Shell Offers Forties Crude; Nigeria Qua Iboe Exports to Increase

Royal Dutch Shell Plc (RDSA), Trafigura Beheer BV and Statoil ASA (STL) failed to sell North Sea Forties crude at lower prices than yesterday. No bids or offers were made for Russian Urals blend for a fourth day.

Nigerian Qua Iboe crude exports will increase in December. Asian refiners raised purchases of West African grades for loading in November to the most in 21 months as China increased stockpiles to meet peak winter demand.

North Sea

Shell failed to sell Forties for loading Nov. 5 to Nov. 7 at 35 cents a barrel less than Dated Brent, compared with its offer of a discount of 25 cents yesterday, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. This cargo was deferred by two days, said two people with knowledge of loading program.

Statoil was unable sell the grade for Nov. 6 to Nov. 8 at minus 70 cents, compared with a discount of 30 cents yesterday, according to the survey.

Trafigura didn’t manage to sell Forties for Nov. 15 to Nov. 17 at 65 cents more than Dated Brent, down from a premium of 75 cents yesterday, the survey showed.

Brent for December settlement traded at $107.37 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $108.45 from the previous session. The January contract was at $106.93, a discount of 44 cents to December.

ST Shipping, Glencore Xstrata Plc’s freight unit, booked the very large crude carrier Manah to load Nov. 22 from Hound Point, Scotland, to South Korea at a cost of $5.7 million, according to three reports from shipbrokers, including Optima Shipbrokers. Hound Point is the terminal for Forties crude.

Should this booking be finalized, it will be the fourth supertanker plying this route in two months, according to data compiled by Bloomberg. An official at Glencore, who asked not to be identified citing corporate policy, declined to comment.

Ekofisk cargo C11460 was deferred by five days to load on Nov. 24 to Nov. 26, according to three people with knowledge of the loading program. This is the third deferral for November loading shipments.

Urals/Mediterranean

The Hariga oil terminal in eastern Libya may reopen by the beginning of next week due to stepped up efforts, Khalifa Mazeg, the port’s measurement inspector, said in a telephone interview from the port. The port is one of four that is still closed.

OAO Transneft is considering a second oil pipeline to Asia to counter a projected capacity deficit via the East Siberia-Pacific Ocean crude link.

“Today’s agenda includes the issue of building a second ESPO,” Chief Executive Officer Nikolay Tokarev told journalists in Komsomolsk-on-Amur in Russia’s Far East. “I mean one with the same capacity” as the existing line, he said.

The $22.3 billion ESPO pipeline, Russia’s most expensive infrastructure project, has helped domestic companies pivot to energy-hungry Asian markets from Europe, where demand is stagnant. OAO Rosneft signed this week a preliminary agreement to sell 200,000 barrels a day of crude to China Petrochemical Corp. for 10 years from 2014. This is in addition to a 25-year, $270-billion supply deal it struck in June with China National Petroleum Co.

West Africa

Trafigura failed to sell 950,000 barrels of Qua Iboe for Nov. 15 to Dec. 15 loading at $2.50 a barrel more than Dated Brent, the survey showed. This compares with a premium of $2.80 for its offer two days ago.

BP Plc (BP/) was also offering Qua Iboe for December at the same premium, while Vitol Group withdrew its bid for the grade at $1.15 a barrel more than Dated Brent, according to the survey.

Refiners in Asia bought 61 cargoes totaling 1.92 million barrels a day from Angola, Nigeria, Republic of Congo, Equatorial Guinea, Gabon and Cameroon, according to a survey of seven traders and an analysis of loading plans obtained by Bloomberg. This is the highest since February 2012 and compares with 1.7 million a day for this month. China alone bought 1.22 million barrels a day, up from 926,452 barrels in October.

Nigeria will export 12 cargoes of 950,000 barrels each of Qua Iboe in December, one more than November, according to a loading program obtained by Bloomberg News.

Indian Oil Corp. bought one cargo each of Bonny Light and Girassol grades from Shell via a second tender for December loading crude, said three people who participate in the market, asking not to be identified because the information is confidential.

The refiner also bought one shipment each of Nigerian Bonga and Yoho grades from Total SA, they said. All consignments are of 1 million barrels each.

Taiwan’s CPC Corp. bought 1 million barrels each of Angolan Cabinda, Palanca and Ghana’s Jubilee grades via a tender, said three people involved in the region’s oil market.

The Taiwanese refiner bought Palanca from Sonangol Holdings and Jubilee from Glencore, they said. The seller of Cabinda is not known yet.

PT Pertamina, Indonesia’s state-owned oil company, re-issued its tender to buy crude for December, according to a document obtained by Bloomberg News.

The Jakarta-based company is seeking 950,000 barrels of crude for Dec. 2 to Dec. 5 delivery to its Balikpapan refinery, the document shows. Offers, due by 3 p.m. Singapore time on Oct. 25, are to stay valid until 6 p.m. on Oct. 28.

Benin is set to resume crude output after South Atlantic Petroleum Ltd., a closely held Nigerian oil company, said it will start pumping the fuel from the country’s Seme fields offshore.

The company, known as Sapetro, will pump 7,500 barrels a day from Seme’s block 1 for 14 years, Executive Vice Chairman Daisy Danjuma said on state-owned television. The country and the company have yet to finalize how output will be shared.

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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