PetroEcuador seeks light crude to import

OREANDA-NEWS. September 03, 2015. Ecuadorean state-owned PetroEcuador is gauging sellers' interest in importing up to 30mn bl of light sweet crude oil to the country.

The company sent an email 31 August to selected producers inquiring whether they would have the supply available to sell PetroEcuador 30mn bl of low-sulfur crude with a gravity of about 28° API throughout the course of approximately one year.

The request is intended to "optimize the Esmeraldas refinery operations once the revamping has been complete," according to the email which Argus saw a copy of.

PetroEcuador's 110,000 b/d Esmeraldas refinery has been operating at half capacity since the fourth quarter of 2014 during an extended rehabilitation project and is expected to become fully operational in November. The project is 92pc complete, the company said 27 August in a statement, which had also noted PetroEcuador was considering decreasing fuel oil imports by 20,000 b/d upon completion.

The selected companies, which are undisclosed, were asked to submit their responses by email by 11am ET Friday, according to the PetroEcuador communication.

PetroEcuador's inquiry is the latest in a string of Latin American companies exhibiting interest in light sweet crude imports.

Venezuelan state-owned PdV is weighing around five offers from oil companies, including Chevron, Shell and several Asia-Pacific companies, for a contract to supply 40-48° crude for up to five years to blend with its Orinoco extra-heavy crude in order to yield exportable 16°API Merey crude.

Argentinian YPF began importing light sweet Nigerian crude oil in late 2014 and was heard to have received a 980,000 bl cargo of Escravos in June, while associated Argentinian company Enarsa is planning to receive 1mn bl of Nigerian Ehra for 10-20 September delivery.

Mexican state-owned Pemex asked the US Commerce Department in January to approve a request to swap 100,000 b/d of US light oil in exchange for Mexican heavy crude, which was granted just last month.