135,500 tons each and 17 consignments of 85,000 to 93,500 tons, according to the document.

OAO Rosneft awarded its tender for Urals and CPC blend for loading from October to March, according to two traders who participate in market, asking not to be identified because information is confidential.

The company sold 1.26 million to 2.52 million tons of Urals in 140,000-ton size cargoes loading from Novorossiysk in Black Sea to Shell and BP, and 960,000 to 1.92 million tons in 80,000-ton lots to Shell.

For Urals from the Baltic Sea, Rosneft sold 3.6 million to 7.2 million tons for loading from Primorsk to Shell, Eni and Total, and 1.8 million to 3.4 million tons from Ust-Luga to Shell and Eni.

Russia’s biggest oil producer also awarded as much as 1.62 million tons of CPC blend in 140,000-ton sized cargoes to Trafigura Beheer BV and 540,000 to 3.6 million tons in 80,000-ton shipments to Total.

A 100,000-ton cargo, allocated to Lukoil, for loading on Sept. 22 to Sept. 23 was added to the loading program from Primorsk, said four traders who participate in the market.

Three free positions remained unused, they said. These slots are for Sept. 25 to Sept. 26 from Primorsk, Sept. 22 to Sept. 23 and Sept. 28 to Sept. 29 from Ust-Luga.

West Africa

BP offered earlier today 600,000 barrels of Nigerian Qua Iboe for loading on Sept. 11 to Sept. 12 at $5.90 a barrel more than Dated Brent delivered to Rotterdam, or at a premium of $5.75 for delivery to Lavera, France, according to the survey. This is 10 cents cheaper than yesterday.

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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