Shell Sells Forties at Higher Prices; Lukoil Buys Urals Crude

Royal Dutch Shell Plc sold two cargoes of North Sea Brent crude at higher prices than yesterday. OAO Lukoil bought Russian Urals blend in the Mediterranean at a lower differential than its bid yesterday.

North Sea Cormorant East and Causeway oil fields were shut because of planned maintenance at North Cormorant platform, Antrim Energy, which has an interest in both deposits, said today in an e-mailed statement.

North Sea

Shell sold Forties cargo F0911 for Sept. 22 to Sept. 24 loading to BP Plc at $1.09 a barrel more than Dated Brent, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. Shell sold a cargo yesterday for Sept. 19 to Sept. 21 at a premium of 30 cents.

BP bought a second consignment F1001 for Oct. 5 to Oct. 7 from Shell at 65 cents a barrel more than Dated Brent, the survey showed. This shipment was advanced by one day from the original plan.

Brent for October settlement traded at $111.25 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $114.67 from the previous session. The November contract was at $109.98, a discount of $1.27 to October.

Production at Cormorant East and Causeway is expected to halt for about six weeks. Combined average output of the two fields is about 2,500 barrels a day this year, according to data from the Department of Energy and Climate Change.


Lukoil bought 80,000 metric tons of Urals for Sept. 26 to Sept. 30 loading from Vitol Group at 5 cents a barrel less than Dated Brent on a delivered basis to Augusta, Italy, the survey showed. This compares with a bid yesterday at parity.

No bids or offers for Urals were made in northwest Europe.

Crude supply to Libya’s Zawiya refinery is expected to resume today, Mansur Abdallah, oil movement coordinator at the plant, said by telephone. The main valve controlling flows from Sharara and Elephant, or El Feel, fields remained shut.

PT Pertamina decided not to award its third tender in two weeks seeking condensates for the TPPI petrochemical plant in Tuban, East Java, according to an official at Indonesia’s state-owned oil company.

Jakarta-based Pertamina sought shipments, including Libya’s Mellitah, for October and November delivery in a tender that closed yesterday.

It didn’t award a similar tender that closed Sept. 2 and received no offers in a request Aug. 26 for September and October, said the official who asked not to be identified because he isn’t authorized to speak to the media.

OAO Rosneft is expected to announce the result of its six-month tender for Urals and CPC Blend tomorrow, said two traders who participated in the bidding.

West Africa

BP offered earlier today 950,000 barrels of Nigerian Qua Iboe at $6 a barrel more than Dated Brent for Sept. 11 to Sept. 12 delivery to Rotterdam, or at a premium of $5.85 for delivery to Lavera, France, in the same period, according to the survey.

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