Big batch of Azerbaijani oil sold on UEEX
Baku, Azerbaijan, Sept. 6
By Maksim Tsurkov – Trend:
PJSC Ukrtransnafta, operator of Ukraine’s oil transportation system, held the second e-auction to sell Azeri Light oil on the Ukrainian Energy Exchange (UEEX) platform, a source in Azerbaijan’s oil and gas market told Trend Sept. 6.
During the auction, the whole oil batch of 12,000 tons was sold. Meanwhile, PJSC Ukrtatnafta bought 10,000 tons of Azeri Lt oil, while the remaining 2,000 tons were bought by Ukrgazdobycha, which acquired 5,000 tons during the first auction in July.
Ukrtransnafta plans to sell all remaining 37,000 tons of Azeri Light oil stored at the Kremenchug refinery during September.
The next auction will be held on the UEEX platform on Sept. 12 and 12,000 tons of Azeri Lt oil will be put up for auction. The auction will take place in differential trading mode. The volume is divided into two lots: 2,000 and 10,000 tons. The starting price is calculated on the basis of the average quotation of Azeri Light (Azeri Lt FOB 80 KT) according to Platts data for 15 days. Oil will be shipped from September 14 to October 14.
Ukrtransnafta resumed the operation of the oil pipeline from Odessa to Kremenchug on March 10 and started the transportation of Azeri Light oil to the Kremenchug refinery. The agreement, signed in late 2016, envisages the transportation of at least 1.3 million tons of Azeri Light oil to the Kremenchug refinery in 2017.
The Kremenchug refinery has been processing Azeri Light oil since December 2016. Earlier, oil was delivered to the refinery via railway.
Azerbaijan produced more than 14 million tons of light oil in 1H17 as compared to 16 million tons in January-June 2016. Azeri Light oil is produced at Azerbaijan’s Azeri-Chirag-Gunashli block of oil and gas fields.
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