PV Oil Co., Vietnam’s state-owned oil-marketing company, sold as much as 450,000 barrels of Rang Dong crude to Arcadia Petroleum Ltd. and Royal Dutch Shell Plc (RDSA) at premiums from $3.30 to $4 a barrel above benchmark prices, said three traders who participate in the market, declining to be identified because the information is confidential.
The cargoes sold for lower premiums than Petroleo Brasileiro SA (PETR4), known as Petrobras, agreed to earlier this month for a long-term supply contract for Rang Dong. The Brazilian company will pay from $5.30 to $5.50 a barrel for 10 cargoes, 200,000 barrels each, to be loaded during the six months from April to September, according to two traders familiar with the deal, which was signed Feb. 14.
Rang Dong is priced as a premium to the average assessments of Indonesian benchmark Minas grade published by Platts and APPI.
Details of the recent deal are as follows:
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Crude: Rang Dong (Vietnam)
Price: Premium from $3.30 and $4 a barrel above
APPI/Platts Minas
Loading: April 3 to April 9 (200,000 barrels)
April 25 to May 2 (as much as 250,000 barrels)
Buyers: Arcadia, Shell
Source: Bloomberg
