MOSCOW, March 17 (Reuters) – Swiss-based trading house Gunvor, which had been trying to cut asset exposure to the Russian market, is among the winners of a large Rosneft tender, traders said on Tuesday.
Geneva-based Gunvor, which at one point handled as much as 40 percent of Russia’s seaborne exports and was a regular in term deals with companies such as Rosneft and Surgutneftegaz , abruptly halted its participation in major Russian crude oil tenders in 2012.
Gunvor said at the time its decision was purely commercial.
Traders say that Gunvor may have returned to take part in tenders due to oil price volatility, which offers scope to make money even during prolonged period of weak prices.
“There is huge volatility on the market and traders are very effective,” a trader said. State-owned Rosneft rarely publicly discloses the results of its tenders.
Traders also said Gunvor would lift up to 400,000 tonnes of Russian Urals crude per month from the Baltic Sea port of Primorsk in April-September after it won the tender from Rosneft for the first time in three years.
Russia-originated crude oil now makes up only about 4 percent of Gunvor’s overall trading.
Industry sources have said another trader, Trafigura, is set to become the largest exporter of oil from Rosneft under a deal it is negotiating with the sanctions-hit company.
Trafigura also may ship all the CPC Blend cargoes from Novorossiisk as part of the deal.
Rosneft has postponed the announcement of the tender results to traders, significantly cut volumes on offer and asked buyers to agree to ‘zero optionality’, meaning it can nominate no cargoes to a winner in a given month if it decides to place volumes elsewhere.
Overall maximum volumes on offer for April-September have been cut by around 2.5 million tonnes versus the previous six-month tender.
Other companies that got rights to lift cargoes from Rosneft are Trafigura, Unipec, BP, Shell and Total .
Shell may lift zero or one cargo from Primorsk, while BP has a right for one tanker from Ust-Luga respectively. France’s Total, which was called a “reserve buyer” in the tender, may lift from zero to three parcels from the Baltic Sea ports.
Shell may export 80,000 tonnes of Urals from Novorossiisk, while China’s Unipec to ship a 140,000 tonnes parcel from the Black Sea port. (Reporting by Gleb Gorodyankin; Writing by Vladimir Soldatkin; Editing by Ruth Pitchford)
Dive into a sea of information with our meticulously curated weekly “Dispatch” email. It’s more than just a newsletter; it’s your personal maritime briefing.
Dive into a sea of information with our meticulously curated weekly “Dispatch” email. It’s more than just a newsletter; it’s your personal maritime briefing.
(Bloomberg) — Russia’s state oil tanker company PJSC Sovcomflot said that US sanctions are putting pressure on its operations, the latest sign that the measures are complicating the delivery of...
March 11 (Reuters) – U.S. crude oil production lead global oil production for a sixth straight year, with a record breaking average production of 12.9 million barrels per day (bpd), the Energy...
BEIJING/MANILA, March 5 (Reuters) – The Philippines summoned China’s deputy chief of mission in Manila on Tuesday to protest what it called “aggressive actions” by Chinese naval forces against a resupply mission...
March 5, 2024
Total Views: 3621
Why Join gCaptain Club?
Be Informed: Stay updated with the latest maritime news and trends.
Connect: Network with a community of maritime professionals and enthusiasts.
Gain Insights: Receive exclusive content and personal perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.