Buzzard Oil Field Halts Again; CPC Exports Rise to Six-Year High

Jan 10, 2014 12:36 pm ET

Jan. 10 (Bloomberg) -- Trafigura Beheer BV failed to buy North Sea Forties crude even after it raised its bid. Tenergy Trading sold Russian Urals crude in the Mediterranean for less than its offer yesterday.

Production at North Sea Buzzard field halted today for the second time this week, according to a person with knowledge of the matter, asking not to be identified because the information is confidential.

The Caspian Pipeline Consortium will boost daily crude exports in February to the most in at least six years, a preliminary loading program obtained by Bloomberg News showed.

North Sea

Trafigura was unable to buy Forties at a premium of 40 cents a barrel to Dated Brent for Feb. 1 to Feb. 4, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. That’s 5 cents more than its bid yesterday.

BP Plc didn’t manage to buy the blend for the same date at 50 cents a barrel more than Dated Brent, the survey showed.

Brent for February settlement traded at $106.23 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $107.26 in the previous session. The March contract was at $105.70, a discount of 53 cents to February.

The Buzzard field had a ‘brief outage’ on Jan. 8, Nexen Inc., the operator, said yesterday. The company has “commenced start-up procedures and expects production to stabilize and return to normal levels over the coming days,” it said.

Officials at Nexen in Aberdeen, Scotland and Calgary, Canada, didn’t immediately respond to voicemails and e-mails seeking comment today.

Very large crude carrier Mesdar is heading for Yeosu, South Korea after loading Forties at Hound Point, Scotland on Jan. 8, according to vessel-tracking data compiled by Bloomberg. The supertanker was chartered by Trafigura, two shipping fixture lists showed on Dec. 5.

Urals/Mediterranean

Tenergy Trading sold 80,000 metric tons of Urals crude for loading Jan. 22 to Jan. 26 to Total SA at a discount of $1.35 to Dated Brent for delivery to Augusta, Italy, the survey showed. That compares with a discount of 85 cents offered yesterday.

CPC, operator of the only oil-export link in Russia that has shared foreign ownership, will ship 2.83 million metric tons in February, compared with 3.09 million tons this month, the schedule showed. That’s equal to 784,076 barrels a day, the most since January 2008 when Bloomberg started tracking the data, and is up 1.2 percent from January.

The program comprises 10 cargoes of 135,000 to 135,500 tons each and 17 consignments of 85,000 to 90,000 tons.

Saudi Arabian Oil Co. will supply full contractual volumes in February to customers in Europe, unchanged from this month, according to two refinery officials with knowledge of the matter.

West Africa

Indian Oil Corp. bought five 1 million-barrel cargoes of Nigerian crude for loading in March via a tender, said two traders who participate in the market, also asking not to be identified because the information is confidential.

The company bought three cargoes of Bonny Light and one lot of Bonga from Royal Dutch Shell Plc, and one shipment of Brass from Vitol Group, they said.

--Editors: Rachel Graham, Sharon Lindores