Shell Sells More Forties Crude; BP Lifts Saturno Force Majeure

Royal Dutch Shell Plc sold two more cargoes of North Sea Forties crude after offloading three lots yesterday. A bid and an offer for Russian Urals blend were withdrawn in the Platts window.

BP Plc removed a force majeure on Saturno crude pumped from its PSVM project in Angola, a company spokesman said. “It was lifted this morning,” Paulo Pizarro, the Luanda-based official, said today by e-mail. “We are actually already producing 100,000 barrels a day.”

North Sea

Petroineos, a joint venture between PetroChina Co. and Ineos Group AG, bought F0908 for loading Sept. 15 to Sept. 17 at 30 cents a barrel above Dated Brent and a Sept. 20 to Sept. 22 cargo at plus 65 cents, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. That compares to three trades yesterday at 45 cents to 95 cents.

Glencore Xstrata Plc failed to buy Forties for Sept. 24 to Sept. 27 at 85 cents above Dated Brent, the survey showed.

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

Brent for October settlement traded at $115.12 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $113.90 in the previous session. The November contract was at $113.19, a discount of $1.93 to October.

The loading days of two Forties cargoes were amended, according to three people with knowledge of the loading program who asked not to be identified because the information is confidential. Lot F0918 will now load on Sept. 25 to Sept. 27, from an earlier revised Oct. 2 to Oct. 4. Cargo F0915 was to load on Oct. 4 to Oct. 6, nine days later than planned.

The share of Buzzard crude in the Forties blend fell to 55 percent in the week to Sept. 1, down 3 percent from the previous week, according to data from the BP website.


Shell withdrew an offer to sell Urals for Sept. 15 to Sept. 19 for a third session, this time lowering its offer by 10 cents from yesterday to 80 cents a barrel below Dated Brent delivered to Rotterdam.

Lukoil OAO also withdrew a bid to buy the blend for Sept. 17 to Sept. 21 delivered to Augusta, Italy, at parity to Dated Brent. Eni SpA bought Urals with the same loading dates on Aug. 30 at a 20-cent discount to the benchmark.

PKN Orlen SA is seeking to buy 100,000 tons of Urals for loading from the Baltic Sea, say two people with knowledge of the region’s oil market. The tender closes today.

Libya is producing 240,000 barrels a day, according to the National Oil Corp. The NOC, as the state-run company is also known, said on its website that the country is losing $140 million a day because of worker strikes at energy facilities. The company also reported a sit-in by a “small number” of guards at the Zawiya refinery entrance and Brega oil storage.

The Zawiya refinery is expected to receive a 640,000-barrel cargo from the Brega oil terminal, Mansur Abdallah, the plant’s oil movement coordinator, said in a phone interview today. The shipment will compensate the supply disruption from the Sharara oil field, Abdallah said.

Iraqi pipeline exports to the Turkish port of Ceyhan were halted at 7.00 a.m. local time, 11 hours after flows from Kirkuk were restarted, according to Boutros Maritime & Transport.

West Africa

Production at Saturno was halted and a force majeure declared on Aug. 18 when a mooring hawser failed in the offshore production area of Block 31. The PSVM development was pumping about 130,000 barrels a day and on its way to 150,000 barrels by year’s end when the incident occurred, Pizarro said yesterday.

Taiwan CPC Corp. booked the supertanker Kimolos for loading in West Africa Oct. 1, according to three tanker reports including one from Athens-based Optima Shipbrokers. The VLCC will probably load 1 million barrels of Angolan Nemba and 1 million barrels of Cabinda crude, say two traders who participate in market.

Indian Oil Corp. issued a tender to buy November-loading crude. The tender closes tomorrow, with offers valid until Sept. 5, according to two traders who participate in the market.

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