Shell Buys Forties Crude; BTC Azeri November Exports to Increase

Royal Dutch Shell Plc (RDSA) bought North Sea Forties crude at a smaller premium than the previous trade. Eni SpA failed to sell Russian Urals at a higher price than the last transaction in the Mediterranean.

Daily exports of Azeri Light crude from the port of Ceyhan in Turkey will increase by 13 percent in November from this October to a six-month high, a loading program obtained by Bloomberg News showed.

North Sea

Shell bought Forties for Oct. 30 to Nov. 1 loading from Vitol Group at 30 cents a barrel more than Dated Brent, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. The grade last traded on Oct. 4 at a premium of 35 cents for Oct. 24 to Oct. 26.

BP Plc (BP/) failed to sell the blend for Oct. 24 to Oct. 26 at 32 cents more than Dated Brent, down from its offer at 50 cents yesterday, the survey showed.

Trafigura Beheer BV was offering the grade at a premium of 60 cents for Oct. 29 to Oct. 31, according to the survey.

Total didn’t manage to buy Forties for Oct. 21 to Oct. 23 at 30 cents a barrel more than Dated Brent, and another for Nov. 1 to Nov. 3 at a premium of 25 cents, the survey showed.

Trafigura was also unable to sell Ekofisk for Nov. 1 to Nov. 3 at $2 a barrel more than Dated Brent, according to the survey. This compares with a premium of $1.75 for the last trade on Sept. 24.

Brent for November settlement traded at $110.38 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $109.61 from the previous session. The December contract was at $108.67, a discount of 85 cents to November.

The share of crude from Buzzard field in the North Sea was unchanged at 45 percent of Forties output in the week ended Oct. 6, BP said on its website today.

Maintenance at the Kenneil plant was extended again to Oct. 11 to Oct. 12, said two people with knowledge of repair works. The works were previously said to end on Oct. 1. Kinneil processes crude from Forties pipeline, including Buzzard field, before it is sent to Hound Point in Scotland for export.

Forties output in January was forecast at 480,500 barrels a day, compared with 476,800 barrels in December, BP said.

Urals/Mediterranean

Eni failed to sell 80,000 metric tons of Urals for Oct. 20 to Oct. 24 loading at 65 cents a barrel less than Dated Brent on a delivered basis to Augusta, Italy, the survey showed. This compares with the last trade on Oct. 1 at minus 70 cents.

Socar Trading sold 600,000 barrels of Azeri Light for Oct. 20 to Oct. 24 to BP at $2.10 a barrel more than Dated Brent, while Shell bought 85,000 tons of CPC Blend for Oct. 25 to Oct. 29 from Vitol at a premium of 35 cents to the benchmark, according to the survey.

Shipments next month of Azeri crude from Ceyhan will total 21.25 million barrels, or 708,333 barrels a day, according to the schedule. That’s up from 19.45 million or 627,419 barrels a day this month.

OAO Surgutneftegas filled a free position of 100,000 tons of Urals for loading on Oct. 27 to Oct. 28 from Ust-Luga on the Baltic Sea, according to three people who received the document, asking not to be identified because the information is confidential. The company issued a tender for this cargo, and is scheduled to award it tomorrow, they said.

Another free position for Oct. 20 to Oct. 21 from the same port was allocated to Rosneft last week.

PKN Orlen SA bought 100,000 tons of Urals for Oct. 24 to Oct. 28 delivery to Butinge terminal in Lithuania from Vitol Group, said three people who participate in the market.

West Africa

Indonesia’s state-owned PT Pertamina is scheduled to close a tender tomorrow for 600,000 to 950,000 barrels of crude for December delivery, according to a document obtained by Bloomberg News. Grades the company is seeking include Nigerian Qua Iboe, Bonny Light and Escravos. Offers will be valid until Oct. 10.

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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