PetroVietnam Trading Co., a unit of state-owned Vietnam Oil & Gas Corp., pared the premium it offered to sell Bach Ho crude oil for loading from April to September, said traders who received offers.
PetroVietnam Trading, also known as Petechim, reduced its offer for the crude to a premium of $6.82 a barrel from its initial offer of $6.90, said three traders who asked not to be identified because of confidentiality agreements with the company. Buyers had placed bids of between $5.60 and $5.80 a barrel, the traders said.
The oil producer had received a premium of $5.16 a barrel for Bach Ho cargoes contracted to be sold in the six months from April to September 2007.
Petechim last year agreed to sell the crude at a premium of $6.15 a barrel from October 2007 until March 2008. Petechim's Bach Ho premium is based on the price of benchmark Indonesian grade Minas crude oil derived from assessments published by two oil-pricing services, the Asian Petroleum Price Index and Platts.
Petechim typically sells crude oil in cargo sizes of between 400,000 barrels and 600,000 barrels.
Bach Ho oil is pumped from a field off Vietnam's coast by a Russian-Vietnamese joint venture. Bach Ho is a so-called medium-sweet crude oil, with 0.035 percent sulfur by weight. The crude oil is processed in refineries in China, Singapore and Japan.
Royal Dutch Shell Plc, Sumitomo Corp., Chevron Corp. and China International United Petroleum & Chemicals Ltd., or Unipec, are among buyers of Bach Ho. (Bloomberg)
Wednesday, February 18, 2009
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