Baku, Azerbaijan, July 3
By Anvar Mammadov – Trend:
"Ukrtransnafta" PJSC (operator of the oil transportation system of Ukraine) has put up 15,000 tons of Azerbaijani oil of Azeri Light grade on electronic trading at the website of the" Ukrainian energy exchange" in the mode of differentials on July 3, the exchange said in a statement.
The oil is offered from the tanks of the "Yujhniy" offshore oil terminal. The proposed volume is divided into three lots of 5,000 tons each. The price will be determined by the quotes of Azeri Lt FOB 80KT of Platts Agency minus the costs of transshipment to offshore oil terminal (OOT) ($1 per ton). The transfer of the oil will be carried out on a 100 percent advance payment from July 12 to July 22.
All of the proposed 10,000 tons of oil were purchased at the auction on June 7 by the "Privat" group for being processed at the Kremenchug refinery.
Ukrtransnafta Company successfully sold 42,800 tons of Azeri Light, not involved in the operation of the oil transportation system, at the exchange trading in the second half of 2017. "Ukrgasvydobuvannya" JSC Company purchased 10,800 tons of Azeri Light from this volume.
Last year, Ukrtransnafta Company resumed operation of the section of the oil pipeline from Odessa to Kremenchug and began to deliver Azeri Light oil to the Kremenchug refinery.
Kremenchug refinery has been processing Azeri Light since December 2016, but earlier oil was supplied to the factory by rail.
The oil of Azeri Light grade is produced at Azeri-Chirag-Guneshli block of fields in Azerbaijan. Azerbaijan has produced seven million tons of light oil in 1Q2018, which roughly corresponds to the level of production at the block in the first quarter of last year.
"Ukrtransnafta" PJSC Company is the operator of the oil transportation system of Ukraine.