Crude Oil Handbook

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International Crude
Oil Market Handbook
1997-98 Edition
PETROLEUM INTELLIGENCE WEEKLYS
International
Crude Oil Market
Handbook
1997-98
Second Edition
Thomas Wallin
Ira Joseph
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PIW PUBLICATIONS u The Oil Daily Co.
Production: Tim Nudd

January 1997
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PETROLEUM INTELLIGENCE WEEKLYS
International
Crude Oil Market
Handbook
1997-98
Second Edition
Table of Contents
Overview: The Inner Workings Of Crude Oil Markets

A. Introduction Understanding Crude Oil Markets . . . . . . . . . . . . . . . . . . . .A1
B. The Spot Market The Revolutionary Impact Of Spot Trading . . . . . . .B1

C. Term Sales Constant Evolution Transforms Term Contracts . . . . . . .C1
D. Logistics Tankers, Pipelines, And Stocks . . . . . . . . . . . . . . . . . . . . . . . . . .D1
E. Refining Whats A Crude Oil Worth? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E1
Glossary Of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E15
Reference Section: Profiles, Trade, And Prices

F. Country Profiles How Countries Market Their Crude Oil . . . . . . . . . . . .F1
G. Term Contracts And Trade Flows By Country And Company . . . . . . . .G1
H. Crude Oil Profiles A View Of the Market Through Each Grade . . . . .H1
I. Prices Spot And Term Contract Prices For Key Grades . . . . . . . . . . . .I1
The Inner Workings
Of Crude Oil Markets
Table of Contents
A. Introduction Understanding Crude Oil Markets . . . . . . . . . . . . . . . . . .A1
B. The Spot Market The Revolutionary Impact Of Spot Trading . . . . . . . .B1

A Spot Market Daisy Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B2
Benchmark Crude Oils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B6
Brent: The International Benchmark . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B9
West Texas Intermediate: Improbable Price Leader . . . . . . . . . . . . . . .B15
Dubai: A Benchmark In Limbo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B19
Spot, Forward, And Futures Markets For Key World Grades In 1996 . . .B28
C. Term Sales Constant Evolution Transforms Term Contracts . . . . . . . .C1

An Example Of How A Formula Price Is Determined . . . . . . . . . . . . . . . .C8
Dependence Of Term Contracts On Spot Benchmarks . . . . . . . . . . . . .C11
D. Logistics Tankers, Pipelines, And Stocks . . . . . . . . . . . . . . . . . . . . . .D1

Tankers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .D1
Pipelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .D6
Shipping Distances And Times For Key Tanker Routes . . . . . . . . . . . . . .D7
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .D12
Major Pipeline Links In World Crude Oil Trade . . . . . . . . . . . . . . . . . . .D13
E. Refining Whats A Crude Oil Worth? . . . . . . . . . . . . . . . . . . . . . . . . . .E1

An Overall Look At The Refining Process . . . . . . . . . . . . . . . . . . . . . . . .E2
Calculating A Netback . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E5
PIW Pacesetter Crude Oil Yields . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E7-8
Types Of Crude Oils And Their Characteristics . . . . . . . . . . . . . . . . . . . .E9
Gasoline And Naphtha . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E11
Kerosine, Gas Oil, And Residue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E12
Glossary Of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E15

CRUDE OIL HANDBOOK PIW © A1
INTRODUCTION
Understanding Crude Oil Markets

This second edition of PIWs International Crude Oil Market Handbook builds
on the success and strengths of the first volume, which was published in 1994.
The basic purpose of the book remains the same: to provide a comprehensive
picture of international oil markets in all of their broad scope and complexity.
This new edition completely updates the original version and adds a number of
valuable new features. The entire book has been fully revised to reflect a vast array of
changes, both large and small, that have occurred in the worlds constantly evolving
crude oil markets over the last two years. With rising non-Opec production, a number
of new crude oil streams are appearing on the market. Among the new features of the
handbook are profiles of over 20 of these crude oils, bringing the total to 134 individual
streams. And there are completely new assays for more than 60 of these. The price data
and information on term-contract volumes and trade flows have also been updated and
expanded, providing a more robust reference section.
Despite the many enhancements, this second edition of the handbook has
much the same structure as its predecessor and provides valuable information
for both the experienced oil trader and the newcomer to crude oil markets. The
first section of the book, The Inner Workings Of Crude Oil Markets, provides a brief but
thorough analysis of the main features of these markets. By taking a comprehensive view
and bringing together a wealth of data and information from a wide array of unique and
hard-to-access sources, this section provides important insights for experienced analysts
as well as a valuable introduction to the subject. The second section of the book is
designed exclusively for reference purposes, providing profiles of both the current mar-
keting strategies of individual countries and basic data and characteristics on 134 crude
oil streams. All of this is supplemented by extensive data on prices and trade flows, much
of which are unique to PIW and its sister publications.
Crude Oil: A Special Commodity

The size, scope, and complexity of global crude oil trade are unique among phys-
ical commodities. With more than $400-billion a year in physical transactions,
encompassing scores of different crude oil grades going to hundreds of refineries
all over the world, it overshadows other physical commodity markets. Beyond its
sheer scale, worldwide crude oil trade in the last 25 years has gone through revo-
lutionary changes that have had broad political and economic impact, adding to
its uniqueness. The strategic importance of petroleum, the crucial role that it plays in the
economies of both importing and exporting countries, and the heavy reliance on it,
despite efforts to diversify sources of energy, also magnify the critical significance of glob-
al commerce in crude oil. Despite the evolution of oil trade toward free-market structures
in most parts of the world over the last 10 to 20 years, it seems improbable that crude oil
will become a commodity like any other. Although it has taken on many of the trappings
of other markets, crude oil is likely to remain in a league of its own due to its inherent
complexity and the political and macroeconomic importance that it bears.
A2 PIW © CRUDE OIL HANDBOOK
The transformation from the stable, controlled supply systems of the inter-
national majors in the 1960s to the volatile, freewheeling markets of the mid-
1990s underscores another crucial aspect of todays crude oil trade: its
dynamism. Not only are prices volatile, but virtually all aspects of the global
crude oil market have been in a constant process of transformation. This com-
merce is in many ways almost unrecognizably different from what it was just 15
years ago. The participants have grown much more diverse, traditional supply
links have disintegrated or been transformed, and the pressure of competition
has grown relentlessly. Even up until the late 1970s, the international crude oil mar-
ket was considered to be a comfortable club with membership drawn mainly from the
ranks of major oil companies and heavily dominated by them. With the growth of price
volatility, the surge in non-Opec supply sources, the rising importance of national oil
companies, the breakup of the Soviet Union, and a host of other changes, the commerce
in crude oil has become more diverse, complex, and competitive. Change is now a con-
stant. One important and visible measure of this dynamism lies in the growth of futures
markets and other instruments for handling price risk.
In contrast to the state of flux that has now become the norm for crude oil
markets, the physical characteristics of crude oil have always conspired to create
a special degree of complexity that makes it unusual among commodities. Each
crude oil from each field is unique in quality, and significant variations can even
occur in the quality of a single fields output over time. This means that individ-
ual crude oils can present special challenges in handling and refining and, there-
fore, in their valuations in the marketplace. While all crude oils are capable of pro-
ducing similar end products, the crude oils themselves are far from interchangeable and
must be treated individually. The specific characteristics of different types of crude oil
must be taken into account in order for refiners to realize the full advantage of their spe-
cial qualities. This operational constraint has led to the tailoring of refineries and trans-
portation and storage systems to cope with particular grades.
Upstream Meets Downstream

For the oil industry, crude oil trade represents the key nexus between the two
main centers of activity: upstream exploration and production, and downstream
refining and marketing. Not only does it determine the value of upstream output,
but it also defines the cost of the main downstream feedstocks. Operational deci-
sions about combining output from various fields to create a specific crude oil export
stream with certain characteristics are constantly tested in the market against refiners
requirements for specific feedstocks to meet final demand for a changing combination
of products. Due to the extensive vertical integration of the oil industry until the early
1970s, these decisions were largely kept under the umbrella of major oil companies.
Under the current free-market system, the performance of the crude oil market provides
key signals for basic operational decisions throughout the industry.
Despite the radical changes in oil trade, an underlying constant has prevailed
in the way that a crude oils value is determined. Crude oil itself has almost no
direct end uses. A barrel of crude oil from a single stream has value to a refiner
only in terms of the products that it can yield. Ever since the simplest distillation units
were invented more than a century ago to refine oil and produce illuminating kerosine, it
has been the value of the end products that ultimately determines a crude oils value. Each
CRUDE OIL HANDBOOK PIW © A3
unique stream of crude oil generates different combinations of final products, all of which
compete in independent markets. The value of the crude oil is therefore derived from the
combined value of these co-products, which range from the lightest liquid petroleum
gases and sophisticated gasolines to the heaviest fuel oils for ships and industrial boilers.
The price of crude oil emerges from a complex interaction between the signals
provided by product markets through the purchasing decisions of refiners, and
the varying revenue objectives of producers. This process has rarely been purely
economic, and it has had political overtones for most of this century because of
oils strategic importance. While Opec is currently the most visible expression of this
political dimension to crude oil prices, other countries and political groups within them
have strongly held stakes. Although most large industrial countries have adopted a pro-
free-market stance, even these big consumers have clear concerns and preferences about
the level, direction, and volatility of oil prices as they affect their economies. The struc-
ture of the markets and their importance as a source of tax revenue are also key political
issues. Because of all of these political influences, oil markets do not single-handedly
determine crude oil prices. Rather, they help to define the general level.
Spot Market Dominance

Perhaps the most important underlying trend in crude oil markets over the last
20 years has been the drive toward marginal pricing linked to spot barrels. In the
1960s and early 1970s, the spot market was a small trickle compared to the much
larger flows under term contracts in the integrated systems of major oil compa-
nies. Now the situation is totally reversed: The spot market calls the tune. This trans-
formation, which is described in more detail in the following chapter, reflects a combina-
tion of factors, including three price shocks: the explosions of 1973-74 and 1979-80, and
the collapse of 1985-86. With hindsight, the relentless pressure applied by the free market
seems to have been inevitably leading to some version of the spot-price-driven structure
that now exists despite the many political and institutional factors that stood in the way.
The reliance on the spot market has many obvious attractions for all market
participants, which is why it is predominant today. But the accompanying
volatility and the inherent competitive pressure in these markets to move toward
marginal pricing of incremental supplies in which prices are set to equal the
additional cost of obtaining an extra unit of output pose genuine perils for the
oil industry. It is not at all clear that spot prices reflect the long-term marginal costs of
future crude oil supplies, a relationship that economists generally consider to be a criti-
cal prerequisite for the smooth operation of the industry. One of the basic contradictions
of the oil business that has existed virtually since its inception is that the high investment
costs and long lead times of oil projects require higher prices than those implied by the
relatively low short-term operating costs of existing fields. With Opec itself coming clos-
er to its output capacity as oil companies minimize inventories, and with all parties, from
refineries to drilling rigs, operating at much higher rates of utilization, the oil industry in
the mid-1990s shows some clear signs of moving into a period of greater upward pres-
sure on spot prices.
Two Different Perspectives

This book describes the complexity of the global crude oil market from two
completely different perspectives and in this sense, it is two books in one. The
A4 PIW © CRUDE OIL HANDBOOK
first section, The Inner Workings Of Crude Oil Markets, provides a description
and analysis of the many elements of the international crude oil trade, high-
lighting the themes mentioned above and others that trace its development and
current structure. The second section is essentially a reference book that has
proved an invaluable daily companion to oil market participants and analysts.
For over 130 individual crude oils, it furnishes all of the vital information that is needed
by anyone involved in any way in the market. It also contains detailed profiles of the
marketing strategies of the 36 main crude oil exporting countries and a wealth of price
and trade data. Similar books have been put together in the past by a few major inter-
national oil companies for their own internal use, but these were never widely distrib-
uted and most have been discontinued as companies have cut costs.
The next four chapters of the book, which make up the first section, can be
read either as a unified whole or randomly for reference purposes. They begin
with a basic description of the spot market and its origins before discussing the
key international benchmark grades that set the pace for virtually all crude oil
sales worldwide. This is followed by a description of the growing importance of the
futures market and then an analysis of the evolution of term-contract supply arrange-
ments. The logistics of crude oil transportation by ship and pipeline are presented, along
with detailed data on key routes and flows. The final chapter of the first section deals
with refining and crude oil valuation, serving as a transition to the descriptions of indi-
vidual crude oil streams in the second section.
This handbook also contains numerous special features to keep up to date
with new developments and efficiently present the information. In order to sup-
plement the annual data and information presented here, PIW will send out four or five
updates a year as they appear in our regular supplements on term crude oil prices (four)
and term-contract sales (one). Any updates that have already been published can be
found in the reference section.
The need to constantly update information on such matters as crude oil
streams and the individual marketing strategies of exporting countries means
that the entire book is intended to be revised regularly and extensively every two
years or so. The book has evolved rapidly into an independent source that is
widely relied upon for basic data and information on the international crude oil
trade. PIW is uniquely qualified to produce such a book, having tracked the crude oil
market intensively from the origins of the spot market. PIW also brings to bear a world-
wide information-gathering network that provides material known for its accuracy and
relevance to the business decisions and needs of the international oil industry. The edi-
tors encourage an open dialogue with all users of this book and look forward to your
comments and suggestions for incorporation into future editions.
CRUDE OIL HANDBOOK PIW © B1
THE SPOT MARKET
The Revolutionary Impact Of Spot Trading

The growth of the international spot market in crude oil during the early 1980s
revolutionized the way that petroleum is priced and turned much of the industry
completely on its head. The ensuing transformation in the structure of oil mar-
kets forms the basis on which crude oil is priced internationally today. For near-
ly 15 years leading up to the mid-1980s, virtually all of the oil that changed hands
around the world was sold under relatively strict price mechanisms managed by
the governments of oil-exporting countries. That system called, alternatively, one
of administered, government, or official selling prices had an inherent logic that con-
vinced most participants that the methodology was fairly permanent. Its main features
were simple: Governments of most of the largest oil-producing areas of the world felt dur-
ing that era of resource nationalism that the determination of oil prices was an expression
of national sovereignty. They, almost without exception, laid down the pricing basis,
under which their oil was sold from their export terminals at an official price free on
board (f.o.b.) a vessel loading oil a system that they had largely inherited from the
major oil companies. To be sure, they had to take into account market forces, adjusting
prices to one another and referring to global demand and supply patterns in a system
described below. But within those narrow bounds, the administration of oil prices by gov-
ernments was a basic fact of crude oil markets.
In contrast to the complexity of todays market, the hallmark of oils old
regime was simplicity, although its goal of stability remained elusive. There
werent all that many participants supplying the market under the system of offi-
cial selling prices. A handful of countries exported oil 13 eventually in Opec and less
than half a dozen of any consequence outside that producer group: Mexico, Norway, the
USSR, and the UK. Buying was dominated by the major international oil companies, with
limited involvement by independent refiners, traders, and other intermediaries.
As the spot market grew in prominence in the early 1980s, the radical change in
crude oil pricing that accompanied it was the emergence of a market discovery sys-
tem driven by marginal spot trading, which eventually replaced administered sell-
ing prices. The result is a system in which virtually all term-contract prices are tied
directly or indirectly to price quotes from the spot crude oil market. The ascendance
of spot market-based pricing, which is described in more detail below, was directly linked
to the abrupt emergence of surplus global production capacity in the early 1980s as demand
plunged due to high prices. At that time, Opec countries abandoned administered prices in
their effort to compete with one another and with new market entrants in order to dispose
of their production as the sellers market of the 1970s turned into the buyers market of
the 1980s. Oil refiners and traders in turn pushed their suppliers to provide crude oil prices
that would be profitable for them in terms of the current sales prices of refined products.
The Spot Markets Key Role

The size of the international crude oil spot market is extremely difficult to
gauge, but its enormous influence and its significance for virtually all aspects of
B2 PIW © CRUDE OIL HANDBOOK
the oil business are unquestioned. While spot deals are estimated to account for
only about one in three sales of physical crude oil, the prices generated by these
transactions are now the primary determinant of almost all other world oil prices.
This is most apparent in the formula pricing systems now used for the bulk of term crude
oil sales by Opec producer countries. Formulas typically specify direct price linkages to
particular spot crude oil quotes. Spot prices are also closely tracked by countries and com-
panies that sell crude oil on the basis of postings or retrospective pricing arrangements.
In todays market, crude oil sellers have little scope for deviating from the trends estab-
lished by the spot market which comprises the trading of individual cargoes or partial
shipments for immediate delivery, outside of any continuing supply commitment.
Beyond their dominant role in international crude oil pricing, spot markets
have a significant impact on everything from an oil companys share price to its
investment plans. The spot market and closely linked futures trading are also
used as the main barometers for measuring Opecs success at balancing global
supply and demand. The stock-market values of oil companies that are heavily orient-
ed toward the upstream sector have, since 1985-86, been closely linked to spot crude oil
market trends, reflecting the vital importance of this single variable for some firms cur-
rent cash flows and capital budgets. While oil companies tend to gear their long-term
investment plans to future price expectations rather than to current market levels, it is
A Spot Market D
Daisy Chain
To illustrate the complexity of spot market transactions, a sample of an actual Brent
crude market deal from the mid-1980s, when the market was expanding rapidly, is
shown below. The daisy chain of forward and spot market transactions linked togeth-
er 24 companies in 36 deals over a period of a few months. The cargo finally loaded at
Sullom Voe in March 1984 and sailed to Suns refinery at Markus Hook, Pennsylvania.
BNOC Shell UK Idemitsu Tricentrol Sohio
Charter Pegasus Occidental Acorn Shell Intl
Phibro Transworld Acorn Chevron BP
BP Phibro Acorn Texaco Phibro
Acorn Phibro Transworld Phibro Transworld
Gatoil Pecten Itochu Bomar Phibro
Sun Tricentrol P&O Falco Neste Bomar
Sun Ultramar
also clear that spending plans are slowed or accelerated over the course of the year
depending on the strength of current spot markets. Thats because they are used as a
yardstick of a firms future cash flows, which are key determinants of capital investment
expenditures.
One of the distinguishing characteristics of the physical crude oil spot mar-
kets since the early 1980s has been their extreme volatility. Wide swings in prices
have fostered the growth of large forward and futures markets and an array of
risk-management tools that are effectively an extension of the physical spot mar-
ket. The futures markets are dependent on the physical spot market in that they are
linked to them at the point of delivery, but the two are constantly responding to each
other and have grown mutually interlinked and dependent. The futures markets now
trade oil volumes for future delivery that far overshadow the spot market. The New York
and London crude oil futures exchanges together trade the equivalent of more than 150-
million barrels in each session, or more than double the volume of physical oil produced
around the world daily.
How Big Is The Spot Market?

While the spot markets growth has been central to the transformation of
crude oil trade over the last 10-15 years, no precise measure exists for its size.
Thats because the number of companies involved in buying and selling the same
cargo of crude oil before it reaches its final destination can often be quite large.
One of the biggest problems is determining a particular point in the supply chain at
which to measure the spot mar-
ket. Cargoes of crude oil are
sometimes resold in spot trade as US SPOT CRUDE
US SPOT CRUDEIMPORTS
OIL
they move from the port of load- IMPORTS BY REGION
BY REGION
ing toward their final destination.
2.5
In the case of forward crude oil (In mill. b/d)
markets such as those for North S. America
Sea Brent or Mideast Dubai 2.0
grades, long daisy chains of N. America
physical transactions can result 1.5

in the same cargo passing Mideast Europe
through many hands (see box, 1.0
opposite page). Whats more, the
market is not fully transparent, 0.5
Asia
since physical spot market trans- Africa
actions are often confidential 0.0
and lack any central clearing- 1987 1989 1991 1993 1995
house.
Perhaps the best available
data on the size of the international spot crude oil market come from the US
Department of Energy, which receives regular mandated reports on transactions
from companies importing crude oil into the country. Spot crude oil in the mid-
1990s has accounted for about one-third of such volumes, which represents a
slight increase from the 30% of the late 1980s and early 1990s. These data can only
be viewed as indicative of worldwide trends, but are probably fairly representative: The
US is the largest crude oil importer in the world and draws on virtually all crude oil-pro-
ducing regions to some extent. These US import data demonstrate that the market can
grow and shrink in size quite dramatically depending on market conditions and season-
al factors. For example, spot transactions constituted over 35% of US imports in the sum-
mer of 1986, when oil markets crashed to below $10 a barrel. By early 1988, they rep-
resented less than 24% of US imports. But by 1995, spot volumes had climbed back up
to 36%, exceeding their previous high point in 1986.
The US data indicate that the spot market has been growing in recent years,
both as a percentage of all transactions and in absolute terms. Much of this
growth appears to have come from the Americas and, to a lesser extent, Africa,
which seems to be the largest source of spot barrels to the US market (see
graph,pB3). In fact, some
70% of US crude oil imports PROPORTION OF US CRUDE OIL IMPORTS
from Africa, or 900,000 bar- ON A SPOT BASIS BY REGION
rels a day, were on a spot North South
basis in 1995. Crude oil ex- Year Total Africa Asia Europe Mideast America America
porters in the Americas 1996* 33.4% 71.7% 37.0% 43.7% 13.3% 19.6% 36.0%
1995 36.3 69.4 52.8 63.0 15.6 23.7 32.5
have provided most of the
1994 36.5 72.0 59.2 67.2 18.9 20.1 30.4
recent growth in US imports 1993 32.7 61.3 53.4 65.0 20.0 19.5 23.0
and much of this oil seems 1992 31.1 54.0 62.6 73.8 19.7 15.1 24.6
to be on a spot basis, par- 1991 29.9 46.3 64.4 63.9 24.4 15.9 26.1
1990 30.5 44.7 59.3 73.8 23.6 12.3 31.0
ticularly from Venezuela.
1989 32.2 54.0 59.7 55.2 25.8 9.6 29.9
While the Mideast remains 1988 25.8 39.2 41.2 62.6 21.2 9.7 23.5
an important crude oil sup- 1987 33.7 52.3 46.9 77.6 27.5 12.0 28.8
plier to the US, total sales Total US Crude Oil Imports (Spot & Term)
are off and spot sales have (In 1,000 b/d)
1995 6,532 1,312 115 472 1,418 2,274 1,340
dwindled to only about 15%
of the total, as Saudi term- *First quarter only. Source: US DOE.
contract supplies increas-

ingly dominate this trade. In contrast to the overall trend, spot sales have declined slight-
ly from Europe as contract sales have increased.
Based on the US trends in spot trade described above, the total global spot mar-
ket would seem to amount to 9- to 10-million barrels a day of the over 28-million
b/d in world trade in 1995. This is based on a simple extrapolation of data from the BP
Statistical Review, which would also suggest that Africa is the biggest spot market at 3-mil-
lion b/d, the Mideast second at 2-million b/d, and Europe third at 1.5-million b/d.
Growth Of The Spot Market

The spot market became a dominant force in world oil trade only in the last 15
years or so. In the 1950s and 1960s, when the international majors in effect con-
trolled world oil markets, spot crude oil transactions were widely regarded as
peripheral and unrepresentative. Spot deals amounted to just a tiny fraction of total
crude oil sales, with the market used mainly as a means of getting rid of odd lots or tem-
porary surpluses. Prices were usually at a discount to term-contract levels, with little volatil-
ity. There were relatively few market participants, and there was little price transparency.
By the early 1970s, the growing importance of US independent oil compa-
nies to international oil-production operations was providing an increased
role for the physical spot crude oil market. The supply dislocations and price
explosion created by the Arab oil embargo in 1973 gave further impetus to spot
trade. But the spot market, although growing, was nevertheless relatively small com-
pared to the huge volumes of oil still moving via the vertically integrated systems of
major oil companies and their term-contract sales. The 1973-74 price explosion did,
however, spawn or enlarge several specialized oil-trading and brokering companies
that previously were mainly involved in the more active market for refined products,
especially in Northwest Europe and the US East and Gulf Coasts. This provided mid-
dlemen and intermediaries that gave the spot market more participants and the poten-
tial for added liquidity.
The key events that opened the way for the international spot crude oil mar-
ket to play todays central role include the use of spot sales by Iran in 1973 that
signaled higher Opec prices. This was then followed by the nationalization of oil
companies upstream operations in producing countries. The change in owner-
ship effectively broke the vertically integrated structure of the oil industry, cre-
ating a gap in the supply chain that was eventually filled largely by the spot mar-
ket. With oil output now mostly in the hands of producing governments and the down-
stream refining and marketing operations still held by international oil firms, the poten-
tial for further supply dislocations was increased, creating new opportunities for oil
traders. Initially, almost all of the oil continued to move in term contracts, but these were
now open to a larger spectrum of companies, and spot market pressures soon became
hard to resist. Meanwhile, in the US, the system of government price controls created
incentives for increased spot trading.
The next international oil crisis, sparked by the Iranian revolution in late
1978, put the spot crude oil market on center stage as the main barometer for
rising international prices. The volume of spot transactions remained relative-
ly small, at an estimated 5% of oil trade, but the markets influence was much
greater. Many Opec producers raised the official prices of their term-contract sales
faster than scheduled in an effort to catch up with spot market levels. They also auc-
tioned cargoes on a spot basis and added premiums to their prices. These policies cre-
ated a much closer and clearer linkage between the marginal or incremental spot bar-
rel and baseload term-contract supplies a relationship that was to haunt these same
Opec producers later in the 1980s. With hindsight, its obvious that the lesson here was
that the spot market is always more attractive to the seller when prices are rising and
to the buyer when they are falling. This truism is what ate away at the fixed-price sys-
tem in the early 1980s.
Spot Markets Take Hold

After crude oil prices peaked at over $40 a barrel in early 1981, a long decline
set in that was also led by the spot crude oil market. Producers inside and out-
side Opec tended to follow spot prices lower reluctantly, trying to preserve their
control over the market. In order to maintain term-contract sales, the non-Opec produc-
ers were more responsive to downward spot market pressures, while the adjustments in
Opec official prices came after long and often-painful negotiation.
Opecs defense of higher official price levels, led by Saudi Arabia, meant a
huge loss in term export sales as global demand fell and buyers turned increas-
ingly to the rising supplies from cheaper non-Opec and spot market sources.
Large volumes of Opec crude oil also leaked into the spot market through a vari-
ety of alternative marketing mechanisms at the lower price levels, boosting spot
market volumes to over one-third of oil sales by the mid-1980s. Term crude oil
supplies, with their fixed prices and volume commitments, were increasingly seen by oil
companies as too risky in an environment of falling prices. At the same time, forward
and futures markets were growing rapidly as oil-market participants struggled to cope
with the risk created by price volatility. This also brought greater price transparency and
placed further emphasis on the spot market. Oil-trading companies, too, were thriving
on the volatility spawned by the breakdown of Opecs official pricing system.
In a bid to regain lost market share and boost its revenue, Saudi Arabia aban-
doned both its Opec swing-supplier role and the official price system in late
1985, opting for direct linkage of its crude oil prices to spot product markets with
netback pricing. Other Opec members quickly followed suit, and oil prices
crashed. Spot markets led the plunge in oil prices in 1986, with large volumes continu-
ing to trade on a spot basis despite the new netback sales contracts, which effectively
gave refiners a guaranteed profit margin. This seemed to underscore the permanence of
the spot markets new prominence and the difficulty that Opec and the oil companies
would face if they tried to put the spot-market genie back in the bottle.
While netback crude oil pricing was abandoned in early 1987 as Opec tried to
reassert control over markets, this methodology did open the way for virtually
all oil supplies to be linked eventually to marginal or incremental pricing.
Netback pricing has a reputation for causing instability, in part because of the events of
1986. Nonetheless, the concept of linking crude oil prices to the values implied by prod-
uct markets does make good economic sense. Opecs resurrection of fixed prices in 1987
quickly proved unworkable due to a rapid return to spot sales and other alternative mar-
keting mechanisms. This time around, Saudi Arabia opted for a new market-linked pric-
ing system tied to benchmark spot crude oils, with geographically specific formulas for
different regions. This system is the main subject of Chapter C on term supplies.
By the late 1980s, almost all internationally traded oil was priced on a mar-
ginal or incremental basis through some form of direct or indirect linkage to
the spot market. Although this initially benefited buyers enormously, they
soon found that it cut the other way with the Gulf war in late 1990. However,
the system survived that crisis successfully, underscoring the broad acceptance
of spot-linked pricing and the predominance of spot markets. In the autumn of
1990, anxiety over oil supplies due to anticipation of the Gulf war tightened spot mar-
kets, which briefly touched $40 a barrel. With baseload supplies tied to the spot mar-
ket, term-contract prices followed suit, even though no genuine shortage of supply ulti -
mately developed in part because the impact of higher prices encouraged rising
production.
What Makes A Benchmark Crude Oil

A crucial element in the development of the spot oil market in the late 1970s
and early 1980s was the emergence of key benchmark grades. These grades
served as the chief reference levels for crude oils of similar quality and in simi-
lar locations, providing a focus for increased trading and a rise in market liq-
uidity. The first international spot market benchmark grades were Arabian
Light in the Mideast (see pH227) and UK Forties in the North Sea (see pH247).
The US market was only indirectly linked to international spot markets until 1981 due
to the complexities created by Washingtons controls on crude oil prices. Arabian Light
was a natural benchmark because of the prominent market role that it played in Opec
as the key reference grade for the official price system, and because of its widespread
usage by refiners in the US, Europe, and Asia. In fact, as the worlds top-volume crude
oil from the largest crude oil producer and exporter, it would be a natural benchmark
today if not for Saudi Arabias policy of suppressing spot trading of its crude oils. Forties
served as a benchmark because of its robust volume, but it was replaced by Brent rel-
atively quickly.
The emergence of UK Brent as a North Sea reference crude oil (see pH241) in
place of Forties in the early 1980s was no accident; it resulted from the grades
mix of key characteristics. Ironically, Forties may again become the North Sea
benchmark by the end of this decade because it is expected to embody these
critical qualities better than Brent will. Brent currently possesses all of the vital
criteria that spot market participants seek in a benchmark grade volume,
security of supply, diversity of sellers, and broad acceptance. A significant volume
of actual barrels is needed in order to provide liquidity to the physical spot market. After
Brents liquidity was threatened by production problems in 1989, a commingling of the
Brent and Ninian streams in 1990 helped to assure a large tradable volume. A diversity
of sellers is also needed to prevent a single producer from having too much market
power. This has been one of the main objections to Forties, which was previously dom-
inated by British Petroleum. But rising production from a host of other producers feed-
ing into the Forties system has made it a larger, more diversified stream, with output of
1-million b/d in 1996 versus about 775,000 b/d for Brent Blend. The final key charac-
teristic is that the crude oil must be familiar to a wide array of refiners and welcome in
their systems to assure easy market liquidity.
As Riyadh suppressed spot trade in its oils, Dubai crude oil (see pH87) gradu-
ally displaced Arabian Light as the primary Mideast spot crude oil in the mid-
1980s, even though it does not fit the profile of the ideal benchmark grade near-
ly as well as Brent does. Market participants have worked hard to keep Dubai alive as
a benchmark, and one of the main reasons for its success is the need for some Mideast
spot price reference and for a heavier, high-sulfur spot benchmark grade in internation-
al trade. Dubais production is relatively small and declining, but it makes up for this in
part by the fact that it is almost entirely spot-traded.
US West Texas Intermediate became a benchmark spot crude oil almost by
default (see pH257). In 1983, it was selected as the main reference grade for the
New York Mercantile Exchanges new crude oil futures contract, which caught on
quickly and has put a spotlight on WTI trading ever since. While not ideally suited
as a world benchmark grade, mainly because of its landlocked delivery system and dis-
tance from international markets, its tremendous success highlights the crucial impor-
tance of liquidity in a successful trading grade. With the huge volume of the futures mar-
ket behind it, WTI gained worldwide visibility.
Benchmark grades are critical in defining the spot values of related crude oils,
and they also have become the key price variables in many term-contract price
formulas. In addition, they are the basis for most hedging and risk-management
efforts and attract the bulk of speculative trading interest. All of this makes the
benchmarks important, but they are all messy and flawed. Nevertheless, as in
other commodity markets, nothing succeeds like success. There tends to be a self-
sustaining quality to these benchmark grades, as their liquidity attracts other participants
and further enhances their trading volume. The basic irony of all of them in economic
terms is that they are providing the main marginal-pricing signals for the world oil indus-
try, but they do not fully represent marginal supplies. Brent, Dubai, and West Texas
Intermediate are all in the hands of producers that always produce as much oil as they
can and have little flexibility to expand flows. The marginal supplies to the world mar-
ket come mainly from producers in the Mideast Gulf, especially Saudi Arabia. But these
countries have discouraged spot trading of their crude oils, preventing them from being
used as benchmarks. However, both Brent and WTI are marginal in the sense that they
are among the last barrels sold to refiners, and hence they reflect the immediate supply
pressures that are facing buyers.
Multidimensional Benchmarks
Despite their imperfections, highly liquid and efficient markets for prompt
and forward supplies have developed for the key international benchmark
grades. They operate on at least two or three of the following four levels: on the
spot market for immediately deliverable physical oil, on an informal paper for-
ward market up to several months ahead of delivery, on organized exchanges for
futures contracts, and on over-the-counter markets for customized price swaps
and options. The financial derivatives such as swaps and over-the-counter options that
reflect a fourth layer of trading are closely linked with futures plays. There is a synergy
between these levels, and forward and futures prices converge with those for physical
oil as their contracts near expiration. These forward and futures transactions interact with
the spot sector to reflect changing market conditions, and they also serve to attract trad-
ing by companies handling similar grades or buying crude oil in the same region,
because the forward and futures trading capabilities allow them to both take speculative
positions and manage risk.
The existence of these forward and futures markets in the benchmark crude
oils not only attracts liquidity to the grades, but also makes the price signals that
they provide extremely important. As well as providing vital indications of cur-
rent market levels, the benchmark grades give readings on the changing value of
future supplies, which fluctuate between trading at a premium or at a discount to
spot barrels. The value of a benchmark crude oil in the future is based on a number
of factors, among which are the cost of money, the current level of excess commercial
inventory, the cost of storage, and the general outlook for future supplies. In markets
where immediate barrels are in surplus and where traders anticipate that supplies will
tighten over time, prompt crude oil tends to trade at a discount to future deliveries in a
price structure referred to as contango. In markets where immediate supplies are restrict-
ed or it is perceived that more oil may later become available, spot prices carry a pre-
mium to forward values in a structure referred to as backwardation.
Forward, futures, and swaps transactions are referred to as paper trading
because they most often end in financial settlements between parties as opposed
to physical delivery of oil. This aspect of trade enhances liquidity since partici-
pants can trade more oil than physically exists, providing more active markets
and better price information, especially in futures markets. Organized exchanges
serve as clearinghouses that guarantee the financial integrity of a wide range of buyers
and sellers taking positions and making cash settlements. In forward markets, which
operate informally, participants must provide their own protection from defaults and thus
tend to be more selective about their activities. In the cases of both Brent and Dubai, the
informal markets have sometimes suffered serious breakdowns, which are described
below in the subsections on each individual benchmark grade.
Brent: The International Benchmark

Brent Blend stands alone among all crude oils as the chief international
benchmark grade (see pH241). By virtue of its liquidity, visibility, and wide ac-
ceptance throughout the Atlantic Basin, its predominance has grown to the point
that it is the primary reference for pricing more crude oil, both on a spot and
term-contract basis, than any other grade of oil. Despite its central position, the
market is not without its peculiarities, imperfections, and weaknesses. In the spot
markets for European and African crude oils, virtually all trades are now conducted at a
differential to Brent rather than at an outright price, as was the case until 1987 or so.
Almost all other previously independent spot market reference points, such as Libyan Es
Sider, Nigerian Bonny Light, or Russian Urals, have given way to direct Brent linkage (see
pH153,H183,H221). This same trend is also true for the formula prices of term-contract
supplies sold into Europe from almost any market in the world. Brent-linked pricing is
also used for African crude oil sales to the US and other markets.
Referring to the Brent market as a single entity is a convenience, but it is
somewhat misleading. As mentioned above, Brent is a complex of three interre-
lated markets spot, forward, and futures each with different characteristics
and functions. But with Brent, more than any other benchmark grade, none of
the three parts of the triad is dominant: All are mutually dependent and could
not exist or would be unrecognizably different without the others. This linkage is
one of the weaknesses of the Brent market because troubles in one area, such as a
squeeze or other price distortion, can feed into different market segments, but the ad hoc
nature of the ties and the ability of the three markets to interact and evolve together is
probably also one of its operational strengths. To get a complete picture of Brent, all
three submarkets must be viewed together.
One of the best illustrations of the linkages between the three sectors is in
pricing, which shows the fragility and the specific roles of each one. In the
spot market for physical Brent cargoes, which is known as dated Brent,
prices are set at a differential to those in the forward market, which is known
as 15-day Brent, instead of on an outright basis. But in the 15-day Brent market,
spread trades rather than outright deals have also become dominant, and the
most visible, immediate price signals come from the formal Brent futures mar-
ket. Thus the futures arena is a key source of prices, with a constant interplay
between the three determining the value of Brent. However, the connections are
far from seamless, and the efficiency of the pricing system is partly a reflection of the
constant efforts of market participants to overcome and adjust for these imperfections.
The coexistence in Brent trade of the 15-day forward market and the formally orga-
nized futures market is an anomaly in a typical commodity market there would usu-
ally be one or the other, but not both. The reason that one has not driven out the other
is that they meet the needs of participants for different types of Brent transactions.
Many players in Brent participate in all three submarkets, and indeed, many of them
set trading positions designed to capture profit opportunities resulting from the price
differentials between the three sectors.
Dated Brent: The Spot Market Arena

A dated Brent deal is much like any other physical spot market transaction,
with the buyer taking delivery of an actual cargo under set terms of time, price,
and so forth. The main factors that distinguish the wet barrel market in Brent
are its linkage to the forward and futures markets for paper barrels, and the
widespread use of its prices as a reference point for other crude oil trade. An esti-
mated 50%-60% of all Brent loading, or some 400,000-450,000 b/d, correlates to
dated transactions, which involve a specific physical volume with a set three-day
range of dates for loading hence the term dated Brent. Virtually all of the trading
in these physical cargoes occurs in the few weeks immediately before they are loaded.
Trading further in the future is handled by the forward, futures, and swaps markets; trad-
ing at the time of loading or afterward is rare except for some cargoes in transit to more
distant markets, such as the US. The relatively high liquidity of dated Brent trade is vital
to the smooth functioning of the more heavily traded forward and futures markets that
are linked to it. Not surprisingly, the biggest sellers of dated Brent cargoes are traders and
Wall Street financial institutions that have acquired barrels in the forward market but lack
refining capacity. The biggest buyers are major oil companies with refining operations in
Northwest Europe, but smaller refiners in the US and Europe are also active.
Of the interlinked Brent markets, the dated sector is the most closely tied to
the physical operations of the Brent production and loading system. It is high-
ly vulnerable to dislocations in output, as seen, for example, in the accidents
that plagued the Brent system in 1989-90. But those problems were overcome by
the commingling of the Brent and Ninian crude oil streams in 1990, and the
enthusiasm for Brent as a pricing benchmark has been maintained. Since dated
Brent represents actual prompt supplies, it is generally the preferred price barometer for
other spot transactions and for term price formulas, despite the fact that prices are set
at a differential to forward Brent rather than on an outright basis. Dated Brent serves as
a pricing benchmark for all European and African crude oil production as well as for
term-contract sales of Mideast and other non-European crude oils into Europe.
The UK tax regime has also provided an important prop to an active physical
market in Brent over the years because producing companies can use the market
to establish a lower, more advantageous price on their production for tax pur-
poses. Known as tax-spinning, the practice is completely legal and has continued
since the early 1980s, but it has become subject to tighter regulation and is not
as prevalent as it once was. The government moved in late 1993 to limit the time
allowed for companies to declare a sale valid for tax purposes to just 24 hours. Producing
companies can still reduce their tax exposure by selling barrels into a falling market,
even on such short notice. The practice is believed by many observers to add to down-
ward pressure in a weak market and amplify upward pressure in a rising market. For
now, a delicate balance exists between the government tax authorities and the UK pro-
ducing companies. The government seeks to maximize its revenue without seriously
undermining the level of trading in the widely relied upon dated Brent market, while oil
companies seek to take as much advantage as they can of the tax law without sparking
added government regulation.
The biggest innovation in the Brent market in the 1990s has been the so-called
CFD or contract for differences market, which in practice provides a direct link
between the wet barrels of the spot market and paper barrels of the forwards
and futures markets. The CFD market is described in more detail below, but its emer-
gence has drawn increased attention to the pricing of dated Brent and the critical role
played by price reporting services such as Platts and Petroleum Argus. These concerns
about the accuracy of price reporting also relate to the declining production of Brent,
which means that as spot market liquidity declines the reliability of the price signal from
the market may wane, which could eventually undermine its benchmark role. With Brent
Blend production expected to decline to about 400,000 b/d soon after 2000, the liquidi-
ty issue is likely to become increasingly important in the future.
15-Day Brent: An Elite Club

In contrast to the trade in physical cargoes, a transaction in the 15-day for-
ward Brent market is a commitment to supply or lift Brent during a specified
month in the future. As in a futures market, traders are exchanging promises
rather than oil. The big differences between the forward and futures markets are
the informality and the narrower group of participants in the 15-day market.
Under the current rules of the Brent forward market, the seller must give the
buyer 15 days clear notice of a three-day loading window for the cargo that is to
wet the paper contract hence the name 15-day market. This means that the lat-
est point at which a January forward Brent cargo can be sold is the middle of January,
since 15 days notice cannot be given in the second half of the month. The loading pro-
cedures at the main terminal of Sullom Voe are one key factor influencing the structure
of the 15-day market. Producing companies must nominate their preferred loading dates
for the relevant month by the fifth of the preceding month and settle the whole months
program by the 15th of the preceding month. Thus, a company wishing to sell forward
cannot specify an actual range of delivery dates until the 15th of the previous month
when the liftings schedule is made final. Delivery dates are set at the sellers discretion,
and the general terms and conditions established by key Brent producer Royal
Dutch/Shell are generally used by most parties.
The 15-day Brent market trades as much as three to four months ahead of the
date of loading, although one-month forward tends to be the contract with the
most liquidity. Contracts are negotiated directly between parties for 500,000 barrel car-
goes, but a customary 5% volume tolerance has created opportunities for sharp trading
practices that some key players, such as Shell, have tried to limit. However, the ability
to benefit from volume tolerances also is an attraction to many traders and thus a source
of market liquidity. The large transaction size together with creditworthiness and a rep-
utation for reliability are key concerns that limit the number of participants. These wor-
ries have grown following serious defaults that have at times gripped the market.
The number of firms in the 15-day market has declined significantly since
1986-88, and the types of enterprises involved have changed markedly over time.
About 100 companies are estimated to have been active in the market in the mid-1980s,
but this declined to 50-60 in the early 1990s. Among the main shifts in participation,
Japanese trading houses which were quite active in the 1980s have dropped out
almost completely, while Wall Street financial institutions and commodities houses have
become much more active. The 15-day market is dominated by the Wall Street-type firms
THE CLUB: TOP 10 PARTICIPANTS IN 15-DAY BRENT
1986 1991 1993 1995

Rank Company % Share Company % Share Company % Share Company % Share
1 Phibro 8.7% J. Aron 15.8% J.Aron 12.0% J.P. Morgan 13.8%
2 J. Aron 7.4 Phibro 10.6 BP 9.5 Phibro 11.7
3 Nissho Iwai 6.1 Cargill 5.9 Koch 7.6 BP 9.3
4 Shell UK 5.5 Shell Intl. 5.8 Phibro 5.9 J. Aron 8.4
5 Drexel 4.3 Total 5.4 Shell Intl. 5.8 Statoil 5.8
6 Marubeni 4.2 BP 5.0 Shell UK 5.5 Elf 5.0
7 BP 3.6 Statoil 4.7 Elf 5.5 Morgan Stanley 4.8
8 InterNorth 3.5 Morgan Stanley 4.3 Cargill 4.8 Shell Intl. 4.8
9 Shell Intl. 3.3 Hess 3.4 Dreyfus 4.7 Koch 4.4
10 Kanematsu 2.9 Marc Rich 3.4 Morgan Stanley 4.3 Shell UK 4.2
Total 49.5 64.3 65.6 72.3
Note: 1995 data are for first six months. Source: Derived from Petroleum Argus Crude Oil Deals Database by Oxford
Institute For Energy Studies.
and the producers of Brent Blend, according to the Petroleum Argus Crude Oil Deals
Database. The table above, which was derived from the database, shows the top 10 par-
ticipants in 1986, 1991, 1993, and 1995. The market has become progressively more con-
centrated in the hands of the largest players, with the top 10 firms accounting for over
70% of trading as smaller participants have moved over to the futures market.
As an informal market, 15-day Brent has no central clearinghouse and no
process under which various buy and sell positions are rationalized at the end of
each day to determine what each participants open commitments are. Instead, a
network of loose chains of obligations exists, which take final form only as phys-
ical cargoes are sold into the dated Brent market, effectively wetting the chains.
When a producer serves the first buyer with notice of the loading dates for a physical
cargo, that buyer has the choice of taking delivery of the oil or passing the notice on to
a second company to which it has a sales commitment in the forward market. A single
physical cargo typically moves through a daisy chain of buyers and sellers until it
reaches a party that either wants to take the oil or simply has no alternative but to do so
because of its trading position (see chart, pB2). This process occurs in the period
between the time that the loading schedule is set and the time that the 15-day notice of
physical loading must be received.
When chains are long, or if a participant is slow in responding, a purchaser that did
not intend to take delivery may receive notice of a cargo at the last possible moment, at
5 p.m. London time, 15 days before the cargos three-day loading window. This is known
as being five oclocked or clocked, and it is not looked upon kindly. The number of
clockings is often viewed as an indicator of market sentiment. If clockings increase, this
is a sign of a reluctance to take cargoes and of possible price weakness, while a decline
in clockings is viewed as the opposite. The course of a chain is not predetermined, and
sometimes the producer that provides the first cargo can also wind up being the one tak-
ing delivery at the end of the same chain.
Parties can also opt to settle a Brent chain or a part of it in a financial transac-
tion before the date on which delivery notices would be served. In this so-called
book-out process, a seller tries to identify other parties in a potential chain that might all
be willing to cancel out their respective obligations on paper. A cash settlement is then
made between parties in the chain for the difference between their transaction prices.
Informality brings both risks and advantages for participants in the 15-day
Brent market. The system of daisy chains means that all participants are vulnerable to
a default by any individual firm in the chain and explains the restrictive nature of the
group and the concern for creditworthiness among participants. But this risk is counter-
balanced by the advantage of the 500,000 barrel contract size, which allows a firm to
quickly build or dissolve a large market position. The absence of a clearinghouse also
means that participants need not make potentially costly margin payments to maintain a
position, as is the case in the futures market.
The focus of trading in the 15-day market is divided between outright deals
and spread trading. In the latter, participants trade two counterbalancing posi-
tions between two grades of oil or between different time periods for Brent deliv-
ery. Outright deals are primarily the province of Brent producers. As of the early
1990s, the percentage of outright 15-day Brent trades had fallen to just over 20%
of all transactions, compared with about two-thirds in the 1986-87 period, but
outright trades had climbed back to about 50% of the total in 1995. The larger pro-
portion of outright deals emphasizes the markets continuing importance for tax opti-
mization purposes. The popularity of spread trading reflects a general strategy for mini-
mizing the risks of price volatility, the interlinkage of markets through arbitrage, and the
widespread use of price differentials for most trading.
Brent Futures: The Price Barometer

After two unsuccessful attempts, Londons International Petroleum Exchange
finally scored with a viable Brent futures contract in the summer of 1988. This
formal market for futures supplies involves cash settlement rather than physical
delivery, with prices from the 15-day market used to determine the final value
for the contract when trading closes out. In practice, this means that the prompt
price in the Brent futures market actually represents the value of the oil as much
as a month and a half before physical delivery. While this is an unusual structure for
a futures market which typically ties directly into physical spot markets and thus
might seem to limit its usefulness, the structure actually makes the futures market a nat-
ural complement to the 15-day market. It allows for easy trading of the much-smaller
1,000 barrel lots of the futures market and it also permits smaller companies that lack
adequate credit or that do not need the large trading lots of the 15-day market to hedge
and speculate on future price trends. The level of regulation that is standard in futures
markets also removes the risks of default that exist in the less formal 15-day market.
Futures market participants can also achieve physical delivery by an off-exchange
process known as EFPs, or exchanges of futures for physicals, in which two parties agree
to swap their respective futures market positions for crude oil supplies.
In addition to providing an added dimension to the 15-day Brent market for
the trading of smaller volumes by secondary participants, the futures market has
emerged as the key tool of price discovery. The convergence between futures
prices and the 15-day market is strong due to the futures contract-settlement
mechanism. The liquidity and small contract size of the futures market also facil-
itate trading and have made the IPE a key nerve center, providing a constant indi-
cator of the value of oil for the same period being traded in the 15-day market.
In effect, the IPE has displaced the need for intraday price quotes in the 15-day market
by providing a clearly visible price that informs both the trading in the 15-day market
and transactions in the dated Brent market. The duality between prices in the futures
market and those in the 15-day market is not perfect, however. In a rising market, for
instance, the opportunity to use the volume tolerance, with the buyer using his right to
insist on an additional 5%, or an extra 25,000 barrels, adds value to a cargo relative to
the futures and 15-day price. The reverse may happen in a falling market. In periods of
extreme tightness or anxiety about physical supplies, such as during the Gulf war, the
15-day market has tended to trade at a premium to IPE futures. The reason is that the
forward market represents a contract commitment for a physical cargo which is more
useful to a refiner in a supply crisis while the futures market relies on cash settlement.
On the other hand, for much of 1996, dated Brent traded at a discount to 15-day prices
despite the overall rise in market levels.
The futures market represents a broader range of participants than either the
15-day or the dated Brent market, but it draws heavily on both. In addition, North
Sea producers of smaller, non-Brent crude oil streams and European refiners are partic-
ularly active. The majority of participation in IPE futures contracts is from European-
based companies, but the broader international focus of the Brent contract probably
pulls in increasing non-European trading. The IPE has promoted trading of the contract
on the Singapore Monetary Exchange and has also successfully introduced options on its
Brent crude oil futures contract.
CFDs: Brents Bridge Between Spot And Forward Trade

An important new hedging mechanism has developed in the Brent market
since the early 1990s that goes beyond those available from either the 15-day
market or IPE futures. This so-called CFD market allows participants to cover the
price risk associated with a specific date range for physical loading. In essence,
it acts as a bridge between the 15-day, or forward market, and the dated Brent
spot market, and as such provides a critical fourth leg to the Brent market com-
plex. CFDs are essentially extremely short-term price swaps, but like dated Brent trans-
actions, they are priced at a differential to the forward Brent market. The transactions are
designed to provide price insurance in the period of two to six weeks between the time
that a 15-day forward Brent cargo becomes wet and the time that it loads. The main ben-
efit of CFDs to both buyers and sellers is that they lock in a price and reduce potential
exposure to risk in the dated Brent market, effectively providing the kind of protection
for dated Brent that already exists for future supplies through the 15-day market.
The CFD market has grown rapidly since about 1993 and trading volumes as
of 1996 were significantly larger than for dated Brent itself. About 90% of the
trades in CFDs are by firms that are active in both the dated and 15-day markets.
This group of about 30 consists of large North Sea producers, Wall Street firms, and oil
traders. Like the spot and forward markets, it attracts active interest from both hedgers
and speculators. In 1995, CFD trading volume was about twice as large as dated Brent
activity, according to Petroleum Argus data, which would indicate that the market has
become mature and well-established.
While CFDs would seem to be a perfect complement to the other Brent mar-
kets, these derivatives have come under criticism as a vehicle for market
squeezes and as a source of price volatility. While there is evidence of both of
these trends in relation to CFDs, the criticism is largely a case of blaming the
messenger. The Brent market seems to be adjusting to the new member of the
family fairly well, with fewer signs of problems in 1996. The emergence of CFDs
coincided with a period of great volatility in the spread between the dated and 15-day
prices. While the CFD market is meant to hedge that risk, it also may have prompted
increased efforts to manipulate price quotes for dated Brent. It also seems to have con-
tributed to squeezes in the forward market, because it provides a way for the initiator of
a squeeze to make a profit unwinding the long position that has been created in the for-
ward market by taking offsetting positions in CFDs before the squeeze gets going. These
issues have been examined closely by the Oxford Institute for Energy Studies in their
continuing analysis of the Brent market.
West Texas Intermediate: Improbable Price Leader

One of the greatest ironies of the world oil market is that the most visible, highly
traded crude oil in the world is West Texas Intermediate a landlocked US
domestic grade that never appears on the world market and only competes with
internationally traded crude oils when they are imported into the US (see pH257).
WTI owes its prominence to the fact that it is the main grade used in the New York
Mercantile Exchanges light, sweet crude oil futures contract. Riding the huge vol-
ume of Nymex futures, WTI is a highly visible reference point that equals or
exceeds UK Brent grade in importance, depending on ones location around the
globe. WTI was chosen as the primary crude oil for the Nymex futures contract back in
the early 1980s, mainly for operational reasons. Unlike the large cargo volumes of the
international spot market, WTIs pipeline-based transportation network allows for the
movement of the relatively small volumes that match the physical delivery needs of a
futures market in the early development phase of a new contract. However, these oper-
ationally driven decisions aimed at launching a successful crude oil contract in 1983
despite an oil industry that was still quite skeptical about futures resulted less than a
decade later in the emergence of an improbable global price leader, full of complexities
and obvious imperfections. The Nymex crude oil futures contract itself trades 1,000 bar-
rel lots of WTI-type crude oil for delivery at the Cushing, Oklahoma, pipeline hub.
Despite its unambiguous US orientation and several other flaws that are
described below, WTIs ability to assume a global benchmark role underscores
the importance of futures trading in the international oil industry. With daily
futures volume in the Nymex light crude oil contract averaging the equivalent of
100-million b/d, the WTI market is effectively more than twice the size of that for
Brent futures, which itself is about two to three times as large as the 15-day Brent
market in total volume, by most estimates. The main importance of this huge vol-
ume is that it provides immediate price transparency and an arena for all global
market participants to react to the latest trends. Partly with this role in mind, Nymex
launched a 24-hour electronic trading system in 1993 that allows interested buyers and
sellers to continue trading after exchange hours, except on weekends and holidays.
WTIs central price role is reflected in the fact that most trading of Brent and other inter-
national spot grades occurs during the hours of the Nymex session, with even the IPE
futures market adjusting its hours and staying open late in order to overlap with Nymex.
However, without the bright light that shines on it from the Nymex futures con-
tract, there is no doubt that WTI would go largely unnoticed, like most other US
domestic grades. The crude oils benchmark status is derived from its use in the
worlds biggest oil futures market, and not from its physical characteristics, which
significantly inhibit its usefulness. To overcome some of these inherent con-
straints, Nymex actually allows a wide range of both domestic and international
crude oils to be delivered against the contract, although in practice most deliveries
that are processed by the exchange itself are for WTI. Significant volumes of other
crude oils are delivered under exchanges of futures for physicals (EFPs), special off-
exchange mechanisms between consenting buyers and sellers, but these individualized
transactions do not have to track the physical market as closely as formal deliveries through
the exchange, which are meant to provide a physical link for futures prices. Six US crude
oils in addition to WTI can be delivered along with four international grades Brent Blend
and Forties of the UK, Norwegian Oseberg (see pH203), and Nigerian Bonny Light. Until
1990, Norwegian Ekofisk, Nigerian Brass River, and Algerian Saharan Blend and Zarzaitine
were also deliverable, but they were removed following complaints from Midcontinent US
refiners that received some of these crude oils unexpectedly (see pH197,H187,H29,H31).
Ambivalence Toward WTI

Although Nymex crude oil futures are now the exclusive benchmark for spot
crude oil trading in the Americas and they are the pricing base, either directly or
indirectly, for almost all US and Canadian crude oil sales, much suspicion remains
about WTI as a benchmark in the broader international arena. This ambivalence per-
sists even following the switch to WTI-linked formula pricing by Saudi Arabia and others
for their US sales as the usefulness of Alaskan North Slope as a benchmark diminished (see
pH251). The past problems of ANS are explained below, but the emergence of new sour
crude oil production streams from the US Gulf Coast such as Mars Blend (see pH255) rais-
es the possibility of a new sour crude oil marker grade that could overcome the quality and
location limitations of WTI.
Much of the ambivalence toward WTI is well justified. US restrictions on exports
and the structure of the domestic market prevent it from being traded interna-
tionally, making its links to the global market tenuous at times. The domestic US
THE CUSHING
PIPELINE HUB
orientation of its market have resulted in several extended periods in which prices
have become virtually disconnected from international market trends. While WTI
competes directly with foreign crude oil supplies at refineries from the Gulf Coast
to Chicago, pipeline constraints and internal market pressures inevitably create
distorted price relationships at times. These discontinuities with the international mar-
ket and the reasons for them can easily be seen from a brief description of the physical
characteristics of trading. WTI production is in decline along with the rest of total US crude
oil output. Under a broad definition, flows of WTI in 1995 were just over 800,000 b/d, ver-
sus 1.36-million b/d in 1985, and they are expected to reach less than 750,000 b/d by 1998.
This decline in the face of gradually rising US oil demand has meant that over the years,
a larger proportion of the crude oil is being used in the Midcontinent region and fed by
pipeline into the Great Lakes region, and less of it is shipped down to the US Gulf Coast
refining center, where it competes more directly with international supplies. The primary
influence on the physical market for WTI crude oil is the demand from refiners in
Oklahoma and Kansas and along the pipelines extending up to Chicago and beyond. The
pipeline system itself also creates a series of special constraints related to its capacity and
storage at various points.
The spot market for WTI is in practice split in two. One center of activity is in
Cushing, Oklahoma, where the trading of supplies for the Midcontinent and
Nymex futures contract deliveries occur. This crude oil moves to inland refiners.
The other center lies in Midland, Texas, a hub where WTI supplies can be shipped
either to Cushing or to the Gulf Coast. Price fluctuations between the two centers
reflect differing market pressures,
which can be extreme. Spot prices are
WTI-BRENT SPREAD, 1987-96
quoted in both of these markets and the
gap between them deviates considerably +3.00
from the 26¢ a barrel that it costs to move $/bbl
a barrel of WTI eastward from Midland to +2.50
Cushing. When the Midcontinent market +2.00
is tight, the Cushing spot market trades at
a wider premium, and this is reflected in +1.50
futures prices, especially for prompt sup-
+1.00
plies. However, if the Gulf Coast market
is tighter, the Cushing premium drops +0.50
below 20¢, and Midland can even trade
0.00
at a higher level than Cushing in a peri-
od of extreme tightness at the Gulf Coast. -0.50
Pipeline capacity constraints mean that it
1/87 1/90 1/93 1/96
can take weeks for such imbalances to
work themselves out, with supplies shift-
ing as rapidly as possible to the market where supply is tightest. It costs 30¢ to move a
barrel of crude oil from Midland down to the Houston area.
Several pipeline routes allow international crude oils to be delivered to the
central region of the US, but only two systems with combined capacity of about
500,000 b/d reach the key Nymex hub of Cushing, Oklahoma. These links com-
plete the supply picture, which created a serious supply constraint on the
Cushing hub until the more than doubling of the system with the addition of a
new 270,000 b/d Arco leg in the spring of 1996. The expansion should help
improve the linkage between WTI prices and the international market, by allow-
ing ample international supplies to flow to Cushing in periods of tightness in the US
Midcontinent and Great Lakes regions. The Arco Seaway network has two lines that can
now carry up to 430,000 b/d, fol-
lowing the conversion of a gas line WTI AND BRENT FUTURES COMPARED*
from Freeport, Texas, and the aug- Open Interest Volume
mentation of the existing 160,000 Month Nymex IPE Nymex IPE
b/d line. A separate Texaco line Sept. 96 56,691 36,898 39,144 26,026
Oct. 96 60,917 59,409 24,972 20,809
can carry about 70,000 b/d. Both Nov. 96 33,365 10,869 9,160 4,301
systems carry domestic and inter- Dec. 96 41,627 17,773 9,260 6,997
national crude oils, and throughput Jan. 97 29,201 11,945 3,364 3,799
Feb. 97 20,775 7,345 1,463 1,828
can be lower with heavier grades.
March 97 13,589 5,996 750 1,030
Moving a barrel of crude oil from April 97 10,915 4,441 1,229 0
the Gulf Coast to Cushing costs May 97 6,155 1,549 728 0
about 75¢ a barrel, which means June 97 23,119 4,405 2,020 100
July 97 7,834 680 150 0
that a big premium must exist at Aug. 97 3,703 135 50 0
Cushing to pull in foreign supplies. Sept. 97 5,065 ... 504 ...
At times in the past, WTI Oct. 97 2,254 ... 0 ...
Nov. 97 5,683 ... 0 ...
prices at Cushing have departed
Dec. 97 20,006 ... 1,048 ...
from their typical international Jan. 98 6,198 ... 100 ...
market-reference points because Feb. 98 1,912 ... 0 ...
of these rigidities. From 1987-91, March 98 1,571 ... 0 ...
April 98 507 ... 0 ...
prices were particularly volatile,
May 98 367 ... 0 ...
and other periods in which the June 98 5,965 ... 16 ...
spread widened to well over July 98 955 ... 0 ...
$1.50 a barrel have occurred in Aug. 98 89 ... 0 ...
Sept. 98 420 ... 0 ...
1994 and 1996, indicating a Oct. 98 21 ... 0 ...
break with international price Nov. 98 121 ... 0 ...
patterns (see chart on pB17). The Dec. 98 6,712 ... 1 ...
Jan. 99 0 ... 0 ...
tightness in WTI is often due to low
Feb. 99 0 ... 0 ...
stocks of crude oil or gasoline in the June 99 753 ... 0 ...
central region of the US. The com- Dec. 99 6,251 ... 1 ...
bination of expanded pipeline Total 372,709 161,445 93,915 64,890
capacity from the Gulf Coast to *Figures from Aug. 1996.

Cushing, greater reliance on
Canadian crude oil imports and better anticipation of such pressures by refiners seems like-
ly to make the discontinuities less frequent, but they are unlikely to disappear completely.
WTI: The Financial Benchmark

Even with the limitations of its underlying physical market, the high volume
of futures activity in WTI has pushed it into the position of a leading financial
benchmark for both futures and swaps markets. If the evolving markets in dis-
tant forward months are able to provide the oil industry with a clearer picture of
the long-term value of oil, this signal is likely to come either directly or indirect-
ly from WTI. The Nymex futures contract already has been extended three and one-half
years into the future. The relatively robust levels of open interest trading positions that
have not been offset and active trading in these distant forward months mainly reflects
the use of the market as a place for providers of price swaps and other long-term for-
ward market price-hedging mechanisms to manage the risk that they have taken on.
Many of the concerns about the complex WTI delivery system and its rigidities tend to
fade away in the forward months and are deemed to be of little importance.
In sharp contrast to Brent futures, which are dominated by oil companies and
traders that are active in the physical market, the WTI market is much more a
mix of physical oil-market participants and financial players, some of which
never trade wet barrels. Commodity funds and other financial entities tend to play a
bigger role in the WTI market, providing a significant amount of the liquidity in the
futures market. Unlike Brent futures, where over 65% of open interest is for contracts
expiring over the following three months, WTI futures only have about 40% of their open
interest in this heavily traded period. The table on pB18 compares the open interest and
trading volumes in the Nymex and IPE crude oil futures contracts on August 13, 1996,
underscoring the different profiles of the two markets. Although IPE has followed
Nymexs lead by extending trading to 12 months, market activity in Brent futures is not
nearly as great in the so-called outer months. Nevertheless, both contracts see about 75%-
80% of their trading volume in the nearest three months. The IPE plans to extend Brent
trading out to 30 months in 1997.
Different Personalities Of WTI And Brent

The heavy financial orientation of WTI trading contrasts with the physical
grounding of Brent trading in the day-to-day pressures of supply and demand in
the international market. This basic difference in personalities between the two
markets seems to have helped make them complementary and interdependent
rather than competitive. While the WTI market provides a highly visible pricing
barometer that attracts widespread and immediate reaction to market develop-
ments, the close physical linkage of Brent to the international market provides a
reality check for WTI. Because of WTIs visibility and liquidity, most other crude oil
markets prefer, as they trade, to have the extra comfort of knowing how the WTI market
is reacting to psychological factors, financial pressures, and technical influences. However,
the Brent market gives out important counterbalancing signals on the physical
supply/demand pressures of both the European and broader international crude oil mar-
ket that WTI traders cannot usually afford to ignore for long. The two markets interact con-
stantly with each other in a tension that reflects their own inherent concerns and mix of
participants. Neither one can fully represent the global crude oil market on its own.
However, the tendency for WTI to be pulled away at times by internal US supply and
demand pressures from international market influences means that the interaction between
the WTI and Brent markets is imperfect and unpredictable. The two benchmarks tend to
move in tandem most of the time, but signals can also become crossed and confused. It is
at these times that the Brent market most clearly demonstrates its key international role.
Dubai: A Benchmark In Limbo

Although Dubai crude oil stands alone as the only actively traded spot and for-
ward benchmark for the Mideast and for high-sulfur crude oil in general mak-
ing it the key pricing marker for both spot and term-contract sales East of Suez
it has some serious problems. Some of the critical trading issues of the early
1990s have been overcome, but the crude oil stream faces a decline in production
that seems likely to undermine the liquidity of spot trading in the future.
Superficially, the Dubai trade appears to resemble Brents, but in many respects,
it is more fragile. However, the lack of a viable alternative may well allow the
Dubai market to persist despite these problems. One example of Dubais peculiari-
ties as a benchmark is that it is only indirectly linked to Mideast and Asian spot crude
oil pricing. Unlike Atlantic Basin spot crude oils, which are priced directly off a differ-
ential to UK Brent or US WTI, Mideast and Asian spot prices for the most heavily trad-
ed grades are based mainly on their retrospective term-contract prices. Spot levels are
usually tied to the respective government-set retroactive monthly prices for the crude oil
in question, whether the oil is from Abu Dhabi, Indonesia, or Oman. Dubai prices pro-
vide a key ingredient in setting these retroactive prices, but relatively little spot trading
is done on a direct differential to daily Dubai prices, unlike Brent and WTI. However,
Dubai, by virtue of its spot and forward market, is considered a key indicator of sour
crude oil values. The monthly average price is also the basic ingredient in term-contract
price formulas for the East of Suez sales by key producers such as Saudi Arabia, Iran,
and Kuwait.
Dubai emerged as an important spot crude oil benchmark grade in the mid-
1980s. At that time, third-party trading in Saudi Arabian Light and other region-
al grades wound down as key Opec producers sought to defend prices by limit-
ing spot trade in their crude oils. The forward Dubai market grew up in con-
junction with spot trading, but it has never extended for more than a few months
in advance. The fact that the oil is produced and sold by Western oil companies
has also been critical to the markets development. Production is divided between
the producers US Conoco (30%), French Total (25%), Spanish Repsol (25%), German
RWE-DEA (10%), US Sun (5%), and German Wintershall (5%) and the ruler of Dubai,
making for a diverse group of companies to wet the forward market and reducing the
chance of a squeeze. The rulers share is usually sold either directly into the spot mar-
ket or to Western oil companies that resell the oil. Since all of the equity producers have
their refining capacity in the Atlantic Basin, far from the region, this has provided an
additional incentive for them to sell their crude oil on a spot basis. In the mid-1980s,
Japanese trading houses provided much of the liquidity in the forward market and
much of the oil also went to Japan. As they withdrew later in the decade due to trading
losses, Wall Street financial firms largely took their place. Major oil companies and
traders provide most of the other participation.
Threats To Dubais Liquidity

The Dubai market faced some serious operational problems in 1993, which cre-
ated a temporary loss of confidence in the forward contract-delivery mechanism
that has since been overcome. But the steady decline in Dubai production means
that even todays active spot and forward trade relies on a smaller base of physical
barrels, leaving the market more prone to distortion. The terms and conditions of the
forward contract were revised in late 1993 by the operator, US Conoco, resolving most of
the problems by tightening the rules for the selection of loading dates and other adjust-
ments. These reforms restored confidence in the physical market and have helped foster a
resurgence in trade, which has been also helped by renewed interest in trading price
spreads between Brent and Dubai. There are, however, rumblings about Dubais continu-
ing suitability as a benchmark. Trade is almost exclusively limited to a handful of compa-

nies that are sometimes suspected of manipulating prices and spreads with Brent. The
emergence of short-term swaps in Dubai may have contributed to this kind of trading.
Dubai output dropped to less than 300,000 b/d in late 1995 as part of a long-
term decline that is gradually reducing the number of available spot cargoes, but
the market has responded to this threat to liquidity in recent years with the growth
of trading in partial cargoes. While Dubais usual cargo size, like Brent, is 500,000 bar-
rels, which facilitates spread trading, an active market in partial cargoes down to 100,000
barrels has sprung up. This partial Dubai market is one of the reasons that past attempts
to launch a formal Dubai futures contract in both Singapore and London have failed. At
the mid-1996 rate of 270,000 b/d, there are, at most, 16 cargoes that can be traded in a
month. This compares with output of over 400,000 b/d, or 25 cargoes, in 1990. Although
the output decline eats into overall potential trading volume, notably in the wet barrel spot
market, it is not clear at what point a spot market becomes too small to support a viable
benchmark role, especially if it has close links to a more active market such as Brent, as
Dubai does. For example, the US Alaskan North Slope market had managed to cling to a
benchmark role on trade of just a handful of cargoes per month.
Another key change in the Dubai forward market in the late 1980s was the shift
in trading from outright transactions to spread trading, primarily off 15-day Brent.
Spread trades, which involve two simultaneous transactions with the same party
which partly offset each other, now account for an estimated 95% of deals, with a
big jump during the Gulf war that has not been reversed since then. This change
means that, in practice, Dubai has evolved into more of an extension of Brent trad-
ing than a market that stands on its own. While price-reporting services can readily
determine the value of Dubai from the regular volume of spread trades versus Brent, there
is relatively little outright trading activity to provide a counterbalancing check linked exclu-
sively to the supply and demand pressures of Dubai itself. The volume of trading in the
physical spot market for Dubai has also declined with the drop in production and the prob-
lems with the forward contract, making the market more dependent on the Brent link.
Dubais Divided Loyalties

Unlike trading in both Brent and WTI, where there is a considerable overlap
between participants in the forward markets and those that produce and use the
crude oil in refineries, these two groups are quite different in the Dubai market.
The main participants in the forward markets are Wall Street financial institu-
tions, equity producers in Dubai, and other Western oil companies and traders.
But the main customers are refineries in the Indian subcontinent, Singapore,
Japan, and South Africa. Aside from some of the international majors that supply their
operations in both Singapore and South Africa from the Dubai market, there is little activ-
ity among the regional end-users of Dubai crude oil in the forward market even the
international majors are not dominant participants. Similarly, Dubai is rarely taken into the
Atlantic Basin, and when it is, sales are not usually on a spot basis. Usually, an equity pro-
ducer will simply move one of its cargoes to the Mediterranean.
While the Brent linkage in Dubai trading and its declining liquidity call into
question its viability and validity as a benchmark, it also has a good chance of
enduring. The simple fact is that there is no alternative to it anywhere in the
region, and none seems likely to emerge, barring a radical change in the mar-
keting policies of Mideast producers. The Southeast Asian crude oil market suffers
from an even greater shortage of marker grades, and even if a new sour crude oil mar-
ket emerged in the Atlantic Basin, it would be hard for it to provide a relevant price sig-
nal for the geographically disparate
Asia-Pacific region. The participants in
the market are likely to continue work- BRENT-DUBAI SPREAD, 1987-96
ing hard to prevail over Dubais draw-
+4.50
backs. If the Mideast producers were
+4.00 $/bbl
willing to overcome their deep-seated
suspicions of allowing their crude oils to +3.50
be traded freely in the spot market, a +3.00
more natural and solidly based marker
+2.50
might quickly emerge based on Arabian
+2.00
Light, the worlds largest crude oil
stream but there is no sign of such a +1.50
change of policy. The only other alter- +1.00
native might be a more dominant +0.50 Gulf War
benchmark role for Oman crude oil (see
0.00
pH211), which in contrast to Dubai is
growing in volume. Although Oman 1/87 1/90 1/93 1/96
plays something of a marker role
already, there are fewer sellers and its current pricing system is heavily dependent on
the governments retrospective posting, which in turn is linked to Dubai.
Despite its limitations and potential pitfalls, Dubai provides a vital price sig-
nal for sour crude oils. In fact, the Brent-Dubai price spread is among the most
important in international crude oil trade because it provides a clear indication
of the relative values of light, sweet and heavy, sour crude oils. The spread has
been volatile at times, but it has also clearly reflected the shifts in relative crude oil val-
ues in recent years. In the early 1990s, the gap was $2-$3 a barrel, but with the tighten-
ing of sour crude oil markets in late 1993 and early 1994, the spread dropped abruptly.
New refinery investments in upgrading capacity, higher North Sea production, and cut-
backs in Saudi sales of heavy crude oils all contributed to this shift that was clearly
reflected in Dubai prices (see chart above).
Other Benchmarks And Their Limitations

Several other crude oils have emerged as benchmark grades for spot trading
over the years and some new candidates are on the horizon. While some grades
have foundered and others may still flourish, the dominance of Brent and WTI as
the main sources of price formation for international oil markets has tended to
overshadow the other markers, and it has made it harder for them to develop
into independent markets. The region where the absence of a clear, unambigu-
ous benchmark grade is most striking is the Asia-Pacific area. While Malaysian
Tapis and Indonesian Minas crude oils partly play this role, neither is up to the
job (see pH169,H125). Part of the problem in the Asia-Pacific region is structural. Due
to the profusion of crude oils and relatively small volumes of production and spot sales,
there are few grades that are large enough or traded widely enough to form the basis
for a benchmark grade. The thin trade has resulted in a preference for pricing spot deals
off the retroactive term-contract prices set by local producing governments, much as it
occurs in the Mideast. These prices are usually set on the basis of a formula or some
other indirect linkage to the most widely respected regional crude oil price reporting ser-
vice, the Asian Petroleum Price Index. This service uses weekly assessments by a panel
of market participants rather than traditional daily price reporting by journalists. The spot
prices of Indonesian crude oils are linked to the governments Indonesian Crude Price
formulas, which are drawn in part from APPI price quotes. Malaysian term-contract prices
are based on formulas that rely partly on APPI quotes, and China and Vietnam also rely
on APPI prices to determine their term-contract prices.
The Tapis crude oil market is made up of two separate parts price swaps
and spot trading which dont overlap but provide some of the most visible
price signals in the region. Tapis, however, lacks a broad diversity of suppliers
that can guarantee liquidity. Malaysias state Petronas is a regular seller of spot Tapis,
usually providing at least a couple of cargoes a month for spot trading. But this repre-
sents a decline of about 50% from volumes in the early 1990s. Petronas now uses about
half of its 210,000 b/d share of output in domestic refineries. Most of the swaps activity
is carried out by Wall Street-type financial firms with regional producers and refiners.
Unlike a forward market, the swaps lack a formal contract and they never result in phys-
ical delivery, but they provide much of the same access to hedging and speculation.
While there is some linkage of prices for similar Asian light, sweet crude oils to Tapis
spot quotes and while Tapis regularly trades on an outright-pricing basis rather than at
a differential to some other grade, it is still flawed as a marker. Since all production is in
the hands of state Petronas and operator Exxon, there is not a wide enough group of
suppliers to insure against a price squeeze in any given month.
Indonesian Minas crude oil is a more logical Asia-Pacific benchmark grade
than Tapis, as it is the regions largest volume crude oil and falls midway in qual-
ity terms between the light and heavy grades that are produced there. Minas is
traded regularly in the spot market although probably not quite as much as
Tapis but it too is subject to serious liquidity problems that make it an inef-
fective benchmark. Like Tapis, production of Minas is in the hands of only two pro-
ducers: US Caltex and Indonesian state Pertamina. In addition, Minas has tended to be
one of the grades that Indonesia, as an Opec member, has traditionally relied upon when
it has cut production to comply with quota agreements. Forward and swaps trading in
Minas is also limited in scope.
The Heirs To Alaskan North Slope

Although Alaskan North Slope crude oil trading at the US Gulf Coast has now
vanished, it was once an important benchmark and its departure has left a vacuum
for sour crude oil pricing that has been only partially filled by West Texas
Intermediate. Even before the lifting of the US export ban on Alaskan crude oil in 1996,
ANS had lost its marker role due to declining production and a steep drop in volumes arriv-
ing at the Gulf Coast. ANS was dropped as a marker grade for term sales by Saudi Arabia
and Kuwait in early 1994 and subsequently by Mexico and Ecuador in early 1996, and its
spot price had been derived directly from WTI for years before that. With only a few spot
trades a month at the US Gulf Coast, the volume of trading was no longer available to pro-
vide either an independent price signal or the basis for a forward market. Heavy spot trad-
ing and a forward market in ANS developed in the early- to mid-1980s, but by the end of
the decade, forward trade was already drying up due to the dominant position of British
Petroleum as a supplier and the rapid growth of WTI futures as a preferred alternative.
Among alternative sour crude oil benchmarks in the Atlantic Basin the two most
interesting prospects are the new Mars Blend grade from the deep-water US Gulf
Coast and Russian Urals in Europe (see pH255,H221). Mars production started in
mid-1996 and the crude oil is being positioned by the main producers, Shell and
BP, as a possible spot benchmark grade. Potential volumes of up to 400,000 b/d or so
could be available soon after 2000 and easy access to Gulf Coast pipelines promises an
active spot trade. Furthermore, the main producers intend to sell a large proportion of the
crude oil on a spot basis. Whether this active trade develops into a new Gulf Coast sour
crude oil benchmark to fill the gap left by ANS depends on how the market and other pro-
ducers react to the new grade, which is likely to trade initially at a differential to WTI.
In Europe, Russian Urals has been touted from time to time as a potential sour
marker, but its time has not yet come. It is still priced mainly at a differential to
dated Brent, but some Russian exporters and European traders hope to see it grow
into a high-sulfur sour crude oil benchmark in its own right with an active forward
and futures market. Heavy spot trading has developed in recent years, especially
in the pipeline system into Eastern Europe. This now involves both wet barrels and
forward paper commitments a month or two in advance. A wide variety of players are
involved, including Western firms producing oil in Russia or with access to exports, a host
of Russian firms, Eastern European refiners, and other Western companies. The main prob-
lems lie in the uncertain quality of Urals, which could pose problems for trading. In addi-
tion, fears of Russian political instability and the potential for abrupt changes in govern-
ment controls over exports have also dented enthusiasm for Urals as a marker.
The Dominance Of Spread Trading

While the benchmark crude oils play the key role in setting price levels for
almost all other crude oil trade both spot and term-contract sales most of
the trading in the marker grades is in some form of spread trading. The focus is
on arbitrage or price relationships rather than on outright prices. A typical
spread trade involves two parties taking opposite and partially offsetting posi-
tions that expose them to changes in relative prices rather than to changes in the
absolute price levels. The preference for spread trading reflects a natural reaction to
the volatility that is common in international oil markets. Spreads reduce the risk that is
inherent in an outright position because the relationships between prices tend to be less
volatile than absolute price levels. The heavy use of spreads also reflects the need of the
markets to constantly adjust a complex set of intermarket relationships to large price
swings. The reliance on price linkage to benchmark grades also tends to promote spread
trading, as does the character of most market participants. Traders, oil refiners, and finan-
cial firms are often more concerned with relationships between markets than with the
absolute price, which is the primary concern of producers.
About 50%-65% of the trading in the 15-day Brent market and over 90% of the
trading in Dubai is spread trading. Similar proportions of spread trade also seem
likely to exist in WTI and Brent futures, although because of the way that these
markets are structured, with a central clearinghouse handling all transactions,
the volume of spreads activity is hard to measure. The New York Mercantile
Exchange is particularly conducive to spread trading because it allows refiners and oth-
ers to take offsetting positions in the crude oil and refined products markets, mimicking
the economics of refining with a crack spread. According to an analysis of Petroleum
Argus data on spot crude oil deals, the volume of spreads trading in the 15-day Brent
market increased steadily in the late 1980s and early 1990s reaching as much as 80%,
with an even-sharper rise in the Dubai market. However, in the case of Brent at least,
the proportion of spread deals has declined since 1993, but this may also reflect a migra-
tion of this spread trading activity to the Brent futures market.
There are two basic spreads that are widely traded in the international spot
markets: Forward spreads and intercrude spreads. Forward spreads account for
most of the activity and essentially involve trading the relationship between dif-
ferent delivery periods. Such deals are also known as straddles or intermonth
spreads. They involve judgments about the premium (contango) or discount
(backwardation) that is likely to exist in forward prices. A bull spread involves
the purchase of a near month and the sale of a forward month to take advantage of an
upward move in absolute prices, which tends to widen the backwardation in the forward
market. A bear spread, the sale of a near month and the purchase of an outer month,
is exactly the reverse. Several factors determine these forward price relationships in addi-
tion to the overall direction of absolute prices. Levels of inventories, storage costs, as well
as future price expectations all play a role.
Only a handful of intercrude spreads are heavily traded, although in theory
they could be set up between just about any pair of crude oil grades in the world.
Brent relationships to WTI and Dubai are the most actively traded intercrude
spreads. The Brent-Dubai spread is commonly used to hedge or take positions on the
relationship between sweet and sour crude oils, while the Brent-WTI spread reflects dif-
ferences between the US and European markets. While spreads are usually viewed as less
risky than outright positions, intercrude trades can be relatively more dynamic because of
widely different market pressures. For example, the tendency of WTI to disconnect itself
from international markets has, at times, produced wider swings in the Brent-WTI spread
than in either price by itself. And in percentage terms, the swings can be much wider.
In addition to these basic spreads, there are any number of more sophisticat-
ed variants. A box spread is a set of four deals that essentially is a spread on a spread,
or the relationship between two different crude oil price relationships, e.g., Brent-WTI
versus Brent-Dubai. Others include the crack spread mentioned above, reflecting a sim-
plified refinery relationship between crude oil and products.
The Structure Of Spot Markets

The benchmark grades, the prevalence of spread trading, and the heavy
reliance on pricing links to the marker grades together provide the basic struc-
ture of the worlds spot crude oil markets. The basic architecture is essentially
one of relationships. Paper barrel trading in forward and futures markets now
plays the central role in price formation and discovery, with a complex web of
interlinkages connecting various submarkets for physical spot supplies with the
more active and increasingly dominant paper barrel markets. Spot trading of wet
barrels is largely in the shadow of forward and futures markets, with most of the focus
on defining price relationships to marker grades. But ironically, the wet barrel markets
for spot grades, such as dated Brent and Dubai, remain highly important because of the
role that they play in setting term-contract price levels. Just as the wet barrel markets
depend on paper barrel trade for a large element of price discovery, the forward and
futures markets also depend on one another and interact constantly. No single trading
center drives or dominates the international spot crude oil market, and no one market
or price captures a complete picture of it. Rather, it is the interplay of all of the various
elements that provides the overall result and direction.
THE MAIN CRUDE OIL MARKETS

WTI Sphere Brent Sphere Dubai Sphere Asia-Pacific
Sphere
Swaps Options Swaps Options
IPE Brent Futures

Tapis
Nymex Crude Futures Swaps
(WTI) Forward
15-Day Brent Dubai
CFD APPI
Price
Service
Cash African Dated Dubai Tapis

WTI Grades Brent Govt-Set
Monthly
Other Medit- Contract
North Sea erranean Prices
Latin Austal
Grades Grades
America -asia
Other Russian
US/Canada Oman
Oil Qatar UAE Indonesia
Spot Forward Swaps & Relationships

Derivatives
Direct
Futures Spot Marker Other

Indirect Or Partial
Paper barrel purchases account for the vast majority of transactions, out-
numbering physical crude oil deals by a ratio of more than 10-to-1 worldwide.
However, a vast amount of this paper barrel trading is internal to these markets due to
the heavy emphasis in both the Brent and WTI markets on forward spreads. This trad-
ing helps to make these markets highly liquid and enhances their ability to generate con-
stant price signals. On the other hand, the physical markets, despite their smaller vol-
umes, provide a discipline and, at times, a counterweight to the churning volume of trad-
ing in paper barrel markets that helps to keep them in touch with the genuine supply
and demand fundamentals.
Despite the importance of these linkages and the high degree of interdepen-
dence between markets, world spot crude oil trade divides quite naturally into
four spheres WTI, Brent, Dubai, and Asia-Pacific. The two Atlantic Basin market
areas, the WTI and Brent spheres, are by far the most active and also involve a much
higher degree of integration between paper barrel trading and physical spot markets than
the two spheres of trading East of Suez. In fact, the Dubai and Asia-Pacific spheres are,
at times, heavily dependent on the price signals coming from the Atlantic Basin from
the Brent market in particular. The diagram on pB26 provides a sense of the structure and
relative mix in these markets between paper barrel and wet barrel activity.
The lack of visible forward and futures markets to lean on for price signals and
the inherent lack of liquidity East of Suez probably makes the Dubai and Asia-
Pacific spheres less efficient than the Atlantic Basin. The Asia-Pacific sphere is the
most adrift and relies on a combination of alternative price signals from the Asian
Petroleum Price Index and government-set monthly contract prices for basic indicators. In
the Dubai sphere, the retroactive prices set monthly by state Adnoc for Abu Dhabi crude
oils, by state Qatar General Petroleum Corp. for Qatar crude oils, and by Omans Ministry
of Petroleum and Minerals (MPM) for its crude oil draw heavily on Dubai price quotes for
the past month, but they do not come from a strict formula, except in the case of Qatar. It
is in this indirect way that the spot prices for these Mideast crude oils are linked to Dubai.
Despite their similarly high levels of activity, the WTI and Brent spheres have
quite different personalities, too. The Brent sphere is more heavily oriented
toward international physical trading, while the WTI sphere is the primary paper
barrel market. Although the volume of transactions in the WTI sphere exceeds the
trading in the Brent sphere by about 50%, it is almost entirely in the futures mar-
ket. By contrast, the Brent sphere, which includes physical trading in all European,
Mediterranean, and African crude oils, accounts for about 65% of physical spot market
activity worldwide. Less than 10% of physical spot trading occurs in the WTI sphere, but
over 65% of worldwide paper barrel trading occurs in the Nymex crude oil futures mar-
ket. These different personalities tend to make the two regions complementary.
Beyond the various benchmark grades that have been described above and
account for most of the trading, there are some 50 crude oils that appear regular-
ly in physical spot markets around the world. A profile of both the benchmark
crude oils and these other regularly traded grades appears on pages B28-B29, with
estimated volumes of reported transactions and the pricing basis for each one. In
addition to these regularly traded crude oils, there are perhaps another 40 or so that come
onto the spot market less frequently. The market activity listed in the tables adds up to a
total volume of 4.2-million b/d in wet barrel spot trading. In addition, the volumes of trad-
ing for some of the crude oils probably exceed the amounts shown because the price-
reporting services are unable to track all of the deals that are done. Thus, the 4.2-million
b/d volume level in the table reflects only an estimated 50% or less of the total volume of
spot trade. A similar understatement may exist for the Brent and Dubai forward markets.
Despite these limitations, the figures below help to provide a clear idea of the market link-
ages and relative magnitudes of the markets in individual crude oil streams.
Ultimately, the international spot crude oil market can only be understood as
a broad set of relationships, with trading activity constantly seeking to define
those relationships. But this reliance on market linkages also means that the
physical spot crude trade that anchors most of the transactions represents a
small fraction of the total volume of trade. As we have seen, this can pose prob-
lems for spot markets. A very similar system of linkages has emerged for most
term-contract supplies, and as we will see in the following chapter, it has also
brought significant risks and rewards along with it.
SPOT, FORWARD, AND FUTURES MARKETS FOR KEY WORLD CRUDE OILS IN 1996
BRENT SPHERE
Market Reported Estimated Pricing
Brent Complex Country Type Transactions Vol. (b/d) Basis
Dated Brent UK Spot 28/month 465,000 15-Day Brent/WTI
15-Day Brent UK Forward 200/month 3,300,000 Outright price
IPE Brent Futures UK Futures 65,000/day* 43,300,000 Outright price
Europe/Mediterranean
Forties UK Spot 20-25/month 375,000 Dated Brent
Flotta UK Spot 2-3/month 40,000 Dated Brent
Ekofisk Norway Spot 10-15/month 210,000 Dated Brent
Statfjord Norway Spot 5-15/month 165,000 Dated Brent
Oseberg Norway Spot 20/month 335,000 Dated Brent/WTI
Gullfaks (AB) Norway Spot 3-5/month 65,000 Dated Brent
Siberian Light Russia Spot 1-2/month 25,000 Dated Brent
Urals Russia Spot 20-25/month 375,000 Dated Brent/WTI
Es Sider Libya Spot 0-1/month 5,000 Dated Brent
Suez Blend Egypt Spot 0-1/month 5,000 Dated Brent
Saharan Blend Algeria Spot 0-1/month 5,000 Dated Brent
Syrian Light Syria Spot 1-2/month 25,000 Dated Brent
Iran Light Iran Spot 1/month 15,000 Dated Brent
Iran Heavy Iran Spot 2-5/month 50,000 Dated Brent
Africa
Bonny Light Nigeria Spot 2-5/month 70,000 Dated Brent/WTI
Brass River Nigeria Spot 5/month 115,000 Dated Brent/WTI
Escravos Nigeria Spot 3/month 70,000 Dated Brent/WTI
Qua Iboe Nigeria Spot 5/month 115,000 Dated Brent/WTI
Forcados Nigeria Spot 5-7/month 140,000 Dated Brent/WTI
Bonny Medium Nigeria Spot 1-2/month 35,000 Dated Brent/WTI
Cabinda Angola Spot 5/month 115,000 Dated Brent/WTI
Rabi Gabon Spot 1-2/month 35,000 Dated Brent/WTI
Total Brent Sphere 49,455,000
Paper 46,600,000
Wet 2,855,000
WEST TEXAS INTERMEDIATE SPHERE

WTI Complex Country Type Transactions Vol. (b/d) Basis
WTI Cash Market US Spot 12/day 30,000 Outright price
Nymex Light, Sweet
Crude Contract (WTI) US Futures 150,000/day* 100,000,000 Outright price
Americas
Alaskan N. Slope (Calif.) US Spot 4-6/month 65,000 WTI
WTS, LLS, And Others US Spot 12/day 30,000 WTI
Cano Limon Colombia Spot 1/month 20,000 WTI
Cusiana Colombia Spot 2/month 40,000 WTI
Oriente Ecuador Spot 0-2/month 20,000 WTI
Argentina Crudes Argentina Spot 1/month 20,000 WTI
Total WTI Sphere 100,225,000
Paper 100,000,000
Wet 225,000
SPOT, FORWARD, AND FUTURES MARKETS FOR KEY WORLD CRUDE OILS IN 1996 (cont.)
DUBAI SPHERE
Dubai Complex Country Type Transactions Vol. (b/d) Basis
Dubai UAE Spot 12/month 200,000 Forward Dubai
Forward Dubai UAE Forward 60/month 1,000,000 15-Day Brent/Outright
Murban UAE Spot 5/month 90,000 Adnoc
Lower Zakum UAE Spot 5/month 90,000 Adnoc
Oman Oman Spot 15-20/month 335,000 MPM
Qatar Grades Qatar Spot 3-4/month 75,000 QGPC
Total Dubai Sphere 1,790,000
Paper 1,000,000
Wet 790,000
ASIA-PACIFIC SPHERE

Crude Oil Country Type Transactions Vol. (b/d) Basis
Tapis Malaysia Spot 3-4/month 60,000 Outright/APPI
Tapis Swaps Malaysia Swaps 50/month 400,000 Outright/APPI
Labuan Malaysia Spot 0-2/month 15,000 Outright/APPI
Minas Indonesia Spot 6-8/month 115,000 ICP
Widuri Indonesia Spot 1-2/month 25,000 ICP
Duri Indonesia Spot 1-2/month 25,000 ICP
Kutubu Papua NG Spot 2-3/month 40,000 APPI/Tapis
Australian Grades Australia Spot 0-2/month 20,000 APPI/Tapis
Total Asia-Pacific Sphere 700,000
Paper 400,000
Wet 300,000
Worldwide Totals
Total Volume 152,170,000
Total Paper 148,000,000
Total Wet 4,170,000
This list of crudes is not comprehensive, but it does cover all of the most actively traded grades. Reported transac-
tions data are drawn from Petroleum Argus, other market-reporting services, futures exchanges volumes, other
sources, and PIW estimates. Transactions outside of futures markets may understate the actual level of trading in some
cases. *Per trading day.
CRUDE OIL HANDBOOK PIW © C1
TERM SALES
Constant Evolution Transforms Term Contracts

Given the heavy reliance on spot-linked pricing for just about all crude oil sup-
plies, the traditional distinction between single-cargo spot transactions and
longer-term contract supply arrangements might understandably be viewed as
largely theoretical. Indeed, almost all of the historical trappings of a term con-
tract for crude oil have been progressively stripped away. The different values of
term and spot deals can often be measured in pennies a barrel, and thus the dif-
ferences in prices from the perspective of both buyer and seller are sometimes
trivial. Todays term contract for crude oil is almost unrecognizable from its evolution-
ary ancestor in the late 1970s, which provided the buyer with fixed volumes for a fixed
period at the same government-administered fixed price to all customers at the port of
loading. If a buyer failed to lift crude oil as and when the contract indicated, it was sub-
ject to penalties. The buyer was willing to endure all of this for security of supply. Under
the current system, both the duration of the contract and the volumes involved have
become increasingly flexible and, in practice, can be adjusted almost at will, with buy-
ers often allowed to take spot volumes over and above term supplies on a virtually indis-
tinguishable basis. And with pricing linked to the spot market and at times customized
for individual buyers, the term contract might be considered just a regularized or recur-
ring set of spot deals structured to the needs of the individual buyers.
Despite the growing similarities to spot deals, term contracts are still special
and they fulfill important functions, which explains why they have accounted
for a growing share of the international crude oil trade in recent years. The hall-
mark characteristic of term-contract supplies that distinguishes them from spot
deals is the more lasting relationship they represent between buyer and seller
and the operational predictability and simplicity that this provides to both. By
definition, a term contract defines either complementary or mutually advanta-
geous conditions for both buyer and seller, providing each with a degree of pre-
dictability. And, while the benefits may be skewed more in favor of one than the
other party, in all cases term contracts provide sellers with relatively secure mar-
kets and buyers with relatively secure sources of supply. In either case, the buyer
or seller sees a distinct benefit in having an enduring relationship rather than a series of
flexible but unpredictable spot transactions. Contracts break down when conditions pre-
vail in the marketplace that make the costs of maintaining the contract too dear for one
party or the other. Thus, the term contracts of the late 1970s and early 1980s were based
on fixed prices, administered by governments, and imposed on an f.o.b. basis at the
ports of virtually all oil exporting countries. These contracts were regarded as tilted in
favor of the exporter, which set the price at its export terminal. The risks of any price
change between the time a cargo was lifted and then imported at the terminal of a refin-
ery were borne by the buyer. However, after the Iranian revolution began to unfold in
1979 and 1980, oil prices started to escalate, and the risk borne by buyers turned into an
advantage, since the price of a cargo could increase rapidly from the time a vessel left
an export terminal until the time it reached an importers harbor. As a result, exporters
C2 PIW © CRUDE OIL HANDBOOK
began to break their contracts unilaterally and sell their cargoes on an auction basis
because the terms of fixed price contracts became increasingly adverse to them.
When the term-contract regime of the 1970s and early 1980s broke down
and the spot market mushroomed, a period of uncertainty emerged in which
buyers and sellers found it difficult to forge mutually beneficial ties and the
ultimate underpinnings of trust between them were fractured. Beginning in
1981, after term-contract prices reached their peak, the sellers market of the 1970s
quickly gave way to a buyers market. The oil exporters, which first broke contract
sanctity in the late 1970s when oil prices were escalating, found themselves in great
difficulty when they tried to insist that buyers adhere to fixed terms again. This time
the buyers, facing the greater likelihood of falling than of rising prices, saw no reason
to rush back to the sellers and their fixed terms. The buyers argued that these contracts
had little value, predicting that the sellers would again break contracts anyway if oil
prices resumed their earlier upward path.
Successful Term Contracts

Successful term crude oil supply contracts fulfill the purpose of defining risks,
and there are three basic risks that any enduring contract needs to address sat-
isfactorily for both the buyer and the seller. Two of these are market risks, and
one pertains to prices. The market risks relate to security of sales, or markets, for
sellers and security of delivery, or supply, for buyers. The contract provides a
framework of understanding for buyer and seller, defining either narrow or broad limits
of tolerance for each side as well as mechanisms for resolving disputes that may arise.
In todays buyers market, the seller is forced to absorb many of the risks and uncer-
tainties and give the buyer the virtual equivalent of a spot deal in order to retain some
continuity of liftings. And the buyer also has definite advantages in the form of pre-
dictability and manageability that make attractively priced term deals more appealing
than the spot market, where supplies of desired crude oils can be more erratic and a
large trading operation is needed to constantly manage supplies.
The third key element of contracts relates to the timing of when prices are trig-
gered. To the degree that it takes time to deliver crude oil from an export terminal to the
flange of the importing terminal, so price risk is borne by either the buyer or the seller.
As we will see below, a critical issue thus becomes whether pricing takes place at or close
to loading thus placing price risk on the shoulders of the buyer or whether it is
triggered at or close to unloading thus placing price risk in the hands of the seller.
The most important issue that the contract must deal with is that both par-
ties have confidence that over time the price terms represent something close
to the ultimate value of the particular stream of crude oil. And if that condition
turns out not to be the case, the contract will not have much durability. Fair rep-
resentation of the value of the crude oil in the marketplace provides the ulti-
mate test for any crude oil contract. As a raw feedstock, crude oil commands no
value per se. Its value is almost entirely a function of what becomes of it after it is
processed into a slate of petroleum products (see Chapter E: Refining). Thus a crude
oils quality is a key element of its value. To the degree that it can be processed more
readily than other crude oils into higher value products such as gasoline, diesel fuel,
and jet kerosine, it will command a higher value than other streams of crude oil that
more readily yield lower-quality middle distillates or residual fuel oil. Beyond quality,
the other key element in the value of a particular stream of crude oil is the distance
between its source and the end-user market where it is refined. Since the value of crude
oil is determined by local market conditions, transport costs to that market play a criti-
cal role in its price (see Chapter D: Logistics).
Growth In Term Contracts

Although comprehensive data are scarce, the available evidence suggests a clear
expansion in term-contract sales during the 1990s even as spot activity has also
grown with rising global oil trade. PIWs annual tallies of term contracts are the
only global measure of these sales. They track all known term contracts for the
leading international exporters and show them rising from 40% of the total pro-
duction of these countries in 1989 to almost 55% in 1995. In volume terms, they have
grown to about 15- to 16-million barrels a day in 1995, according to the PIW tallies (see
Chapter G: Trade). Some of these term supplies are subsequently resold into spot markets,
but this volume was initially sold under term contracts. The term contracts tracked by PIW
also exclude smaller term sales by some international oil company equity producers.
One of the difficulties that PIW has encountered in tracking term contracts is
the large number of gray areas that lie between deals that are clearly either spot
or term. These ambiguities make the classifications somewhat arbitrary at times and
require that the crude oil sales of an exporter or the purchases of a company be viewed
as a totality. These uncertainties are examined below, and the individual marketing
strategies of key exporters, both spot and term, are described in detail in the reference
section (see Chapter F: Country Profiles).
A Brief History Of Term Pricing

Although term-contract sales have staged a comeback, they are unlikely to
regain the absolute dominance of international crude oil commerce that they
enjoyed prior to 1979-80, when they accounted for 95% or more of all supplies.
Spot transactions have become standard practice for most sales in the North Sea and for
some other individual crude oils such as Dubai (see pH87), and because of the com-
petitive pressures of these markets there seems little alternative to this type of marketing
for these oils. By contrast, up until the Iranian revolution, term contracts and equity sup-
plies accounted for almost all deals, despite the 1973 oil embargo and the nationaliza-
tion of international oil company assets in many of the producing countries. Oil compa-
nies had little choice because of the scarcity of alternative supplies. The Opec produc-
ers simply adopted a slight variant of the posted pricing system of the major oil compa-
nies when they began to set rates unilaterally in 1973-74, and this system worked rela-
tively smoothly until the second oil shock in 1979-80. At that point, as in 1973-74, spot
prices were being pulled up by demand so rapidly that governments could not make
adjustments in official prices quickly enough. Furthermore, government after government
unilaterally broke contract arrangements in order to sell into the more profitable spot
arena, undermining the supposed benefits of term supply arrangements. At one point,
the former Aramco partners were nearly alone in lifting contracted crude oil at set prices,
earning the so-called Aramco advantage.
As is the case today, during the heyday of crude oil contracts, the prices of
virtually all crude oils sold were based on a differential to a marker grade. In
the 1970s, most crude oils were sold at official selling prices, sometimes also
called government selling prices, which in turn were set according to differen-
tials to a single crude oil namely, Saudi Arabian Light (see pH227). All other
OSPs in Opec were set in reference to the marker, depending on differences in phys-
ical properties of the grades and distances to the markets. And, outside of Opec, the
prices of virtually all other export crude oils were also based on administrative fiat in
reference to the Saudi marker.
By 1984-85, the official price system, which was the basis for most term con-
tracts, was in a shambles. Buyers found that the strict terms resulted in unac-
ceptable market risks and that security of supply, which was supposed to be the
main benefit of the contracts, was unnecessary in the face of a global supply glut.
They were also leery of the suppliers, whose reputations for reliability were tar-
nished severely when some unilaterally cut off their buyers during the earlier
rising market. Many buyers opted for big increases in spot supplies and a host of other
crude oil-purchasing arrangements offered by various countries in order to get around
the objections of buyers to the rigidities and burdens of term supplies under the official
price system. Many of these alternative marketing methods are still in use, and they serve
as a source of the gray areas that now exist between pure term and pure spot arrange-
ments. Saudi Arabia, which had remained the most committed to the official price sys-
tem as it played the role of Opec swing producer, saw its output plummet by mid-1985
to unacceptably low levels of less than 2.5-million b/d.
The response of Saudi Arabia to this untenable market predicament was to
establish the netback pricing system in late 1985, which abandoned official
prices completely and tied the value of crude oil directly to the spot market
prices of the resulting products. Netback pricing, from a buyers perspective, is
the most attractive mechanism that can be developed for two reasons: It prices a
crude oil stream according to its real market value (see Chapter E: Refining);
and it locks in a profit margin for refiner/buyers. Not surprisingly, this attractive
market-linked pricing system was designed to rebuild Saudi market share, in
which it succeeded splendidly but it also sparked a huge price decline in 1986.
Netbacks quickly became the rage in Opec as producers competed for customers in the
declining market and just as quickly fell from favor as Opec tried to restore some order
to the market in late 1986. Rightly or wrongly, netbacks were blamed for the price crash
and they still carry a stigma as a result of it. Despite their brief period of dominance of
only about one year, netbacks represented a revolutionary shift to spot-market-linked
pricing and the tacit admission by crude oil sellers that in order to remain competitive,
term contracts needed to be taking their cue from spot markets.
The netback pricing system was followed by a brief, unsuccessful return to
fixed official prices and in late 1987 by the system of geographically-specific for-
mula prices tied to spot crude oil price indicators or markers. This system of for-
mula prices is still in place today. Unlike netback prices, which were based on spot
product markets and assured refiners a guaranteed margin, the spot crude oil-linked sys-
tem was a more direct reflection of the existing price situation in global spot crude oil
markets, which made it safer and somewhat more conservative. It also permitted sellers
to target specific areas and even specific customers by modifying formulas and other
aspects of the contracts to meet customers individual needs. Ultimately, these adjust-
ments have resulted in contracts that in many cases are tailored to individual companies.
This furthers the goal of the producer, which is to lock in market outlets and achieve
security of demand. However, the use of tailor-made formulas also reduces the trans-
parency of pricing, making it harder to compare the relative cost of supplies. PIWs Price
Scorecards have emerged as the only regular third-party assessment of the absolute level
of term-contract prices implied by the formulas (see Chapter I: Prices).
Formula pricing has proven to be effective as a tool for establishing and
defending market share by producers in a period of surplus supplies and com-
petition. It has also proved to be flexible and quite durable, but as will be seen
below, it is not without its problems, particularly with regard to spot market
benchmark reference crude oils. Just as pricing of term supplies became more attrac-
tive to buyers in the 1980s, volume and time commitments were also loosened. The old
system of annual evergreen, or renewable, contracts for set volumes gave way first to
releasing customers from underlifting penalties. Buyers were also given more latitude to
cancel liftings, provided that they gave adequate notice, and to change volumes quar-
terly, or even monthly. At the extreme, countries such as Iran and Venezuela allow some
customers to review price terms and volumes on a cargo-by-cargo basis, providing quasi-
spot market flexibility.
Market-Related Formula Pricing

The market-related formula-pricing system is most prevalent in the Atlantic
Basin, but it is also used by large Mideast producers such as Saudi Arabia, Iran, and
Kuwait for crude oil sales to Asian customers. The key market link in all formulas
is the benchmark spot crude oil grade that is used to drive or determine the final
price. Simple crude oil linkages to a single benchmark grade are widely prevalent
in markets where a benchmark crude oil predominates, such as the Brent marker
in Europe and West Texas Intermediate in the United States (see pH241,H257). PIWs
Crude Oil Price Scorecard regularly tracks these linkages and changes in the adjustment
factors while also calculating the resulting prices for a particular crude oil, such as Saudi
Arabia Light, which is based on Brent in sales to Europe or West Texas Intermediate in
sales to the United States (see Chapter I: Prices). The quality of the marker need not be
similar to the crude oil being sold. The key attribute of the marker grade is that it provide
a clear price signal. It is for that reason that Mideast and Latin American producers tie their
crude oil prices to WTI in the US, even though their sour crude oils are not directly com-
petitive with the US sweet crude oil marker grade. WTI completely displaced Alaskan
North Slope crude oil (see pH251) as the benchmark grade for sour crude oil sales in the
US in the 1993-95 period as trading in Alaskan North Slope dried up on the Gulf Coast with
declining production and the subsequent lifting of US export restrictions in 1996.
Tying a countrys term-contract crude oil prices to a more widely traded and
quoted crude oil stream is attractive in that it links a crude oil stream that may
not be widely traded to one which is. This enhances price transparency. The
system works best if the underlying qualities of the two crude oils are similar.
If thats the case, the linkage provides a number of advantages. Primary among
these is that a system of linkage is fairly easy to administer in a uniform and consistent
manner. Another advantage is that crude oil linkages are highly responsive to changing
market conditions, thus facilitating the development of long-term offtake arrangements
with refiners. Ideally, the linkage should make the refiner indifferent to whether it is
buying the more widely-traded benchmark grade or the linked grade, thereby facilitat-
ing its long-term commitment to purchase the exporters crude oil. Hedging of term-
contract supply by the refiner is also facilitated because of the ready availability of for-
ward or futures markets for the benchmark grade. The bottom line is that the risks to
the refiner of term crude oil purchases are virtually eliminated. Even when the quality
of the crude oil varies significantly from the benchmark, responsiveness in setting price
differentials can help offset much of the potential risk, giving the buyer much the same
kind of low-risk term-contract relationship.
Whether a simple crude oil linkage to a benchmark grade ties together the
prices of two similar or dissimilar grades of oil, this sort of tie can also carry a
number of disadvantages, which make such linkages less than wholly satisfacto-
ry. Differences in quality can cause distortions in crude oil values that are not
always fully addressed by changes in adjustment factors. Simple linkages may
also facilitate retrading of a countrys crude oil stream, which implies that the
exporter is not maximizing value for the crude oil in question. In the case of large
Mideast producers such as Saudi Arabia, there is a trade-off between the advantages
associated with simple linkages and the disadvantage of spot reselling. The big advan-
tage is that this simplicity helps to move huge quantities of crude oil by creating a sys-
tem that is easier to administer. Whats more, unlike some of its Mideast competitors,
Saudi Arabia has largely prohibited spot resales of its crude oil by making such transac-
tions contingent on its approval. But, because of its status as a preferred baseload sup-
plier, Saudi Arabia has the necessary clout to enforce this.
Another frequent disadvantage of simple crude oil linkages is that they tie the
value of a crude oil to the peculiar characteristics and special market circum-
stances of a benchmark grade that may at times be out of line with overall mar-
ket trends. In the case of Alaskan North Slope crude oil, which was used as a sour-
crude oil benchmark on the US Gulf Coast until the mid-1990s, the lack of liquidity
resulted not only in marked price volatility for the benchmark as well as the crude oils
linked to it, but also market squeezes and other phenomena that can distort the price of
the crude oil and cause buyers and sellers difficulties. The most popular benchmarks, UK
Brent and West Texas Intermediate, also suffer from similar periods of stress when they
are out of sync with overall market tendencies due to local circumstances (see pB9,B15).
Use of crude oil baskets involving more than one benchmark grade is a fre-
quently-used alternative to simple crude oil linkages with a single marker. Unlike
the simple linkage, a crude oil basket can, at least in theory, reduce some of the
disadvantages of reliance on a single marker that may be susceptible to peculiar
market changes and localized circumstances. The most widely-used multiple linkage
is found in Mideast crude oil exports to Asia-Pacific markets. The common formula for
Mideast sales averages the spot prices of Oman and Dubai grades and adds an adjust-
ment factor, which is positive for lighter grades, such as Saudi Light, and negative for
heavier grades. The use of two markers in theory eliminates some of the volatility asso-
ciated with use of a single marker link. In practice, however, the use of an average of
Dubai and Oman grades stems from the lack of a more satisfactory marker for sales to
the Far East. Unlike Europe and North America, the Asia-Pacific region lacks a widely-
traded and locally-produced crude oil that can serve as an appropriate benchmark for
sales from afar. The Dubai-Oman link also is not entirely satisfactory because spot trade
in Dubai, and indirectly Oman, are influenced by Brent (see pB19).
Complex market basket pricing, involving the average prices of three or more
crude oils or of several crude oils modified by the averages of specific products
come much closer than other simple formulas or crude oil baskets in represent-
ing the true value of a specific stream of crude oil to refiners. Thats because
they come closer to replicating the netback, the value of the crude oil as
processed into a spectrum of petroleum products. Mexico and Venezuela are pre-
eminent in using these more complex market basket pricings as the basis of their
sales formulas. The clear advantage of basket pricing is that it is specifically designed
to reflect overall market conditions better than simple linkages, thus reducing price
volatility and disparities. As a result, these formulas also capture more of the total rents
of petroleum than less complex formulas, especially at times when the relative difference
between crude oil and product prices diverge greatly. But they are not available to all
exporters. Their construction and maintenance requires a fairly sophisticated crude oil
marketing operation and close ties between seller and buyers to work properly.
Making Formula Prices Work

It takes more than a linkage, whether simple or complex, to one or more
benchmarks to have a formula pricing system. While the adjustment factor is
applied to account for quality and locational differences, other elements of the
pricing mechanism take into account a variety of aspects of market risk. Thus, to
avoid the risks of extreme volatility on a single day, an average of spot prices is
normally embodied in the formula, usually over a five- to 10-day period in the
market-responsive Atlantic Basin and a monthly average for Asian destinations.
The adjustment factors, which are sometimes referred to as constants despite the fact that
they usually change monthly, are usually set by the producing country. Changes reflect
the market pressures on the crude oil, with tighter terms applied when markets are per-
ceived to be strong, either in absolute terms or relative to the benchmark grade, and
looser terms applied in a weakening market. The amount that term-contract customers
are willing to lift in a given month often depends on whether the changes in the adjust-
ment factors are viewed by buyers as fair. A country that is trying to expand its sales vol-
ume and markets tends to undercut others by offering more-attractive terms. However,
tracking the relative competitiveness of crude oil grades to each other or the spot mar-
ket is difficult because of the quality differences between grades and the complexity of
the formulas themselves.
While the formulas can be either for f.o.b. sales at the port of loading or for
delivered sales to the refiners local market, a key element of most of them is to
reduce the time risk to the buyer of price changes during the voyage to the refin-
ery, which can take as much as a month and a half for shipments from the
Mideast to the US Gulf Coast. The end result is that distant suppliers are able to
compete for customers on an almost-equal footing with short-haul producers
selling spot barrels. This innovation, which was originally part of netback pricing as
well, allowed key Mideast producers to diversify their client bases and adjust sales terms
geographically in various markets in order to optimize volumes in each area. This abili-
ty to discriminate between markets helped producers to compete with one another while
also allowing them to maximize volumes and revenues in a chosen region. From a buy-
ers perspective, formula pricing has been attractive because it presents them with a
wider choice of feedstocks at prices that are guaranteed to be competitive.
The price can, in theory, be triggered at any point between the wellhead,
where crude oil is produced, and the refinery gate or rack, after a crude oil is
An Example Of How A Formula Price Is Determined

An example of a typical formula price sale might involve a major oil company taking
Arabian Light (see pH227) from Saudi Aramco under a term contract in May 1996 and
bringing that crude to a refinery in Rotterdam. The entire price-determination process
takes around two and a half months, which is about the longest of any term-contract
formula. The process would have started at the beginning of April, with Saudi Arabia
notifying its customers of the relevant adjustment factors versus the dated Brent bench-
mark that would apply for May liftings minus $1.30 a barrel in the case of European-
bound Arabian Light. The major would then inform state Saudi Aramco of its lifting
intentions, including the amount that it might want to take over or under its term-con-
tract volume. Depending on availability, the quantities would be worked out with Saudi
Aramco and the loading schedule for May would be set. If, for example, the European-
bound cargo loaded on May 6, it would arrive in Rotterdam about 40 days later June
15 via the Cape of Good Hope route, at which time the pricing mechanism would
be triggered. The formula calls for a 10-day average of dated Brent prices starting five
days before the trigger date, implying a benchmark level of $18.64 a barrel at that time.
The adjustment factor of $1.30 a barrel would be deducted from this market level, as
would a small 24¢ a barrel downward adjustment for freight costs that are above the
Worldscale 40 base rate, to arrive at the final price of $17.10 a barrel.
It is important to note that the price terms for this cargo were established a month
before lifting, but the final price was not apparent until 45 days after the cargo loaded.
SAMPLE TIME LINE OF SAUDI FORMULA PRICE CRUDE OIL SALE

Saudi Aramco May volume Cargo Voyage to Cargo arrives
sets price and loading loads in Rotterdam and price is
differential schedules Saudi Arabia triggered 40 days
for May set after loading
April May June July
fully processed into a range of products and ready for sale to distributors and
final consumers. For Mideast crude oil sales to the US Gulf Coast this time peri-
od amounts to some 75 days. Modern term contracts thus have a critical tim-
ing dimension, whereby the transfer of ownership of a crude oil cargo or
even a partial cargo can differ significantly from the time when the cargo is
priced. The locational differential of the value of crude oil relates to the costs of mov-
ing the crude oil from its export terminal to the refining center, including freight, insur-
ance, shrinkage or loss, customs fees, port charges, and the time value of money. The
valuation process of a cargo also needs to take into account the risk that the market
value can rise or fall during the time period it takes to produce the crude oil, trans-
port it and refine it into finished products. That risk is real and needs to be either
absorbed entirely by the buyer or seller, shared by the two, or laid off on some inter-
mediary (see chart above).
A third critical timing element above and beyond the distinction between
transfer of ownership of a cargo and triggering of its price is fixing the point in
time at which payment will be effected. As in the case of triggering the price, this point
can be at any point from the wellhead to the sale of retail products. None of these three
points transfer of ownership, triggering of price, or timing of payment needs to occur
at the same point in time as the others. Differences in their timing or occurrence in a trans-
action relate in part to the parcel-
ing of market risk. But the differ- THE 90-DAY DIMENSION
ential sequencing of these three OF A MIDEAST CRUDE OIL SALE
points also gives rise to other
risks, including market and credit
risks, which also need to be
shared by buyer and seller.
Clearly, the closer the transfer of
title and of risk of physical loss is
to the point at which price is set,
the less the amount of market risk
that must be carried by the seller.
Similarly, the closer both of these
are in the sequences to the point
at which the buyer resells the
crude oil or resulting products, the
less market exposure is faced by
the buyer. As is explained below,
there are ways for buyers and sell-
ers to minimize these risks
through the use of crude oil deriv-
atives, which involve transferring
the risks to others through futures
markets, swaps, or options (see
pC13).
In addition to the basic
mechanics of price timing,
the benchmark grade, and
the adjustment factors, there
are sometimes other added
elements in the formulas that
seek to make them more
attractive to buyers or to pro-
vide a closer reflection of the
perceived market value for the crude oil. These include such things as freight
adjustments, which guarantee buyers of long-haul grades for example, those from
Saudi Arabia competitive prices for f.o.b. purchases regardless of possible tightness
in the tanker market. These adjustments allow the producer to absorb potential extra
freight costs, thereby keeping its crude oils on an even footing with short-haul sup-
plies into the same market.
Formula pricing has evolved in two seemingly contradictory directions since
1987, becoming simpler in some respects but also more complex as sellers strive
to meet closely the individual needs of specific buyers. The greater simplicity is
reflected in the widespread use of just a few spot crude oil benchmarks and the nearly
exclusive use of f.o.b. transactions, except for the delivered sales by Saudi Arabia and
Kuwait to the US and by Saudi Arabia and Iran to Europe. Netback pricing, except for
the vestigial use by a few producers, such as by Nigeria in the late 1980s, has also been
almost completely abandoned. However, sellers continue to offer special inducements to
buyers. These include extra barrels over and above contract volumes, which has at times
become standard for some Saudi and Iranian customers.
Retrospective Pricing
The retrospective pricing mechanisms for term-contract sales, which are used
by several countries in the Mideast Gulf and Southeast Asia to price their crude
oils, are essentially a variant of formula prices. Instead of the more market-
responsive formulas, they rely on a monthly average of some explicit or implicit
marker grade. The formula prices of the large Mideast producers to Asian markets
are quite similar in that they also rely on monthly averages. There are a number of
reasons for this price structure, which mainly reflects the buying habits of Japanese and
South Korean customers. Especially important is the reluctance of these buyers to assume
price risk on long-haul crude oils and their preference for long-term contracts, for which
they are often willing to pay a premium. These arenas also have fairly thin spot markets,
and the buyers in them have thus far shown a clear preference for uniformity: The
Japanese and South Korean refiners, which are the regions largest crude oil buyers, tend
to negotiate with producers as two large national groups, which results in the same prices
for all buyers. In addition, the paucity of daily trading in a highly liquid spot market, espe-
cially in a clearly representative and dominant benchmark grade, prompts buyers and sell-
ers to look to the longer monthly period for establishing a pricing basis for term contracts.
This longer-term view is abetted by the special relationships that exist between some gov-
ernments in these exporting countries and the Far East lifters of their crude oils.
Pioneered by Oman, retrospective pricing has been widely used in Abu
Dhabi, Dubai, Brunei, China, and Mexico (for sales to Japan). It involves a com-
bination of a formula approach, based on indirect linkages to active spot mar-
kets, and a degree of subjectivity on the part of the producing country. The
range of retrospective pricing arrangements is illustrated by the implicit but
never stated linkage of Abu Dhabis term-contract pricing to the spot-market
value of Dubai crude oil and by the complex, but clearly defined, formula mech-
anism used by Indonesia. Since Abu Dhabis crude oils are mostly lower in sulfur and
lighter than most other Mideast Gulf grades, their prices tend to reflect their higher qual-
ity. But the monthly average of spot Dubai prices tracks closely with Upper Zakum, Abu
Dhabis lower-quality crude oil (see pH23). Since all of state Adnocs sales are to Asian
customers, the quality adjustments tend to reflect Asian refining values. At the other
extreme, Indonesias pricing system is based on a basket of price quotes from the Asian
Petroleum Price Index for a group of five Mideast and Asian crude oils. A rolling his-
torical average of the differential between these five grades and the APPI spot price
assessment for that particular Indonesian grade is then applied to come up with the final
price. While this mechanistic approach is clear and consistent for all buyers, it lacks the
kind of flexibility to adjust to seasonal shifts in crude oil quality as in Adnocs system
or a monthly adjustment factor as used in a typical formula price. This rigidity has also
forced Indonesia to sometimes make special adjustments in price terms for difficult-to-
market grades such as Duri and Widuri (see pH119,H127).
Inevitably, a certain amount of subjectivity on the part of producers and trust
between buyers and sellers enters into retrospective pricing. The subjective ele-
ments weighed by these countries include advice and information from local producers,
buyers, outside consultants, surveys, and price reporting services. It takes fairly special
circumstances for retrospective pricing to work, with a high degree of confidence on the
part of buyers, such as those in Japan and South Korea, and responsiveness on the part
of sellers to shifting market circumstances. While retrospective pricing is meant to sim-
ply track actual market values with a lag, in practice it lacks flexibility. Nevertheless, it
has proven to be an important way for some term contracts to deal with changing mar-
ket circumstances.
Benchmark Woes
With just about all term-contract prices formula or retrospective tied
directly or indirectly to the same crude oil benchmarks that are used in the spot
market, world oil trade resembles a grouping of three inverted pyramids with
the basis for all price discovery found in these spot grades. As in the spot crude
DEPENDENCE OF TERM CONTRACTS ON SPOT BENCHMARKS
Saudi Arabia
Kuwait
Mexico
Venezuela Iran
Ecuador Indonesia
Syria Yemen Egypt Qatar N. Zone

Colombia
Libya Nigeria Abu Dhabi
Canada
Argentina Oman
WTI BRENT DUBAI

Americas Europe Asia-Pacific
4.6-million b/d* 5.9-million b/d* 5.4-million b/d*
*1995 estimated volumes, based on listing of term contracts. Note: Areas indicate approximate sales volumes.
oil market, the Brent pyramid is the biggest, but the large volume of crude oil mov-
ing into the US gives added international importance to domestically-based West Texas
Intermediate grade. Dubai and Oman are the main markers for Asia-Pacific term con-
tracts, but since monthly averages are used, their benchmark roles are somewhat more
clear and direct than in spot crude oil trading.
As shown in the detailed discussions of these benchmark grades in the pre-
ceding chapter, all of these markers have flaws that call into question their dura-
bility or reliability for the important roles that they play in price formation. The
problem is that there are no viable alternatives at this point. As of 1996, Alaskan
North Slope had completely disappeared as a marker grade and Dubai appeared to be
the most vulnerable because of its declining production. But spot trading in Dubai has
nevertheless flourished in the mid-1990s following earlier troubles. The well-established
use of WTI is also far from perfect because of its tendency to disconnect itself from inter-
national arenas due to extreme internal domestic market pressures.
The diagram on page C11 illustrates the heavy dependency of term-contract
pricing on this handful of spot-market benchmark grades. Fully 5.9-million bar-
rels a day of term-contract-priced crude oil, or about 37% of global volumes
tracked by PIW, are directly dependent on Brent prices. And that doesnt even
count about 3-million b/d of spot transactions that are also linked to Brent a crude
oil stream of only about 500,000 b/d that has by far the biggest physical spot market of
any of the global benchmarks. The combination of Oman and Dubai benchmarks for
term-contract sales to the rapidly growing Asia-Pacific market provides the price signal
for some 5.4-million b/d in term contracts, making them almost as important as Brent,
which it is also dependent upon. WTI provides the benchmark for about 4.6-million b/d
of term-contract sales, all in the Americas.
The Many Gray Areas

A whole range of alternative crude oil marketing methods have developed
over the years. These variants all seek different ways to bridge the gap between
term-contract sales and single cargo spot transactions. They come and go in pop-
ularity depending on the tastes of buyers and the objectives of sellers, and they
also vary in complexity. The simplest and most straightforward are simply term
contracts in which the price and volumes are negotiated on a cargo-by-cargo
basis. Russia and Iran have traditionally been among the most regular users of
this type of hybrid term/spot contract, together with other, smaller producers, main-
ly in Africa. This kind of pricing is also typical of test cargoes of new crude oils. Some
producers such as Iran also offer spot volumes to customers over and above term-con-
tract commitments. Saudi Arabia does this as well, but it usually limits these to existing
term customers and insists on the prevailing delivered term-contract price rather than
negotiating a special spot price. A variation on this is called a framework contract,
which can vary almost infinitely. At their simplest, they may grant a particular buyer the
right of first refusal on a particular volume. More elaborately, the contract may specify
particular pricing mechanisms. Such contracts are particularly popular for Russian Urals
crude oil (see pH221). The volume of crude oil sold under these quasi-spot contracts
seems to have grown in the 1990s, and it could expand further with increased competi-
tion among producers as Iraq returns to the international market.
Venezuela is also an active user of cargo-by-cargo sales, and the country has
employed them quite effectively to expand its US market share since 1993, while
abandoning its old, rigid system of posted prices. From 1992 to 1995, Venezuelas
crude oil exports to the US jumped from 828,000 b/d to 1.26-million b/d, a jump
of about 50%, which is due to its marketing flexibility and its US downstream
investments. State PDV essentially allows buyers to use whatever type of pricing they
prefer. Customers opt for a wide variety of pricing terms, which they can renegotiate
with the Venezuelans pretty much at will. PDV usually builds in a time element that
adjusts the price according to an agreed-upon linkage to the spot market so that the
buyer is assured of an attractive price at the time of delivery. Prices can be based on spot
crude oil or product benchmarks, or on a fixed price. This has made it hard to discern
a typical or average price for Venezuelan crude oil.
Prefinancing And Barter

There are other alternative sales mechanisms that are designed primarily to
lock in customers and maintain stable offtake by linking the contract volume to
some other financial or commercial transaction. Known as either prefinancing
deals or barter deals, they have become less popular than they were in the 1980s
even though pricing is at times highly advantageous to buyers. While they are
essentially term contracts, they are a special kind that binds the buyer and sell-
er more closely together because there is always an incentive on both sides to
keep the oil flowing in order to cover the cost of the loan or the barter arrange-
ment. Barter deals became especially popular in the early 1980s, when the Opec offi-
cial pricing system was breaking down. They typically involve the exchange of a fixed
flow of oil over time for a certain agreed-upon set of goods and services. Under current
deals, such as the well-known Saudi purchase of military jets and equipment from the
UK, the oil is priced at standard term-contract levels and the cash is used to pay for the
goods. The advantage of this to the purchaser over other contracts is that the producer
dedicates a stream of sales to a deal and cannot cut back this volume without jeopar-
dizing a separate commercial relationship that it values highly. Similarly, in prefinancing
deals, the producer usually receives money in advance for a set value of crude oil over
a period of time that is discounted in price to allow for interest payments. This gives the
producer access to credit that it might otherwise have difficulty obtaining, and it provides
the buyer with attractively priced supplies with no fear of being cut back due to Opec
quota reductions or other circumstances. In the case of Iran, buyers were also given
tremendous freedom about when they can opt to lift their crude oil entitlements. In 1996,
prefinancing deals have enjoyed something of a renaissance among cash-strapped
Russian exporters and with some Latin American countries such as Ecuador.
Processing And Product Swaps

Closely related to barter deals are crude-for-product swaps and processing
arrangements, which, in some cases, can look a lot like netback sales. These
deals can be used to move hard-to-sell crude oil or to disguise heavy price dis-
counting, but they are also an attractive way for an oil exporter to meet domes-
tic needs for refined products that it is unable to satisfy itself. Iran, Indonesia,
Nigeria, Malaysia, China, Saudi Arabia, and Kuwait have all actively used these mecha-
nisms at different times. Under a crude-for-product exchange, a certain agreed-upon vol-
ume of crude oil is swapped for a special slate of products that the producing country
wants to import. A processing deal usually involves the refining of a given amount of
crude oil at someone elses plant in return for an agreed-upon product yield, with some
of the products taken back and the rest sold to the refiner or on the spot market.
Some producing countries also utilize marketing agents to sell crude oil on
their behalf, usually into the spot market on a cargo-by-cargo basis or to a spe-
cific set of buyers or a specific region. These sales usually involve some kind of fee
or other profit opportunity for the intermediary, and they are a useful way for a producer
to move a fixed volume of oil. Indonesian state Pertamina, for example, has joint-ven-
ture marketing firms with Japanese and South Korean companies that sell its crude oil to
these countries. One problem with this approach is that aggressive sales by the agents
can undermine other term-sales contracts from the same exporting country as Irans
NIOC found in the early 1990s.
Triggers, Futures, Strips, And Swaps

Beyond the marketing methods of the producer countries themselves, there
are also a number of derivatives market tools that are increasingly being used by
crude oil buyers and sellers worldwide to provide the equivalent kinds of pro-
tection from market risks as available from term contracts. These techniques are
especially popular in the North Sea and US markets, arenas that are heavily ori-
ented toward spot deals. In addition to direct hedging through futures contracts
for WTI and Brent, which is quite significant (see pB13), other common forms of
such sales deals are trigger pricing and strips. Oil-price swaps and options can
also provide similar benefits to buyers or sellers. In a trigger deal, the seller or mar-
ket intermediary generally a Wall Street firm, trader, or major oil company with expe-
rience in the futures and derivatives markets usually agrees to sell a certain amount
of oil at a price that is linked by a formula to a specific marker. The buyer then has the
option to trigger the price at any point of its choosing during a set period before deliv-
ery. Sometimes the buyer is allowed to break up the pricing of the cargo in order to trig-
ger the price of different parcels at different times. The seller covers the risk associated
with this in the futures market or elsewhere, essentially allowing the buyer to pick the
moment for the purchase when it feels that market conditions are most advantageous.
A key advantage for the seller is that involvement in a number of trigger deals pro-
vides broader insight into market trends and a position to both hedge and trade against.
In theory, the intermediary roles of setting up the trigger can be played by the buyer or
seller, but in practice it is usually the seller that provides the trigger to the buyer.
Strips are most common in the US domestic crude oil market. The seller
agrees to provide a certain volume of oil to the buyer over a period of months
with the price for each month tied to the New York Mercantile Exchange futures
price. This allows both buyer and seller to manage their different price-risk
exposures for the entire period as they see fit, while also providing the predictabil-
ity of term supplies at a price that tracks market levels. Strips can extend from a period
of a few months to over a year, but they are less popular for crude oils that do not track
WTI with a fairly clear and predictable differential.
On a broader scale, oil-price swaps and options provide many of the benefits
of an old-fashioned fixed-price term contract, but since they dont involve phys-
ical deliveries of oil, they are simply a financial proxy. Unlike futures, they do
allow the hedging vehicle to be tailored to the exact needs of the individual buyer
or seller. The essence of an oil price swap is the parceling and transfer of risk
from an oil buyer or seller to a financial intermediary. Although no physical oil
changes hands, the user is assured a fixed price for a predetermined volume of oil by
means of a set of purely paper transactions. In return for being assured of a fixed price,
the buyer or seller agrees to give the swaps provider all or part of any further potential
gain from a swing in the oil market in their favor during the period of the swap.
Swaps are used in short-term applications such as contracts for differences or
CFDs in the Brent and Dubai markets, as well as to lock in the value of a partic-
ular volume of crude oil for just about any period, ranging from a single loading
to multiple years. An example of a typical swap for an oil buyer would work like this.
An oil buyer seeking a fixed price of say, $18, would agree to pay the swaps provider
the difference between that fixed price and any lower market price that may occur dur-
ing the period of the swap in return for payments from the swaps provider of the dif-
ference between the fixed price and any higher market price. This effectively locks in
the $18 price for the buyer, transferring all the risk of higher prices to the swaps provider.
The oil buyer would buy physical supplies in the usual way, but if market prices exceed-
ed the fixed price it would receive an offsetting payment from the swaps provider. In
return, if physical prices were lower, the oil buyer would pay the swaps provider the dif-
ference between the market price and the fixed price.
The Hierarchy Of Term Sellers

One of the main reasons for the wide variety of alternative marketing meth-
ods described above is the constant competition among sellers to lock in sales
volumes. Due to the past performance and perceived competitiveness and relia-
bility of various producers, there is a hierarchy of sorts among them, with some
being preferred over others as baseload suppliers in different regions. While
preferences vary among regions and with the purchasing needs of companies,
Saudi Arabia stands out as a core supplier to the widest group of refiners around
the world. One clear indication of this is in the much larger average size of most Saudi
sales contracts. While somewhat smaller than in the early 1990s, they still averaged over
110,000 b/d in 1995 and were more than twice the size of those of most other produc-
ers (see Chapter G: Trade). The extremely large contracts of the international majors with
Riyadh are a further indication of its baseload supply role as well as an operational con-
venience for Saudi Aramco. Saudi Arabias attractiveness as a baseload supplier extends
beyond the majors to most European and Japanese companies that rely on Mideast crude
oils. The large volumes and range of grades, the past record of competitive and uniform
pricing in each region, the flexibility of delivered sales in the US and Europe, and the
willingness to allow over-lifting of contract volumes all combine to make Saudi Arabia a
preferred supplier and a source of stable, predictable baseload feedstock supplies for
more companies than any other producer.
On almost the same level as Saudi Arabia as priority sources of baseload sup-
ply are Mexico, Venezuela, and Abu Dhabi. Their geographic focus, however, is
not as broad. Mexico and Venezuela are viewed by most of their US customers as
core suppliers, while Abu Dhabi has the same status among Japanese customers.
But this status does not extend much further than those regions. As with the
Saudis, the customer base for these countries in their core markets is extremely loyal,
and neither of them needs to rely on traders or alternative marketing mechanisms in
order to move crude oil regularly and reliably. For Japanese companies, several other
countries, such as Indonesia, China, and Qatar, also play core supply roles, but this part-
ly reflects a preference for predictable supplies and a diversity of sources.
For some customers, Nigeria and Libya are clearly core suppliers, but this usu-
ally reflects some special circumstance relating to crude oil quality or financial
interrelationships. As a result, they are regarded as baseload suppliers by a small-
er group of companies. Libya is in a core supply position with its downstream affili-
ates in Europe and with key equity producers, such as Italian Agip and Austrian OMV.
Nigeria can be viewed as a baseload supplier to a few sweet-crude-oriented refiners in
the US, such as Sun, BP, and Hess, but the large number of traders among its term cus-
tomers belies its status as a secondary supplier in most cases.
Although Iran is the largest term-contract supplier after Saudi Arabia, it is gen-
erally not viewed as a baseload supplier by the vast majority of crude oil buyers.
Even Japanese companies, which are well-represented on Irans customer list,
regard these supplies as among the most expendable. This status seems to reflect
both Irans past record of aggressive marketing as well as the political uncer-
tainties that surround its oil exports, as was illustrated by the broadening of the
US boycott on all purchases of Iranian crude oil in 1995. Although they limited the
scope of Irans sales outlets, these political measures did not inhibit its oil exports or sig-
nificantly undermine the prices it receives for its crude oils on the international market.
Tehrans secondary status is also partly the result of its own marketing methods, which
included a heavy reliance on spot sales and other alternative methods in the early 1990s.
But since 1994, Iran has not been under pressure to boost sales volumes, and its term-
contract-sales policies have become steadier and more stable, which has helped it both
to survive intense market competition in Southern Europe from Russian exports as well
as to cope with the loss of its US customers in 1995 due to sanctions.
Among other major exporters, Norway has started to emerge as a baseload sup-
plier in the US and Europe through Statoil. Although large volumes of Norwegian
crude oils are handled by equity producers, as in the UK, Statoil has by far the largest share
because it markets crude oil on behalf of the government. To cope with these large vol-
umes from the worlds second-largest oil exporter, it has established a growing number of
term deals. It is regarded as such a reliable supplier that refiners such as Ultramar have
gone so far as to modify their refineries to handle new supplies of Statoils Heidrun grade.
Most other term-contract suppliers are viewed as second-tier, or non-base-
load, sources of supply. This is reflected in the diversity and variability of their cus-
tomer lists and the relatively small average contract volumes that they market. Countries
falling into this category include Syria, Egypt, Angola, Ecuador, and Oman. However,
producers serving the Asia-Pacific region such as Malaysia, Indonesia, Yemen, and Qatar
have generally benefited from the preference of Japanese crude oil buyers for stable
term-contract relationships. In these second-tier countries, equity producers also play a
core role in absorbing their own output and also other production from the government.
The Varying Strategies Of Buyers

While the concept of baseload supply is central to the purchasing patterns of
most oil companies and is at the heart of successful term-supply relationships,
few firms other than some high-risk traders are willing to put all of their eggs in
one basket. Even the overseas downstream affiliates of Saudi Aramco,
Venezuelas PDV, and Kuwait Petroleum Corp. seek out other term crude oil sup-
plies, if only for quality and operational reasons. In this sense, a companys
approach to term crude oil purchasing can be viewed as a portfolio, with different con-
tracts having a mix of different attributes. The grouping of crude oils varies depending
on the position, needs, and objectives of the company. Some firms have access to more
equity supply or have locational or quality preferences that outweigh other concerns.
Term-contract supply strategies can range from heavy reliance on a small number of sup-
pliers to several smaller contracts with a range of suppliers.
Politics and particularly the use of embargoes and economic sanctions by the
US government have become some of the more important considerations for
crude oil buyers. With the US imposing unilateral restrictions on crude oil pur-
chases from both Libya and Iran in addition to the UN restrictions on Iraq, a large
range of commercial relationships has been affected and these kinds of measures
may be expanded. US companies in particular must consider the risks of term-
contract supply arrangements with countries that may later be singled out for
sanctions. While lost investments represent a much more serious problem, the shifting
in supply deals for large US buyers of Iranian crude oil, such as Exxon in 1995, was not
easy and made them vulnerable to demands for stiff terms from other suppliers. In the
case of Exxon, significant increases in Saudi supplies and forays into the Russian Urals
spot market helped ease the strain.
The supply strategies of major oil companies, such as Exxon and Royal
Dutch/Shell typify the approaches of large international oil companies, albeit
with some variation. While both depend on Saudi Arabia for more than half of their
term-contract crude oil needs, Exxon turns to a smaller range of producers for its other
supplies, while Shell seems to put more emphasis on diversity (see Chapter G: Trade).
European majors such as Elf, Agip, and Total dont seem to lean as heavily on
Saudi Arabia and often prefer to turn for term crude oil supplies to countries
where they already have strong equity crude oil supply relationships. Libya,
Nigeria, and Iran tend to loom larger in their supply arrangements than they do for the
international majors.
Japanese and South Korean firms have a unique pattern of term crude oil
purchasing that reflects their highly risk-averse approach. Due to relatively low
volumes of equity crude oil production and an abiding concern for supply secu-
rity, they dont rely on any one source too heavily, but they also seem to view a
wider group of producers as baseload suppliers. Each company has many sources
of supply, but contracts of more than 25,000 b/d are unusual and those over 50,000 b/d
are extremely rare, except for the biggest buyers. Saudi supply contracts are usually
about the same size as those with other producers, such as Abu Dhabi, Qatar, Kuwait,
or Iran. Japanese buyers also buy jointly from Indonesia, China, and Mexico, reducing
the volumes and risks for individual refiners. Other large Asian crude oil buyers such
as Indian Oil Corp. or Pakistan tend to have more dominant relationships with a small-
er group of suppliers.
As one might expect, the crude oil-supply patterns of oil traders show the
least concern for reliable baseload volumes and are mostly oriented toward riski-
er non-core suppliers. They also lean heavily on just a few sources. Traders with
refineries, such as Phibro, and some refiners, such as Coastal and Petrofina, also follow
the same pattern. Iran, Nigeria, and Ecuador stand out as primary suppliers to these trad-
ing firms. Some highly spot-oriented sellers, such as the Russians, are also an important
source of supplies to trading companies. A greater willingness to switch between supply
sources also characterizes the approach of traders and other similar firms.
Whos Who Of Term Contracts

A greater level of detail on the crude oil marketing techniques of some 35 key
exporters can be found in the reference section of this report (see Chapter F:
Country Profiles). It expands on many of the points made in this chapter on term
contracts and in the preceding one on spot crude oil markets.
The tables on crude oil sales volumes in the reference section of this book (see
Chapter G: Trade) present a wide range of useful but hard-to-find data on term
contracts. The first set covers PIWs annual surveys of term crude oil contracts
for 1995, 1993, 1992, and 1989, broken down by both country and company.
Next is a profile of US crude oil imports by company for the last five years. The
PIW surveys give the best available overview of the structure of term crude oil supplies
and their evolution from both the perspective of supply sources and company purchas-
es. The US imports data display comprehensive details for individual countries and com-
panies, but they lack a complete breakdown between spot sales, term contracts, and
equity supplies or other arrangements.
The next chapter takes a closer look at the particular difficulties of of trans-
porting and storing crude oil, which have a critical impact on oil markets. Not
only are transportation and storage costs an important variable in the total cost of crude
oil, the smooth operation of transport systems and pipelines is critical to the effective
functioning of oil markets.
CRUDE OIL HANDBOOK PIW © D1
LOGISTICS
Tankers, Pipelines, And Stocks

The physical process that ties markets, refiners, traders, and producers together
is the sometimes-complex and difficult business of transporting and storing
crude oil. While its easy to view these operational activities as secondary and take
them for granted during periods of smooth market operations, logistics have a
tremendous impact, and they are of critical importance in periods of crisis or dis-
location. These basic transport and storage functions also have their own inter-
nal economics and dynamics that can impinge on oil markets in major ways. Oil
has been described by some economists as a flow commodity, in contrast to metals or
agricultural commodities, which traditionally involve much higher inventories. Most of
the worlds oil inventories are used for operating the huge global supply system and can
be thought of as an enormous pipeline stretching from the wellhead to the retail pump.
Only the equivalent of a small 10-15 days of forward demand cover is discretionary, or
freely usable by oil companies. And the trend of the mid-1990s has been toward tighter
management of these operational stocks, bringing them down to minimum operating lev-
els at times. Thus, the smoothness of transport and storage systems is increasingly criti-
cal to ensure that supplies are adequate. This chapter outlines the basic elements of
tanker and pipeline transportation of crude oil and the global inventory system.
The Tanker Dilemma

World oil markets are enjoying a surplus of tankers that has lasted for over 20
years and has kept the cost of moving crude oil relatively low, especially on the
largest crude oil carriers, which are the backbone of global oil trade. The basic
dilemma that has been confronting
the tanker industry for years is the Crude Oil Tanker Fleet
need to replace an aging fleet, cou-
Crude oil alone makes up about one-third of
pled with the inability to achieve total worldwide seaborne trade. There was a
high enough returns to justify the big fleet of some 3,100 tankers above 1,000 dead-
capital investments that would be weight tons, with combined capacity of 275-
required to do so. Another obstacle million deadweight tons at the end of 1995. Of
has been added by growing public these, 220-million dwt were for crude oil.
Deadweight tons are approximately equal to
concern over and legal liabilities for
carrying capacity. Standard size classifications
oil spills. These difficulties have created
of crude carriers follow:
a harsh business environment for tanker Fleet
owners, and they have also prompted Class Size (dwt) (million dwt)
major international oil companies to Aframax 60,000-100,000 48.8
Suezmax 100,000-200,000 46.8
reduce their own fleets over the years. VLCC* 200,000 and over 124.5
Some oil-producing countries, such as Total 220.1
Saudi Arabia and Iran, have increased *Very and ultra large crude carriers.
their fleets with the growth of delivered
crude oil sales and formula pricing. Saudi Aramcos Vela oil tanker unit now has 23 very
large crude carrier (VLCC) sized ships, and is scheduled to receive five new 300,000
D2 PIW © CRUDE OIL HANDBOOK
deadweight ton ships in 1996-97. Iran is also taking delivery of five big ships in 1996,
and Kuwait is expected to place new orders. Nevertheless, independent owners still
account for about 60% of the total tanker fleet, with the rest owned by international oil
companies and producing countries.
The average age of the biggest ships the very large crude carriers (VLCCs)
and ultra large crude carriers (ULCCs), with capacities of over 200,000 dead-
weight tons is about 15 years, but many of them were built before 1978 and
are due to soon reach the end of their assumed operating lives of 20 to 25 years.
The VLCCs and ULCCs make up about 45% of total tanker tonnage. They trans-
port 90% of Mideast Gulf crude oil exports and sail to all of the main world mar-
kets, making them critical to global crude oil commerce. Oslo-based Intertanko, the
international association of independent tanker owners, estimated that in 1995 there
were 33 surplus VLCCs, or about 7% of the fleet of 449 vessels. The origins of this long-
running surplus lie in the period of extremely high freight rates and rapidly rising oil
demand in the late 1960s and early 1970s, which triggered massive overbuilding of the
first generation of VLCC- and ULCC-sized vessels. The total tonnage of ships over 200,000
tons has declined from more than 140-million tons in the early 1980s to about 125-mil-
lion in the mid-1990s. And with rising international oil trade, the surplus has diminished
from as much as 20% of the fleet in the early 1990s. The movement toward a more even
balance has resulted in a slight firming in freight rates in 1995 and early 1996, but rates
are still not high enough to justify construction of new tankers, especially the higher-cost
double-hull vessels that are expected to become the norm.
In anticipation of the retiring of old surplus tankers, and in response to the
higher freight rates that prevailed during the Gulf war period, many new ships
of over 200,000 tons were ordered in the early 1990s. But the flurry of new orders
was a bit premature, and these new ships are now extremely unprofitable, pro-
viding little incentive for further new orders except from the bravest of owners.
According to Intertanko, average spot freight rates in 1995 covered only about one-half
of the $40,000 per day operating and capital costs of a new tanker. Meanwhile, older,
pre-1975, second-hand VLCCs almost broke even. Given increasing concerns about the
safety of tankers and requirements by both the US and international organizations for
double-hull tankers, a two-tiered market has begun to develop, with better ships getting
higher rates. This premium, which is taken into account by Intertanko, is not yet large
enough to make the new ships remotely profitable. Only during the Gulf war period,
when the world VLCC fleet was almost fully utilized with large Saudi and Iranian float-
ing stocks, did freight rates reach the kind of returns that could encourage significant
building of new vessels.
Double-hull tankers currently account for about 14% of the entire fleet, and
only about 7% of VLCC and larger tankers, while over 22% of the smaller
Aframax class are double-hulled. This larger share reflects the more recent tim-
ing of new orders in response to new regulations such as the US Oil Pollution Act of
1990 (OPA 90). The relatively low percentage of double-hull tankers in the VLCC fleet
means that a significant tightening of that market would likely to lead to a much more
pronounced two-tier market. However, as of now there are plenty of single-hull VLCCs
that still qualify to call at US ports under OPA 90. Reliance on more modern ships could
get a significant push in the future from stricter regulations on the part of both importers
and oil producing countries.
No obvious solution exists yet to the dilemma facing the tanker industry:
namely, the need to rebuild, but the weak incentives to do so. The risk of a seri-
ous crunch that would drive freight rates up sharply is genuine and could be con-
fronted by world oil markets as soon as the late 1990s. As in other areas of the
oil industry, the long lead times needed for building new capacity tend to encour-
age boom-and-bust cycles, which are likely to be exacerbated in the case of VLCCs
by the age of the fleet and the heavy reliance on spot chartering. The exact cir-
cumstances of such a squeeze on shipping capacity are hard to predict, but the financial
rewards are not yet in place for the smooth replacement of the large number of old
tankers in the fleet. While the Suez Canal and expanded pipelines across Egypt and Israel
from the Red Sea to the Mediterranean could help to ease some of the potential pres-
sures, the risk is that there could be a period of months or years of extremely high freight
rates that would add significantly to the delivered cost of crude oil. Such high returns
would encourage aggressive shipbuilding that would eventually bring on another bust,
but not until after the freight component of delivered crude oil costs had been driven to
an extremely high level perhaps two or three times current levels. Adding to uncer-
tainty about when a squeeze might occur is the capability of older VLCCs to extend their
operational lives to up to 30 years by installing segregated balast tanks.
The Tanker Market

Like the crude oil market itself, the tanker market operates on both a spot and
a term basis, with the latter referred to as the time-charter or period market. Spot
charters account for a great deal of tanker usage as much as 50% especial-
ly for the long-haul VLCC trade. But dependence on spot chartering has declined
somewhat from peak levels of over 80%. The drop in spot movements reflects
the growth of producer country fleets as well as the preference of Japanese and
other buyers for period chartering of safe, modern vessels. The still heavy spot
chartering reflects the continuing surplus in the market and also increases its
vulnerability to squeezes in the future. Many oil companies also have their own
ships, but unless the company has dedicated them to serving a particular route for oper-
ational reasons, these vessels are usually released into the spot market. Because it is hard
to make sure that an individual ship is in the right place at the right time to load a cargo,
oil companies tend to opt for the flexibility of the spot market, which, aside from low
cost, is its main attraction. Time chartering may continue to increase as buyers become
more selective about the safety of their ships, but this is still likely to leave the spot mar-
ket dominated by older, lower-cost single-hulled ships, which will act as a depressant on
overall freight rates.
In a typical spot charter, the cost is determined by a number of variables,
including the particular voyage, the availability of appropriate ships in relation
to demand, the condition of the vessel being chartered, and other factors. The
cost is usually assessed as a percentage of the Worldscale system of base or flat
rates, which are updated annually by an international panel. A lump sum is some-
times charged, but this is more typical of short voyages or the shipping of refined prod-
ucts. Illustrating a standard spot charter, an oil company wanting to load a cargo of crude
oil from a particular port on a particular day in the near future contacts a tanker broker
to line up a vessel. The broker negotiates rates with the owners of the available vessels.
These are calculated as a percentage of the Worldscale flat rate, which is based on a stan-
dardized assessment of the costs of sailing a certain type of ship on that particular voy-
age. A rate of Worldscale 40 simply means 40% of the established flat rate for the spe-
cific voyage in question. A host of operational considerations in addition to the price play
a part in a companys final decision on which ship to charter.
Other factors that loom large in determining freight costs are insurance,
demurrage, and environmental issues. With greater public concern about oil
spills and stiffer legal liabilities, the costs of operating tankers are rising. Oil
companies in particular face difficult choices because of the potential public rela-
tions damage from a spill, even if they own only the cargo, not the vessel, and
therefore are not directly responsible. Under the US Oil Pollution Act of 1990, both
the vessel and cargo owner are potentially exposed to unlimited liabilities for a spill,
depending on the requirements of state law. As a result of these kinds of laws and new
international rules that stipulate the construction of double-hulled or equivalent vessels
from 1996 onward, costlier double-hulled ships are the norm for new construction. The
added environmental burdens for tanker owners and their clients have mainly appeared
so far in insurance costs, but as charterers become more selective, freight rates for dou-
ble-hulled ships are also starting to feel added pressure too.
Insurance rates can soar due to war risks, as they did during the attacks on ship-
ping during the Iraq-Iran war. There are two basic types of tanker insurance: cargo insur-
ance, which covers the value of the oil being transported and is usually the responsibili-
ty of the owner of the oil; and hull insurance, which covers the ship and is usually paid
for by the shipowner or time-charterer.
Demurrage is unpredictable and potentially costly. It refers to the extra costs
of keeping a tanker waiting in port, which can be quite significant if the ship
faces unexpected delays that last for a period of several days. This might occur if an
exporter is unable to follow the planned loading schedule or if a cargo is unable to be
unloaded promptly due to a storm or other disruption. Usually, the party deemed
responsible for the delay must pay the shipowner or time-charterer for the demurrage at
a set rate, depending on the size of the vessel.
Choosing A Ship
The crude oil tanker-chartering business is divided into three broad markets,
depending on ship size. The reason for this is that efficiencies of scale, logistical
constraints on vessel size, and customer needs usually mean that tankers of a cer-
tain type are best suited to and tend to dominate specific trade routes. Crude oil
buyers generally cannot easily substitute one class of ship for another. While
economies of scale usually make larger tankers more cost-effective, there are any num-
ber of reasons that VLCC-class vessels cannot be used for all voyages. A crude oil buyers
term contract is likely to be based on a certain volume that can be best handled by a
monthly or quarterly loading of a single cargo of a certain size. Some discharge ports
for example, all of those in the US except the deep-water Louisiana Offshore Oil Port,
or Loop require the use of smaller, shallower draft ships. Similarly, the limitations of
loading ports can also constrain the type of vessel that is used. Specific size restrictions
for individual loading ports are provided for all of the crude oils that are covered in the
second section of this handbook.
The largest market in terms of tonnage, distances, and ships is the VLCC trade,
which has been covered in part above and which dominates shipments both east
and west from the Mideast. The economies of scale in using these big vessels of 200,000
dwt or more for the large volumes produced from the Mideast and the longer distances
that the crude oil must travel are obvious. The difficulties for both buyer and seller come
mainly in the oil-market risks during the long time period of the voyages, but these risks
have been largely overcome through geographically specific formula pricing. For US cus-
tomers, the extra cost of lightering these vessels, or transshipping the crude oil to get the
oil into shallow-draft US ports, must also be taken into account as part of the total ship-
ping cost, but even so, it is still cheaper to ship crude oil from the Mideast to the US in
VLCCs. A separate complication for oil shipments on sized tankers between US ports are
special cabotage restrictions that require the use of US flagged ships, which are signifi-
cantly more expensive to operate than those on the international market.
There are also some other secondary uses for VLCCs outside of the Mideast
trade. They are sometimes utilized for voyages from West Africa to Europe and the US
or trips from Europe to the US. VLCCs in westbound trade from the Mideast can at times
benefit from a partial backhaul when they take crude oil from West Africa to East Asia
covering part of the voyage that they would normally have to make anyway in bal-
last on their return from the US or Europe to the Mideast. In addition, VLCC-class tankers
are preferred for usage in floating storage. This involves both temporary storage and ded-
icated vessels that are in permanent use at loading terminals, particularly those for off-
shore production.
The Aframax class of tankers those from 60,000-100,000 dwt represents
the smallest of the regular oceangoing crude oil carriers. They are used primari-
ly for short-haul trades in the Caribbean, Mediterranean, North Sea, and Far East.
Some work the shorter voyages from the Mideast as well. These ships are also the class
used in most spot crude oil market transactions. The smaller size of the cargo, 450,000-
750,000 barrels, provides flexibility and allows the ships to easily load and unload at
almost any terminal. Many ships in this class also meet the Panamax size restriction of
106 feet beam, which in practice means an upper limit of 60,000-70,000 dwt and is the
maximum size that can pass through the Panama Canal. Some vessels of this size have
been specially configured to serve offshore loading platforms in the North Sea or else-
where, while others have been fitted for the lightering of larger vessels. Tankers of this
size are also regularly used for carrying dirty refined products such as residual fuel oil.
Unlike the larger tankers, the Aframax fleet is not heavily dominated by older ships, and
thus it is less vulnerable to the kind of squeeze that could occur if an adequate incen-
tive to replace those aging fleets does not emerge.
Suezmax vessels of 100,000-200,000 dwt are the intermediate class of crude oil
tankers. They also dominate particular trade routes, but they generally have
more overlap with the other two categories, and they sometimes trade along
their main routes. Suezmax tankers trade primarily from the Eastern
Mediterranean, Red Sea, and West Africa to the US and Europe. They are also used
for some longer shipments in Asian markets, and they sometimes take crude oil from the
North Sea to the US or the Mediterranean. The embargo on Iraqi exports and the earli-
er restrictions on Libyan crude oil sales to the US have been especially hard blows for
Suezmax ships, which played an important role in those trades. While all of these ves-
sels can use the Suez Canal, only those that are 180,000 dwt or less can pass through
fully laden. This restriction is due to rise to 200,000 dwt by the late 1990s. Suezmax ships
must often be lightered in order to use shallow draft ports such as those in the US. The
age profile of the Suezmax fleet is similar to that of VLCCs, with most of the ships grow-
ing old and in need of replacement by the end of the 1990s.
A Profile Of Key Shipping Routes

To provide a comparative picture of the most common voyages in the inter-
national crude oil trade, the table on page D7 gives basic data on distances and
average voyage time. Use of the Suez Canal is a key consideration in voyages from
the Mideast to the Atlantic Basin. Fully laden VLCCs are too big for the canal and
often take the longer route around the Cape of Good Hope. The distances shown
in the table are nautical miles, and the times are based on an average speed of 12.5
knots, typical of the slow speed often used to conserve fuel on older, less fuel-efficient
tankers. VLCCs are capable of speeds in excess of 16 knots, and newer vessels usually
operate at this speed. In addition to the travel times, it takes at least one to two days at
each end to load and discharge the vessel.
Pipelines: Long Hauls And Shortcuts

Pipelines are secondary to tankers in terms of the volume of crude oil that
they transport for international trade, but they are no less crucial. They provide
vital outlets for many landlocked crude oils and critical links within large conti-
nental markets. They also complement tanker transport at key geographical
points, such as Suez and Panama. The main economic justification for pipelines is
their sheer efficiency. In addition to extremely low-cost, efficient transportation, they pro-
vide shortcuts at key points on the earth and provide vital links to key inland markets.
Alternatives to pipelines for overland transport, such as railroads and tank trucks, lack
the scale to meet the needs of large refining centers or oil-producing regions, and, in any
case, would normally be far more expensive. The big drawback to pipelines is their lack
of flexibility. They can only move oil along their designated route and major new con-
struction is required if markets shift or trade dries up.
The clear efficiencies of pipelines stand in sharp contrast to their vulnerabil-
ities, particularly in international trade when they must cross borders. In addi-
tion, basic operational difficulties can also cause huge problems, with a stoppage
at one point holding back large supplies from further up the line. One important
example of this was the problems with the UK Brent system in 1989-90, when the shut-
down of some main platforms choked off supplies from satellite fields. Examples of the
political vulnerabilities range from the persistent guerrilla attacks on Colombias Cano
Limon line to the many idle pipes that stretch across the Mideast.
For oil-producing countries with limited or no access to the sea such as
Iraq, Azerbaijan, and Kazakstan pipelines are always a key strategic asset. Over
the years, Iraq has built four different pipeline export routes, of which only one, the
Turkish line, seems to have much chance of being used when the United Nations embar-
go against Iraqi exports is lifted. Even producers with adequate ports have built major
pipelines in order to provide alternative outlets. An obvious example of this is Saudi
Arabias Petroline outlet at the Red Sea port of Yanbu, which provides an alternative to
the politically troubled Mideast Gulf and Strait of Hormuz.
The construction of export pipelines from Central Asia has become a key bottle-
neck in the development of the Kazak and Azeri oil industries that finally started to
(Please turn to pD8)
CRUDE OIL HANDBOOK
SHIPPING DISTANCES AND TIMES FOR KEY TANKER ROUTES (Nautical Miles / Days)
From:
To: Ras Tanura, Bonny, Ardjuna, Sullom Voe, Sidi Kerir, Amuay Bay,
Americas Route Saudi Arabia Nigeria Indonesia UK Egypt Venezuela
Curacao, Netherlands Antilles via Cape 10,729 / 35.8 4,560 / 15.2 ... ... 5,502 / 18.3 ...
Curacao, Netherlands Antilles via Suez 8,700 / 30 ... ... ... ... ...
Corpus Christi, Texas, USA via Cape 12,546 / 41.8 6,220 / 20.7 ... 4,875 / 16.2 6,618 / 22 1,802 / 6
Corpus Christi, Texas, USA via Suez 9,816 / 33.7 ... ... ... ... ...
Philadelphia, Pennsylvania, USA ... ... 5,182 / 17.3 ... ... ... ...
Rio de Janeiro, Brazil ... ... 3,392 / 11.3 ... ... ... ...
Los Angeles, California, USA ... ... ... 7,899 / 26.3 ... ... ...
New York, New York, USA ... ... ... ... 3,174 / 10.6 ... 1,802 / 6
St. Croix, Virgin Islands, USA ... ... ... ... 3,727 / 12.4 ... ...
PIW
Europe
Fos/Lavera, France via Cape 10,783 / 35.9 3,994 / 13.3 ... 2,649 / 8.8 1,400 / 4.7 ...
©
Fos/Lavera, France via Suez 4,684 / 16.6 ... ... ... ... ...
Rotterdam, Netherlands via Cape 11,169 / 37.2 4,386 / 14.6 8,525 / 29.4 600 / 2 3,152 / 10.5 4,318 / 14.4
Rotterdam, Netherlands via Suez 6,350 / 22.2 ... 11,390 / 38 ... ... ...
Le Havre, France ... ... 4,181 / 13.9 ... ... ... ...
Trieste, Italy ... ... 4,957 / 16.5 ... ... ... ...
Africa
Durban, South Africa ... 4,280 / 14.3 ... ... ... ... ...
Asia/Pacific
Singapore ... 3,701 / 12.3 ... ... ... ... ...
Yokohama, Japan via Malacca 6,593 / 22 ... 3,209 / 10.7 ... ... ...
Yokohama, Japan via Sunda, Indonesia ... 10,740 / 35.8 ... ... ... ...
Ulsan, South Korea ... 6,253 / 20.8 ... ... ... ... ...
Singapore ... ... 8,000 / 26.6 513 / 1.7 ... ... 11,423 / 38
D7
make some steps toward resolution in 1996. But the future of these lines remains in
doubt, illustrating the intense political struggles that pipelines can generate as well
as their vulnerability to such pressures. While it was clear from the start that the most
viable route in the short term for both Kazak and Azeri crude oil exports to the West was
through Russia, the powerful northern neighbor has been able to extract some benefits from
its favored position. Following much hard bargaining, partners in the $2-billion Caspian
Pipeline Consortium are Kazakstan, Russia, Oman, Chevron, Mobil, Agip, British Gas,
Lukoil, Rosneft, and Kazak state Munaigas. This 1,500-kilometer line is to be built in two
phases and will run from the Tengiz field in western Kazakstan to the Black Sea, with capac-
ity rising from about 300,000 barrels a day to over 1-million b/d. The Azeri export line calls
for two routes to the Black Sea, one via Russia, which would tie into the CPC system, and
one via Georgia, which is also likely to involve the Russians. A line through Turkey, or at
least to bypass the crowded Bosporous shipping lanes, is also a distinct possibility.
Continental Pipeline Systems

The worlds two major continental crude oil pipeline systems have been built
over the last century in North America and the former Soviet Union. Pipelines
provide the key, and sometimes the only export outlet for Russian and Canadian
crude oils. These pipeline export volumes of about 2.5-million b/d amounted to some
10% of the international crude oil trade in 1995. Long periods of political stability, well-
developed oil industries, and the benefits of huge integrated systems spanning long dis-
tances all contributed to the growth of these networks.
Russias primary export network the Druzhba, or Friendship, line is an
artifact of the old Soviet Empire that serves almost all of Eastern Europe. It
extends from the main refining center of Kuybyshev in the Volga-Urals region into west-
ern Russia and Belarus, where it splits into three branches: one taking crude oil north to
the Baltic export outlet of Ventspils, one to Poland and Germany, and one further south
to Hungary, Slovakia, and the Czech Republic. Another long-haul pipeline system trans-
ports export crude oil from Kuybyshev to the Black Sea for loading mainly at the Russian
port of Novorossiysk. This system also serves the Ukrainian port of Odessa. Russias abil-
ity to export crude oil is sometimes constrained by the size of its pipelines and termi-
nals, which leads to competition for pipeline space in monthly awards of capacity to pro-
ducers. As part of the new CPC line from Kazakstan, the pipeline capacity serving
Novorossiysk is to be expanded significantly by 1998.
Western Europes crude oil pipelines are modest compared to the size of its oil
industry. But with the end of the Cold War, the first link from west to east has now
been forged, and others may follow. The 340-km Mero pipeline from Ingolstadt in
Germany to the refineries of Kralupy and Litvinov in the Czech Republic opened in 1996,
giving these refineries an alternative to Russian crude oil. Like the Adria pipeline further
south, the 200,000 b/d line brings Mediterranean crude oil into Eastern Europe. In addi-
tion to the subsea lines serving North Sea production areas, Europes largest crude oil
pipelines were built mainly to link refiners in southern Germany, Austria, Switzerland, and
central France to Mediterranean ports (see map on the opposite page). However, not all
of this capacity is needed due to reductions in refining capacity in Germany, and the
northern section of the CEL line, which runs across Switzerland and into Germany, was
closed in 1995. Western Europes extensive barge network and reliance on coastal refiner-
ies has tended to reduce its need for long-haul pipelines.
CRUDE OIL HANDBOOK
Key European Crude Oil Pipelines LEGEND: CONTINENTAL LINES
Adria
CEL Central European Line
Druzhba
SPSE Southern European Line
TAL Trans Alpine Line
Mero
Black Sea Line
PIW
LEGEND: NORTH SEA LINES
TERMINAL/LANDING POINT CRUDE
©
Sullom Voe, UK Brent
Flotta, UK Flotta
Cruden Bay, UK Forties
Teeside, UK Ekosfisk
Strue, Norway Oseberg
D9
Edmonton
TransMountain
North American
Crude Oil Pipelines
The huge North American pipeline grid serves two basic purposes. It brings
landlocked crude oils in Alberta, Alaska, West Texas, and elsewhere to the main
refining centers through such pipelines as the Trans-Alaska Pipeline System and
the Interprovincial-Lakehead system. It also pulls in imported crude oils to
inland US refineries through systems such as Capline. With the exception of the
Trans-Alaska Pipeline System, which is just one link in the long supply chain from the
North Slope to refiners, the North American crude oil pipeline network feeds both
domestic and international oils directly to refiners. The operation of all of the major long-
distance pipelines is fairly similar, with well-established government regulations in both
the US and Canada. While access is open to all, pro-rationing of capacity occurs among
users if there is not enough space in a line to handle all of the volume that needs to be
shipped. Flexibility is provided by storage at terminals, pipeline hubs, and refineries.
Capacity is usually allocated on a monthly basis, and pipeline users typically face a dead-
line for nominating their volumes of about five working days before the end of the
month to ensure smooth scheduling.
A key bottleneck in the US pipeline system in the early 1990s has been the
route from the Gulf Coast to the key Midcontinent hub of Cushing, Oklahoma, the
US crude oil futures market delivery point. As domestic production has declined,
dependence on international crude oils has increased, requiring additional capac-
ity in periods of market tightness. A major addition in 1996 more than doubled
capacity to some 500,000 barrels a day through three different pipes: the 70,000 b/d
Texaco line that runs from Houston via Wichita Falls; the 160,000 b/d Arco Seaway line
from Texas City; and the latest addition, the 270,000 b/d Arco Seaway line from Freeport,
Texas. (See discussion of the West Texas Intermediate market, pB15.) While this eases the
pressure on Cushing, the need for expanded lines into the Midwest is likely to grow as
domestic output falls and US demand rises in the years ahead.
The pipelines shown in the map above are just the primary links in the system,
reflecting the largest-volume shipments. These are mainly targeted at the Midwest,
converging on the Chicago area. They bring in Canadian crude oil from Alberta, domes-
tically produced crude oil from the Southwest, and international supplies from the Gulf
Coast. The Four Corners Pipe Line and All-American line provide an outlet for extra crude
oil on the West Coast, but they are relatively small in volume. The Trans Mountain Pipe
Line in Canada provides a similar West Coast outlet for Alberta production.
A pipeline across the Isthmus of Panama has provided a valuable shortcut
for shipments of Alaskan crude oil from the Pacific to the Caribbean, feeding
US refiners on the Gulf and East Coasts. But with the lifting of the US ban on
exports of Alaskan North Slope crude oil, its future came into doubt in 1996.
The advantage of the line is that it allows the crude oil to bypass the canal and move
more easily to market, but the need for such shipments had declined significantly even
before the US ban on ANS exports was lifted. The greatest potential for the line in the
future may lie in reversing it to allow Venezuelan and Mexican crude oil to be export-
ed west to Asia more easily.
The Key Suez Nexus

Suez has long been a critical nexus for the oil industry, linking the dominant
Mideast producing area with European markets. Two pipeline systems link the
Red Sea to the Mediterranean, supplementing the Suez Canal, which cannot han-
dle fully laden VLCC-sized tankers, and shortening the long voyage from the
Mideast to Europe and the Americas. These lines, which run through Egypt and
Israel, were both expanded in the early 1990s to a combined capacity of 3.6-mil-
lion b/d. The main Sumed line was used at or near capacity in 1992-93 due to attrac-
tive tariffs and growing sales of Mideast crude oil into the Mediterranean. The long-
underused Israeli Tipline has also been revived for international use with the improving
Turkish Export Line
Major Mideast Crude Pipelines

political situation in the region. Both lines can handle VLCC-sized cargoes easily, over-
coming the draft restrictions of the Suez Canal, and large ships also have the flexibility
of discharging some of their cargo in one of the pipelines and then using the canal to
carry a partial load (see map,p11). With the growth of delivered crude oil sales by pro-
ducers in the Mideast, the northern terminal of the Sumed line at Sidi Kerir has become
an important sales outlet for Saudi and Iranian grades.
Operational Peculiarities Of Pipelines

Pipelines, like tankers, have their own operational peculiarities. While they
can be tremendously efficient, pipeline use also results in some inevitable mixing
of crude oil grades. The barrels that a company puts into a line at one end are
often not the exact same ones that it gets out at the other end. The resulting changes
in quality are of little consequence when a line is dedicated to one crude oil stream, such
as ANS or Arabian Light. But when a wide range of crude oils is used, the variation can
be significant. A system of quality adjustment is generally used to offset these variations,
and adequate storage allows for varying streams to be more easily segregated. US
pipelines have developed sophisticated quality-banking systems, which compensate
pipeline users for changes in gravity and sulfur when its crude oil is moved through a
pipeline. Terms are specified, and the pipeline user knows before shipping exactly what
kind of value adjustment will be made for changes in quality. Russian pipelines are only
just beginning to develop the flexibility to deal with such variations in quality.
Advance scheduling and the trading of ratable volumes over a period of a
month or longer are also key examples of how pipeline crude oils contrast with
the international cargo trade. Trading commitments in pipelines are generally firmed
up in advance, with little latitude after that for further trading. By contrast, crude oil car-
goes can be traded even after they are on the water.
Major Pipeline Links

The table on page D13 profiles the major pipelines that are used in interna-
tional crude oil trade. There are also comprehensive gathering systems in all of the
main producing regions, and much more extensive internal networks in North America
and the former Soviet Union. Most of these domestically oriented lines have been
excluded since they lack direct involvement in international trade. Distances are shown
in both kilometers and miles, with capacity in 1,000 b/d.
Inventories: The Swing In The System

Global crude oil inventories are both an integral part of the supply system and
a key shock absorber to that system able to offset both large and small supply
deficits. Crude oil inventories perform such mundane operational tasks as pro-
viding pipeline fill, tank bottoms, and oil in transit at sea, allowing smooth logis-
tical operations. Although these operational oil inventories are large, usually
accounting for over 80% of global oil stocks, they are far less important to the
immediate direction of oil prices than the much smaller volume of discretionary
stocks. Companies can use the latter at will, and this has a direct impact on mar-
kets and prices. Although oil stocks are notoriously difficult to measure, all market par-
ticipants implicitly take a view on the level of discretionary oil-company stocks and their
likely trend up or down when they make judgments about the future direction of oil
CRUDE OIL HANDBOOK
MAJOR PIPELINE LINKS IN WORLD CRUDE OIL TRADE
Region/Pipeline Length Capacity
Mideast Country Operator/Owner From / To km (miles) 1,000 b/d
Petroline Saudi Arabia Saudi Aramco Abqaiq / Yanbu (Red Sea) 1,270 (789) 4,800
Turkish Export Line Iraq, Turkey INOC-Botas Kirkuk (Iraq) / Ceyhan (Turkey) 1,049 (652) 1,600
Sumed Egypt Arab Petroleum Pipeline Co., Egypt Ain Sukhna (Red Sea) / Sidi Kerir (Med.) 320 (199) 2,400
(50%), Saudi, UAE, Kuwait, Qatar
Tipline Israel EAPC Eilat (Red Sea) / Ashkelon (Med.) 241 (150) 1,200
Europe Country Operator/Owner From / To km (miles) 1,000 b/d

Druzhba (Friendship) Russia, Belarus, Ukraine, Transneft and others Kuybyshev (Russia) / Mozyr (Belarus), then 1,380 (861) 1,400
Hungary, Slovakia, Czech north to Schwedt (Germany), south to 1,100 (683) 700
Republic, Poland, Germany Litvinov (Czech Republic) 1,475 (916) 700
TAL Italy, Austria, Germany Trans-Alpine Line Trieste (Italy) / Ingolstadt (Germany) 450 (280) 720
PIW
SPSE France, Germany Societe Du Pipeline Sud-Europeen Fos/Lavera (France) / Karlsruhe (Germany) 782 (486) 656
CEL Italy, Switzerland, Germany Central European Line Genoa (Italy) / Ingolstaat (Germany) 753 (468) 180
©
Adria Croatia, Hungary, Slovakia State-owned Omisalj (Croatia) / Bratislava (Slovakia) 663 (412) 200
Mero Germany, Czech Republic Mero/Chemopetrol Ingolstadt (Germany) / Kralupy (Czech Republic) 340 (212) 200
Americas Country Operator/Owner From / To km (miles) 1,000 b/d

Taps (Trans-Alaska) USA Alyeska (British Petroleum, Arco, Prudhoe Bay / Valdez 1,226 (762) 2,000
Exxon, Mobil, Phillips, Unocal, Hess)
IPL-Lakehead Canada, USA Interprovincial Pipe Line Edmonton (Canada) / Duluth (USA), then 1,826 (1,135) 1,470
south via Chicago or 1,183 (735) 730
north via Bay City, Michigan (USA) 909 (565) 470
to Montreal (Canada) 1,006 (625) 550
Loop-Capline USA Louisiana Offshore Oil Port and Shell Loop, St. James / Patoka, Illinois 1,094 (680) 1,200
Trans-Panama Panama Petroterminal De Panama Puerto Armuelles / Chiriqui Grande 130 (81) 860
Cano Limon Colombia Occidental Cano Limon / Covenas 788 (490) 220
D13
prices. The strategies that companies take as a group toward these discretionary stocks
determine much of the incremental oil volume that reaches the market, and in turn dri-
ves price levels.
A key development on the inventory front in the mid-1990s has been the
effort to operate on reduced inventories, which brought stocks in the US and
other key areas to record low levels in the spring and summer of 1996. This drive
toward lower inventories reflects both structural and temporary factors, and it
can be expected to add to the overall volatility of oil prices as the market is
forced to cope with the imbalances through changes in prices. Among the struc-
tural reasons for the decline in stocks are cost reductions by oil companies, streamlining
of operations, and rationalization of facilities requiring less in operating stocks and
perhaps greater reliance on futures markets and derivatives. Among the temporary fac-
tors that contributed to the further decline in stocks in early 1996 were a cold winter,
supply disruptions, and expectations that a return of Iraq to the market would add sig-
nificantly to global supplies later in the year.
Worldwide crude oil stores can be divided up into a number of different cat-
egories that are almost all far easier to define than to measure accurately.
Because of crude oils use as a feedstock, virtually all crude oil stocks are part
of primary inventories, with secondary and tertiary stocks devoted to refined
product distribution and consumption. Of these primary crude oil stocks, there
are two basic groups: commercial, or industry stocks; and strategic, or govern-
ment-held stocks. The discretionary, or usable commercial stores that have such a big
market impact are generally in the hands of the oil companies. The stocks held in over-
seas storage by producer governments such as Saudi Arabia, Iran, and Kuwait some-
times blur the traditional distinctions between commercial and strategic stocks because
they are used operationally for delivered crude oil sales, but they also have been built
up at times for strategic reasons.
At the end of 1995, total global oil inventories outside the former Soviet Union
and China amounted to some 5.785-billion barrels, or 87 days of forward demand
cover, according to PIWs Oil Market Intelligence. That compares with over 90
days of forward demand cover a year earlier, indicating the trend toward hold-
ing lower inventories. Of the total, about 1-billion barrels were strategic stocks held
by consumer country governments, and around 4.73-billion barrels, or 71 days of for-
ward demand cover, were commercial stocks held by companies. Of those commercial
stocks, only about 730-million barrels, or 11 days of forward demand cover, were usable
commercial stocks, in the sense that companies could draw on them without disrupting
their operations or cutting into the volumes that they are required to hold by some gov-
ernments for security reasons.
Movements in discretionary inventory can influence the market as both a
source of extra supply and extra demand, with companies choosing either to
draw down or build up their stores, depending on market circumstances.
Forward prices themselves also send definite economic signals to companies
about building or drawing their stocks. This interaction between stocks and prices
reflects a perpetual balancing act that has become much more efficient in oil markets
with the development of forward and futures trading. When futures prices are higher
than prompt levels, markets are in contango, and if the gap between the two is wide
enough to cover storage costs and interest, there is a strong incentive for companies to
build stocks. The reverse relationship, with high prompt prices, is a backwardation, and
it creates an incentive to destock.
Commercial Inventories
The worlds commercial crude oil stocks are held mainly at production facili-
ties and in pipelines, on tankers at sea, and at refineries. These inventories are
somewhat seasonal, depending on refinery needs, but they vary less over the
year than they used to. Commercial crude oil stocks have usually fluctuated
much less than refined product inventories, which are more sensitive to final
demand. There are obviously minimum lev-
els of stocks at all of these points in the sup- CARIBBEAN CRUDE OIL
ply chain that are required to keep the sys- STORAGE TERMINALS
tem moving smoothly. That minimum level (Crude Capacity In Million Bbls)
was fairly constant in the past, changing only Independent
slowly over time, but efforts to cut back on Name Location Capacity
stocks may allow the system to operate effi- Borco (PDV) Bahamas 6.5
S. Riding Point Bahamas 5.2
ciently at a significantly lower level of stocks. Wickland Aruba 10.0
In addition, many countries in Europe and Statia Terminals St. Eustatius 5.0
elsewhere do not hold segregated strategic Total 26.5
stocks but require companies to hold a min- Other*
Bonaire (PDV) Bonaire 8.3
imum obligatory level of extra stocks. The Curacao (PDV) Curacao 10.0
requirements are usually measured in terms Hess US Virgin Islands 16.0
of a firms sales volume, and are in effect part Petrotrin Trinidad 8.0
of the minimum base level. Discretionary or Total 42.3
usable commercial stocks are any inventories *Not usually open to third-party storage.
above these levels. In practice, despite the

policy of oil companies in recent years to operate with the lowest possible level of
stocks, usable commercial stocks have rarely dropped below 10 days of forward demand
cover, according to PIWs Oil Market Intelligence.
Independent storage terminals provide tankage that is rented commercially to
third parties, and thus these volumes can be a key indicator of trends in discre-
tionary, or usable commercial stocks. While some of the oil held in independent
storage is for operational purposes, these facilities are designed to be used by
traders and others needing temporary storage beyond their usual operational
requirements. About 26-million barrels of crude oil storage at terminals in the
Caribbean is open to third parties, with about double that volume held at other facilities
there that is committed on a more exclusive basis to specific term customers, consisting
mainly of producer governments (see table above). The US Gulf Coast and Rotterdam
areas also have significant independent storage capacity. Rotterdam has about 25- to 30-
million barrels of crude oil storage that is specially dedicated to in-transit bonded stor-
age outside of European Union customs.
Strategic Stocks: Seldom Seen

Over 1-billion barrels of crude oil is now held by governments around the
world as a strategic buffer against supply disruptions so serious that industry
stocks alone cant handle them. These stores undoubtedly provide a measure of
psychological security for the oil markets and reduce the need for oil companies
to carry extra inventories as insurance against a loss of supplies. But the central
unresolved question that has existed almost since the inception of strategic
stocks remains: When should they be used? The largest stockpile is the US Strategic
Petroleum Reserve, which is held in underground salt caverns on the US Gulf Coast. It
holds about 575-million barrels, and it has been drawn down slightly to pay for opera-
tional improvements. The next-largest reserve at the end of 1993 was Japans almost 300-
million barrels, held in onshore tanks by state JNOC. Germany and some other European
governments also hold small stockpiles themselves in addition to compulsory stocking
requirements for their companies. Among non-OECD countries, South Africa has been
cutting back its stockpile, which once stood at some 48-million barrels. South Korea also
has a government-held strategic stockpile.
The International Energy Agency, which coordinates the efforts of OECD
countries to respond to oil-supply emergencies, has drawn up specific plans for
the withdrawal of strategic and compulsory stocks. In practice, however, the
decisions to use these stocks are mainly determined politically. The only
instance of a release of OECD strategic stocks due to an emergency was during
the 1990-91 Gulf conflict. The US and the IEA initially resisted releasing strategic stocks
during the autumn of 1990, when anxiety was greatest about the future availability of oil
supplies and prices were soaring. They argued that since there was no visible shortage
of supplies, it was premature to draw down these stocks, despite rocketing prices. A
small test of the US stockpile release system was conducted that autumn, and a coordi-
nated sale was announced immediately after the start of the air offensive against Iraq.
This was quite successful in helping to ease market fears of potential supply disruptions
and spurred an immediate drop in prices. However, the actual release of stocks was con-
fined to the US SPR and was much smaller in volume terms than the oil made available
at the same time from floating stocks by Saudi Arabia and Iran.
Governments also face temptations to use strategic stocks for other purposes,
something they have succumbed to in the US, South Korea, and South Africa in
recent years. For example, in the spring of 1996, the US accelerated a planned opera-
tional release of SPR inventories in order to control a politically unpopular rise in gasoline
prices. In South Korea, the government has lent inventories to refiners during cold win-
ters in order to allow them to supply additional products locally without being forced to
pay high prices on the international market, thereby putting pressure on the balance of
payments and the currency. In South Africa, the lifting of UN sanctions has prompted a
steady drawdown of strategic stocks that has been geared to coincide with periods of rel-
ative market strength. However, these drawdowns seem to have been largely completed.
The stocks of the former Soviet republics and China cannot yet be tracked in
a systematic way due to a lack of available data, but they can have a significant
impact on world markets. In both cases the swings seem to reflect imbalances creat-
ed by controls on trade and artificial internal pressures. These should decline to the
extent that these countries move toward more open free-market systems.
Into The Refinery

The storage and transportation systems described above are all designed for the
smooth delivery of crude oil to refineries, where the feedstock can be turned into
usable products. It is this process that determines the ultimate value of a crude oil
and is the subject of the next and final chapter of the first section of the handbook.
CRUDE OIL HANDBOOK PIW © E1
REFINING
Whats A Crude Oil Worth?

Regardless of the day-to-day vagaries of crude oil markets, the values of all
grades, and hence the prices reflected in markets, ultimately depend on the
refined products that can be made from individual grades. Crude oils have little
value in and of themselves except that they can produce refined products that
can be used by final consumers. Each refined product that can be produced from
a barrel of crude oil has its own separate markets, which are driven by their own
complex interactions of supply and demand. Thus, each grade represents a com-
posite of all of these markets, a composite that is unique to each grade because
of the variation in the mix of products that each grade yields. Unlike most other
commodities, there is no dominant end use for oil. Rather, there are a host of compet-
ing co-product uses. The refining process is the technical means by which crude oil out-
put is reshaped to fit the final product needs of oil consumers, and it has developed con-
siderable flexibility since the late 19th century, when it was focused almost exclusively
on kerosine production. The individual refined product markets are driven by a wide
range of factors, including local product demand trends, interfuel competition, environ-
mental regulations, inventory levels, weather, and refinery capabilities. A full analysis of
this interaction goes beyond the scope of this book. In this chapter, the focus is more
narrowly on the basic characteristics of crude oil and how they relate to refining and the
valuation of grades.
Refinery technology offers a broad spectrum of tools for breaking down crude
oil into the products that consumers want. With various markets requiring dis-
tinct mixes of products from different combinations of crude oil feedstocks, a
wide variety of refinery configurations has developed over time. The most basic
distinction that is often drawn between types of refineries relates to their com-
plexity. A simple refinery involves only the distillation or boiling of the crude oil
and relatively few other processes, yielding large volumes of residual fuel oil,
especially from heavier grades. More complex refineries use various upgrading
processes and yield larger volumes of higher-value light products such as gaso-
line. The distinction between simple and complex refining is a relative term, with no
exact specification for each category. However, the oil industry usually thinks in terms
of three basic levels of complexity. A simple refinery today involves distillation of the
crude oil plus some common secondary processes that enhance the output of gasoline
and diesel. A complex refinery takes the secondary processes a step further by using the
gas oil and residue from the refining process as feedstock to make more light products
such as gasoline and gas oil. These additional secondary processes include cracking and
alkylation. A highly complex refinery simply adds more sophistication to these process-
es, eating up even more of the heavy products through coking and other technologies.
Some highly complex refineries are integrated with sophisticated petrochemical plants or
lubricants plants that can also significantly enhance the value of a crude oil.
Due to regional differences in oil demand, the complexity of refineries tends
to vary around the world. Most of the simple refineries are in Asia, the former
E2 PIW © CRUDE OIL HANDBOOK
Soviet Union, and developing countries, where demand for light products is not
great and where significant volumes of residual fuel are still used for power gen-
eration. The most complex refineries tend to be in markets such as the US, where
gasoline demand accounts for almost one-half of all oil consumption. Western
Europe generally has complex refineries, but most are not as sophisticated as
those in the US, and product output is weighted more heavily toward gas oil than
in the US. There are, of course, important exceptions to these broad generalizations,
particularly in the developing world, where oil-producing countries such as Venezuela,
Saudi Arabia, and Kuwait have made extensive investments in highly sophisticated
refineries in order to add value to their own crude oil flows by exporting large volumes
of higher-value light products. Although Japan is an advanced industrial economy, it has
relatively simple refineries. This is due mainly to the structure of domestic product
demand and the past protectionist government policies toward the countrys refining
industry. In Asia in particular, many of the most rapidly developing countries are mov-
ing toward greater refinery sophistication in an effort to keep up with quickly expand-
ing demand for light products, especially middle distillates.
To illustrate the regional variation in refining capabilities, the chart and table
show various yields for Arab Light grade (see pH227). These range from simple
distillation to a highly
complex configuration.
COMPARING YIELDS FOR ARAB LIGHT
The simple yield is fol-
lowed by representative 100%
incremental yields for
Light Ends
Rotterdam, which is 75%
somewhat complex, and Mid-Distillates
the US Gulf Coast, which 50%
is the most complex of
25%
the main regions. The
Residue
output of residual fuel
0%
declines progressively as
Simple Rotterdam US Gulf Highly
the sophistication of the
Complex
refinery increases. The
yield of higher-value light Products Simple Rotterdam US Gulf Highly Complex
products grows, but the Light Ends 11.7% 28.1% 51.6% 59.0%
cost of the additional Mid-Distillates 32.8 33.0 18.4 28.0
processes needed to make Residue 45.0 33.4 27.5 6.0
them is also higher. This *Plus 4.9% coke.
basic trade-off lies at the
heart of most major refinery investment decisions. The regional yields shown here were
developed by PIW to track refinery profitability in the main product markets around the
world by calculating the incremental product output of individual crude oils from repre-
sentative regional refinery configurations.
A Look At The Refining Process

All of the various upgrading technologies are designed to maximize the prod-
uct output from a barrel of crude oil, but the starting point of the process is always
the same at every refinery: the distillation of the crude oil. This simply involves
heating the crude oil to gradually higher temperatures, which allows various
types of hydrocarbons to boil off at different points, thus breaking the crude oil
into purer products with similar chemical properties. At each temperature level, or
cut point, a fraction of the crude oil reaches its boiling point, and these vapors are dis-
tilled into a specific category of refined products. The determination of the cut points
depends both on the characteristics of the crude oil and the quality of the product being
produced, which means that in practice there can be considerable variation. For example,
kerosine, which is produced mainly from straight distillation and is prized for its purity
when used as aircraft fuel, has cut points that range from an initial boiling point of 320-
350 degrees Fahrenheit (160-176 centigrade) to a final cut point of 450-600 degrees
Fahrenheit (232-315 centigrade). At these temperatures, kerosine boils off and is segre-
gated from the other oil products. The products with the lowest boiling points are lique-
fied petroleum gases, which vaporize at normal atmospheric temperatures, followed at
progressively higher temperatures by gasoline, naphtha, kerosine, gas oil, and finally
unboiled residue which, in a simple refinery, usually ends up as residual fuel oil.
Beyond the primary distillation level, some of the resulting products are used
as feedstocks for secondary processes, while others, such as kerosine, are sim-
ply used as they are or blended with still other products to provide the right qual-
ity supply for the market. Some of the simplest secondary processes are reform-
ing, which converts certain types of naphtha into gasoline, and hydrotreating,
which removes sulfur from gas oil and residual fuel. There are several variations to
these technologies, which are all fairly common in the simple refineries described above.
Reforming in particular is widely used because of the importance of gasoline in many
markets. Types of naphtha with relatively high content of hydrocarbons known as naph-
thenes, which are readily broken down into high-octane aromatic compounds by the
reforming process, are best-suited for reforming into gasoline. In contrast, highly paraf-
finic naphthas are usually preferred as feedstocks for petrochemical manufacturing.
Naphtha with 40% or more naphthenes and aromatics is usually defined as naphthenic
or N+A naphtha, while naphtha with less than this amount is considered paraffinic.
Cracking is a more complex process that can involve several stages, which
together are designed to break lighter gasoline and gas oil fractions out of heavy
gas oil and certain kinds of residue. The two main cracking technologies are cat-
alytic cracking, or cat cracking, and hydrocracking. Both produce gasoline and
gas oil, but hydrocracking is more sophisticated and is sometimes preferred for
making middle distillates because it can produce kerosine as well as gas oil. In
both, the residue and sometimes heavy gas oil from the distillation process, known as
straight-run gas oil or resid, must be put through a vacuum distillation unit to prepare
it for cracking. This unit simply distills the residue again at a lower atmospheric pressure,
creating feedstock that is suitable for cracking, and that is known as vacuum gas oil, or
VGO, and residue or vacuum bottoms that must go to the residual fuel oil pool. In a cat-
alytic cracker, or cat cracker, the VGO feedstock and straight-run gas oil are combined
at high temperatures with a chemical catalyst that helps release the lighter hydrocarbons,
leaving heavy, cracked residual fuel as a by-product. In a hydrocracker, much the same
thing happens, but hydrogen is also mixed in, which allows the creation of even more
light hydrocarbons and eliminates the cracked residue that is left over in cat cracking.
In both cracking technologies, the refiner has scope to alter the range of the
end products to tilt toward gasoline or gas oil. By changing the intensity or severity
of cracking, the refiner can shift a sophisticated units output, adding flexibility to the refin-
ing process. The output of these crackers often requires some special further processing
at alkylation, isomerization, or reforming units to help maximize the output of gasoline.
The most sophisticated form of upgrading is coking, which involves the
destruction or complete transformation of the residue. Coking relies on intense
heating of residue usually the cracked residue that is already left over from the
cat cracker and rapid movement of the oil through a special coking drum
where the solid petroleum coke that is produced can be managed and removed,
while the lighter gasoline, naphtha, and gas oil fractions boil off. The process
requires high heat and spe-
cial technologies but no AN OVERVIEW OF KEY UPGRADING TECHNIQUES
catalysts, and the coke, Process Feedstock(s) Output
which is used mainly in Reforming Naphtha Gasoline
industrial processes, is Vacuum Distillation Straight-Run Residue Vacuum Gas Oil, Residue
effectively the only residue. Catalytic Cracking Vacuum Gas Oil, Gasoline, Gas Oil,
Thermal cracking and vis- Straight-Run Gas Oil Cracked Residue
Hydrocracking Vacuum Gas Oil, Gasoline, Kerosine
breaking are similar tech-
Straight-Run Gas Oil Gas Oil
nologies, but they are less Visbreaking Cracked Residue Some Gas Oil
severe and still leave con- and Residue
siderable volumes of Thermal Cracking Cracked Residue Light Products (Mainly
residue. Thermal cracking Gasoline) and Residue
is an earlier, more primitive Coking Cracked Residue Light Products and Coke
form of the coking process
that is mainly geared toward gasoline production from residue, while visbreaking is a
less severe form of thermal cracking that extracts a small volume of gas oil from the
cracked residue feedstock.
The feedstocks that are used in the upgrading units have become increasing-
ly important in refinery operations as the amount of upgrading capacity has
grown. These feedstocks now trade in active markets of their own. When the val-
ues of key feedstocks such as vacuum gas oil and straight-run residue are relatively
depressed, the economics of operating upgrading units are good. But when supplies are
tight, as they have been in recent years, upgrading economics become problematic.
Selecting And Valuing Crude Oils

Depending on the hardware that a refiner has available and the needs of the
downstream market that is being supplied, certain types of crude oils will be more
or less attractive depending on their individual characteristics. Obviously, the
grades that provide the highest profit margin are likely to find the most favor, but
as described in earlier sections of this book, some companies have term-contract
supply arrangements or equity crude oil production that tends to tilt their down-
stream refining systems toward certain grades. These are often considered baseload
crude oil supplies, and refineries are usually designed with a specific grade or mix of
grades in mind. Thus, there are plants that are geared toward light, sweet grades and
plants geared toward heavy, sour oils. The latter contain the best upgrading units to deal
with the specific characteristics of those grades and maximize their product output.
While most refiners can count on certain baseload volumes, many are also
constantly evaluating their crude oil supply mix and the options available to
them to squeeze an extra bit of profit out of their plants. Their decisions to refine
these extra incremental volumes are driven by signals from the spot markets for
crude oil and refined products, and they can in turn have a big impact on these
markets. The incremental refining economics for each refiner are a bit different because
of the varying configurations of their plants and their differing abilities to handle specif-
ic grades. But in all cases, the incremental barrels face lower costs, because it is assumed
that the basic costs of owning and operating the plant are covered by the baseload vol-
umes. In addition, the refinery generally cannot take full advantage of its upgrading
potential with incremental grades because some of its units are already fully loaded with
baseload crude oil supply volumes.
PIWs system for tracking refined crude oil values, or netbacks, provides a
good example of the incremental refinery economics that are so crucial to spot
markets, and it also illustrates the kind of calculation that a refiner goes through
to determine whether it is profitable to refine incremental crude oil supplies. A
refinery netback is an oil industry term for the value of a specific crude oil based on the
products that can be produced from it, less the cost of refining it and transporting it from
its port of loading. The netback value can be compared with the price of the crude oil in
the spot market or, for term-contract supplies, to determine the trend in refinery profit
margins. These netback values for selected grades appear in every issue of Petroleum
Intelligence Weekly and monthly in Oil Market Intelligence, and they are based on repre-
sentative regional yields developed by PIW for individual grades. Unlike the incremental
yield of an individual refinery, they represent a composite for a key refining center such
as Rotterdam or the US Gulf Coast. These yields have been updated over the years to
reflect the changing technical capabilities of refineries and shifts in the qualities of crude
oils. The table on page pE6 shows the latest yields, which were updated in 1996.
Calculating A Netback
Heres how the PIW netback calculation works. The first step in assessing oil
market economics is to compute the weighted average value of all refined prod-
uct components from a barrel of crude oil at the refinery gate. In trade jargon, this
is known as the gross product worth, or GPW. This is determined by multiplying the pre-
vailing spot price for each product by its percentage share in the yield of the total bar-
rel of crude oil.
Following is a sample calculation of the gross product worth of a barrel of
Arabian Light crude oil refined at the US Gulf Coast, with the resulting products sold
at spot market prices. The value of the fuel oil portion of the yield is partly determined
by its sulfur content. Therefore, an adjustment must be made when the sulfur level of
the fuel oil produced from a given crude oil differs from the prevailing quality of fuel
sold in the spot market. Generally, a refiner will blend fuels of various qualities to meet
market needs. And higher-quality, low-sulfur residues have become particularly attrac-
tive because they can be used as feedstock for upgrading units. In order to reflect this,
the PIW netback calculation assumes that for higher-sulfur grades refiners receive a
blending credit or debit of 50% of the value of each percentage point of sulfur, while for
low-sulfur fuel oil the credit or debit is 200%. The actual octane produced by a crude
oils gasoline cut also differs from spot market grades, and a credit or debit is applied to
reflect this difference. This octane adjustment is only used in the US because of the
importance of gasoline yields, and it is based on the cost of natural gasoline.
To make com-
parisons between CALCULATING THE PRODUCT YIELD
the value of prod- Arabian Light Crude Oil At Typical US Gulf Coast Refinery, October 1996
ucts that can be US Gulf Coast Spot Prices Product Yield Value Of
processed from a Product Cents Per Gallon Per Barrel (Volume %) Yield
barrel of crude oil Regular Unleaded Gasoline* 64.49 27.09 39.90% 10.81
Jet Kerosine 70.26 29.51 8.20 2.42
at the US Gulf Coast Gas Oil / No.2 Heating Oil 69.37 29.14 24.70 7.20
or another major Fuel Oil
refining center and 1% Sulfur 19.47 0.00 0.00
3% Sulfur 19.26 23.70 4.56
the price of that
Actual Sulfur Content, 3.49%
grade at the pro- Fuel Oil Adjustment -0.10
ducers loading Actual Octane, 85.63
port, the costs of Octane Adjustment -0.14
Total Value Of Arabian Lights Product Yield (GPW) 24.75
transporting and
*87 octane. Note: Fuel oil adjustment based on a debit from 3% spot grade based on 50%
refining the oil of the slope between the 1% and 3% prices. Octane adjustment based on a debit that
must be deducted. reflects the extra cost of raising the octane to that of unleaded regular, based on the aver-
In the case of crude age octane differential between unleaded regular and natural gasoline on the Gulf Coast.
oils that are sold on a

delivered basis, such as Russian Urals in Europe (see pH221), only refining costs need
be deducted. In some cases special tariffs, duties, and port charges and other fees must
also be deducted. These are particularly significant in the US.
Since the PIW netback
CALCULATING FREIGHT & DELIVERY COST model is attempting to assess
Voyage Ras Tanura, Saudi Arabia to Beaumont, Texas
the economics of refining
the incremental rather than
Flate Rate Per Metric Ton $18.08
converted at 7.38 bbls per ton Per Barrel Of Arab Lt. $2.45 the average barrel of crude
Spot Freight Rate Worldscale Points 53 oil, transport and refining
Spot Freight Cost costs also are figured on a
53% of flat rate Per Barrel $1.30
marginal basis. For crude oil
Transshipment/Lightering Costs Per Barrel 0.34
Other Costs Per Barrel 0.28 transport, this represents the
Total Costs Per Barrel 1.92 cost of chartering an appro-
Note: Other costs include US customs tariff of 11¢, Super Fund fee of priately sized tanker on the
10¢, and other state and local fees of 7¢. spot market for a single voy-
age, as opposed to the cost of
operating refiner-owned vessels or chartering ships for an extended period. The
yardstick used to calculate the freight cost for a single voyage is known as the flat rate and
is set by Worldscale, a trade association that publishes a base or 100 rate for voyages
between each oil loading and receiving port. Daily tanker market fluctuations are measured
in Worldscale points, which
are a percentage of the stan- THE NETBACK VALUE
dard flat rate. The cost of a Total Refined Value Of Arabian Light (GPW) $24.75
charter at Worldscale 60 Less:
would be 60% of the flat rate. Incremental Refining Cost -0.35
Freight & delivery Costs -1.92
For US Gulf deliveries, other Implied f.o.b. Value Of A Refined Barrel Of Arabian Light $22.48
costs of transshipment or ligh-
Note: Incremental refining cost represents additional out of pocket operating
tering as well as tariffs and cost to refiner of running an additional barrel on top of baseload volumes.
fees must also be deducted.
Marginal refining costs are defined to include only running costs, with no
allowance for depreciation of the original capital in-vestment in the plant. The
PIW model assumes that they are 35¢ a barrel for a US or European refinery and 25¢
elsewhere. A portion of the crude oil yield is assumed to be refinery fuel, and another
small amount is assumed to be lost during the refining process.
The entire netback calculation now comes into focus: Upon subtraction of
freight and refining costs, spot product prices are translated into an equivalent
crude oil value at the loading port of origin, known as the f.o.b. netback. It pro-
vides a gauge of what a crude oil is worth at the point of sale to a typical refiner in a
specific downstream center.
The Profitability Of A Grade Of Crude Oil

The implied profit or loss for the refiner can easily be derived by comparing
the price of the crude oil in the spot market with its netback value (see bottom box
on pE6). If the netback value exceeds the cost of the crude oil under PIWs yield and
(Please turn to pE9)
PIW PACESETTER CRUDE OIL YIELDS BY VOLUME
US GULF COAST INCREMENTAL YIELDS AT TYPICAL REFINERIES

Winter Yields Quality Adjustments
Regular Jet Gas Oil Low-Sulfur High-Sulfur Fuel Oil Gasoline
Crude Oil Unleaded Kerosine No.2 Fuel Oil Fuel Oil % Sulfur Octane
Arab Light 39.9% 8.2% 24.7% ... 23.7% 3.49% 85.63
Arab Heavy 36.8 6.7 9.7 ... 41.6 4.20 85.59
Dubai 38.4 8.5 22.7 ... 26.9 3.50 86.81
Kuwait 39.8 7.5 20.1 ... 28.8 4.56 86.24
Bonny Light 44.9 7.8 39.6 4.5% ... 0.39 87.27
Forcados 34.6 10.3 41.8 11.3 ... 0.40 88.10
Brent 46.7 8.0 29.8 11.6 ... 0.83 86.45
West Texas Intermediate 48.1 8.1 30.9 9.8 ... 0.89 86.96
West Texas Sour 45.5 7.8 23.0 ... 20.1 3.23 87.16
Maya 33.2 ... 7.0 ... 54.7 4.19 85.35
Isthmus 42.4 8.2 21.0 ... 25.0 3.06 87.54
Saharan 48.8 9.4 31.8 5.3 ... 0.41 86.10
Louisiana Light Sweet 44.7 7.8 35.6 10.9 ... 1.40 87.02
Cusiana 47.9 8.6 34.4 7.3 ... 0.80 86.92
Summer Yields Quality Adjustments
Regular Jet Gas Oil Low-Sulfur High-Sulfur Fuel Oil Gasoline
Crude Oil Unleaded Kerosine No.2 Fuel Oil Fuel Oil % Sulfur Octane
Arab Light 48.8% 5.6% 17.1% ... 24.5% 3.49% 85.63
Arab Heavy 40.1 5.5 6.4 ... 42.7 4.20 85.59
Dubai 46.6 7.2 15.6 ... 27.8 3.50 86.81
Kuwait 47.3 6.4 13.9 ... 29.8 4.56 86.24
Bonny Light 53.0 6.3 32.0 5.0% ... 0.39 87.27
Forcados 46.4 7.7 31.0 12.6 ... 0.40 88.10
Brent 56.5 6.0 22.1 12.9 ... 0.83 86.45
West Texas Intermediate 57.5 5.9 22.2 10.5 ... 0.89 86.96
West Texas Sour 51.5 6.2 18.4 ... 20.8 3.23 87.16
Maya 35.7 ... 4.3 ... 55.3 4.19 85.35
Isthmus 49.7 5.8 14.9 ... 25.9 3.06 87.54
Saharan 55.7 7.5 25.4 5.6 ... 0.41 86.10
Louisiana Light Sweet 51.3 6.2 28.4 11.6 ... 1.40 87.02
Cusiana 55.0 6.8 27.4 7.7 ... 0.80 86.92
PIW PACESETTER CRUDE OIL YIELDS (Cont.)
NORTHWEST EUROPE/MEDITERRANEAN INCREMENTAL YIELDS AT TYPICAL REFINERIES

Winter Yields
Premium Regular Jet Low-Sulfur High-Sulfur Fuel Oil
Crude Oil Unleaded Unleaded Naphtha Kerosine Gas Oil Fuel Oil Fuel Oil % Sulfur
Arab Light 12.7% 8.7% 4.4% 7.7% 35.9% ... 24.3% 3.80%
Arab Medium 11.5 8.4 4.4 5.0 31.6 ... 31.0 4.36
Arab Heavy 11.1 8.0 4.4 7.5 23.5 ... 38.2 4.77
Brent 18.6 12.4 4.4 8.0 37.0 12.7% ... 1.37
Kuwait 9.4 11.9 4.3 7.5 28.0 ... 31.0 4.55
Iran Heavy 13.7 9.3 4.3 7.5 28.0 ... 29.2 2.92
Urals 13.8 9.3 5.0 7.5 36.2 ... 21.8 2.99
Summer Yields
Premium Regular Jet Low-Sulfur High-Sulfur Fuel Oil
Crude Oil Unleaded Unleaded Naphtha Kerosine Gas Oil Fuel Oil Fuel Oil % Sulfur
Arab Light 16.6% 11.3% 5.6% 6.3% 29.4% ... 24.7% 3.80%
Arab Medium 15.0 10.9 5.6 4.0 25.0 ... 31.6 4.36
Arab Heavy 14.3 10.1 5.6 6.5 16.5 ... 39.0 4.77
Brent 23.1 15.4 5.6 6.0 30.6 13.0% ... 1.37
Kuwait 12.4 15.9 5.7 6.5 20.0 ... 31.7 4.55
Iran Heavy 18.2 12.4 5.7 6.5 20.0 ... 29.9 2.92
Urals 18.5 12.5 5.0 6.5 29.4 ... 22.0 2.99
SINGAPORE INCREMENTAL YIELDS AT TYPICAL REFINERIES

Winter & Summer Yields Fuel Oil
Crude Oil Naphtha Kerosine Gas Oil Fuel Oil % Sulfur
Arab Light 16.5% 23.2% 16.5% 40.0% 3.03%
Arab Heavy 14.1 ... 25.1 56.7 4.37
Dubai 16.2 22.8 14.5 42.7 3.13
Iran Heavy 16.5 21.6 15.0 42.6 2.62
Kuwait 16.7 20.2 13.3 45.8 4.20
Oman 15.1 23.3 17.7 40.6 1.30
Minas 10.0 17.2 26.6 43.5 LSWR
EXPORT REFINERIES
All Seasons Premium Jet- Gas Fuel Fuel Oil
Country/Refinery/Crude Oil Naphtha Gasoline Kero Oil Oil % Sulfur
Saudi Arabia
Yanbu/Arab Lt.-34 5.0 27.0 13.0 30.0 26.0 3.50%
Jubail/Arab Lt.-34 17.0 4.0 18.0 33.0 26.0 3.50
Rabigh/Arab Lt.-34 24.0 ... 11.0 14.5 48.0 3.50
Bahrain
Bahrain/Arab Lt.-34 10.0 10.0 17.0 26.0 33.0 3.50
Abu Dhabi
Ruwais/Murban-39 10.0 20.0 17.0 43.0 4.0 3.50
Algeria
Skikda/Saharan-44 25.0 10.0 12.5 21.0 28.0 0.38
Libya
Ras Lanuf/Es Sider/
Zueitina 19.0 ... 7.0 29.0 40.0 0.57
Venezuela
Amuay/Bach.-17 6.0 27.0 ... 50.0 17.0 3.00
Cardon TJ Lt.-31 2.5 33.5 ... 33.0 31.0 2.00
Curacao TJ Lt.-31 ... 25.0 ... 30.0 36.0 2.00
cost assumptions, a refiner should be able to generate a profit by buying that particular
grade and selling the resulting products in the spot market. Clearly, this applies only in
a generalized sense for each market, and it is not intended as a guide to assessing the
profitability of any individual plant or refiner. More important than the absolute level of
profits is the trend in margins: If they are rising, refiners will be tempted to run more
crude oil, and spot market demand is likely to increase.
The dynamics of refining profitability at the margin create the underlying
trends that are most important in determining crude oil and product prices. For
example, if a crude oils netback value falls below its price, refiners will tend to shy away
from it. This reduced demand will eventually bring the grades price down, or the reduc-
tion in crude oil runs by refiners will tighten downstream markets and bring product
prices up.
Types Of Crude Oils And Their Characteristics

In order to determine the attractiveness of an individual crude oil for refining
and compare it effectively with other grades, refiners and oil market participants
rely on detailed assays of actual cargoes. These crude oil tests are performed
using similar kinds of standardized techniques and scales of measurement, and
through repeated testing
they can also show how BROAD QUALITY CLASSIFICATIONS FOR CRUDE OILS
an individual crude oil Sulfur
stream is changing over Sweet Medium Sour Sour
time. As part of the (0.0-0.5%) (0.5-1.5%) (1.5-3.0+%)
descriptions of each of Gravity Naphthennic High Pour
Light Saharan
the main grades in inter-
40 API Ekofisk Sarir Murban
national trade in the fol-
Brent Olmeca
lowing section, repre- Es Sider Berri
sentative assays are also Bonny Lt.
provided. While not as Oseberg Oman
complete as a full test,
these assays give the main Medium Minas Flotta Isthmus
33 API Cabinda Arab Light
characteristics that refiners
Djeno Dubai
and traders tend to refer to
Gullfaks C. Limon Arab Medium
in evaluating the quality of Forcados Oriente Iran Heavy
a crude oil. The assays Bonny Med. ANS Arab Heavy
come from a wide range of
industry sources including Duri
major oil companies, refin- Shengli
Heavy Belayim
ers, and producing country
22 API Maya
governments. They gener-
ally provide good approxi- Bachaquero
mations of the characteris- Boscan
tics of the individual crude
oil streams, and if the quality of a grade is known to have changed significantly since
the test that is shown, this is usually noted in the profile of the crude oil.
As an introduction to the following discussion of specific crude oil character-
istics, all grades can be defined in terms of a handful of broad categories, depend-
ing mainly on their gravity and sulfur content. Crude oils are usually thought of
as ranging from light to heavy in gravity and sweet or low-sulfur to sour or high-
sulfur. These two continuums or parameters define the broad categories into
which all crude oils tend to fall. The gravity of crude oils is typically measured in
terms of a scale set by the American Petroleum Institute, in which lighter grades are des-
ignated by higher values. Sulfur content is usually measured in the percent by weight
that occurs in the oil, with higher values indicating more sulfur. Other key characteris-
tics for sweet grades include their pour point, or the temperature at which they begin to
flow readily. High naphthenic content, which is most important in the naphtha fractions,
is a critical determinant of the gasoline-manufacturing capability of a crude oil. Similarly,
high paraffinic content is critical for use of naphtha in petrochemical manufacturing.
The matrix above shows the broad categories of crude oil types and repre-
sentative grades within each category. There are no extremely light, high-sulfur
grades, and relatively few heavy, low-sulfur grades. Thus, Arab Light is only
described as a light crude oil in reference to other sour grades, not in reference
to the much lighter low-sulfur or medium-sulfur grades. These broad categories
provide useful boundaries or groupings for comparing streams. Comparisons of
specific crude oil characteristics between individual grades that fall in different categories
are generally less useful than comparisons between more similar supplies within the
same general group. Refiners are also in practice more likely to evaluate the relative mer-
its of similar types of crude oils because of the basic preferences of their plants for sweet
or sour grades or light or heavy grades.
How To Read A Crude Oil Assay

Beyond the broad distinctions provided by measures of crude oil gravity and
sulfur content, there are a host of other tests that apply to both the raw or whole
crude oil and to the various cuts of refined product that can be separated through
straight atmospheric distillation. The characteristics of these various refined fractions
provide good indications of their suitability for use as finished products or as feedstocks
for secondary refining processes.
Among the most important tests of the raw crude oil are those for pour point
and viscosity. Both provide indications of how easy the crude oil is to handle and
refine. As mentioned above, the pour point is the temperature at which the grade pours
easily. Grades that are high in wax, such as Libyan Sarir, Angolan Cabinda, and
Indonesian Minas (see pH155,H33,H125), have relatively high pour points because the
wax in them tends to solidify at atmospheric temperatures, making them more difficult
to handle both in pipelines and on ships. Viscosity is a measure of how well an oil flows
above its pour point. At higher temperatures, crude oils tend to flow more easily, and
hence their viscosity declines. There are two basic parameters in measuring viscosity: the
temperature of the measurement, and the viscosity index. There are five main scales for
measuring viscosity: the kinematic scale used in most of the following assays, which uses
units known as centistokes and is the most universally recognized, and the Redwood
(UK), Engler (Europe), and two Saybolt (US) scales. In all cases, higher viscosity read-
ings indicate more resistance to flow.
Other important specifications of the raw crude oil include its volatility, mea-
sured by a test known as Reid vapor pressure; its acidity and toxicity, which can
be measured by hydrogen sulfide content; total acid number; and other tests.
These characteristics also have a direct effect on the handling and refining char-
acteristics of the crude oil. RVP is usually measured in pounds per square inch at 100
degrees Fahrenheit, with higher values indicating greater volatility or a greater tendency
to vaporize. RVP tends to be relatively low in most crude oils except the lightest ones or
some condensates. Hydrogen sulfide is typically measured in parts per million, and it can
be extremely dangerous at higher levels because it is poisonous to humans and its acid-
ity makes it highly corrosive, requiring special handling procedures and equipment.
The most important test of a crude oil beyond the measuring of its gravity and
sulfur content is atmospheric distillation, which indicates the yields of various
refined products at specific temperature ranges or cut points. Lighter-gravity
grades always produce larger shares of light products, but the atmospheric dis-
tillation test indicates the specific shares of individual light products that a crude
oil yields. It also allows further testing of the characteristics of the individual products
that can be generated from a specific crude oil, which is a key part of the assay. The
yield of products can be measured in terms of volume or weight, which provide slight-
ly different results. As the heat increases, the lighter products boil off, with liquefied
petroleum gases vaporizing at the lowest temperatures, followed by gasoline, naphthas,
kerosine, and gas oils, which are the heaviest distillates. The oil that remains after the
distillation process, usually at temperatures above 350-380 degrees centigrade, is known
as residue. The cut points for these various products can vary depending on the specif-
ic test, and there may be more fractions broken off, but they still usually fall into these
same general categories.
Gasoline
Each of the individual products broken out through distillation has key spec-
ifications that determine its potential value as a finished product or a feedstock.
Distillation rarely produces much product that can be considered finished gaso-
line because further processing through reformers and other units is usually
needed. But the lightest naphtha fractions of most grades are often used directly
in the gasoline pool. For these gasoline fractions, the most important character-
istic is octane, which measures the tendency of the fuel to ignite prematurely in the
combustion process, causing the engine of the vehicle that is burning the fuel to knock
and operate inefficiently. The higher the octane number, the less the fuel is prone to
knocking. Two scales are usually used: research octane and motor octane. The research
octane number (RON) of most of the atmospheric gasoline or light naphtha fractions in
the crude oil assays are generally somewhat below the usual commercial standard of 80-
100 octane, and thus require the blending in of octane-boosters to meet these standards.
Refining processes, such as naphtha reforming and alkylation, and additives, such as lead
and MTBE, are commonly used to raise octane levels.
Naphtha
The key characteristics of naphtha that determine its suitability for either
gasoline manufacturing or for use as a petrochemical feedstock are the relative
quantities of three basic types of hydrocarbons: paraffins, naphthenes, and aro-
matics. Aromatics generally have high octane values and are good for making gasoline,
and naphthenes can be readily converted to aromatics through reforming. Naphthas that
are rich in these two hydrocarbons, with a combined content of 40% or more, are usu-
ally good for making gasoline and are sometimes referred to as high N+A naphtha. For
example, the naphtha cut from a gasoline-rich grade such as Bonny Light has an
extremely high N+A of 67% by weight (see pH183). Paraffins can also be converted to
higher-octane hydrocarbons through reforming, but less efficiently than naphthenes.
Naphthas that are highly paraffinic are often more desirable as feedstocks for petro-
chemical manufacturing, where they are used for cracking into ethylene, a basic build-
ing block for more specialized petrochemicals.
Kerosine
Kerosine is the lightest of the middle distillates, and it plays a dual role as a
blendstock for heavier gas oil fractions and as a fuel in its own right. As jet fuel,
its key characteristics are its sulfur content, smoke point, and freezing point. Due to the
extreme cold of high altitudes, commercial jet fuel requires kerosines that have freezing
points of -40 degrees centigrade or lower. The sulfur content is usually 0.3% or less
depending on the specific commercial specification. These same characteristics are also
valuable when it is used as a blendstock to enhance the cold-weather properties of gas
oil. As a fuel for home heating or cooking, which is its most common use in Asia, it does
not need to meet such high specifications.
Gas Oil
For gas oil, key characteristics include its cetane index, sulfur content, and
viscosity. Cetane, like octane, is a measure of the efficiency of gas oil as a fuel for
diesel engines. It measures the ability of the fuel to self-ignite under pressure, with
higher values indicating better quality. Most commercial diesel fuels require a cetane
index of at least 40-45, with the best-quality fuels at 50 or above. Kerosines used for
blending into diesel are usually at 50 or more.
Sulfur content is a critical environmental specification for gas oil, and specifi-
cations are being tightened by new regulations in many markets. Thus, standards
for sulfur content vary regionally. Typical specifications range from 0.3% or more in
many developing countries to as low as 0.05% for diesel fuel in the US and the European
Union. Japan is moving to a similarly tight specification in 1997, and some other Asian
countries are not far behind. As described above in relation to the characteristics of whole
crude oil, viscosity measures the ability of the fuel to flow at different temperatures,
which is critical both for its handling and as an indication of how suitable it is for upgrad-
ing or how easily it can burn. Cloud point is another key characteristic of middle distil-
lates, and it is especially critical for diesel fuel because it indicates the temperature at
which paraffins begin to crystalize in the fuel, potentially clogging engine filters. Diesel
fuels usual commercial maximum cloud point is about 10 degrees Fahrenheit.
Residue
Viscosity and sulfur content are among the most important specifications for
atmospheric residue. To be used as fuel, most residue must be heated and some-
times blended with other oils to improve its handling characteristics. Viscosity
standards for high-sulfur residual fuel vary from 380-420 centistokes in Europe and the
Mideast to 180 centistokes in Singapore. Some grades, such as Asian low-sulfur waxy
residual fuel, have extremely high pour points in excess of 100 degrees Fahrenheit (37.8
degrees centigrade). Sulfur content also varies regionally, with high-sulfur fuels in the US
starting above 1%, while in Europe, the low-sulfur fuel grade is 1%, and high-sulfur is
3.5%. As indicated in the earlier section on netback calculations, blending is often
required to meet the commercial fuel oil specifications for sulfur content.
Other characteristics also help a refiner to determine whether the residue is
suitable for upgrading, asphalt manufacturing, or other uses. High asphaltene con-
tent is an indication that the residue is likely to be a good feedstock for making asphalt
because it has good binding characteristics, but an abundance of asphaltene can make
for an undesirable fuel. For example, Mexican Maya produces residue with a high
asphaltene content of 13.8% (see pH173). Metals content is a key obstacle to upgrading
processes, especially to cracking technologies that rely on catalysts. In addition, residues
with relatively high levels of the metals vanadium and nickel can pose problems as boil-
er fuels. The Conradson carbon residue test provides an indication of how much coke a
residue produces in the coking process, with lower values generally considered more
attractive because they imply a higher yield of light products. The aniline point is anoth-
er measure of cracking capabilities, with a higher value indicating greater potential for
producing light products.
Choosing A Crude Oil

In taking this wide range of quality considerations into account, a refiner
must also evaluate transportation alternatives and the price dynamics of the mar-
ket before deciding the best grades for making the slate of products that are
required downstream. With over 100 crude oils in international trade, the choic-
es can be quite daunting, as indicated by the section on crude oil profiles (see
Chapter H). In practice, though, refiners can often be quite conservative in their
choices of crude oil feedstocks. This caution derives from a combination of factors.
Refineries generally use a few particular grades of crude oil, which creates a natural bias
in favor of these grades. The complex quality of the grades and the refining process also
means that a new grade can produce unexpected results. Logistical considerations can
also create serious obstacles. It is often safer, then, to stick with familiar grades rather
than experiment. The tables in Chapter G of the reference section outlining crude oil
contracts by company and US crude oil imports by company show that refiners vary con-
siderably in terms of the diversity of crude oils that they rely upon. However, refiners
with greater upgrading capability can generally handle a wider variety of grades because
of their greater flexibility. Simple refineries tend to be biased in favor of light, sweet
grades, while more complex plants can handle heavier, sour oils as well as the higher-
quality grades.
Glossary Of Terms
API gravity. A measure of the weight of hydrocarbons according to a scale established
by the American Petroleum Institute. Crudes with higher values are lighter and tend
to produce larger volumes of high-value lighter products in atmospheric distillation,
which makes them relatively more valuable. Crudes that are lower on the API scale
tend conversely to be less highly valued because they produce smaller yields of
lighter products.
assay. A laboratory assessment of the characteristics of a crude oil that help determine
its market value and refining capabilities. Assays of some kind are usually required as
part of all crude oil sales.
atmospheric distillation. The primary phase of all refining in which crude oil or other
raw feedstock is boiled and the vapors are collected and condensed to create basic
petroleum products.
backwardation. A relationship between prices in which the cost of prompt, immediately

available supplies exceeds the price of volumes available in the future. Oil markets
have been in backwardation for much of 1995 and 1996.
benchmark crude. A crude that is traded regularly enough in the spot market that its
price quotes are relied upon by sellers of other crudes as a reference point for set-
ting term or spot prices. Brent, West Texas Intermediate, and Dubai are all bench-
mark crudes.
Brent market. A widely traded group of spot, forward, and futures markets in North Sea
Brent crude that emerged in the early 1980s. They are used as a key source of inter-
national oil price risk management and as a benchmark for crude oil pricing under
both term and spot transactions. Forward trading extends several months ahead with
supplies becoming wet at least 15 days prior to loading. A parallel futures market
in Brent also exists on Londons International Petroleum Exchange.
bunker fuel. Oil consumed as fuel by ships usually residual fuel oil but sometimes
diesel.
CFD. See contract for differences.
catalytic cracking (cat cracking). A secondary refinery upgrading process that converts
heavy processed feedstocks such as vacuum gas oil into lighter products such as
gasoline by passing the feedstock over a heated catalyst in order to break down, or
crack, the heavy hydrocarbons into lighter ones.
cetane number. A measure of the ignition quality of diesel fuel that indicates the ten-
dency of the oil to ignite spontaneously under pressure, which is a desired charac-
teristic for diesel engines but not for gasoline engines.
c.i.f. (cost, insurance, and freight). A price that covers delivery to a specified destination and
insurance for that transportation. If insurance is not included it is referred to as C&F.
coker. A deep-conversion refinery unit that cracks feedstock severely at high tempera-
tures. It takes low-quality residue and transforms it into light products and petroleum
coke, completely destroying the resid.
con-carbon number (conradson carbon or CCR). A measure of the amount of unwant-

ed carbon produced in the refining process, with higher values indicating a less desir-
able feedstock.
condensates. Liquid hydrocarbons that are produced in conjunction with natural gas.
They are chemically more complex than liquefied petroleum gases and are sometimes
similar to crude oil or naphtha.
contango. The reverse of backwardation. A relationship between prices in which

prompt, immediately available oil sells at discount to future supplies. Oil markets
were in contango during most of the first half of 1990.
contract for differences (CFD). A financial arrangement used in swaps and other
financial dealings in which the arithmetic difference between two similar but oppo-
site transactions is exchanged rather than the total amounts involved. The term CFD
is used especially in oil to refer to these types of price swaps in the short-term Brent
crude market, which provide a way to hedge the difference in price between spot
supplies known as dated and first-month forward supplies known as 15-day.
cracked residue. The residual oil that is left over after the cracking process. Usually
only suitable for use as residual fuel oil or as feed for a coker. (See cracker.)
cracker. An upgrading unit that converts heavier oils into light products by means of a
catalyst (a catalytic or cat cracker) or by means of adding hydrogen in the presence
of a catalyst (a hydro-cracker).
crack spread. A set of futures market transactions that attempts to simulate the com-
mercial position of a refiner as a buyer of crude and a seller of refined products. The
purpose is to duplicate the profit margin that exists in refining. The most popular
crack spread on Nymex is known as the 3-2-1, or the purchase of three crude con-
tracts against the sale of two gasoline contracts and one heating oil contract. This rela-
tionship may be reversed in winter when heating oil is in greatest demand.
crude oil. Petroleum in its raw state as it emerges from the ground with only minor pro-
cessing to remove associated natural gas and gas liquids. This processing is usually
done at or near the production site. Some synthetic oils that are produced from tar
sands, extra heavy oils, or types of shale are refined like crude oil. Condensates are
also very similar to crude oil, but usually lighter, and they are often refined like them.
deadweight tonnage. A rough measure of the carrying capacity of a tanker.
demurrage. An extra payment due to a ship owner if a tanker is forced to wait before
loading or discharging.
derivatives market. A market where the value of the contract being traded is derived
from an underlying commodity such as crude oil. These markets typically involve for-
ward purchases or sales and can take the form of futures markets or over-the-counter
swaps and options.
Dubai market. A widely traded international forward market in Mideast Dubai crude
that emerged in the mid-1980s and is used as both a risk-management tool and a
benchmark for crude oil pricing East of Suez. Forward trading usually extends for two
or three months. Formal futures trading contracts have been attempted unsuccessful-
ly by Singapores Simex and Londons IPE (see entries).
f.o.b. (free on board). A price that only covers the cost of the material and the loading
of it onto a ship or into a pipeline prior to transportation. Transportation and insur-
ance are the responsibility of the buyer.
formula price. A price for crude oil, usually in a term contract, that is determined by a
specified relationship to a benchmark crude or a group of benchmark crudes or prod-
ucts. The formula also usually specifies the time lag from the point of loading at
which the price is determined, the exact average to be used, and other variables.
forward market. An informal market that trades in the future delivery of a specific type
of oil, with only some transactions resulting in physical delivery. Unlike a futures mar-
ket, regulation is much less strict, and there is no clearinghouse or margin payments.
These conditions tend to restrict trading to large oil companies and financial entities.
(See Brent market and Dubai market.)
futures market. A formal exchange that trades contracts for the delivery of a specific
type of oil in future months. Only a very small volume results in physical delivery,
and in some markets, there is only cash settlement. The presence of a clearinghouse
and regular daily margin payments on all positions ensures the financial integrity of
the operation at all times. The market is open to all participants.
gas oil. A heavier middle-distillate product that is produced at higher temperatures than
kerosine and lower temperatures than residual fuel. Usually used as diesel fuel or
home heating oil.
gasoline. A light distillate product that is usually produced through the reforming of
naphtha, cracking of heavier products, and blending. It is the goal of most secondary
refinery upgrading technologies. Used for internal combustion engines.
hedge. A position in a derivatives market that is designed to reduce price risk from a
physical transaction. For example, the sale of a derivative in anticipation of future
sales of physical supplies of oil or gas provides protection against possible declines
in the price of the physical commodity.
hydro-cracking. A secondary refinery upgrading process similar to catalytic cracking

that converts heavy processed feedstocks such as vacuum gas oil into lighter prod-
ucts such as gas oil, kerosine, and gasoline by passing the feedstock over a heated
catalyst in the presence of hydrogen in order to break down, or crack, the heavy
hydrocarbons into lighter ones and add carbon molecules to make the output lighter.
IPE. International Petroleum Exchange. A London oil futures market trading gas oil and
Brent crude as well as options.
kerosine. A middle-distillate fraction that is produced at higher temperatures than naph-

tha and lower temperatures than gas oil. It is usually used as jet turbine fuel and
sometimes for domestic cooking, heating, and lighting.
light naphtha. A category of naphtha that can be rich in paraffins and is used for eth-
ylene cracking to make petrochemicals. However, if it is rich in aromatics and naph-
thenes it is used for reforming into gasoline or as blendstock for making gasoline.
liquefied petroleum gas (LPG). A class of light hydrocarbons that are gaseous at
atmospheric pressure but can be liquefied easily under pressure. They are produced
as part of the refining process and also in conjunction with the production of crude
oil and natural gas. They can be used both as a fuel and as feedstocks for making
petrochemicals and other products. The two types are propane and butane.
LPG. See liquefied petroleum gas.
liquidity. In the oil market context, this refers to the volume of trading activity and
diversity of participants in a particular arena. Greater liquidity allows trades to be exe-
cuted quickly and easily at a uniform price; a lack of liquidity tends to prevent some
interested participants from finding a buyer or seller at a given time. High-volume oil
futures markets are the most liquid.
margin. For a refiner, the operating profit as measured by the difference between
refined product prices and crude feedstock costs.
marker crude. A widely traded crude that is used as a reference point for setting the
prices of other crudes (see benchmark crude).
metals content. A measure of the content of nickel, vanadium, iron, or other metals.
High metals content can affect the fuel curning or upgrading characteristics of a crude
or residue.
naphtha. One of the lightest cuts of the atmospheric distillation process that is vapor-
ized at a temperature range of 5-165 degrees centigrade. Naphtha can be used as a
feedstock for both gasoline manufacturing and petrochemicals depending on its qual-
ity, with light or paraffinic naphtha usually used in petrochemical plants and heavy
or N+A naphtha usually used in reformers at refineries to make gasoline.
natural gas. Naturally occurring hydrocarbon gas that is predominantly methane and is
produced both in conduction with crude oil or separately. The methane, or dry gas,
can occur with varying amounts of natural gas liquids, mainly ethane, pentane, and
LPG, as well as condensates. These liquids are typically stripped from the methane as
part of the production process. While methane is a highly desirable fuel, natural gas
liquids can also be used as feedstocks for petrochemicals and other refining process-
es as well as for fuels.
natural gas liquids (NGLs). The slightly heavier hydrocarbons produced with natural
gas such as ethane, propane, butane, and pentane, or natural gasoline. These hydro-
carbons are usually liquid or can be easily turned into liquids under moderate pres-
sure. They can be used both as fuels and feedstocks. LPG is one of the main cate-
gories of NGLs.
netback. A calculation of the value obtained from the processing of a crude oil. It is
derived from the yield of the refined products, prevailing refined product prices, and
crude oil processing and transportation costs. It allows the comparison of the value
of a crude to a refiner with the market price for the crude oil.
NGLs. See natural gas liquids.
Nymex. New York Mercantile Exchange. Futures market trading light crude oil (West
Texas Intermediate), unleaded gasoline, heating oil, propane, natural gas, and
options.
octane rating. A quality specification for gasoline that measures its tendency to ignite
spontaneously creating engine knock and causing the engine to operate less effi-
ciently. Two basic rating systems exist: the research octane number, or RON, and the
motor octane number, or MON. In both cases a higher number means better quality.
Lead has traditionally been used as a low-cost additive to raise the octane number of
gasoline, but it has been banned in many countries for health reasons, requiring the
use of other high-octane additives.
option. A derivative instrument that provides the right to buy or sell a commodity at a
given price sometime in the future. The buyer then can choose whether or not to
exercise the option depending on market conditions and investment strategy.
over-the-counter instrument. A derivative or other financial instrument that is cus-

tomized for the individual buyer as opposed to being traded on a uniform basis in
an organized exchange such as a futures market.
pour point. The temperature at which a crude oil or refined product such as residual
fuel flows. Some crudes and residual fuels must be heated in order to remain liquid,
which is expressed as a high pour point, meaning that they can be difficult to han-
dle and may require heated storage or tankers.
paper barrels. A generic term for oil that is bought and sold in forward or futures mar-
kets; thus, it involves commitments to make future deliveries rather than exchange of
actual physical supplies (see wet barrels).
reformer, reforming. In refining this usually refers to the process of catalytic reform-
ing in a reformer unit, which uses heat and pressure in the presence of catalysts to
convert naphtha feedstock into higher octane gasoline blending components or refor-
mate. This is done mainly by converting lower-octane naphthenes into higher-octane
aromatics.
Reid vapor pressure (RVP). A measure of the volatility of petroleum products that is
done by testing vapor pressure at 100 degrees Fahrenheit in pounds/square inch.
Simex. Singapore International Monetary Exchange. A futures market that trades oil con-
tracts in high-sulfur residual fuel as well as the IPE Brent contract.
sour crude. Usually a crude oil that has a sulfur content that is greater than 0.5%. This
higher sulfur content affects the quality of the resulting refined products and some-
times means extra processing is required. It is referred to as sour because of the
unpleasant smell of the sulfur.
spot market. A market for immediately available single cargoes or other small lots of
physical crude oil or refined petroleum products.
spread. A relationship between two prices, either for the same grade of oil at different
time periods or for different grades of oil. These price relationships lie at the heart of
much current oil trading since they tend to be less volatile than absolute movements
in prices. Spreads also define the relative trends of prices between different markets
and over time. (See backwardation and contango.)
straight-run. A term used to describe any refined product that emerges from the initial
refinery distillation of crude oil.
straight-run gas oil. A middle distillate that is produced from refinery distillation at
temperatures usually ranging from 200-350 degrees centigrade. It usually is used for
heating oil or diesel fuel.
straight-run residual oil or residue. The remaining portion of the crude oil feedstock
that does not vaporize in the refinery distillation process. This product can be used
directly as a boiler fuel, or it can be used as feedstock for vacuum distillation units.
sulfur content. A measure of the presence of sulfur in crude oil, which is a key deter-
minant of quality. Sulfur content is measured as the percent of sulfur by weight in the
crude. Crudes that are high in sulfur are referred to as sour crudes, and those that are
low in sulfur are referred to as sweet crudes.
swap. A financial risk-management tool in which two parties exchange differing market
risk exposures in order to be assured of a fixed or predictable price, usually for an
extended period of years. It may also involve short-term instruments in which risk is
managed by the swaps provider rather than absorbed by a counterpart.
sweet crude. Usually a crude oil that has a sulfur content that is 0.5% or less by weight.
Lower sulfur content improves the quality of the resulting refined products, and sweet
crudes does not require as much processing as sour crudes. They are referred to as
sweet because of the absence of an unpleasant sulfur smell.
term contract. A sales contract that specifies set price terms for the purchase of sever-
al cargoes of oil over a particular period in contrast to a spot transaction, which
involves only a single cargo. Pricing, volume, and timing can all be quite flexible,
with the essence being a continuing, regularized commercial relationship.
transparency. In relation to a market, this refers to the tendency for price signals and
other market information to be easily visible to all participants and for market pres-
sures to be quickly reflected in price levels.
ullage. The unoccupied space in a storage tank that is still available for use.
vacuum distillation. A secondary refining process in which straight-run residue is dis-

tilled in a vacuum in order to separate more light hydrocarbons than through atmos-
pheric distillation. The output of the process is vacuum gas oil, which can be used as
feedstock for cracking units, and vacuum bottoms or residue, which are usually used
as boiler fuel.
vacuum gas oil (VGO). The lighter product manufactured from the secondary refining
process known as vacuum distillation. Vacuum gas oil is a preferred feedstock for use
in cracking units to produce gasoline and gas oil.
viscosity. A measure of the ability of a liquid such as crude oil to flow. Viscosity is mea-
sured at a wide range of temperatures according to several different scales. The main
scales are Kinematic, Redwood, Engler, and Saybolt. This is a critical characteristic of
crude oil and residual fuel because it affects its handling.
VLCC (very large crude carrier). A class of tanker with deadweight tonnage, or carrying
capacity, of 200,000 tons or more. This is the usual size of tanker used to carry
Mideast and other grades on long-haul voyages. Some ports and key canals such as
Panama and Suez cannot handle these ships when fully laden.
West Texas Intermediate market. The US spot crude oil market for West Texas
Intermediate crude, which provides the foundation for the actively traded New York
Mercantile Exchange light sweet crude futures contract. The main delivery points for
spot trading are Cushing, Oklahoma, the base for the Nymex crude contract, and
Midland, Texas.
wet barrels. A term that distinguishes the trading of physical oil supplies from the for-
ward or futures transactions. Spot markets typically involve wet barrel transactions
that result in the delivery of oil.
Reference Section:
Profiles, Trade, And Prices
Table of Contents
F. Country Profiles How Countries Market Their Crude Oil . . . . . . . . . . . .F1

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F1
Country Profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F2
G. Term Contracts And Trade Flows By Country And Company . . . . . . . . .G1

PIWs Term Deals By Producing Nation . . . . . . . . . . . . . . . . . . . . . . . . .G3
PIWs Term Deals By Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .G15
US Crude Oil Imports By Company And Country Of Origin, 1991-95 . . .G33
US Crude Oil Imports By Country Of Origin And Company, 1991-95 . . .G40
H. Crude Oil Profiles A View Of the Market Through Each Grade . . . . . .H1
The Crude Oils And Their Key Characteristics . . . . . . . . . . . . . . . . . . . .H3
Crude Oil Streams Ranked And Indexed By Gravity . . . . . . . . . . . . . . . .H7
Crude Oil Streams Ranked And Indexed By Sulfur Content . . . . . . . . . . .H8
Crude Oil Streams Ranked And Indexed By Volume . . . . . . . . . . . . . . . .H9
Crude Oil Streams Indexed By Name . . . . . . . . . . . . . . . . . . . . . . . . . .H11
Crude Oil Profiles (Alphabetical By Country) . . . . . . . . . . . . . . . . . . . . .H13
I. Prices Spot And Term Contract Prices For Key Grades . . . . . . . . . . . .I1
Key Crude Oil Benchmarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .I3
Spot Assessments For Various Crude Oil Grades . . . . . . . . . . . . . . . . . . .I5
PIW Scorecard Costs To Refiners Of Key Formula Priced Crude Oils
In Primary World Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .I11
PIW Scorecard Term Contract Prices At Port Of Loading . . . . . . . . . .I17
Country Profiles
Table of Contents
How Countries Market Their Crude Oil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F1

Country Profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F2
Abu Dhabi . . . . . . . . . . . . . . . . . . .F2 Kuwait . . . . . . . . . . . . . . . . . . . . .F19

Algeria . . . . . . . . . . . . . . . . . . . . . .F3 Libya . . . . . . . . . . . . . . . . . . . . . .F20
Angola . . . . . . . . . . . . . . . . . . . . . .F4 Malaysia . . . . . . . . . . . . . . . . . . .F21
Argentina . . . . . . . . . . . . . . . . . . . .F5 Mexico . . . . . . . . . . . . . . . . . . . . .F22
Australia . . . . . . . . . . . . . . . . . . . .F5 Neutral Zone . . . . . . . . . . . . . . . .F23
Brunei . . . . . . . . . . . . . . . . . . . . . .F6 Nigeria . . . . . . . . . . . . . . . . . . . . .F24
Cameroon . . . . . . . . . . . . . . . . . . .F7 Norway . . . . . . . . . . . . . . . . . . . .F25
Canada . . . . . . . . . . . . . . . . . . . . .F7 Oman . . . . . . . . . . . . . . . . . . . . . .F26
China . . . . . . . . . . . . . . . . . . . . . . .F9 Papua New Guinea . . . . . . . . . . .F27
Colombia . . . . . . . . . . . . . . . . . . .F10 Qatar . . . . . . . . . . . . . . . . . . . . . .F28
Congo . . . . . . . . . . . . . . . . . . . . .F11 Russia . . . . . . . . . . . . . . . . . . . . .F28
Dubai . . . . . . . . . . . . . . . . . . . . . .F12 Saudi Arabia . . . . . . . . . . . . . . . .F30
Ecuador . . . . . . . . . . . . . . . . . . . .F13 Syria . . . . . . . . . . . . . . . . . . . . . .F32
Egypt . . . . . . . . . . . . . . . . . . . . . .F14 United Kingdom . . . . . . . . . . . . . .F33
Gabon . . . . . . . . . . . . . . . . . . . . .F15 United States . . . . . . . . . . . . . . . .F34
Indonesia . . . . . . . . . . . . . . . . . . .F15 Venezuela . . . . . . . . . . . . . . . . . .F35
Iran . . . . . . . . . . . . . . . . . . . . . . .F17 Vietnam . . . . . . . . . . . . . . . . . . . .F37
Iraq . . . . . . . . . . . . . . . . . . . . . . .F18 Yemen . . . . . . . . . . . . . . . . . . . . .F37
CRUDE OIL HANDBOOK PIW © F1
COUNTRY PROFILES
How Countries Market Their Crude Oil

The worlds crude oil exporting countries are a broad and diverse group, each
with its own unique market circumstances and objectives. Of the almost a dozen
countries in the group that exported 1-million barrels a day or more of crude oil
in 1996, only seven are Opec members, and a few are advanced industrial
nations. This chapter delves into the complex factors that lie behind these wide-
ly differing individual circumstances and the impact that they have had on gov-
ernment sales strategies. The chapter is broken down into profiles of the 36 most
important crude oil exporting countries in the world, organized alphabetically for
quick reference. Specific details are provided that go beyond the earlier discussions of
international spot and term-contract markets, but the descriptions have been kept brief,
in part because of the wealth of further information that is available on individual crude
oils (see Chapter H).
TOP 10 CRUDE OIL EXPORTING COUNTRIES IN 1996
Saudi Arabia
Norway
Iran (In 1,000 b/d)
Russia
Venezuela
UAE
Output
Nigeria
UK Exports
Mexico
Canada
0 1,500 3,000 4,500 6,000 7,500 9,000
Russian exports to other former Soviet Republics and elsewhere.
Export data for 1995 indicate some important shifts in the relative volume
positions of the worlds crude oil exporters. Both Norway and Venezuela
advanced in the rankings, and Russia recaptured some lost ground in its exports
to countries outside of the ex-USSR. The UK and Canada also rose strongly. But the
United Arab Emirates fell behind due to sagging Dubai field flows, and Libya slipped in
the rankings despite relatively stable exports. Saudi Arabia continues to stand head and
shoulders above the rest of the field.
F2 PIW © CRUDE OIL HANDBOOK
The table below shows the crude oil exports and production in 1996 and 1995
for the 30 largest exporting nations. It provides a useful backdrop for the dis-
cussions of the individual countries that follow.
TOP 30 CRUDE OIL EXPORTERS, 1995-96 (In 1,000 b/d)
Exports* Output Exports* Output

Rank Country 1996 1995 1996 1995 Rank Country 1996 1995 1996 1995
1 Saudi Arabia 6,520 6,550 7,975 8,018 16 Angola 650 610 679 640
2 Norway 2,825 2,525 3,082 2,781 17 Neutral Zone 480 425 480 425
3 Iran 2,700 2,670 3,666 3,608 18 Qatar 450 400 473 449
4 Russia 2,425 2,420 5,985 5,981 19 Egypt 435 450 893 923
5 Venezuela 2,000 1,818 2,980 2,710 20 China 375 300 3,174 2,996
6 UAE 1,950 1,965 2,201 2,193 21 Syria 360 370 585 598
7 Nigeria 1,800 1,750 2,030 1,876 22 Colombia 355 320 623 586
8 UK 1,600 1,618 2,445 2,417 23 Gabon 340 315 365 341
9 Mexico 1,540 1,350 2,857 2,617 24 Argentina 300 200 770 712
10 Canada 1,200 1,163 2,035 1,992 25 Yemen 295 275 350 335
11 Libya 1,125 1,115 1,400 1,390 26 Malaysia 250 250 655 660
12 Kuwait 975 1000 1,820 1,850 27 Ecuador 250 250 395 395
13 Indonesia 870 805 1,363 1,358 28 Australia 200 180 551 545
14 Oman 815 785 882 855 29 Brunei 170 170 175 175
15 Algeria 660 625 809 766 30 Congo 165 170 180 185
Note: Data for 1996 based on first 10 months. *Includes condensates for Algeria and Indonesia. Russian exports to
other former Soviet republics and elsewhere.
ABU DHABI
The emirate of Abu Dhabi is the largest oil producer in the United Arab Emirates
confederation, and it has one of the widest ranges of crude oil grades among
Mideast exporters. Characteristics common to all of the crudes are their medium-to-
light weight for regional oils and their relatively low sul-
fur content, at least by Mideast standards. The highest-
quality grades, onshore Murban and offshore Lower
Zakum and Umm Shaif, are especially prized among
Asian buyers because of their high yields of top-quality
middle distillates (see pH13-H26). Far East markets have
become so reliant on Abu Dhabi crude oil that less then
30,000 b/d heads elsewhere for a sustained period. Back in
1994, over 100,000 b/d consistently flowed to Mediterranean refiners. The high kerosine
yields of Abu Dhabi grades are especially valuable in autumn and early winter for Japanese
and South Korean refiners, when they are building up stocks for the winter heating season.
Marketing is handled by state Abu Dhabi National Oil Co., which controls 60%
of Abu Dhabis crude oil production, and by a mix of foreign equity producers,
which hold the remaining 40%. Adnoc moves most barrels on either a govern-
ment-to-government or term-contract basis, while the equity companies tend to
sell more spot barrels. Major oil companies, Japanese consortium Jodco, and South
Korean refiners dominate the purchase of Upper and Lower Zakum, Murban, and Umm
Shaif exports, while Frances Total shares marketing of Abu Bukhoosh with Japan
Indonesia Petroleum. Besides a long list of Japanese and Korean buyers, other pur-
chasers include Bangladesh, India, Thailand, Sri Lanka, Pakistan, and Taiwan. Jodco,
Kanematsu, Mobil, Exxon, Royal Dutch/Shell, and British Petroleum also market Abu
Dhabi grades to Japanese buyers.
Pricing for Adnocs term contracts is on a monthly retroactive basis, and indi-
vidual crude oil streams are loosely aligned with spot Dubai quotes from the pre-
vious month, with a premium over the Mideast benchmark grade that reflects the high-
er quality of the Abu Dhabi oils. The term-contract sales of equity producers are usual-
ly tied directly to the Adnoc prices, as are most spot sales.
Destinations of exports vary according to competing grades and time of year,
but Japan has come to dominate purchases. Refiners from South Korea, Taiwan, and
Singapore are also active buyers. Japans thirst for Abu Dhabi grades has picked up with
higher runs at its relatively unsophisticated refineries in recent years and the countrys
growing demand for light products.
ALGERIA
Unlike most other Opec oil producers, Algerias crude oil marketing is not the
primary source of its petroleum export revenue, but it is likely to regain some of
its past importance with growing domestic production. Algeria also exports large
volumes of oil products, condensates, liq-
uefied petroleum gas, and natural gas. In
fact, the countrys foreign sales of con-
densates and refined products, both at
about 300,000-400,000 barrels a day each,
exceed its international crude oil sales,
which typically run at 300,000-350,000
b/d and are mainly of light, sweet Saharan
Blend (see pH27-H32). The high quality of
the crude oil and its large gasoline yield make
it popular among refiners, especially during
the summer. The main markets lie across the
Mediterranean in Italy, France, and southern
Germany, where it competes with Libyan,
Syrian, Tunisian, and Nigerian grades. Small volumes have also found their way to South
Korea and China in recent years. In contrast, Algerian condensate is popular in both the
Americas and Europe for gasoline and petrochemical manufacturing, with US imports for
petrochemical purposes running at over 200,000 b/d.
Despite concerns over potential political upheaval, Algeria has managed to
bring several international oil companies back in, which have been highly suc-
cessful in finding new reserves. This opening has lead to a quiet revolution in the
way Algerian crude oil will be marketed in the future. While most current crude
oil exports are still handled by state Sonatrach, Italys Agip began exporting
50,000 b/d of Saharan Blend on its own account in October 1995 and became the
first foreign producer to do so in over two decades. Next on line, Petro-Canada and
Spanish Cepsa were scheduled to begin selling equity crude oil in mid-1996, while US
independent Anadarko expected to bring 40,000 b/d on stream by December 1996.
Exports tied to Anadarkos 1.5-billion barrel east Algerian fields could climb as high as
300,000 b/d by 1998, which would push crude oil exports back up over 500,000 b/d.
The addition of all this extra Saharan Blend is likely to create an active spot market in
the Mediterranean, and it could possibly emerge as a regional sweet crude oil bench-
mark independent of Brent or Forties.
Algerian crude oil is sold on the basis of formulas that vary slightly among
customers but are all tied to North Sea Brent grade. Saharan Blend prices are usu-
ally at a premium of 50¢ a barrel or so above Brent. Algerian condensate sales are
usually priced on the basis of refined product levels in the US Gulf Coast and Rotterdam.
For both crude oil and condensate, the pricing is usually determined on a cargo-by-cargo
basis even for regular term-contract customers.
ANGOLA
Angolas roughly 650,000 barrels a day in crude oil exports are primarily shipped
to refineries in the Atlantic Basin, although the pull of Asia-Pacific markets has
grown stronger in the early 1990s. Angolan grades enjoy wide popularity
because their quality places them between conventional sweet and sour cate-
gories. Grades such as Cabinda, which encompasses over 50% of Angolas
exports, are used for blending with higher- and lower-quality grades, making
these grades popular for both simple and com-
plex refining systems despite high wax con-
tent. Since 1992, Angola has found an increas-
ingly wide market in the Far East, as Cabinda
has become popular there because of its high
middle-distillate yield. The low sulfur content
of Angolan grades has also made them attrac-
tive for direct burning as boiler fuel by
Japanese utilities. Angolas two other main
export grades are Palanca and Soyo. Molongo
and Takula, sometimes referred to as separate
streams, are simply terminals in the Cabinda
system (see pH33-H38).
Exports, which have risen by about
200,000 b/d since 1993 and are set to climb
further, are handled by both state Sonangol and equity producers mainly
Chevron, Elf Aquitaine, Agip, and Texaco. The crude oils are priced exclusively
off dated Brent, with differentials fluctuating at a discount of between $1 and
$1.75 a barrel under the North Sea marker grade. Aside from barrels that stay
within the downstream systems of equity producers, much of the rest of the oil
finds its way into the spot market, through the equity producers, Sonangol, or
term customers. In fact, Angolan crude oils are some of the worlds most actively trad-
ed spot barrels other than the international benchmarks and Nigerian grades. Reflecting
the popularity of Angolan crude oil and its wide spot trade, almost 15 US companies
imported it in 1995 a list that rivals in length the lists of much larger suppliers such
as Canada, Saudi Arabia, and Venezuela. Some of the larger US buyers in 1995, when
imports totalled 365,000 b/d, include Sun, Coastal, and Phibro.
Sonangol is the single largest marketer of Angolas crude oil, maintaining an
average term customer base of eight to 12 buyers. However, with much of the
increased production being handled by equity producers, regional diversifica-
tion in the marketing of Angolan grades is only likely to intensify. After a one-year
shutdown due to civil war, onshore operator Petrofina has begun marketing up to 30,000
b/d of Soyo crude oil in 1996. Brazils Petrobras also buys 20,000 b/d under a barter
arrangement to pay down debt. Production has managed to increase despite intermittent
flashes of civil unrest tied to the last vestiges of the 21-year-old civil war.
ARGENTINA
Argentina has begun to emerge as a small but increasingly visible exporter to the
Latin American and US markets. Argentine crude oil exports to the US topped
45,000 barrels a day in 1995, although they should
begin to drop back as producers there focus on
nearby developing markets in the southern cone of
South America. Overall crude oil exports were up
over 250,000 b/d in 1995 and were expected to
exceed 300,000 b/d in 1996, as greater use of natur-
al gas within Argentina has made domestic oil
demand grow at a slower pace than new produc-
tion. Far and away its biggest customer, Brazil is pur-
chasing 120,000 b/d, almost 40% of Argentinas exports,
under a series of term-contract and spot purchases. Chile
buys 100,000 b/d mostly through the newly opened
100,000 b/d Transandean pipeline from the prolific Neuquen Basin to the Chilean port
of Concepcion. US imports climbed slightly in 1995 to 47,000 b/d and could hit 60,000
b/d in 1996, with Exxon alone purchasing half the total.
As the countrys production rises, further exports to Chile and beyond are
expected. Far East, US West Coast, and European destinations have already been
broached and could be a precursor to further diversification. Cargoes of Argentine
crude oil have found their way to Spain, Italy, Japan, South Africa, Taiwan, and Canada.
The only possibility of a cut in exports could come from higher domestic refining runs,
as existing capacity exceeds throughputs by almost 200,000 b/d. Grades are purchased
based on a formula tied to either US West Texas Intermediate at Cushing, Oklahoma, or
to dated Brent. Some Brazilian sales contracts are on a dated Brent formula.
The growing domestic role of private oil companies is evident in the output
and export numbers, with over 10 firms producing a total of over 725,000 b/d.
Argentinas privatization of state YPF has created a mini drilling boom and ush-
ered in a host of new potential exporters. Argentina refines less than two-thirds
of its crude oil, and that percentage is dropping. Newly privatized YPF and Argentine
conglomerate Perez Companc produce over 50% of the countrys crude oil and are the
largest exporters of Argentinas four main export grades, Canadon Seco, Escalante,
Medanito, and Rincon. All of these grades are low in sulfur, with Canadon Seco and
Escalante roughly 25-gravity and Medanito and Rincon around 36-gravity (see pH39-H46).
AUSTRALIA
Australia produces roughly 560,000 barrels a day of crude oil and 60,000 b/d of
condensate, but only about 30% of this oil is exported. All sales are by equity pro-
ducers, with Exxon and domestic BHP the dominant sellers. Despite gradual pro-
duction declines since the late 1980s, the offshore Gippsland field and adjacent
Bass Straits fields remain the largest sources of domestic crude oil and account
for about 40% of total output. The high-quality Gippsland grade is sought by
refiners in Japan, the US, and Singapore, as well as in Australia itself (see pH47-
H54). Due to its high light-product yield, it is among the most expensive grades on the
world market, and it is generally more costly than competing grades from Malaysia and
Indonesia. The two equity holders, Exxon and BHP, sell
occasional cargoes of about 650,000 barrels each on the
international market, mostly on a spot basis. The two
companies are spending heavily to increase reserves
through enhanced recovery and bringing on smaller
satellite fields, which are expected to keep output near
200,000 b/d into the next century.
Most of the countrys oil exports come from
expanding output from the Northwest Shelf and
Timor Sea areas, which has helped to offset the
decline of the Bass Straits fields. The Timor Sea fields the older Challis, Jabiru, and
Cassini, along with Skua produce about 65,000 b/d, mostly for export, with BHP a
dominant equity producer.
New fields coming are scheduled to raise Australian production to a peak of
615,000 b/d in 1996, when exports should top the 200,000 b/d mark. The
planned development of the offshore Wanaea/Cossack field on the Northwest
Shelf paid dividends in late 1995, with new production adding 130,000 b/d of
extra-light, low-sulfur crude oil to Australias export menu. Flows from Griffin, also
on the Northwest Shelf, started in 1994, with an expected peak rate of almost 80,000 b/d,
also providing a boost to exports. Beyond 1996, production is likely to drop steadily over
the next decade, except for one more brief uptick in 1999, when the Laminaria field
could add around 75,000 b/d of new output.
Condensate output has not risen as quickly as expected, although the
Northwest Shelf liquefied natural gas project has provided a stable baseload. The
Goodwyn gas/condensate field on the Northwest Shelf started up by 1995 with flows of
60,000 b/d, doubling Northwest Shelf condensate output. Much of this condensate is
being exported to markets in the Far East.
Australia is also a significant petroleum importer, averaging about 360,000
b/d of crude oil, mainly from the Mideast and Indonesia. This complements domes-
tic supplies of light, sweet crude oil and condensate, which are the baseload supply to
Australias sophisticated, gasoline-oriented refining system.
BRUNEI
Bruneis crude oil-marketing policy is clear and uncomplicated. Joint-venture
company Brunei Shell, owned 50/50 by the Shell group and the government,
handles all oil exports. The tiny Southeast Asian sultanate has loosened its pre-
viously strict production ceiling of 150,000 barrels a day for both crude oil and
condensates after temporarily increasing flows during the Gulf war and adding
to its reserve base. Output was about 175,000 b/d in 1995, with Japanese and South
Korean firms the main buyers. Output peaked at over 180,000 b/d during the Gulf crisis
in 1990-91. Japanese and Korean term-contract customers look to the crude oils as secure
baseload supplies outside of the Mideast. Both countries also have increasing needs for
low-sulfur grades, and since slightly more than half of Bruneis production is either light,
low-sulfur crude oil or condensate, customers are usually willing to pay a premium over
other Asian supplies (see pH55-H62).
Brunei sells three grades of crude oil and one of condensate, with prices set
monthly on a retroactive basis, generally in line with top-quality Malaysian pric-
ing levels. Term sales are emphasized over spot
deals, although an increasing level of pricing and
marketing flexibility has been apparent since the
mid-1980s. Brunei Light and Seria Light Export Blend
are the lighter grades, while Champion is the heavy
export crude oil. SLEB is actually just a blend of Brunei
Light and Champion, and a large volume of it goes to
Japan for use as boiler fuel at power plants. Nearly
20,000 b/d of Brunei condensate, mainly from the sul-
tanates liquefied natural gas plant, is sold separately. Exports account for all but about
5,000 b/d of total crude oil and condensate production, with more than 80% sold on a
term-contract basis. Japan, South Korea, Singapore, and Thailand account for over 90%
of all term contract purchases. Spot cargoes also sell into other neighboring countries
such as the Philippines and Taiwan.
CAMEROON
Like most of the smaller West African producers, Cameroon relies heavily on equi-
ty partners to market its crude oil output, which was about 130,000 barrels a day
in 1995. All of the crude oil is produced by
Elf and Shell, with Kole Blend accounting
for the bulk of exports from its output of
110,000 b/d. At 32.5-gravity, Kole is relatively
heavy but low in sulfur, and as a result, sales
have broadened away from past reliance on
US Gulf Coast refiners and toward Far East
outlets. For those refiners that can handle it,
Kole is prized for its wide middle-distillate cut.
The other main grade is heavier 20-gravity
Lokele, which is also low in sulfur and some-
times used for direct burning in power plants
(see pH63-H66).
Prices for Cameroons exports are typ-
ically linked to dated Brent, with Kole hav-
ing increased in value in the past few years due to a worldwide shortage of heavier
low-sulfur grades. Through the first quarter of 1996, spot prices were running at
dated Brent minus 75¢ a barrel. Prices for Lokele are also higher than earlier this decade,
running fairly often at around dated Brent minus $1.45. Pricing is determined on a cargo-
by-cargo basis, and a significant share of exports end up in spot trade. State SNH sells most
of its share under term contracts, but these barrels are often resold into the spot market.
CANADA
The Canadian crude oil-supply system is primarily pipeline-oriented, so its oil
exports are directed almost exclusively at the big US market to the south. The
existing pipeline network has allowed crude oil producers in Western Canada to
export significant volumes to US refiners in the northern states, stretching from
the Great Lakes region to the Pacific. Canada supplied about 1-million barrels a
day of crude oil to the US market in 1995, but
serious pipeline capacity constraints on
most lines are causing diplacements of sales,
and several expansion plans are under con-
sideration. With Canadian supplies available for
export expected to rise in the years ahead and
US requirements growing, there is little doubt
about the need to expand capacity. The key
question is: Which regional markets in the US
should the Canadian producers focus on? The
choices are complex, involving uncertainty over
US and Canadian regional output, imports, and demand. The 1.47-million b/d
Interprovincial Pipe Line, the primary route for exports to the US, has had to frequently
deny access to 20%-40% of requested volumes due to a lack of space. IPL is currently
raising capacity by another 120,000 b/d after quickly using up all of a 170,000 b/d expan-
sion completed in 1995. This latest addition should be completed by late 1996.
The only remaining escape valve for surplus Canadian crude oil is the 290,000
b/d TransMountain Pipeline, which services US Pacific Coast refiners in the Puget
Sound area near Seattle, Washington. These US refiners had been taking as much
as 110,000 b/d of Canadian crude oil in 1995, up sharply from the 80,000 b/d pur-
chased back in 1993. The US West Coast is clearly a last gasp option for most sellers,
as relatively lower crude oil prices there make it an unattractive market for Canadian pro-
ducers. However, the lifting of the ban on US Alaskan North Slope exports in 1996
should help to raise prices for Canadian producers, as ANS will no longer be a captive,
cheap purchase for US West Coast refiners. When Canadian prices have been extremely
low, crude oil has sometimes been exported from Vancouver to the Far East.
Crude oil-short Eastern Canada relies on a combination of pipeline supplies
from the west and imports of about 500,000 b/d from the international market.
But its import dependence should ease by 1998, when crude oil starts flowing
from Newfoundlands Hibernia field. Hibernia is expected to plateau at 125,000 b/d
in 2000, followed soon after by 100,000 b/d of output from nearby Terra Nova. It is not
yet clear if any of this new production will be exported (see pH67-H72).
The refiners in the US Great Lakes region are key importers of Canadas heavy
grades, which Canadian refiners have significant difficulty absorbing them-
selves. About 500,000 b/d of heavy Canadian crude oil is imported by the US, and Great
Lakes refiners Koch, Amoco, and Mobil are among the largest users. The US absorbs
roughly two-thirds of Canadas heavy crude oil output. The countrys higher-quality,
light, sweet grades amount to a little over 400,000 b/d, while light, sour, and synthetic
grades provide about 100,000 b/d each of imports.
While heavy crude oil production holds the greatest potential for growth, US
imports of lighter Canadian grades should also grow when part of a key pipeline
to Eastern Canada is reversed as expected in the last half of the 1990s, allowing
refiners in Ontario to increase their reliance on cheaper international or future
Eastern Canadian supplies at the expense of light, sweet domestic crude oil.
Canada was producing over 2.1-million b/d of crude oil in 1996, and output is likely to
stay at that level or even rise slightly as more pipeline outlets are built to the US. While
exports to the US amounted to 900,000 b/d, Canada also imports about 600,000 b/d from
overseas, with about half of that total coming from the North Sea. This includes volumes
imported for third-party processing in Newfoundland, and also a trickle of 3,000 b/d or
so of imports from the US.
The Canadian crude oil market is similar to the US domestic market, with a
myriad of sellers. Refiners post prices for the various grades, which are sold on a
ratable basis in the pipeline systems. Export prices are often quoted on a Chicago deliv-
ered basis in US dollars. Most crude oil moves under term contracts, but spot trade has
grown despite the limitations of pipeline capacity. Prices are tied to US West Texas
Intermediate and West Texas Sour grades.
CHINA
Chinese oil-marketing policy reflects a complex web of pressures, which include
such factors as Beijings need to earn hard currency, attempts by state companies
to integrate vertically, and the central governments fight with provincial and
municipal authorities to control the nations oil supply, including exports and
imports. Beijings campaign to maximize oil exports while limiting imports has
had mixed success: It has kept crude oil exports at about 400,000 barrels a day,
but the country is still slipping into net importer status due to surging domestic
demand and static production of just over 3-million b/d. State Sinochem, which pre-
viously had its trading monopoly broken, has
partially reasserted its role in overseeing exports
in the last couple of years. Attempts to central-
ize and curb products and crude oil imports
have had only sporadic success, as other state
companies have moved into new activities in the
petroleum sector. In general, crude oil is export-
ed from onshore and offshore fields in northern
China, while crude oil imports are mainly to
refiners in the south and near the coast.
Two grades dominate export sales:
medium-gravity Daqing and heavy Shengli,
which together account for nearly two-
thirds of total Chinese output of just over 3-
million b/d. Both are relatively high in wax content, but the heavier weight and
higher sulfur content of Shengli as compared to other Asian grades makes it
unattractive and hard to sell. Like similar Asian grades from Indonesia and
Vietnam, these grades are used both as refinery feedstock and as boiler fuel at
power plants. Daqing accounts for most exports, which are influenced by Japanese
needs for crude oil for direct burning at power plants during peak electricity-use sea-
sons, as well as by the availability of similar grades such as Indonesian Minas and
Vietnamese Bach Ho. Japan imports about 200,000 b/d of Daqing for refinery use and
as much as another 100,000 b/d for power plant fuel. Lower-quality Shengli is generally
used more in domestic refining, and Japan takes about 25,000 b/d (see pH73-H76).
Growing sales from offshore fields are handled by foreign partners for state
CNOOC and move to Singapore, the US West Coast, or Japan. Shell and Phillips
are two of the newest marketers of Chinese crude oil, selling roughly 100,000 b/d
of low-sulfur, waxy Xiiang along with partner CNOOC since November 1995.
Sales have been made to Indonesia, Hawaii, and Singapore so far. In general, Japan is
Chinas primary customer, taking some 300,000 b/d in 1995. US refiners still take around
50,000 b/d, with the US West Coast operations of Chevron and Tosco the dominant buy-
ers. Smaller volumes of up to 40,000 b/d are bought by South Korean refiners.
Pricing systems vary for Chinese exports, but contracts are all tied in some
way to the official price of Indonesian Minas grade or spot Oman and Dubai.
Japans 180,000 b/d government-to-government deal with China is priced on a
retroactive monthly basis, tied loosely to the average Minas quote. Buyers try to
take advantage of the price lags of Minas which is set on a complicated five-grade
rolling average linked to the Asian Petroleum Price Index by increasing purchases
when prices are low. But Sinochem attempts to push more volume across to Tokyo and
buy cheaper replacement barrels for refineries in southern China when prices are high.
Spot sales are increasingly rare, but they also use Minas as a benchmark.
COLOMBIA
Of the worlds major crude oil exporters, Colombias position is changing more
dynamically than most of its rivals. While still the third-largest crude oil exporter
in South America and far behind front-runners Venezuela and Mexico, several new
grades including Cusiana and Cupiagua should make
Colombia a major force in crude oil markets in the
coming years. Although export volumes of its Cano
Limon grade are relatively small at 240,000 barrels a
day, the grade can be an influential trendsetter in US
markets because it is a popular spot barrel for sweet
and sour crude oil refiners alike and is heavily traded
on the US Gulf Coast. Similar in quality to US Alaskan
North Slope grade, it is a medium-to-heavy 30-gravity oil
with a relatively low 0.5% sulfur content. Plans for developing the Cusiana field and its
satellites call for marketing the new 36-gravity, 0.25% sulfur crude oil as a separate stream.
Through early 1996, Cusiana production was up to nearly 200,000 b/d, with exports over
100,000 b/d. Total Colombian crude oil exports are expected to rise from close to 400,000
b/d at present to over 600,000 b/d by 1998 (see pH77-H82).
While volatile because of sporadic guerrilla attacks on the main export pipeline,
Colombias crude oil production runs in the neighborhood of 630,000 b/d, with
output expected to rise to more than 900,000 b/d by 1998. Several new pipeline
projects are under way to increase export capacity. Plans include a new and improved
$2.5-billion crude oil export pipeline system. In addition to other expansions, the so-called
Ocensa pipeline consortium which groups Cusiana partners BP, Total, Triton Energy,
and Ecopetrol with Canadian pipeline firms IPL and TransCanada is counting on run-
ning the pipeline at 85% of its 500,000 b/d capacity on average. Crude oil shipments to the
Covenas export terminal are often disrupted by attacks on the existing 225,000 b/d Cano
Limon and 75,000 b/d Llanos Central pipelines. Monthly production has dropped as low
as 300,000 b/d at times, and cargoes have often been rolled over into future months, which
is why many US refiners shy away from committing to term contracts.
Colombias four main crude oil producers are state Ecopetrol, British
Petroleum, Shell, and Occidental. Cano Limon exports are divided among three
producing companies, with Ecopetrol selling 50% and Shell and Occidental divid-
ing the rest. Cusiana exports are divided among equity producers Ecopetrol
(50%), BP (19%), Total (19%), and Triton Energy (12%). Ecopetrol offers its share
on a term-contract basis in most cases. The Cano Limon contracts last from three to six
months and are awarded on an open-tender basis with linkage to West Texas
Intermediate. Cusiana term contracts have been signed with Tosco and Fina for 1996,
with several more deals expected as output continues to rise toward 500,000 b/d by the
end of 1997. From the Covenas loading terminal in the Caribbean, term buyers lift one
or two 75,000-deadweight-ton cargoes per month, which is the preferred size for deliv-
ery to the US Gulf Coast. Shell also exports 45,000 b/d of heavier Vasconia grade, which
is a 25-gravity, 0.8% sulfur grade.
Cano Limons ambiguous status in the middle ground between sweet and sour
grades makes its pricing a confusing affair. Term and spot buyers take cargoes
on a formula basis tied to any one or a combination of US marker grades
Alaskan North Slope, West Texas Intermediate, and West Texas Sour. Cusiana, a
low-sulfur, sweet grade, is priced versus WTI and has traded anywhere between
20¢ and 75¢ a barrel under the US benchmark. Equity producers BP, Total, and
Triton Energy were selling their cumulative 45,000 b/d on a spot basis in 1996. Shell and
Occidental sell most of each of their three monthly cargoes of Cano Limon on a spot
basis on the US Gulf Coast. Meanwhile, Ecopetrol normally juggles four to six term cus-
tomers at any one time.
CONGO
Congos current exports of about 180,000 barrels a day are handled mainly by Elf
Aquitaine and Agip, which are the equity producers of Djeno crude oil, the coun-
trys primary export grade. Elf holds 60% and Agip 40% of the 175,000 b/d Djeno
crude oil stream, which is relatively
heavy, at 27-gravity, but low in sulfur like
other West African oils. As for other, small-
er West African producers, the US Gulf Coast
has traditionally been a primary outlet for
Congos Djeno grade, but the interest of Asian
customers in heavy, sweet grades has pulled
volumes in that direction in recent years. The
pricing of Djeno is tied to dated Brent, and
the grade appears regularly in spot trade.
Djeno is usually priced at a discount of about
$2-$3 a barrel off dated Brent, but the gap has
sometimes been as wide as $5-$6. Recent US buyers include Exxon, Amerada Hess, and
Phibro, with Italys Agip and Spains Repsol also occasional buyers. Yombo, Congos
other main crude oil stream, is a sweet but heavy 20-gravity grade produced by Amoco,
Kuwaits Kufpec, and state Hydro Congo. Most of this grade is sold directly into the US
East Coast electric utility market, where it is used as a substitute for residual fuel oil.
Even though production from the Djeno field is in decline, a sizable boost in
exports is expected over the next few years, as Chevron and operator Elf bring
the 130,000 b/d NKossa project on stream at an initial rate of 90,000 b/d in mid-
1996. Overall Congo production peaked at 215,000 b/d in 1994 and has been declining
ever since. The inclusion of NKossa output should help output steadily rise to 250,000
b/d by 1998. Further successes with Elfs sizable offshore exploration program could very
well send production even higher (see pH83-H86).
DUBAI
The emirate of Dubai is a distant second among producers in the United Arab
Emirates after Abu Dhabi. But despite its small and declining output of about
275,000 barrels a day in 1996, it holds a disproportionately important role in
Mideast pricing and world oil trade. Its spot market serves as the pricing bench-
mark for the entire region, affecting either directly or indirectly most spot and
term-contract crude oil transactions in the Gulf (see pH87-H90). Because it is pro-
duced by a handful of Western oil companies
with little direct role by the state, the Arab Light-
quality grade has developed into a leading spot
market crude oil that casts a long shadow on
world markets, despite its limited production. A
number of international equity producers, led by
US Conoco and French Total, market most of the
grade, with the vast majority of cargoes usually
moving through the forward market into spot
transactions. The ruler plays a passive role that
has been instrumental in allowing the market to develop. The governments physical
share of production is usually resold on a spot or term basis to international oil compa-
nies. (Dubais extensive benchmark role is dealt with in detail beginning on pB19).
The Dubai forward market went through a confidence crisis in 1993 that
reduced trading in the second half of the year and caused operator Conoco to
revise the general terms and conditions of its trading contract. However, with
the emergence of swaps trade to complement forward markets, trade figures
are back up and can run as high as 2-million b/d in paper transactions. During
quieter periods, as little as 200,000 b/d can change hands. Declining production
and the heavy dependence of the forward market on spread trading against Brent have
called into question the durability of Dubai as a marker grade. However, with few
alternatives available and a general reluctance by Mideast producers to encourage
direct spot trading, Dubai could well endure as the key regional benchmark grade
despite its limitations.
Currently, US traders Phibro and Morgan Stanley are the largest players in
the Dubai market, which is also dominated by equity producers Conoco,
Repsol, and British Petroleum. However, since Conoco tightened up the nomi-
nations procedures, trade has been bustling with new players and some old
ones that are only now reemerging. Trades of full 500,000 barrel cargoes and par-
tial cargoes as small as 50,000 barrels are actively exchanged in forward and swaps
markets. Elf, Koch, Vitol, Kanematsu, and Itochu have been joined by Glencore,
Arcadia, and Coastal in returning Dubai crude oil trade to the center of prominence in
Mideast and Asian markets. Statoil and other Atlantic Basin producers also use the
Dubai market to hedge sales to the Asia-Pacific region.
Dubai looks both east and west, with trading activity and pricing closely
linked to Atlantic Basin markets and UK Brent crude oil trading, while most of
the oil is shipped to Japan, India, Singapore, and South Africa. Japan alone
imports about 25%, or some 75,000 b/d. Volumes only occasionally move west when
arbitrage opportunities are strong, and this is often through the internal downstream sys-
tem of one of the equity producers. In 1995, Koch imported one cargo of Dubai and was
the only US refiner to do so. Dubai also exports about 25,000 b/d of Margham
Condensate, which heads exclusively to Asian markets.
ECUADOR
Ecuadors upward of 250,000 barrels a day of sour crude oil exports have been
marketed primarily on the US Gulf Coast by a slew of trading companies, with
Quito-based Tripetrol and Glencore the most prominent among them. Ecuadors
benchmark grade Oriente acts as a key price indicator for US sour crude oil mar-
kets. Some oil is also sold to East Asia, mainly to refiners in South Korea, with the
US West Coast and Brazil serving as secondary outlets as well. Volumes have been
growing, and the countrys decision to leave Opec
back in 1993 only enhanced its ability to push
ahead its full-throttle export strategy. Oriente grade
is Ecuadors main export grade, and it is becoming pro-
gressively heavier as new streams are added to the base-
load output of the mature Shushufindi field (see pH91).
Exports have increased from 180,000 b/d in the early
1990s to almost 250,000 b/d at present as a result of new
production and lower domestic refinery runs. Oriente
grade is exported from the Balao terminal in 50,000 ton ships, the maximum size that can
pass through the Panama Canal. It is similar in quality to US Alaskan North Slope, and it
is sold on an f.o.b. basis. Once it is waterborne, the grade is actively traded, despite
Ecuadoran laws that prohibit the sale of crude oil to traders, which are honored more in
their breach than in their observance. All shipments to the primary market on the US Gulf
Coast move through the Panama Canal.
All Oriente crude oil is sold initially by Petroecuador, and it is priced off spot
market quotes of US West Texas Intermediate, with a freight ceiling built in to
make the grade attractive to buyers on the US Gulf Coast. Oriente was the last for-
mula priced crude oil to abandon Alaskan North Slope as a market grade in early 1996.
Tenders for term contracts are awarded on a yearly basis, usually in increments of 12,000
b/d, but they can be as much as twice that level. Petroecuador would like to contract all
of its crude oil on a term basis, but it has been forced to sell on the spot market during
pricing spats with some of its larger customers.
Petroecuadors biggest problem has been the high concentration of its sales
among a relatively small number of customers. Traders such as Tripetrol and
Glencore continue to maintain a stranglehold on the Oriente term-contract mar-
ket through a variety of subsidiaries and shell companies such as Tevier, Oil Tex,
Anglo Energy, and others. However, South Korean buyers Yukong and Lucky Goldstar
have managed to break the grip somewhat and now make up one-sixth of all contract
holders, with over 50,000 b/d of volume. Customers also include former equity produc-
er Texaco, Argentine trader Interpetrol, and US Tosco. Petroecuador has occasionally
pursued crude oil-processing deals in the US, Venezuela, and Puerto Rico, but so far it
has only been able to strike up intermittent deals with Venezuelas Corpoven.
EGYPT
Egypts roughly 350,000-400,000 barrels a day of crude oil exports are generally
made up of benchmark Suez Blend and a handful of smaller-volume, heavier
grades, including Belayim, Ras Budran, and Ras Gharib. However, much of this oil
is handled by equity producers that sell only about 175,000 b/d to third parties out-
side of their own systems. State Egyptian General Petroleum Corp. markets anoth-
er 170,000 b/d of crude oil under term contracts. Besides EGPC, US Amoco is the
countrys biggest crude oil exporter, marketing just over
100,000 b/d, primarily in the Mediterranean. Some of these
Suez Blend cargoes appear on the spot market. Italys Agip
is the next biggest seller among equity producers at some
75,000 b/d, or about four cargoes a month from its 230,000
b/d Belayim field. Beginning in 1996, the grade is going to
be jointly marketed by Agip and state EGPC on the
Mediterranean spot market, since the Italian firm found it difficult to market the grade at
posted prices set by the state. Shell, British Petroleum, German Deminex, and US Phillips
all produce equity crude oil, but they usually do not market it to third parties. Egyptian
grades are high in sulfur and range from 34-gravity Suez Blend to much heavier oils.
After numerous customer complaints, EGPC has simplified its unusually com-
plex crude oil-pricing formula system for its term-contract sales to a simple link
with dated Brent. From 1992 through 1995, Egypt had used a basket of three bench-
mark grades: UK Brent, Iran Heavy, and spot quotes for Suez Blend. These three grades
were used to determine a value for Suez Blend, which accounts for 80% of Egypts
950,000 b/d of crude oil production, with other grades priced off it. However, lack of
liquidity in the spot market for Iran Heavy and Suez Blend forced EGPC to drop these
elements, which accounted for 40% of the overall formula (see pH93-H102).
On the marketing front, EGPCs former 45,000 b/d term contract with Israel,
which was its largest, has been reduced to less than half this amount in 1996,
with Israel opting to play the market now that other Arab producers have
dropped their second degree boycott. EGPC has a score of other, smaller con-
tracts, primarily with traders and European refiners. Along with Israel, Egypts
main customers continue to be Mobil and Star Enterprise in the US, along with two of
South Africas four main refineries. Sales to the US are on the rise, with over 50,000 b/d
expected in 1996, up from just over 30,000 b/d in 1995. New production of heavy grades
Zaafarana, Gharib, and Geisum is popular among sophisticated refiners in the US.
Egypts most important asset is not necessarily its crude oil, but probably its
location, which makes it a key intermediary between Mideast producers and
Western markets. The Sumed pipeline from Ain Sukhna on the Red Sea to Sidi
Kerir on the Mediterranean regularly carries 1.6- to 1.8-million b/d of Mideast
crude oil into Europe, while volumes through the Suez Canal, which are limited
to fully laden 150,000 deadweight ton ships, average 1.2-million b/d. Other than
Egypt itself, the chief clients of Sumed are Saudi Arabia, Iran, Kuwait, and some of their
customers. Sumed and the Suez Canal save 10 days of travel time to Europe, and Sidi
Kerir is used in the market as an f.o.b. sales point for Saudi and Iranian grades. The
Sumed pipeline has been expanded, with the ability to carry up to 2.34-million b/d, but
it has operated at just under 2-million b/d.
GABON
Gabons roughly 340,000 barrels a day of crude oil exports are dominated by
Royal Dutch/Shell and Elf Aquitaine, which have substantial equity production
that has been steadily increasing since 1987. Its rising flows prompted it to fol-
low Ecuador in leaving Opec in 1996. Gabon exports three main types of crude
oil: Rabi Export Blend, Rabi Light, and Mandji. Rabi production from a con-
glomeration of mid-gravity, low-sulfur producing fields has reached its plateau
output level of some 200,000 b/d, and it will probably stay there well into the
next century (see pH103-H108). Rabi is sold in two forms. The first, Rabi Export Blend,
is a combination of Rabi and Gamba crude oil,
which makes up a 100,000 b/d export stream
sold by Royal Dutch/Shell. Gamba was origi-
nally sold separately, but it was incorporated
into Rabi when the latter, a much larger
stream, began production in 1989. Elf markets
100,000 b/d of the second type, Rabi Light,
which is not blended with Gamba and is there-
fore slightly higher in quality. The 90,000 b/d
offshore Mandji crude oil is Gabons main sour
grade, and it is marketed by Elf as a slightly
higher-quality equivalent to US Alaskan North
Slope. Three other grades, Lucina, MBaya, and
Oguendjo make up the balance of exports.
Shell sells one 350,000 barrel cargo a month of
Lucina, which is Gabons lightest-gravity, low-sulfur export oil. MBaya and Oguendjo are
both sold in single cargoes on a quarterly basis by producers Elf and Kelt Energy.
In the 1990s, Gabon has established a wider market for its grades. Although
they were once just Atlantic Basin grades, Mandji and Rabi have gained wide-
spread acceptance in Far East markets. Japanese utilities have found Rabi to be an
excellent substitute for medium and heavy Indonesian grades that are used in
direct burning under boilers. Japanese imports of Gabonese grades ran as high as
40,000 b/d in 1993, but they have since tailed off due to competition from new Australian
light sweet grades. South Korean, Singapore, and Chinese refiners have also dabbled with
spot cargoes. Gabonese grades are sold almost exclusively on a spot basis, with prices
related to dated Brent and sometimes Alaskan North Slope or West Texas Intermediate
when they are headed toward the US. While Europe was once Gabons key market, sales
have been growing to US buyers, which are now a primary destination. US imports have
tripled since 1991 to around 250,000 b/d in 1995. Key buyers include British Petroleum,
Tosco, Coastal, and Phibro. In Europe, Elf still lifts 30,000-40,000 b/d of equity produc-
tion, with Portugal being the next largest buyer at less than 10,000 b/d in 1995.
INDONESIA
Indonesias oil export-sales system is among the least transparent in East Asia
because it is divided up among state Pertamina, its marketing affiliates, and a score
of international companies with equity production. It also involves a score of dif-

ferent grades, although its main Minas and Duri fields account for the bulk of
international sales. With domestic demand cutting into exports, marketing opera-
tions are being consolidated, but they remain complex. State Pertamina and its
affiliates only handle about 45% of total exports of about 800,000 barrels a day,
with the foreign partners moving the rest. The state firm forms the nucleus of the sys-
tem, with its unusual term-contract pricing mechanism used as the basis for almost all
export sales and for the division of costs and
profits in the upstream production-sharing
deals that account for most of the output. The
export activities of the international equity
producers vary considerably, with some
keeping almost all of the oil in their own sys-
tems and others selling most of their crude oil
to third parties. One feature of the Indonesian
export market is the relatively small volume
of spot transactions in any single grade. This is partly due to the fragmentation of export
sales volumes and the preference of most parties for term contracts (see pH109-H128).
Indonesia exports about 55% of its crude oil and condensate production of
around 1.5-million b/d. State Pertamina has fought off the spectre of declining
exports by increasing imports from Iran, Saudi Arabia, and sometimes Libya to
meet annual domestic demand growth of 6%-8%. While Japanese sales are less
than they were five years ago, Tokyo remains Indonesias largest customer, tak-
ing 600,000 b/d. Other customers include South Korea, China, the US, Australia,
Taiwan, and Singapore. With sales to Japan shrinking, Pertamina merged its two affil-
iates, Japan-Indonesia Oil Co. and Far East Oil Trading Co., into Pacific Petroleum and
Trading Company in late 1995. PPTC is half-owned by Pertamina, with the rest held by
various Japanese refiners, including Nippon Oil, Idemitsu, Cosmo, and several electric,
steel, and gas companies. PPTC holds a formal contract for roughly 100,000 b/d of direct
sales to Japanese refiners and power utilities. However, the volume of sales handled by
the company often exceeds contract levels, which are regarded as baseload supply by
Japanese refiners.
Pertamina has three other crude oil marketing affiliates Indoil, Perta Oil,
and Korean Indonesian Petroleum. Another marketing associate, Permindo,
which is owned by Pertamina and a private local group, controls the bulk of
Indonesias products trade. It also handles third-party processing deals for Pertamina.
Hong Kong-based Perta Oil is responsible for estimated crude oil sales of 60,000-65,000
b/d, mainly to China.
Among equity producers, the largest volume firms are also the largest
exporters. Caltex leads the way with its Minas and Duri grades, followed by
Mobil, Maxus, Total, and Arco. Minas crude oil alone accounts for about 30% of
all Indonesian oil exports by far the largest stream. Mobil markets 30,000 b/d of
the 90,000 b/d Arun condensate production, but most of its entitlements go to its affili-
ates, with occasional cargoes being sold to third parties on the spot market. By contrast,
Maxus, the producer of Widuri which, at about 100,000 b/d, is one of the larger export
grades sells all of its share of output to third parties, mainly in Japan.
Indonesias crude oil pricing system is a unique mixture of formula and
retroactive assessments. Prices are set monthly on the basis of the previous
months spot assessments for a basket of five crude oils made by the Asian
Petroleum Price Index. Average differentials for the previous 52 weeks are
applied to determine the final prices, with special adjustments for harder-to-mar-
ket grades. While the system is complex and mechanical, it is clearly defined, like a
price formula. At times, it has encountered serious problems when the crude oil differ-
entials have failed to reflect current market values, which has happened in periods of
seasonal or extreme market weakness. Despite some complaints from market partici-
pants, Pertamina seems unlikely to modify the system in any significant way.
IRAN
Unlike producers such as Saudi Arabia and Mexico, which rely on long-term rela-
tionships forged through standard term contracts, Irans large export sales of
some 2.6- to 2.8-million barrels a day depend much more heavily on fluctuating
strategies that are continuously adjusted to match changing circumstances. The
constant threat of further US sanctions has made these strategies all the more
useful in 1996. State National Iranian Oil Co., which is the countrys exclusive
seller despite past efforts by some interests in Tehran to set up alternative chan-
nels, uses perhaps the widest array of marketing techniques of any oil exporter.
The imposition of harsher US sanctions on Iran in early 1995 forced a 400,000 b/d shift
in Irans customer base, as large US buyers such as
Exxon, Coastal, Mobil, and Caltex were no longer
allowed to buy Iranian crude oil, even for their over-
seas refineries. For a time, much of this volume was
sold on a spot basis along with the standard 300,000
b/d or so of spot availability, but significant amounts
are now bought under contract by Mediterranean
refiners. Irans incremental supply role has caused it to
lose some popularity among its customers when NIOC is too stiff in its pricing demands.
However, the firm almost always manages to sell its available crude oil regardless of mar-
ket conditions and competition from other Opec producing nations or Russia, even if it
sometimes must put several cargoes to sea unsold (see pH129-H138).
In recent years, Iran has used a wide range of marketing techniques. It has
made varying use of traders as marketing intermediaries, while also relying on
barter, prefinancing deals, crude oil-for-product swaps, sales from storage, spot
deals, delivered sales in Europe and the Mediterranean, and a host of other alter-
natives to traditional f.o.b. term contracts. At one time, traders were heavily relied
upon to market spot barrels on a delivered basis in Northwest Europe, until NIOC
assumed this role itself. Intermediaries sometimes perform a similar role in the
Mediterranean, and they also provide products in return for crude oil. In general, NIOC
tends to cut back on its use of middlemen when they start to undermine its sales in a
local market, but the firm relies on them as a way to move marginal barrels up until that
point. Traders also play a role in markets that are not easily accessible or where buyers
have credit problems, such as India and Eastern Europe. NIOC has its own trading ven-
ture called Nafta-Iran Intertrade, which markets some spot barrels in Europe.
The more traditional term contracts that Iran maintains are kept up annually
with Asian customers, mainly in Japan and South Korea. Current sales to Asia
run in the 900,000 b/d to 1.1-million b/d range, spread out among nine countries.
Prices are under the standard monthly formula terms with fairly predictable vol-
umes. The only wrinkle in Irans Asian pricing is the linkage of Iran Light grade exclu-
sively to Oman as a benchmark and Iran Heavy to Dubai. This is a variation on the typ-
ical Saudi preference for an average of the two. Traders are sometimes used to augment
these Far East sales volumes.
European and South African sales, which make up most of the rest of Iranian
exports, are the other extreme, with heavy competition from Russian spot sales
in the Mediterranean forcing NIOC to remain constantly innovative in its sales
strategy. About 55%-65% of Irans exports go to Europe and South Africa at for-
mula prices linked to spot North Sea Brent levels, whether the oil is sold from its
main loading terminal at Kharg Island, sold in the Mediterranean, or delivered
into Rotterdam. However, these proportions can fluctuate wildly when marketing
opportunities unveil themselves in higher-priced regions. Pricing is mostly handled
on a cargo-by-cargo basis with substantial variation among buyers. NIOC shifts back and
forth over time between various sales points in Rotterdam, the Mediterranean, or the
Mideast Gulf, depending on market circumstances. Tanker chartering by state NITC can
offer a glimpse of directional changes in flows between eastern and western markets.
Many Western buyers consider their purchases to be spot rather than term no matter how
regular and stable their volumes are. South Africa has emerged as Irans largest buyer, lift-
ing over 200,000 b/d, followed by Greece, British Petroleum, Italys Isab, Royal
Dutch/Shell, and Turkey. Some refiners, particularly in the Mediterranean region, hold
frame contracts that loosely define volumes to be lifted each quarter, but not the price.
US sales remain suspended, and NIOCs marketing efforts have been compli-
cated by the tight US government restrictions that prevent any US refiner from
utilizing Iranian crude oil anywhere in the world. A full-scale revival of sales into
the US depends on a further easing of restrictions by Washington, which is unlikely to
occur anytime soon, as politicians in both major US parties firmly support the sanctions.
Irans exports vary significantly from month to month and among grades,
depending both on marketing pressures and its own internal needs. Iran Light
exports range from 35%-45% of the total, while Iran Heavy accounts for 45%-50% and off-
shore grades 12%-18%, or about 450,000 b/d. Virtually all offshore output is exported.
IRAQ
Before invading Kuwait in August 1990, Iraq had overtaken Iran as Opecs second-
largest crude oil exporter, with overseas sales of almost 3-million barrels a day in
the first half of that year. But the United Nations embargo since then excluded Iraq
from world markets until December 1996 and has left Baghdad at the mercy of UN
Security Council decisions about its export status. In 1996, the first signs emerged
of a limited return of Iraq to world oil markets under the auspices of a humanitar-
ian aid program, with these efforts coming to fruition at the end of the year. Exports
of 550,000 b/d of crude oil were expected to resume in early 1997 from both the Turkish
export pipeline to Ceyhan on the Mediterranean and from the Iraqi terminal of Mina Al-
Bakr on the Gulf. Iraq has long been considered an expert marketer, with large and effec-
tive pre-war sales of its three grades worldwide 37-gravity Kirkuk, produced in the
north, and 35-gravity Basra and 27-gravity Fao Blend, produced in the south (see pH139-
H144). Through its state marketing arm Somo, Iraq previously sold its crude oil at formu-
la prices that were highly competitive with prevailing Saudi, Iranian, and Kuwaiti terms,
often varying significantly between individual customers in the same geographical region.
A similar approach is being used under the UN oil sales program, in which the proceeds
from the oil sales are to be used to buy food and medicine for the people of Iraq.
Prior to the UN oil-for-aid program, Iraqs only sanctioned crude oil exports
went to Jordan under a special UN exception to the embargo. The 40,000-60,000
b/d has been sold under concessionary price terms and was supplemented by refined
product exports of about 20,000 b/d. Turkey and Iran have been receiving oil as well,
with volumes varying between 25,000 b/d and 75,000 b/d, despite a lack of UN approval.
With the humanitarian oil sales program, Iraq has
reestablished relations with numerous customers, both
old and new. It has targeted sales in all three main mar-
kets to a wide range of buyers. Iraq firmly believes that the
oil-for-aid program is a first step toward a full lifting of sanc-
tions and that it needs to position itself in world crude oil mar-
kets for further large increases in sales. Buyers are also con-
cerned about possible changes in the quality of Iraqi oil dur-
ing the long hiatus, during which excess fuel oil was reinjected into some of the fields.
Small term contracts are thus likely to be the focus of the 550,000 b/d of new UN-
approved sales.
KUWAIT
Term-contract sales are the backbone of Kuwaits crude oil marketing policy. Fully
recovered from its traumatic destruction at the hands of the Iraqi military in 1990,
state Kuwait Petroleum Corp. is selling as much crude oil now a total of almost
1-million barrels a day to third-party buyers as it did before the war. Kuwaits
single export grade tends to be difficult to market because it is relatively heavy
and sour, which prompted a strategy of diversifying into refined product exports
and overseas downstream investments, mainly in Europe. Growing domestic
refinery capacity has eaten into available crude oil export volumes in 1995-96 (see
pH145). KPC handles all of the countrys crude oil sales and has sought out new term-
contract customers in Latin America, Africa, and Asia,
sometimes displacing other Mideast suppliers with more
rigid terms. In the US, for example, Kuwait has commit-
ted itself to delivered sales in the US market, which puts
it on an equal footing with short-haul supplies. But the
US and other Atlantic Basin destinations have borne the
brunt of the reductions in crude oil export volumes
caused by the rise in domestic refinery capacity to a planned 875,000 b/d by 1997.
In Asia, Kuwait has improved the quality of its exports by spiking kerosine
into export cargoes in order to boost the light-product yield of the oil.
Concentrated marketing efforts in the Far East had boosted sales to Asia to
550,000 b/d, a volume that is likely to increase as several new refining projects
come on stream. Japanese refiners are the largest buyers of Kuwaiti crude oil, lifting up
to 175,000 b/d under term contracts. The marketing of exports from its 50% share of
Neutral Zone crude oil production is handled mainly by the equity producers there and
mainly ends up in Asia (see separate section on Neutral Zone, pF23). South Korea,
Taiwan, India, and the Philippines are also large buyers. Volumes to India and South
Korea are likely to expand the fastest, with several grassroots refineries being built in
each country. KPC also processes some of its own crude oil in Singapore, and it refines
as much as 800,000 b/d in its own domestic plants, which are primarily export-oriented.
KPC sells its crude oil in all major markets worldwide, usually pricing its 31-
gravity Kuwait grade under formula terms at a slight discount to or in line with
similar-quality Arab Medium crude oil in all of these markets. Total crude oil exports
through mid-1996 were 1.3-million b/d, including its share of the Neutral Zone. Less than
100,000 b/d was destined for its own refineries in Europe, which rely heavily on North Sea
grades. The largest customers for Kuwaits crude oil exports are major oil companies such
as Exxon, Shell, Chevron, and Indian Oil Corp. Brazils Petrobras suspended its 50,000 b/d
contract due to price disagreements in late 1995, and the crude oil has been transferred to
South African buyers, which lifted almost 100,000 b/d in 1996. Like Saudi Arabia, Kuwait
has tended to shy away from marketing heavily in Europe due to intense competition from
Iran and Russia. Nevertheless, KPC manages to sell a nearly equal amount of crude oil in
the US and Europe. Other US buyers include Ashland, Marathon, and Fina.
LIBYA
Libyas international political isolation has led it to pursue a policy of locking in
customers for as much of its roughly 1.1-million barrels a day in crude oil exports
as possible. Adding to the already troublesome financial sanctions imposed by the
United Nations, more stringent US government sanctions have been added in 1996,
including a ban on the sale of certain oil equipment and considerably broader uni-
lateral US restrictions. However, Tripoli has been able to maintain a business-as-
usual attitude, and traditional European customers appear willing to stick with the
oil, despite regular complaints about stiff price terms. Libyas tightly controlled and
unwavering marketing strategy reflects a desire to tie all crude oil sales into deeper com-
mercial relationships with customers linked to
investment or barter. Libyas close ties to the
continental European market are a direct result
of Tripolis strained relationship with the US,
UK, and France. The US has maintained a stiff
embargo on Libyan exports since 1985, and the
UK and France have supported the 1993 and
1996 tightening of trade and financial sanctions
by the UN and US, respectively, which affect-
ed oil sales indirectly by forcing Libya to use
banks based in third-world countries.
Almost all of Libyas term-contract cus-
tomers already have a special relation-
ship of some sort with Tripoli. About 80%
of exports are handled through these
contracts, with the remainder taken by European equity producers as their share
of production. Through Geneva-based Oilinvest which is controlled, although not
majority-owned, by Tripoli Libya has direct interests in refineries in Italy, Germany,
and Switzerland that give it an outlet for 300,000 b/d of crude oil exports, including some
resales. Government-to-government deals with Turkey, Greece, South Korea, and Spain
are tied to more complex economic packages involving an element of barter. The next
largest group of crude oil purchasers are equity producers Agip, OMV, and Veba, which
buy term-contract supplies on top of their equity volumes. The heavy dependence of
Italy, Switzerland, Germany, and Austria on Libyan crude oil and the investments in these
countries are designed to shield Libyas oil revenue from international political pressure.
Libyan crude oil is no longer prominent in the Mediterranean spot market,
where light, sweet Es Sider grade was once considered an important benchmark.
Libya sets the prices for its term-contract sales under typical formula terms tied
to the dated Brent market, with all sales on an f.o.b. basis. Other than Es Sider, Libya
offers six other export grades ranging from 36- to 41-gravity (see pH147-H160). Aside
from its heavy European sales orientation, some of its heavier waxy grades sometimes
move to Asian markets when the arbitrage is attractive.
MALAYSIA
State Petronas takes the lead role in the countrys crude oil export trade, with
main equity producers Shell and Exxon playing a support role that involves ship-
ments of their own equity supplies mainly within their refining systems. With
production of crude oil and condensate steady at about 650,000 barrels a day, a
little over half was exported in 1995,
mainly to customers in Asia. Exports of the
countrys benchmark Tapis grade are slightly
down since 1994 due to higher domestic
refinery runs associated with the opening of a
refinery refinery at Melaka. Petronas is gener-
ally entitled to at least one-half of all crude oil
output, while equity-producing companies
take the rest. The five crude oil export blends,
in order of importance, are Tapis, Labuan,
Miri, Bintulu, and Dulang. Output of high-quality Tapis is about 350,000 b/d, while
Labuan and Miri hover around 100,000 b/d each (see pH161-H170).
Petronas moves its exports through three different channels. Term contracts
with several regional customers amounted to about 250,000 b/d in 1995, with
occasional processing arrangements in Singapore and Yemen totaling about
40,000 b/d and another 50,000 b/d or so reaching the international spot market
through regular auctions. Petronas usually tenders one or two cargoes of Tapis and
one each of Labuan and Dulang every month, amounting to about 2-million barrels in
all. Tapis, noted for its yield of top-grade gasoline and middle distillates, is one of Asias
most popular spot grades, but exported volumes are likely to shrink as domestic refin-
ing grows. This downward trend means it is unlikely that Tapis will achieve full-fledged
marker status. Heavier Labuan makes a good grade of middle distillates and is usually
priced a few cents a barrel lower than Tapis. Dulang is a similar light, sweet, but waxy
crude oil that is priced closer to Indonesian Minas grade.
Petronas has a well-diversified slate of term-contract sales mainly to Japan,
South Korea, Taiwan, and India that accounts for most of its offtake. A new
1996 link with South African refiner Engen is likely to increase shipments there.
The Petronas sales are made based on monthly average assessments of Tapis
crude oil. Petronas used to apply retroactive monthly prices, which were set with ref-
erence to regional spot market levels. But the system was changed twice in 1995, with
Petronas settling on direct linkage to monthly average assessments from Platts and the
Asia Petroleum Price Index plus an adjustment factor. Customers had complained that
the previous formula did not accurately reflect market prices.
MEXICO
Mexicos state oil company, Pemex, has faced a perpetual conflict between satis-
fying domestic demand, which has grown rapidly, and maintaining crude oil
exports, which generate a large share of Mexicos foreign exchange. Sustained
efforts to increase crude oil production and curb domestic demand through high-
er product prices and increased utilization of gas have helped boost Mexican crude
oil exports to over 1.5-million barrels a day. By emphasizing term relationships
and competitive pricing, Mexico has been
able to increase crude oil exports by over
200,000 b/d in the past few years. PMI, Pe-
mexs international marketing arm, offers three
export grades: Isthmus (33-gravity, 1.5% sulfur),
Maya (22-gravity, 3.3% sulfur), and Olmeca (39-
gravity, 0.77% sulfur). Available volumes of
each grade fluctuate due to seasonal variations
in domestic refiner needs, but Pemex has gen-
erally shifted its export slate in favor of lighter,
sweeter grades. In late 1993, volumes were
averaging 250,000 b/d for Isthmus, 800,000 b/d
for Maya, and 230,000 b/d for Olmeca. By first-half 1996, Olmeca sales had jumped to
460,000 b/d, while Isthmus and Maya exports were holding fairly steady. New light fields
in the Bay of Campeche have been boosting Olmeca (see pH171-H176).
Some 75% of Mexicos 1.5-million b/d in crude oil exports are sold to a wide
range of US refiners on a term-contract basis. Shell and Mobil are by far the
largest buyers, lifting over 200,000 b/d each, with Chevron and Exxon next at
125,000 b/d each. Spanish refiner Repsol, in which Pemex owns a 5% stake, is
also a large buyer at 150,000 b/d, while other European firms take much smaller
volumes. In the US, a Pemex joint refining venture with US Shell at its Deer Park,
Texas, plant has locked in 110,000 b/d. Shell, on its own account, lifts at least
another 125,000 b/d for its US refineries. Many US Gulf Coast and Midwest buyers
regard Mexico as a key baseload source of crude oil supply, much like Saudi Arabia. In
the past, Pemex put a strict limit of 50% of exports on sales to the US, but now, with a
more market-oriented strategy in place, PMIs customer list includes a full range of over
20 major and large independent US refiners. Mexico is also responsible for one-half of
the crude oil supplied along with Venezuela under the San Jose Accord, which serves
lesser-developed Latin American and Caribbean countries. These volumes vary widely.
Japan has a long-term, government-to-government contract for a mix of Isthmus and
Maya that has been scaled back to 75,000 b/d.
Mexicos customers are steady and have tended to change little over the years,
although with increased exports of Olmeca, more sweet crude oil refiners have
signed up. Term contracts are valued particularly on the US Gulf Coast because
Mexico is a short-haul, secure supplier that is willing to adjust volumes with great
flexibility on a month-to-month basis. However, buyers of Mexican oil also face the
most complex crude oil-pricing formula system in the world. Current formulas
include differentials to weighted combinations of US West Texas Sour, Alaskan North
Slope, and Light Louisiana Sweet, Oman, Dubai, dated UK Brent, and various grades of
residual fuel oil. PMI also sometimes makes single spot deals that it calls trial cargoes in
order to satisfy official Mexican restrictions against spot sales or resales by term customers.
NEUTRAL ZONE
The Neutral Zone is controlled jointly by Saudi Arabia and Kuwait, each adminis-
tering part of it and dividing revenue equally from the oil, which is produced
under traditional Mideast concession contracts. This shared sovereignty has pre-
vented the kind of nationalizations that were common throughout the Mideast oil
industry in the 1970s. As a result, the Neutral Zone consists of two completely sep-
arate production and marketing entities that are united only by the similar nature
of the grades that they export. Virtually all of the Neutral Zones output of 480,000
barrels a day is exported. Production in the western zone, which is almost all onshore,
is the responsibility of Texacos affiliate Getty and state Kuwait Oil
Co., while the eastern area, exclusively offshore, is managed by
Japans Arabian Oil Co., with 10% shares in each operating com-
pany held by the governments of Kuwait and Saudi Arabia. Crude
oil types are all relatively heavy and sour: Onshore Wafra at 22-
to 24-gravity is among the heaviest grades in the region, and it is
being joined by even heavier 18-gravity Eocene flows in 1997, which are expected to
reach 50,000-60,000 b/d. Offshore Khafji is similar in quality to Arab Heavy, and offshore
Hout ranks somewhere between Arab Light and Medium (see pH177-H182).
Most of the sales for these grades are under term contracts, which are vital to
smooth marketing due to the smaller volumes and poor quality of the oil.
Arabian Oil Co. markets the offshore output, taking much of it back to refiners
in Japan, while the onshore production has been kept within the downstream
systems of the equity producers or sold mainly to Japanese customers. Formula
pricing dominates AOC sales, with tight linkage to Saudi terms. About 50% of the
270,000 b/d offshore Khafji production is sold into Japan, with the rest going to other
Asian buyers. Most of the 30,000 b/d Hout flow is taken by Japan National Oil Co. for
the countrys strategic oil stockpile. Since the AOC concession is Japans largest source
of equity crude oil, making it a prized and secure source of supply for Tokyo, the mar-
keting of this oil in Japan is usually relatively easy and uncompetitive. In particular, the
JNOC purchases of Hout help the grade to overcome its relatively unattractive Arab Light-
linked prices. The AOC output alone accounts for half of Japanese overseas equity crude
oil production. Meanwhile, pricing of Texacos 220,000 b/d Wafra crude oil production
is less transparent, and marketing had become more difficult due to unrepaired damage
to the onshore Mina Saud refinery during the Iraqi invasion.
Long-term considerations are likely to affect the future development and mar-
keting of Neutral Zone grades. Texaco has been disappointed with its efforts to
find deeper light crude oil deposits, and the firm has proposed steamflooding and
other heavy-crude oil production measures. AOC is committed to a large offshore
investment and development program. Both of these new sources of supply
depend on renewal of the existing concessions. AOCs concession expires in 1999,
and Texacos in 2009. While Kuwait has expressed a willingness to extend the current
accord with AOC, the Saudi position has been clouded by its previously planned down-
stream investment program in Japan, which was called off in late 1993. AOCs decision to
begin the long-term investment program, which includes new investment and replace-
ment of the aging infrastructure, is a sign that the concession is likely to be renewed.
NIGERIA
Nigerian grades are widely considered to be among the most desirable export
grades available in the Atlantic Basin. Their high yields of both gasoline and gas
oil make them popular in both the summer and winter and offer refiners the max-
imum in operational flexibility. The countrys 1.7- to 1.8-million barrels a day of
crude oil and condensate exports have a major impact on the North Sea market
and its benchmark Brent grade, and they
represent one of the most actively traded
international spot markets, after the North
Seas. Crude oil sales are handled both by
state Nigerian National Petroleum Corp.
and by its international equity producing
partner companies. Nigerias 2-million b/d
of production is divided on a roughly 60-40
basis between majority share owner NNPC and
its main equity partners Royal Dutch/Shell,
Texaco, Chevron, Mobil, Phillips, Agip,
Ashland, and Elf Aquitaine. In addition to their
750,000-800,000 b/d equity shares, the interna-
tional oil companies also receive extra volumes
from NNPC as payment for the state firms
share of joint-venture operations and investments. As a result, total volumes exported by
the equity producers are about 900,000 b/d, most of which goes into their own down-
stream refining systems. NNPC consumes about 200,000-300,000 b/d in its domestic
refineries and exports about 800,000 to 1-million b/d under term contracts as well as addi-
tional volumes for overseas processing to cover Nigerias domestic product deficit.
Nigerias exports go mainly to the US Gulf and East coasts as well as to Spain,
France, Germany, and other European buyers. Some small volumes flow East of
Suez, but these are largely incremental sales that are a function of arbitrage
opportunities. The so-called BBQ grades Bonny Light, Brass River, and Qua Iboe
are in especially high demand during the summer due to their exceptionally high gaso-
line yields, while Forcados is considered one of the best gas oil-producing grades in the
world. By extension, Bonny Light and Qua Iboe are sometimes referred to as the BQ
grades because they are priced at parity (see pH183-H194).
Virtually all Nigerian crude oil sales, whether on a spot or term basis, are
priced at a differential to dated Brent, even on sales to the US. The term-contract
price conditions are adjusted by NNPC on the third week of the current month
for the following calendar month. NNPCs term customers vary somewhat arbi-
trarily depending on the whims of government policy, with traders and
European firms holding most of the contracts under the awards made in late
1995. However, this customer list is the worlds most fluid and can change more
than once a year. The past use of term-contract awards as a way to lure investment into
Nigeria has been largely unsuccessful. A system of commission fees and commercial
agents also clouds relationships between NNPC and its customers. Pricing is generally
quite competitive, although buyers are quick to cut back liftings if the oil is considered
too expensive and the potential for resale is deemed unprofitable. At times NNPC has
resorted to special discounts, such as the use of netback pricing on Forcados grade in
late 1992, in order to maintain offtake. However, Nigeria is not a big user of alternative
marketing techniques to maintain volumes, and its price terms generally apply uniform-
ly to all term customers. NNPCs use of Brent-based term-contract pricing into the US is
unusual among exporting countries, but it seems to work well because of the close links
between Nigerian crude oil trading and the North Sea Brent market.
The abundance of traders holding term contracts and the large volume of
exports in the hands of equity producers guarantee an active physical spot mar-
ket. However, any trading firms interested in joining the fray should be warned
that theres no market with a greater number of sophisticated traders. Some of the
businesss more clever spot traders such as Glencore, Vitol, and Addax tend to be the
most prominent players, with Morgan Stanley also taking a substantial role. Forcados and
Bonny Light are the countrys most heavily traded spot grades, with Nigerian spot trad-
ing usually following the lead of the UK Brent market. As far as end-users go, Amerada
Hess, BP America, and Sun tend to be the largest lifters in the US, while Repsol, Elf
Aquitaine, and Total carry the brunt of European purchases. India, Pakistan, and South
Africa have cumulatively begun lifting 200,000-300,000 b/d in recent years.
NORWAY
Norway is the quiet sister of North Sea crude oil marketing, but it has expanded
its output steadily and now ranks as Europes largest oil producer and crude oil
exporter, and as the second-largest crude oil exporter in the world. While UK
Brent gets tossed around from trader to trader in a constant effort to determine
its absolute price, Norwegian grades move along more quietly, trading at a differ-
ential to dated Brent. The volumes of the Norwegian crude oil streams are large and often
outpace UK crude oil markets, but the Norwegian grades have
grown up in the shadow of the highly visible and active UK
trade, and as a result, they are rarely in the spotlight despite
their now-large volumes. Through early 1996, Norwegian crude
oil production had swelled to over 3-million barrels a day, with
the addition of 260,000 b/d from the Heidrun and Troll fields.
More increases are expected in the late 1990s.
Some 30 companies produce crude oil in Norway,
which flows into 10 main grades Ekofisk, Statfjord,
Gullfaks, Gullfaks C, Oseberg, Brent, Forties, Draugen, Heidrun, and Yme. The four
main grades Ekofisk, Statfjord, Oseberg, and Gullfaks are high-quality, light,
sweet oils, though high acidity levels in new Heidrun grade have made refinery
upgrades mandatory for some of its customers (see pH195-H210). The two largest equi-
ty producers are Statoil and Norsk Hydro, with Statoil also handling the governments large
direct stake in some of the fields. Other significant producers include Royal Dutch/Shell,
Phillips, Saga, Petrofina, Mobil, Exxon, Elf Aquitaine, and British Petroleum. Roughly half of
Norways oil output is loaded directly at the production platforms, while the balance is
loaded at terminals in Sture and Mongstad, Norway, and Teesside, UK. The table below
gives a idea of which Norwegian fields are used in making the countrys 10 export blends.
NORWAYS CRUDE STREAMS 1995 Output

Crude Blends Contributing Fields Shipment Point (1,000 b/d)
Ekofisk Ekofisk, Embla, Gyda, Hod, Tommeliten, Valhall, Ula Terminal, Teesside, UK 481
Statfjord Blend Statfjord, Snorre, Statfjord East, Statfjord North Buoy via Mongstad, Norway 790
Oseberg Blend Oseberg, Veslefrikk, Brage, Frøy, Lille-Frigg Terminal, Sture, Norway 695
Gullfaks Blend
Gullfaks C
Gullfaks A, Gullfaks B, Gullfaks West
Gullfaks C, Tordis
Buoy via Mongstad, Norway
Bouy via Mongstad, Norway } 582*
Brent Blend Murchison Terminal, Sullom Voe, UK 3
Forties Heimdal, Condensate Terminal, Cruden Bay 8
& Hounds Point, UK
Draugen Draugen Buoy 99
Heidrun Heidrun Buoy via Mongstad, Norway 118
Yme Yme Buoy via Mongstad, Norway 33
*Gullfaks Blend and Gullfaks C averaged 582,000 b/d in 1995.
About half of Norways production is kept within the refining systems of the
equity producers in Europe and the US, with the remainder sold to third parties,
usually on a spot basis. New grades Troll and Heidrun are being marketed through term
contracts, though due to the competitive, spot orientation of North Sea trading, only part
of Norways output is sold on a term-contract basis. Even so, Statoil has successfully built
up new long-term outlets both in Europe and North America. Norway has about 270,000
b/d of domestic refining capacity, and the country relies almost entirely on its own out-
put. Small volumes are imported from nearby Danish and UK fields, with occasional vol-
umes also coming from Russia. Like the UK producers, Norway announces loading pro-
grams each month, which provide the basis for extensive spot and forward trading.
Norways largest outlet is the UK refining sector, which alone absorbs about
600,000 barrels a day, or 20% of Norways crude oil, followed by the Netherlands
and Germany, which each take about half that volume. The US market has grown
from less than 50,000 b/d in 1990 to over 250,000 b/d in 1995, with shipments to Canada
also approaching 200,000 b/d in 1995. Norwegian marketing in North America has been
facilitated by the use of long-term storage in the Bahamas. Statoil is also targeting Asia
and has begun to sign up some term customers there, including a 20,000 b/d deal with
CPC Taiwan.
OMAN
Rising production and shifting preferences of Asian refiners have made the mar-
keting of Omans crude oil more challenging in the 1990s, but the level of spot
trade has not increased noticeably as a result, and it may even have declined.
Help from trader Transworld Oil and equity producer Royal Dutch/Shell as well
as overseas refining ventures have provided new outlets, as have growing term
sales to rapidly expanding Asian markets in South Korea and elsewhere. Although
Oman blend is slightly lower in sulfur than typical Saudi and Iranian grades, it does not
have the appeal of the higher-quality Abu Dhabi and Qatar grades for Asian refiners (see
pH211). While Japanese sales volumes have remained fairly stable, a broadening of the
marketing base was needed as output has climbed to 870,000 barrels a day, and other
buyers have indeed been found. South Korean refiners have increased their purchases
in recent years. Shell has become a regular third-party term lifter in addition to its siz-
able equity volumes, some of which are resold under term contracts. Trader Transworld
Oil has played a key marketing role as a leading term customer in the past, but its role
as a reseller seems to be diminishing. Other firms, such as Finlands Neste, also play a
similar role in resales of term barrels.
The vast majority of Omani barrels, both from equity producers and state
Petroleum Development Oman, continue to go to a growing number of cus-
tomers in Asia. PDOs term-contract volumes were
in the area of 375,000 b/d in early 1995. Other than
large purchases by Japanese and South Korean buy-
ers, the balance of sales is spread among the emerg-
ing markets of Asia. Omani barrels also move into
Hawaii and the US West Coast at a rate of 25,000-
50,000 b/d, with Chevron, BHP, and Tosco the most
consistent buyers.
Oman crude oil trading provides the most
active spot market in the region after Dubai,
and as a result, it is used as a reference level for most term-contract price for-
mulas for Mideast grades. However, trading is limited in scope and closely linked
to Dubai. The forward market that had been emerging in Omani crude oil in the late
1980s has dried up, and activity is focused almost completely on physical wet barrels, as
interest from Wall Street firms and Japanese trading houses has ebbed. As with Abu
Dhabi grades, virtually all spot trade is done on the basis of a differential to monthly
retroactive prices set by the government and usually referred to as Oman MPM (Ministry
of Petroleum and Minerals).
Pricing of term supplies is more complex than it appears, and it has, at times,
created some confusion in the market. Prices are set retroactively after the end
of the month, but since all spot trade is based on the MPM price, the Dubai mar-
ket provides an outside reference point. Other inputs include Abu Dhabi spot
prices and regional refinery yields. Confusion and risk for buyers and sellers some-
times comes in the setting of the MPM price, which usually fluctuates between 15¢ and
85¢ a barrel relative to Dubai and depends on the methodology used by price-reporting
services. This uncertainty and ambiguity about the MPM price not only has an impact on
the spot market for Oman crude oil, which trades at a differential to it, but also influ-
ences all of the formula prices in the region. Some companies have argued for a simpler
pricing mechanism, particularly for Western destinations, but Oman has declined
because of an aversion to seeing its crude oil used as a spot benchmark.
PAPUA NEW GUINEA

Papua New Guinea started selling its high-quality light, sweet Kutubu crude oil on
the world market in mid-1992, and output averaged about 140,000 barrels a day
in 1993. But by 1995, production had stabilized at about 100,000 b/d. Operator
Chevron has outlined ambitious plans to stem the declines in Kutubu and push
output back over 115,000 b/d in 1996 and expects to add another 52,000 b/d of pro-
duction from the Gobe field by 1998 (see pH213). But these increases will mainly offset
an expected fall-off in the original Kutubu field. The government markets its share of
Kutubu production independently, as do the two leading equity producers, Chevron and
British Petroleum. Other, smaller equity producers

have formed a consortium to handle their barrels.
Refiners in Australia and China are the main
customers, taking about 30% each. South
Korea, Taiwan, other Asian countries, and the
US also take some barrels. Kutubu crude oil is
particularly prized for its high naphtha yield and
good gasoline-manufacturing properties. Most sup-
plies are sold on the basis of term contracts. These deals are linked to spot quotes for
Malaysian Tapis grade from the Asian Petroleum Price Index for the three weeks around
the date of loading, with a discount. However, a significant share is also retraded on the
spot market.
QATAR
Qatar has had problems in the 1990s managing its upstream operations and
launching its liquefied natural gas export projects, but its crude oil marketing
has operated relatively smoothly. Qatari grades are light and sweet by Mideast
standards similar to those of Abu Dhabi which has made them especially
popular with Japanese and South Korean refiners. In Japan, particularly, the
emphasis on making light products from expanding but relatively unsophisti-
cated refineries has enhanced Qatari grades value. Qatar produces two types of
crude oil, Qatar Marine and Qatar Land or Dukhan, averaging a total of 450,000 barrels
a day in 1995 (see pH215-H218). The country also cur-
rently produces about 45,000 b/d of condensate, mostly
for export, a volume that is likely to grow in the future
with the associated development of its LNG operations in
the next five years. In 1995, Mitsubishi, Itochu, Marubeni,
Idemitsu, and Mitsui locked up 205,000 b/d of Qatars
345,000 b/d of crude oil contracts by signing up for
30,000-50,000 b/d each, and Japanese refiners Cosmo and Nippon grabbed another
30,000 b/d between them. Mobil was the only major international oil company with a
term contract, which makes sense given its heavy involvement in Qatars two aspiring
LNG projects, Qatargas and Ras Laffan.
The withdrawal of a Shell-led group of foreign firms managing the countrys
onshore and offshore upstream oil operations and their subsequent replacement
under a 1994 management contract with Occidental did not affect Qatars pricing
system or crude oil exports. Term-contract prices are set retroactively every month by
state Qatar General Petroleum Corp. through a formula that is linked to Omans MPM
posting. Price levels usually track the values of similar Abu Dhabi grades closely. As well
as providing technical assistance to QGPC in upstream developments for five years,
Occidental also landed a production-sharing deal to enhance the recovery of the offshore
Idd El Shargi field.
RUSSIA
Perhaps no other country has a crude oil-marketing policy as erratic, unpre-
dictable, bureaucratic, and disjointed as that of Russia. Oil sales were previously
the paragon of central control under the Soviet authorities. The transition to a
market economy has been neither smooth nor easy for the countrys oil industry.
The most stark symptoms of this lie in Russias staggering output slide of 5-mil-
lion barrels a day, or nearly 50%, since the late-1980s peak, to just under 6-million
b/d in early 1996. Despite the plunge, Russia is still an important force on inter-
national markets, exporting over 1.8-million b/d of crude oil in 1995 outside the
Commonwealth Of Independent States, mostly to Europe. The wide range in export
levels makes the Russian Urals market one of the roughest in the world in which to trade.
On top of the bureaucratic hassles, Russias oil
ports are among the oil worlds most weather-
sensitive facilities. Seaborne exports can go from
1-million b/d one day to almost nothing the next
and back to 1-million b/d a few days later. The
large number of exporters also tends to create
loading delays. Under the old centralized system,
all oil exports were firmly in the hands of
Soyuznefteexport, which provided fairly stable
quality and supplies to its regular customers on a delivered basis. However, operational
and logistical disruptions were common even then, especially in the winter, due in part
to the systems lack of flexibility and the long distances from the oil fields.
Urals grade, the standard Russian export blend, is compiled from a wide range
of fields, but it is broadly similar to Arab Light or Medium at 32-gravity and about
1%-2% sulfur. While quality was always erratic for operational reasons, variabil-
ity has become even wider with the breakup of the Soviet Union, the loss of
export terminals, and the decline in production. A new 35-gravity, low-sulfur
export grade, Siberian Light, has stabilized at volumes of around 90,000 b/d from
the Black Sea port of Tuapse. Exxon and various Mediterranean refiners have
emerged as the principal buyers. Nevertheless, the lack of flexibility of the
Russian refining and transport system may mean wide variations in quality for
some time to come (see pH219-H222). Availabilities also fluctuate seasonally, with
export declines often occurring during the winter due to logistical problems and domes-
tic needs that are severely exacerbated by bureaucratic delays. Problems with access to
ports in the Baltic Sea and Ukraine have tended to increase reliance on the Russian Black
Sea port of Novorossiysk, with a capacity of about 750,000 b/d. This has made exports
even more vulnerable to operational problems such as storms. Smaller ports in Odessa
(200,000 b/d) and Tuapse (250,000 b/d) can also be utilized on the Black Sea. The Baltic
port of Ventspils, Latvia (290,000 b/d), is also used. The Friendship, or Druzhba, pipeline
delivers up to 1-million b/d of crude oil throughout Eastern Europe.
The bureaucracy of Russian crude oil exports has become increasingly com-
plex with the ongoing struggle among various central authorities trying to main-
tain a degree of control and the efforts of individual enterprises and regions to
manage their own exports. Sales have become more fragmented, and spot deals
predominate. Exporter classifications and approximate volumes can be broken
down into five main categories: state-controlled trading companies (330,000
b/d); state-run vertically integrated companies (1.2-million b/d); non-state oil
producers (140,000 b/d; and a variety of joint venture arrangements (250,000
b/d). While the state is still the largest seller, its volumes are handled by a plethora of
agents including trader Nafta-Moscow, the descendant of the former state monopoly sell-
er Soyuznefteexport. As many as 10 to 30 other sellers are also active, depending on

political and bureaucratic circumstances, with integrated firm Lukoil the most dominant
player in the market through early 1996. The state also auctions off export volumes to
qualified companies. Some groups, such as foreign joint ventures and oil-production
associations, have clear rights to export crude oil. But an obstacle course of quotas,
licenses, and permits must be run in order to sell these volumes, and sporadic changes
in regulations sometimes cause disruptions to exports.
A host of constantly changing intermediary trading companies has also
grown up parallel to this wider list of official exporters. As a result, Urals is prob-
ably one of the most heavily traded grades on the international spot market after
Brent. This contrasts with the old Soviet system that relied mainly on sales to large
Western European refiners such as Italian Agip, Finnish Neste, Spanish Repsol, and
German Veba, as well as to majors such as Royal Dutch/Shell and a few intermediaries.
These same refiners still buy large volumes of Russian crude oil, but the path from field
to refinery is less direct. Exxon has also emerged as one of the largest buyers of Russian
crude oil following Washingtons ban on purchases of Iranian crude oil by US compa-
nies even for their non-US operations.
Russian exports are priced on a spot basis linked directly to North Sea Brent,
but the differential is volatile and depends heavily on the degree of competition
with other sour crude oil producers, especially in the Mediterranean, which has
become the primary spot market arena for Urals. Prices in recent years have fluc-
tuated from a 30¢ a barrel premium to dated Brent to a $1 a barrel discount. This wide
ranging price differential has emerged based on the interplay between spot availabilities
of Russian and Iranian crude oil, the two grades that have come to dominate the
Mediterranean market. Changes in Russian or Iranian supplies also tend to set off a chain
reaction of price changes in other markets, particularly the Atlantic Basin. With its spot
availability plentiful, there has been some discussion of using Urals as a new benchmark
grade for heavier, sour grades. Russian authorities are believed to support this idea, as
do some of the East European nations that rely heavily on Russian oil. Forward trading
of pipeline supplies occurs in the Druzhba system, and a cargo-based market is also a
possibility. However, at a minimum, greater predictability of both government regula-
tions, supplies, and quality are probably needed for a liquid market to emerge that could
support both forward trading and independent benchmark status.
SAUDI ARABIA
Adamant that it would never again revert to the role of swing producer for Opec,
Saudi Arabia introduced a new pricing system in October 1987: geographically
targeted formula pricing, which was designed to protect and expand its market
position. This system has become the basis for the now-widespread use of spot
crude oil market-linked pricing of term-contract supplies. The kingdom simulta-
neously renounced the use of its crude oil as an international marker. Riyadh has
since fine-tuned its formulas to guarantee a wider clientele and steady offtake
even during times of market weakness. A primary Saudi objective has been to com-
pete successfully with short-haul suppliers in distant Atlantic Basin markets. The Saudis
have used two chief strategies to achieve this goal: delivered crude oil sales, mainly for
smaller regional refiners in Europe and the US; and delayed pricing and guaranteed
freight costs for purchases from the kingdoms ports, which are mainly by major oil com-
panies for Western shipments. US prices are based on a differential to the spot price of
US West Texas Intermediate at Cushing, Oklahoma, while sales to Europe and Latin
America are tied to dated Brent. All buyers for Asia-Pacific destinations have formulas
based on a monthly average of Dubai and Oman benchmark prices. These systems effec-
tively protect buyers from the transportation and time risks that are normally associated
with long voyages and put Saudi Arabia on an equal footing with competitors.
Using these attractive formula-pricing mechanisms, prices can be geared to
meet competitors head-on in each geographical market center for all five of the
kingdoms primary export grades. In order to help bolster revenue, state Saudi
Aramco has shifted sales in favor of lighter grades since 1994, tightening price
terms and trimming sales volumes of its heavier grades. Arab Light is the main
export crude oil and, like heavier Arab Medium
and Heavy, it is relatively high in sulfur and light
only by Mideast standards. Although not the most
attractive grades, their large volumes make them
key baseload supplies for refiners in all of the
main global refining centers a status that is
matched by few other grades. Saudi Arabia also
exports two lighter grades, Berri and Super Light,
which are similar in quality to the more attractive
Abu Dhabi grades. Exports of 200,000 barrels a
day of the new Super Light Saudi grade, which is low in sulfur and comparable to a North
African crude oil, began in 1995, with the customer list dominated by Asian buyers. Saudi
Aramco affiliate Ssangyong has contracted half the volume, with other customers picking
up the balance in part to ensure access to heavier grades (see pH223-H232).
Although Saudi pricing is uniform for all similar types of buyers in the same
region, this system still provides for a great deal of variation because of the wide
range of markets in which Saudi Arabia is active and its ability to sell large vol-
umes on a delivered basis in the US and Europe. For example, delivered sales can
occur from Caribbean or Rotterdam storage terminals; from the Sumed pipelines
Mediterranean outlet at Sidi Kerir, Egypt; or by ship delivered into the US Gulf Coast.
The buyers are notified of price differentials almost a month in advance earlier than
by most other producers in order to provide them the time to work out all of the com-
plex loading and sales alternatives. This early notification also allows competing suppli-
ers such as Mexico and Venezuela to adjust their prices accordingly. Saudi delivered sales
also require a large volume of working storage in the Caribbean and Europe and dozens
of tankers. Atlantic Basin sales are handled primarily by Saudi Petroleum International,
an Aramco affiliate based in New York and London, while Asian sales are handled
through Saudi Aramco headquarters in Dhahran.
Saudi sales to the US, Japan, and other key markets expanded sharply in the
early 1990s, doubling in some cases. Despite the return of Kuwait to the interna-
tional market and growing competition from Venezuela, Mexico, and Iran, the
erosion of the Saudi sales position has only been noticeable in the US. Less Saudi
emphasis has been placed on Europe, in part because of tougher competition
from Iranian and Russian spot sales. Sales to the major international oil companies
Royal Dutch/Shell, Exxon, Chevron, Texaco, British Petroleum, and Mobil repre-
sent slightly over 40% of the kingdoms crude oil exports and are purchased mainly from
Saudi ports rather than on a delivered basis. These firms are also sold extra volumes on
a spot basis at times, and they provide much of the flexibility in the Saudi sales program.
Other clients span a wide variety of firms all over the world, with almost all refiners of
any significance taking some Saudi crude oil. Sales of Riyadhs 50% share of crude from
the Neutral Zone are handled by equity producers there (see separate section on Neutral
Zone, pF23).
Joint ventures with foreign refiners are still viewed as a future cornerstone of
Saudi marketing policy, but they currently account for only about 12% of exports
and are coming under greater scrutiny. Under the leadership of oil minister Ali
Naimi, the question of whether Saudi funds would be better spent in the devel-
opment of the domestic gas sector as a means of freeing up more oil for export
has become a key area of debate. Otherwise, the Saudis are at various stages of
negotiation over refinery ventures in China, India, and Italy. Current joint ventures
fall far short of the kingdoms 50% long-term target for refining its own exports. But if
Saudi refined product exports of 750,000 b/d are included, the share jumps to 24% of
exports, which is within reach of its interim goal of 30%. Besides its Star Enterprise part-
nership with Texaco in the US the kingdoms largest single customer at 550,000 b/d
Saudi Aramco owns 35% of Ssangyong Refining Co. in South Korea, 40% of Petron in
the Philippines, and 50% of 100,000 b/d Greek refiner Motor Oil Hellas. These deals pro-
vide outlets for about 900,000 barrels a day of crude oil.
SYRIA
Syria emerged in the 1990s as an increasingly important source of supply to the
Mediterranean market, but with its output of light, sour crude oil starting to decline
and flows of its heavier grade now stable, its importance seems to have peaked.
Syrian Light crude oil trades particularly actively in regional spot markets, with
cargoes regularly resold by about 15 to 20 term-contract lifters. About 350,000 bar-
rels a day of Syrias output of nearly 600,000 b/d was exported in 1995. Export vol-
umes were roughly 75,000 b/d of Souedieh and 275,000 b/d of Syrian Light, with
all volumes marketed by state Syrian Petroleum Co.s
Sytrol unit (see pH237-H240). Souedieh is produced by the
state firm at a rate of about 150,000 b/d. Syrian Light comes
from a group of fields involving Shell, Deminex, Elf, and oth-
ers, and output there had risen to 400,000 b/d in 1994 before
beginning a gradual decline that is expected to average about
10,000 b/d each year. The equity producers are not allowed to
export their crude oil, and they must sell it to the government. The countrys 220,000 b/d
of refining capacity is operated at full throttle, almost entirely with domestic grades.
To cope with the highly competitive sour crude oil market in the
Mediterranean in the 1990s that was created by heavy spot trading of Russian
Urals grade, SPC diversified its sales to a wider group of 15 to 20 term customers
with flexible volumes. Its grades go mainly to European refiners, with some sales
to the US that have been threatened by sanctions. Traders such as Marc Rich, Bay
Oil, and Marimpex are regular buyers, as are US Conoco, Austrian OMV, and several
Italian and French refiners. Prices are linked to North Sea Brent crude oil under formu-
la terms. Syrian Light competes actively with Mideast sour grades and North African
grades, but poor-quality Souedieh is sold mainly to technically sophisticated refiners,
sometimes at steep discounts to Brent. Syrian Light has declined in quality slightly since
1994 as older production has been replaced by flows from newer fields.
UNITED KINGDOM
The British North Sea is the spot market capital of the world, and it seems likely
to continue in this role for a long time to come. Although Norway has now
eclipsed the UK as the largest producer in Europe, the rapid growth of British
North Sea output in the late 1970s and early 1980s, when spot markets were ris-
ing to the fore, provided a natural focus for trading and price discovery. While
the Brent Blend crude oil stream is the fulcrum of crude oil trading, the key inter-
national market grade comprises only about one-third of total UK production.
Brent Blend is a compilation of crude oil from over 15 fields that is merged into a sin-
gle 675,000 barrel a day stream at the Sullom Voe loading terminal in the Shetland
Islands. Other important export streams are Forties, which is now
larger than Brent at about 1-million b/d, and Flotta, which is in
decline at about 250,000 b/d (see pH241-H250). All three of these
main grades are loaded from terminals, which facilitates trading.
Except for Flotta, all of the UK grades are light and sweet, which
generally makes them attractive to refiners and relatively easy to
market. There are about a dozen smaller, offshore-loaded fields,
with collective output of about 500,000 b/d. These tend to be more cumbersome because
of logistical constraints, confining them to Europe. However, Brent and Forties are both
regularly sold outside of Europe. Due to its rising flows, Forties is expected to eventual-
ly displace Brent in the key benchmark role (for a complete discussion of the Brent mar-
ket and its benchmark role, see pB9).
More than half of the crude oil produced in the UK North Sea avoids the inter-
nal downstream supply systems of producing companies and is traded on a spot
basis in the international market. Over the years, freedom from regulation, the
efficiency of the market, and the ready availability of forward trading instru-
ments have reinforced the preference for spot trade in the UK North Sea. The gov-
ernment gave up its active role in the market in 1985, and it has allowed trade to evolve
and grow without much interference, despite some sporadic bouts of market difficulties,
especially in Brent trade. The UK North Sea also represents the largest and most diverse
concentration of international oil companies in the world, with over 50 producing firms
active in almost 75 fields.
The main players in the UK North Sea spot market are the big producers
Shell, Exxon, and British Petroleum and some of the large Wall Street firms
and European refiners. The sizable equity production of BP (425,000 b/d), Shell, and
Exxon (300,000 b/d each) gives them a distinct comparative advantage in trading. They
are also capable of optimizing their tax exposure by opting to trade barrels or keep them
in their own systems, which has an important impact on market liquidity. Enterprise and
Amerada Hess have emerged as more important players with their rising Forties flows of
over 150,000 b/d each.
Along with Norwegian grades, UK crude oils are the mainstay of Northwest
Europes refineries. However, the UK refining sector has a high level of sophisti-
cation, so the large predominance there of sweet grades such as Brent is not ideal
for the countrys own refining sector. Therefore, of the 2.5-million barrels a day
produced in the UK, only about 800,000 b/d is refined in the nation, which has a
capacity of 1.85-million b/d. Sharp increases in North Sea production in mid-1990s man-
aged to push even more UK grades into a wider variety of markets. UK grades have
found more buyers in North America, the Mediterranean, and sometimes even in the Far
East, where they are coveted for their ability to produce middle distillates.
UNITED STATES
Although the US exports little crude oil, its position as a major producer and mar-
ket center gives it significant international importance. The countrys position as
an exporter expanded in 1996 when the ban on international sales of Alaskan
North Slope was lifted. The US crude oil market is unique due to its huge size,
wide dispersion of small producers, unusually heavy reliance on pipelines, and
expanding appetite for imports. Primarily because of the markets size, bench-
mark grade West Texas Intermediate and other key US grades have broad inter-
national influence (see pH251-H260). Since the US is the worlds largest oil importer
and its crude oils compete head-to-head with international grades, price trends there play
an important role in the global oil market.
Although exports are limited, an understanding
of how the US market works is critical to a com-
plete view of the global crude oil trade. US oil
policy can also have a huge impact on interna-
tional markets, with the latest examples being
the sanctions that the US has imposed on Iran
and Libya. Policy moves such as the decontrol
of US crude oil prices from 1978-81 have also
had a significant international impact.
Although the ban has been lifted on US
exports of ANS crude oil, total volumes
seem unlikely to exceed 200,000 barrels a
day to customers in the Asia-Pacific region. Initial sales in 1996 were on a spot and
term-contract basis to Taiwan, Japan, and South Korea at a rate of 100,000 b/d. Small vol-
umes of crude oil from Cook Inlet, Alaska, and California have also been exported to
Asia in the past, and a limited amount into Canada, but these were all exceptions to the
overall US ban on crude oil exports. Declining production on Alaskas North Slope and
steady demand for the crude oil on the US West Coast limit the scope for ANS exports.
The previous benchmark role of ANS for trading on the Gulf Coast has been eliminated
in the mid-1990s by declining production and the shift to Asian exports.
Most US crude oils are sold under monthly evergreen, or automatically
renewable, contracts at prices posted by the refiners, which can change daily in
a volatile market. The myriad of small producers in the country are price-takers
and, in some cases, are highly dependent on one or two gathering companies to
get their oil into the main pipeline systems. They typically sell the crude oil at
the wellhead. This contrasts with the spot markets for US grades, which are usually
located at key pipeline centers such as Cushing, Oklahoma. Deliveries there occur on a
spot or cash basis and against the New York Mercantile Exchanges light, sweet crude
oil futures contract, which in practice focuses almost exclusively on WTI. Local produc-
ers, refiners, and trucking companies that gather oil from the wellhead in remote areas
are important players in the term market, and traders also get involved sometimes. Oil
priced at the wellhead does find its way into a specialized spot market called the P
plus, or postings plus, market. US refiners that need more domestic crude oil can use
these markets to acquire lease oil on a ratable basis at prices linked to the monthly aver-
age posted contract quote for one or several refiners whose posted prices are consid-
ered most reflective of spot market trends.
US pipeline supplies are also traded actively on a spot basis at key hubs.
Volumes are rated on a barrel a day basis at quantities of 1,000-10,000 b/d over a
month, and transactions are completed at least five days prior to the start of the
delivery month in order to allow for pipeline scheduling. This also permits much
smaller transactions and greater flexibility than in the international crude oil cargo mar-
ket. Nymex futures quotations for WTI usually serve as a reference for most spot trans-
actions. Widely traded grades like West Texas Sour, Light Louisiana Sweet, and Heavy
Louisiana Sweet have their own trading hubs and are usually marketed at either a dis-
count or premium to WTI prices depending on quality and location.
The US oil market is going through some important changes that should have
a significant impact on the competitive position of imported supplies. The decline
in onshore production and rising internal demand mean increasing requirements
for international supplies and pipelines to bring these crude oils to inland refin-
ers that previously depended on domestic grades. At the same time, rising pro-
duction from new offshore fields in the Gulf Of Mexico mean a more competitive
environment for sour grades in that key market area. About 1-million b/d of new
production is expected by 2000 from the new deep-water and sub-salt fields in the Gulf,
and over 60% of this crude oil is high in sulfur like the new Mars blend. These grades are
expected to be actively traded in the US Gulf spot market, competing head-to-head with
Mideast and Latin American barrels. At the same time, the need to bring more interna-
tional crude oil to refiners in the Midcontinent and Great Lakes regions has required the
expansion of pipeline systems in order to avoid supply bottlenecks.
VENEZUELA
The marketing of Venezuelan crude oil has always been a challenge because of
its relatively poor quality, but the stakes have been raised in the mid-1990s by an
upswing in the countrys output and exports that now looks likely to extend for
several years. State Petroleos de Venezuela has managed to meet the challenge by
using a combination of old and new marketing techniques. With crude oil reserves
in excess of 60-billion barrels, the country has the largest pool of reserves outside the
Mideast. But PDVs Achilles heel is that much of its
crude oil is heavy and high in sulfur and metals,
requiring special efforts to market it. However, by
building sophisticated export-refining capability and
investing carefully in downstream ventures over-
seas, Venezuela was able to lock in secure market
outlets for over half of its oil exports in the early
1990s. As a result, despite quality problems, it has
made itself among the least vulnerable of Opec exporters to competitive market pres-
sures, and it has had little trouble expanding crude oil exports to 1.8-million barrels a
day in 1995 and over 2-million b/d in 1996 (see pH261-H272).
PDV faces an uphill battle on the quality front, with its reserves dominated by
heavy grades. However, most of its export growth in the mid-1990s has been with its
medium- and light-gravity grades, which reflects both rising production of these oils and
increased upgrading capacity at domestic refineries, allowing them to switch to heavier
crude oil feedstock. There are already limits to how much heavy crude oil Venezuelas
domestic and overseas refining system can take, and PDV is forced to buy significant vol-
umes of lighter grades from other producers to supplement its own production. It also
has brought in international oil companies to improve recovery from existing fields and
expand output from new ones, which should add to exports in the future. These new
flows could also further complicate crude oil marketing arrangements with the emer-
gence of new sellers.
In the face of these challenges, the backbone of Venezuelas crude oil export
program is its overseas refining capability of about 1.5-million barrels a day,
which received almost 900,000 b/d of supplies directly from Venezuela in 1995
with additional supplies purchased from the open market. This left about 925,000
b/d of domestically produced crude oil to sell to third parties. PDV also exports
about 700,000 b/d of refined products from its domestic refineries, which have a
capacity of 1.2-million b/d. PDVs downstream assets in the US include ventures with
Citgo, Champlin, Unoven, Seaview, Chevron, and Lyondell, as well as a long-term lease
on the 300,000 b/d Curacao refinery. In Europe, PDV owns shares of refineries in
Germany, Belgium, and Sweden with German Veba and Swedish Nynas, amounting to
some 245,000 b/d. Crude oil sales to its own downstream outlets are secured by realiza-
tion pricing that ties the value of the crude oil to the output of refined products.
Since 1992, Venezuela has shifted its third-party crude oil sales more heavily
toward spot-linked transactions, which it had shunned previously but has since
embraced wholeheartedly. This market-responsive system has allowed Venezuela
to expand its international sales relatively easily since 1993 as its production has
grown. Pricing terms are set individually to suit the particular needs of customers.
The spot-linked sales are primarily targeted at US refiners, which took about 70% of
Venezuelas 2-million b/d crude oil exports in 1996, with about a third of that 1.4-million
b/d going to PDV downstream ventures. Because price terms are set individually, crude
oil costs vary among customers. While the main buyers are heavy-crude oil-oriented refin-
ers such as Mobil, Conoco, Phillips, Amoco, and Star Enterprise, new flows of lighter
grades have allowed Venezuela to market to firms such as Phibro and Coastal. The new
pricing strategy has helped Venezuela to expand its sales and makes it difficult for other
suppliers to displace it. The preference of US refiners for low inventories also makes the
nearby Venezuelan crude oil with its spot-linked pricing especially attractive.
PDVs old system of postings is still in use, but it is at best only a partial indi-
cator of price levels. The PDV postings are still used as one element in some of the
new sales formulas, but prices are generally believed to be about 50¢ to $1 a barrel
below the postings, and most formulas have a timing element to protect customers dur-
ing crude oil shipment. PIW has begun tracking the formula price of Furrial crude oil,
providing a more accurate measure of price levels, which appear to be quite competi-
tive (see Furrial prices, pI29).
Venezuela is likely to keep expanding its downstream network overseas as it
expands its oil production because of the security this provides for crude oil
sales. The more open posture Caracas has taken to international upstream investment in
the country could also help forge such deals. However, competition in the key US mar-
ket is likely to grow more intense with rising US output of sour crude oils from the Gulf
Of Mexico and the reemergence of Iraq as a sour crude oil exporter.
PDV subsidiaries Lagoven, Maraven, Corpoven, and Meneven are the operat-
ing companies for production and refining, and they also handle crude oil
exports. PDV has sought to minimize past competition for customers among them by
restricting buyers to using a single affiliate. Venezuela has over a dozen main crude oil
export grades, with several other minor streams.
VIETNAM
Vietnam was a rising star of Asia-Pacific oil production in the early 1990s, but it has
since lost much of its luster. Although it has managed to boost production to over
150,000 barrels a day, it has yet to live up to the hopes that many international oil
companies placed on its upstream potential, and exports are likely to at best hold
steady rather than more than double by 2000 as the government has projected. The
problem is that all of the discoveries by international oil compa-
nies so far have turned out to be relatively small despite some
promising initial assessments. The Bach Ho field, originally dis-
covered by Mobil but developed by the Russians, is the main pro-
ducing field at about 125,000 b/d (see pH273). The smaller Rong
and Dai Hung fields produce most of the rest of the output, with
the 25,000 b/d Ruby field slated to come on stream in late 1996.
Almost all production is exported due to the lack of
domestic refining capacity. Vietnams 33-gravity Bach Ho export grade is typical
of medium-gravity Asian grades, which are low in sulfur but high in wax. This
quality constraint and the countrys strong commercial links with Japanese trad-
ing houses mean that about 50% of exports still go to Japan, despite an effort by
Vietnam to diversify its outlets. In the future, the big challenge for Vietnam as an exporter
will likely be to keep its output expanding quickly enough to stay ahead of the coun-
trys demand, which is also growing rapidly. However, plans to build a domestic refin-
ery have stalled, and virtually all production is likely to continue to be exported until late
in the 1990s.
Bach Ho prices have been set with a link to similar-quality Indonesian Minas
grade. State producer Petrovietnam and state oil market Petechim are both responsible
for crude oil sales. In addition to the Japanese, Singapore refiners have also been active
buyers. With the lifting of the US ban on trade with Vietnam in 1995, US majors such as
Mobil began to buy the crude oil.
YEMEN
Although Yemen has fallen short of the high expectations that it set for its out-
put potential, it has managed to achieve flows of about 350,000 barrels a day
mainly from its Marib and Masila fields. With no major increases in production
on the horizon, state Yominco started to trim its term sales on Marib crude oil in
1996 to meet rising domestic demand (see pH275-278). About 65,000 b/d of Marib is
being processed at the 100,000 b/d Aden refinery to meet local product needs, leaving
only about 35,000 b/d of term sales by Yominco plus offtake of about 100,000 b/d by
equity producers Hunt, Exxon, and South Korean Yukong. Marib crude oil has become
progressively lighter with the injection of condensate from associated gas, making it an
extremely light 49-gravity stream. Heavier Masila is produced by Canadian Occidental
and reached plateau levels of 120,000 b/d in 1994.
The grades are sold by the equity producers and by Yominco, which has about
a 50% share of output from both streams. Supplies move to Asia, Africa, Europe,
and the US, depending on market circumstances, but
Japan and other Asian markets have become prima-
ry outlets. Key Yominco buyers include Japanese refin-
ers Japan Energy, Mitsubishi Oil, trading house Sumitomo,
US Unocal, South Korean Yukong, and French Total.
Traders such as Glencore and Phibro also have contracts.
Exxon markets Hunts share of Marib as well as its own,
keeping significant volumes in its refining system. Masila tends to compete directly with
similar-quality Oman crude oil in Asian markets and sometimes is priced at a differential
to it in the spot market.
As an indication of Yemens solid marketing position, it is able to price its
grades with direct linkage to the distant North Sea Brent market, even with its
large Asian sales base. It also does not provide any timing delay in its price formula,
which is customary for other Mideast producers that use spot Brent as a marker grade
for their sales. Additionally, Yominco sets its price formulas quarterly rather than month-
ly. However, the higher condensate content of the Marib stream has made it a bit hard-
er to sell competitively.
Trade
Table of Contents
Term Contracts & Trade Flows By Country And Company . . . . . . . . . . . . . .G1

PIWs Term Deals By Producing Nation . . . . . . . . . . . . . . . . . . . . . . . . . . . . .G3
PIWs Term Deals By Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .G16
US Crude Oil Imports By Company And Country Of Origin, 1991-95 . . . . . .G33
US Crude Oil Imports By Country Of Origin And Company, 1991-95 . . . . . .G40
CRUDE OIL HANDBOOK PIW © G1
Term Contracts And Trade Flows

By Country And Company
The following tables provide unique insights into the structure of crude oil trade
by presenting data that track crude oil sales volumes by company and by coun-
try. The first set of tables is from PIWs regular tracking of term contract sales
volumes for crude oil. These are presented as sales from each country to partic-
ular companies and then as purchases by each company from particular coun-
tries. These data are a snapshot of the term contract arrangements that existed at a point
in time during the first half of each year shown from 1989 to 1995. Users of these data
should remember that term contract volumes shift constantly through the year, and the
data here are simply samplings of the commitments, not measurements of the average
volume for the entire year. Nevertheless, the volumes do provide a unique and highly
useful indication of the relative trends in term contract sales volumes. All regularized vol-
umes have been included here, where possible, even if they exceed the nominal term
contract volume that a company might be committed to. The term contract sales volumes
shown here are those by state oil companies or governments, and they exclude liftings
by foreign equity producers or volumes destined for the internal market. Purchasers are
shown according to their current names or names that were in use at the time of pur-
chases. Sometimes country names are used to indicate state-to-state deals.
Following the tables on term contract volumes is a set of tables that provide
valuable detail on US crude oil imports by country and by company for 1991-95.
Like the tables on term contracts, they show the volume of crude imported into
the US by each company broken down by country of origin, and they also show
the imports into the US from each country broken down by importing company.
Unlike the data on term contracts, these volumes are only for the US, and they include
spot purchases, equity crude production, and other volumes in addition to term contract
supplies. They also are annual average volumes rather than snapshots at a particular
point in time.
PIWs TERM DEALS BY PRODUCING NATION (In 1,000 b/d)
Volume Destination
Abu Dhabi 1989 1992 1993 1995 in 1995
Agip ... 10 10 ... ...
Bangladesh ... 5-10 ... ... ...
BPC ... ... ... 20 Bangladesh
Cosmo 10 20-30 20 25 Japan
CPC (Sri Lanka) ... ... ... 9 Sri Lanka
CPC (Taiwan) ... 10 10 5 Taiwan
Honam ... 20 34 20 South Korea
Hyundai ... ... ... 10 South Korea
Idemitsu 50 60 60 40 Japan
Indian Oil Corp. 10 20 20 20 India
Itochu ... 10-20 10-20 ... ...
Kanematsu 15 17 17 17 Japan
Kukdong ... 10 10 ... ...
Kyushu ... ... ... 15 Japan
Marubeni ... ... ... 10 Japan
Mitsubishi Corp. ... 20 20 30 Japan
Mitsubishi Oil 15 ... 20 20 Japan
Mitsui 10 10-15 10-15 ... ...
Mobil ... 20 20-30 20-30 East
Neste ... 20 20 20 Kenya
Nippon Oil 20 40 40 30 Japan
Pakistan ... 10 10 10 Pakistan
Petrofina ... 20-30 20 ... ...
RD/Shell ... 67 67 20 East
Showa Shell 10 20 20 30 Japan
Texaco 10 ... ... ... ...
Thai Oil ... ... ... 16 Thailand
Total (France) ... 17 17 ... ...
Tupras ... ... 48 ... ...
Yukong ... 17 35 20 South Korea
Total 150 442.5-482.5 537.5-562.5 402-432 ...
China
Coastal 30-60 30 ... ... ...
Japan 165 190 180 ... ...
Kyung-In ... ... 20 ... ...
Phibro 40 25 ... ... ...
PNOC ... 5 2 ... ...
Yukong ... 20 10 ... ...
Total 235-265 270 212 ... ...
Colombia
BP 15 17 16 16 US
Costa Rica ... 6 ... 16 Costa Rica
Interpetrol ... 17 ... ... ...
Mobil ... ... 16 ... ...
Murphy 15 17 16 ... ...
Petroperu ... ... 6 ... ...
Petrotrin ... ... ... 16 Trinidad
Phibro 15 33 16-32 16 US
Scanoil 15 ... ... ... ...
Sun ... 17 16 16 US
Total 60 105 85.5-101.5 80 ...
Ecuador
Anglo Energy ... 12 12 12 US/Latin America
Coastal 15 ... 12 ... ...
G4 PIW © CRUDE OIL HANDBOOK
Volume Destination
Ecuador (cont.) 1989 1992 1993 1995 in 1995
Commoil 15 ... ... ... ...
Copec-Chile 15 ... ... ... ...
CPC (Taiwan) 15 24 ... ... ...
Elf ... ... ... 18 US/Latin America
Glencore* ... ... ... 24 US/Latin America
Interpetrol ... ... 12 12 US/Latin America
Itochu 15 ... ... ... ...
Lucky Goldstar 25 24 27 36 South Korea
Marc Rich (Clarendon) ... 12 12 ... ...
Oil Tex ... 12 12 24 US/Latin America
Petrobras 15 ... 12 ... ...
Phibro ... ... 0-12 ... ...
Ssangyong 25 ... ... ... ...
Tevier ... ... 12 12 US/Latin America
Texaco ... ... 12 12 US/Latin America
Tosco ... ... ... 12 US
Totisa ... ... 12 12 US/Latin America
Tripetrol 15 48 12 36 US/Latin America
Wickland ... ... ... 12 US/Latin America
Total 155 156 171-183 246 ...
Egypt
Africa Middle East ... 10 ... ... ...
Anglo Energy ... 6 ... ... ...
Bayoil ... 6-9 ... ... ...
BB Naft ... 6 ... ... ...
Bulk ... 5-7 ... ... ...
CPC (Sri Lanka) ... 3 ... ... ...
Cameli ... 3 ... ... ...
Chevron ... 6 ... ... ...
Citizens Resources ... 3 ... ... ...
Coastal ... 2 ... ... ...
Elf ... 3 ... ... ...
Exxon ... 4 ... ... ...
Gotco ... 3-4 ... ... ...
Greece ... 8 ... ... ...
Israel ... 40 ... ... ...
Koch ... 5-7 ... ... ...
Marc Rich ... 6-9 ... ... ...
Marimpex ... 4 ... ... ...
Mitsui ... 3 ... ... ...
Mobil ... 4 ... ... ...
Motor Oil Hellas ... 6 ... ... ...
OMV ... 7-9 ... ... ...
Phibro ... 5-7 ... ... ...
Repsol ... 3 ... ... ...
Romania ... 6 ... ... ...
Sonangol (Angola) ... 4 ... ... ...
Star Enterprise ... 10 ... ... ...
Total ... 169-185 ... ... ...
Indonesia
FEOT/JIOC varies 180 220 ... ...
Inpex ... ... 30 ... ...
*Formerly Marc Rich. Now Pacific Petroleum & Trading Co.

Volume Destination
Indonesia (cont.) 1989 1992 1993 1995 in 1995
Kitco varies 45-50 ... ... ...
Perta varies 45-50 ... ... ...
Samudra varies 15-20 ... ... ...
Total 150 285-300 250 ... ...
Iran
Agip ... 30-50 ... 50 Italy
API ... ... ... 20-25 Italy
Bayoil ... 30 60-70 70 Romania/Bulgaria
BP § ... ... 80-150 200 Europe
Burgas Refinery ... ... ... 30 Bulgaria
Caltex ... 60-65 60-130 60 East
Cameli ... 80-120 ... ... ...
Cargill ... 60-80 65 ... ...
Cepsa ... ... ... 15 Spain
Chevron ... 60 0-60 ... ...
China ... ... ... 10-20 China
Coastal ... 130-150 80-125 130 Europe/Caribbean
Cosmo 30 45 45 45 Japan
CPC (Sri Lanka) ... 20 20 ... ...
Dreyfus 100 ... ... ... ...
Elf ... 50-60 90 20-30 France
Exxon ... 250-300 200-300 250-300 East/West
Gdansk Refinery ... ... ... 30 Poland
General Sekiyu ... 30 ... ... ...
Gotco ... 25 ... ... ...
Greece ... ... ... 100 Greece
Hanwha ... ... ... 40 South Korea
Honam ... ... ... 65 South Korea
Indonesia 30 ... ... ... ...
Isab Garrone ... 40-50 40-50 35 Italy
Itochu 40 30 25 30 Japan
Kanematsu 20 30 20 40 Japan
Kukdong ... 25 25 ... ...
Kyung-In ... ... 20 ... ...
Marc Rich 200 100-120 150-175 ... ...
Marimpex varies ... ... ... ...
Marubeni 20 30 25 30 Japan
Mitsubishi Corp. 20 20 25 20 Japan
Mitsubishi Oil 10 15 15 ... ...
Mitsui 30 25 20 20-25 Japan
Mobil ... 40 25 40-50 East
N. Korea 40 10 ... ... ...
Neste ... ... 0-40 ... ...
Nippon Oil ... ... ... 30 Japan
Nissho Iwai 20 ... ... ... ...
Nova (Greece) ... ... 60 ... ...
OK Petroleum ... ... ... 30 Sweden
OMV ... 30 20-30 5-10 Austria
§ Excluding purchases for South African refineries Motor Oil Helas, DEP, and Petrola.
Volume Destination
Iran (cont.) 1989 1992 1993 1995 in 1995
Petrobras 60 180 75 60 Brazil
Petrofina ... 50-100 0-75 75 Belgium
Petrogal ... ... ... 30 Portugal
Petronas ... 15 ... ... ...
Petronor ... ... ... 30-40 Spain
Phibro 175 30-50 0-80 ... ...
PNOC ... 27 20 ... ...
Poland ... 60-72 50 ... ...
PTT (Thailand) ... 15 ... ... ...
Rafiron ... ... ... 65 Romania
Repsol ... ... ... 30-35 Spain
Romania ... 16 ... ... ...
RD/Shell § 70 50-70 70 50 East/West
Showa Shell 20 25 25 30 Japan
Sinochem ... 20 ... ... ...
Sonatrach ... ... 60 ... ...
South Africa ¶ ... ... ... 200-250 South Africa
Sri Lanka ... ... ... 20 Sri Lanka
Sumitomo 20 15-20 20 40 Japan
Total (France) § ... 20 0-40 10-15 France
Toyomenka 40 50 50-125 60-70 Japan
Tupras ... ... 60-80 100 Turkey
Vitol 100 50-60 ... ... ...
Yugoslavia 20 ... ... ... ...
Total 1,255 2,108-2,420 1,840-2,570 2,505-2,680 ...
Iraq
Agip 60 ... ... ... ...
Ashland 35 ... ... ... ...
Chevron 70 ... ... ... ...
Coastal 50-70 ... ... ... ...
Cosmo 30 ... ... ... ...
Crown Central 35-70 ... ... ... ...
Elf varies ... ... ... ...
Exoil 10 ... ... ... ...
Exxon 200 ... ... ... ...
Idemitsu 40 ... ... ... ...
Indian Oil Corp. 70 ... ... ... ...
Indonesia 30 ... ... ... ...
Kashima 10 ... ... ... ...
Marathon 35 ... ... ... ...
Mitsubishi Corp. 20 ... ... ... ...
Nippon Oil 35 ... ... ... ...
Petrobras 150-200 ... ... ... ...
Poland 25 ... ... ... ...
RD/Shell 50-100 ... ... ... ...
Repsol 100 ... ... ... ...
Showa Shell 10 ... ... ... ...
Texaco 100-150 ... ... ... ...
Total (France) varies ... ... ... ...
Total 1,265-1,470 ... ... ... ...
§ Excluding purchases for South African refineries. ¶ BP, Shell, Caltex, Total, Sasol, and Engen.
Volume Destination
Kuwait 1989 1992 1993 1995 in 1995
American Petrofina ... ... 0-30 ... ...
Amoco 60 ... 0-30 ... ...
Ashland ... ... 0-60 50 US
BP ... ... 0-30 ... ...
Chevron ... ... 65 30-35 US
Cosmo ... 30 50 70 Japan
Exxon ... 100 120-140 100-125 East/West
Indian Oil Corp. 10 80 80 90-100 India
Itochu ... ... 10 ... ...
Ivory Coast ... ... ... 25 Ivory Coast
Japan Energy Corp. ... ... ... 10 Japan
Kuwait Pet. Intl. 130 90 90 ... ...
Kyung-In ... 20 20 ... ...
Marathon ... ... 0-30 50 US
Mitsubishi Corp. 20 20 20 ... ...
Mitsui 20 ... ... ... ...
Pakistan ... ... ... 50-70 Pakistan
Petrobras 30 ... ... 50 Brazil
Petrofina ... ... ... 25 Belgium
Phillips ... ... 0-30 17 US
PNOC ... ... 20 ... ...
RD/Shell ... ... 180 100-150 East/West
Repsol ... ... 0-30 ... ...
Saras ... ... 30 20 Italy
Sasol ... ... ... 30 South Africa
Seibu ... ... 20 20 Japan
Shell US ... 100 0-60 15 US
SRC ... ... ... 30 Singapore
Sumitomo 20 20 ... ... ...
Texaco ... ... ... 35 US
Total 320 530 845-1,165 997-1,107 ...
Libya
Agip ... ... 100 100 Italy
API ... ... 20 20 Italy
Borgas (Bulgaria) ... ... varies ... ...
BP ... 15-20 ... ... ...
Coastal/Holborn 90 50 50 ... ...
Daewoo ... 30 30-50 ... ...
DEP (Greece) ... ... ... 20 Greece
Elf ... 20-30 30 40 France
Greece ... 20 20 ... ...
Jaco Rossi ... 60 ... ... ...
Marimpex ... 20 ... ... ...
Nova (Canada) ... ... ... 10 Europe
Nova (Greece) ... 20-40 40 40 Greece
OMV 20 85-90 90 110 Austria
RD/Shell ... 20 20 ... ...
Repsol 60 90 100 100 Spain
Sinochem a ... ... ... ... ...
Sudan ... 25 ... ... ...
KPC processing deals. a Dormant contracts.

Volume Destination
Libya (cont.) 1989 1992 1993 1995 in 1995
Tamoil 100 240-280 250 250 Germany, Switzerland, Italy
Total (France) ... ... 20 10 France
Tupras ... 60 48 50 Turkey
Total 270 755-835 818-838 750 ...
Malaysia
Astra ... 5 ... ... ...
BP ... 5-10 ... ... ...
Cosmo ... ... 5 5 Japan
CPC (Sri Lanka) ... 10 6 6 Sri Lanka
CPC (Taiwan) ... ... 9 9 Taiwan
Elf ... 5-10 ... ... ...
Exoil ... 5-10 ... ... ...
Exxon ... 30-35 ... ... ...
Hanwha ... ... ... 10-15 South Korea
Idemitsu ... 5 5 5 Japan
Indian Oil Corp. ... 30 30 10 India
Kyung-In ... 10-15 21 ... ...
Marubeni ... ... 3 3 Japan
Mitsubishi Corp. ... 5-10 8 8 Japan
Mobil ... 10-15 ... ... ...
Nippon Oil ... 10-15 15 15 Japan
PNOC ... 5-10 ... ... ...
PTT (Thailand) ... 15 5-10 10 Thailand
RD/Shell ... 5-10 ... ... ...
Showa Shell ... ... 3 3 Japan
Singapore Petroleum ... 5-10 ... ... ...
Sinochem ... ... ... 20 China
Taiyo ... 15-20 15-20 20 Japan
Texaco ... 10-15 ... ... ...
Yukong ... 15-20 32 17 South Korea
Others ... ... 20-25 ... ...
Total ... 215-285 194-209 153-158 ...
Mexico
American Petrofina 15 20 25 ... ...
Amoco ... 65 65 65 US
BP ... ... ... 20 Spain
Central America ... ... ... 50 Central America
Cepsa 30 40 ... 20 Spain
Chevron 120 120-130 120 125 US
Citgo 75 40 60 20 US
Clark ... 35 30 30 US
Coastal 20 35 30 30 US
Conoco 50 30 40 80 US
Elf 20 15 ... ... ...
Ertoil ... 10 ... ... ...
Exxon 30 30 15 ... ...
Fina ... ... ... 30 US
Hunt ... 5-10 8 5 US
Israel ... 30 ... ... ...
Japan 180 100 100 80 Japan
Koch ... 10 20 25 US
Lyondell 60 70 30 ... ...
Marathon 90 60 60 20-25 US
Mobil 90 100 125 90 US
Volume Destination
Mexico (cont.) 1989 1992 1993 1995 in 1995
Murphy 15 18 ... 15 US
OMV 5 25 30 ... ...
Petro-Canada ... 15 15 10 Canada
Petrofina 20 30 ... 14 Belgium
Petrogal 10 30 ... 13 Portugal
Petromed 40 20 ... ... ...
Petronor 50 ... ... ... ...
Phillips ... ... ... 20 US
Repsol 100 190 160 85 Spain
S. Korea ... 10 ... ... ...
San Jose Accord 45 53 50 ... ...
Shell Canada ... ... 4 3 Canada
Shell US 65 60-70 80 120 US
Sun ... 30 30 15-20 US
Total (France) 60 25 30 20 France/UK
US SPR 45 ... ... ... ...
Others ... ... 80 ... ...
Total 1,235 1,321-1,346 1,207 1,005-1,015 ...
Nigeria
Addax 100 ... ... ... ...
Amni ... ... ... 20 East/West
Arcadia ... ... 20 20 East/West
Attock ... 40 45 ... ...
Basic Resources a ... 30 30 20 East/West
Calson (Vitol) ... ... ... 30 East/West
Chevron 50 50 50 ... ...
Clarendon (Glencore) ... ... ... 30 East/West
Citizens Resources ... ... 30 ... ...
Coastal ... 30 30 ... ...
Dreyfus ... 30 30 ... ...
Elf 50 30 60 ... ...
Erik Emborg ... ... ... 30 East/West
Ertoil 50 30 ... 20 Spain
Ferrostaal ... ... ... 40 East/West
Ghana ... 30 20 20 Ghana
Hachuel Oil ... ... ... 30 East/West
Incomed ... ... 30 30 East/West
Interpetrol ... 30 ... ... ...
IPCO ... ... ... 20 East/West
ITOC ... 10 ... ... ...
Itochu ... 30 30 20 East/West
Lyondell 30 ... ... ... ...
Mapco 50 ... ... ... ...
Marc Rich ... 40 30 ... ...
Metalchim ... 20 20 ... ...
Moncrief Oil ... ... ... 20 East/West
Neste ... 40 40 ... ...
Neste/Thyssen ... 20 ... ... ...
Nigermed ... 30 30 ... ...
Nova (Canada) ... 20 20 20 East/West
Nova (Greece) ... ... ... 20 East/West
OK Petroleum ... 20 ... 20 Sweden
Oranto (First Fuels) ... ... ... 20 East/West
Beginning in May 1995, Shells contract increased from 50,000 b/d to 120,000 b/d. a Addax in 1989.
Volume Destination
Nigeria (cont.) 1989 1992 1993 1995 in 1995
Petrogas (Glencore) ... ... ... 30 East/West
Petrojam ... 20 20 ... ...
Petromed 70 ... ... ... ...
Phibro 60 ... 30 ... ...
Queen Petroleum ... ... ... 20 East/West
Ragma Oil ... ... ... 20 East/West
Repsol ... ... ... 40 Spain
RD/Shell 50 30 ... ... ...
Scandinavian Trading ... ... ... 20 East/West
Southern Petroleum ... 40 30 ... ...
Sun 75 60 60 ... ...
Tevier ... ... 40 ... ...
Texaco ... 30 30 ... ...
Togo ... ... ... 10 Togo
Total (France) 80 ... ... 40 East/West
Toyomenka ... ... ... 30 East/West
Veba ... 30 30 ... ...
Vermont (Vitol) ... ... ... 20 East/West
Vitol ... ... ... 30 East/West
VTT Vulcan ... ... ... 30 East/West
Wind Pemiy NV ... ... ... 30 East/West
Wintershall ... ... ... 30 Germany
Total 665 740 755 780 ...
Oman
BP ... 7 ... 10 East
Caltex ... ... ... 10 East
CPC (Taiwan) ... ... 15 15 Taiwan
Elf ... 10 10 10 East
Idemitsu 40 30-40 30-40 35 Japan
Itochu ... 20 20 15 Japan
Kashima 10 12 12 10-15 Japan
Kukdong ... 10 ... ... ...
Kyung-In ... 15-20 32 ... ...
Marubeni ... 10 10 10 Japan
Mitsubishi Corp. ... 17 17 10 Japan
Mitsui ... 12 12 10-15 Japan
Mobil 20 ... ... 10 East
Neste ... 20 20 ... ...
Nippon Oil 20 20 20 20 Japan
Nissho Iwai ... ... 10 10 Japan
PTT (Thailand) ... 10 ... ... ...
RD/Shell ... 40 40 50 East
Sinochem ... ... ... 20 China
Sumitomo ... ... 10 10 Japan
Transworld 50 110 110 50 East
Yukong ... ... 29 20 South Korea
Total 140 363-378 419-429 365-375 ...
Qatar
British Aerospace ... 10 ... ... ...
Elf 15 35 ... 15 East
Exxon ... 25 ... ... ...
Volume Destination
Qatar (cont.) 1989 1992 1993 1995 in 1995
Golden Bell ... ... ... 10 South Korea
Gulf Interstate ... 25 ... ... ...
Honam (via Caltex) ... ... ... 10 South Korea
Itochu 30 50 50 50 Japan
Kanematsu 15 ... ... ... ...
Kyung-In ... 8 10 ... ...
Marubeni 50 50 50 45 Japan
Mitsubishi Corp. 50 50 50 50 Japan
Mitsui 20 ... ... 30 Japan
Mobil 25 25 25 25 East
Nippon Oil ... 10 10 10 Japan
Pakistan ... ... ... 10 Pakistan
Petrobras 25 ... 25 20 Brazil
Texaco ... 10 ... ... ...
Total (France) ... ... 20 ... ...
Total 230 338 335 345 ...
Saudi Arabia
Agip 50 60 60 70 Italy
Amoco 50 100 120 50-55 US
API ... 20 ... 20 Italy
Aramco
Partners 950 1,405-1,550 1,455-1,650 1,100-1,170 East/West
Chevron ... 300-325 300-325 270 East/West
Exxon ¶ ... 650-700 700-800 450 East/West
Mobil ¶ ... 375-425 375-425 300-350 East/West
Texaco ... 80-100 80-100 80-100 East/West
Ashland 100 150 150 50 US
BP 100 140 190 185 East/West
Cepsa 100 60 60 75 Spain
CPC (Sri Lanka) ... ... ... 5 Sri Lanka
CPC (Taiwan) 50-100 100 100 90 Taiwan
Elf 50 50 50 65 France
Greece ... 50 50 80 Greece
Hess ... ... 35 65 US
Hunt ... ... ... 12 US
Indonesia ... 20 ... ... ...
Irving Oil ... 50 50 50 US
Isab Garrone 35 30-50 30 30 Italy
Japan Energy Corp. 60 100 100 100 Japan
KPI/KPC ... 75 ... ... ...
Kukdong ... 20 45 ... ...
Kyung-In ... ... 20 ... ...
Lion Oil ... 25 ... 25 US
Lyondell 50 50 ... ... ...
¶ Includes both contractual and extra-contractual volumes. Motoroil Hellas, DEP and Petrola.
Volume Destination
Saudi Arabia (cont.) 1989 1992 1993 1995 in 1995
Marathon 60 125 125 100 US
Mindo/Pertamina ... ... ... 55 Indonesia
Mitsubishi Corp. 100 ... 58 60 Japan
Mitsubishi Oil ... 50 20 20 Japan
Neste 90 30 ... ... ...
Nippon Oil ... 50 70 100 Japan
OK Petroleum ... ... ... 50 Sweden
Petrobras 120 150-200 200 150 Brasil
Petrofina ... 20 20 65 Belgium
Petrogal ... ... ... 65 Portugal
Petrolimpex ... 25 ... ... ...
Petron ... ... ... 150 Philippines
Phibro ... 15 ... ... ...
Phillips 50 60 60 65-75 US
PNOC ... 60 60 ... ...
Repsol ... 30-50 100 100 Spain
Rheinoil 35 90 90 90 Germany
RD/Shell ¶ 300 600 800 550-600 East/West
Saras ... ... 35 ... ...
Shell US ... 50 50-80 30 US
Sinochem ... 25 ... 30 China
Ssangyong ... 200 170-300 350 South Korea
Star Enterprise 550 550 550 550 US
Sun 50 50 50 75-80 US
Taiyo ... ... ... 50-60 Japan
Total (France) 50 50 50 90 France/South Africa
Tupras ... 160 160-180 176 Turkey
Yukong ... 50-100 80 80 South Korea
Total 3,060-3,110 5,275-5,560 5,603-5,978 5,568-5,718 ...
Syria
Agip ... ... 20 20 Italy
API ... ... 16-25 10 Italy
Bayoil ... 20 30-33 ... ...
BP ... ... ... 25 Europe
Cepsa ... ... ... 2 Spain
Chevron ... ... ... 10 Europe
Coastal ... ... ... 15 Europe
Conoco ... ... 30-33 25 Europe
Elf ... ... 6-12 20 France
Marc Rich/Galaxy ... ... 30-33 3 Europe
Glencore ... ... ... 20 Europe
Isab Garrone ... ... 16-25 15 Italy
Lebanon ... 40 20 ... ...
Mobil ... ... ... 10 Europe
OMV ... 20 20 10 Austria
Repsol ... ... ... 25 Spain
Rheinoil ... ... 6-12 20 Germany
Socap ... ... ... 3 Europe
Texaco ... ... ... 20 Europe
Total (France) ... 20 30-33 30 France
Tupras ... ... ... 20 Turkey
Veba ... 20 30-33 35 Germany
Total ... 120 254-299 338 ...
¶ Includes both contractual and extra-contractual volumes. Arab Super Light spot purchases.
Volume Destination
Venezuela 1989 1992 1993 1995 in 1995
Amoco 40 18 20 50-60 US
API ... 2 ... ... ...
Caribbean Gulf ... ... ... 35-40 Puerto Rico
Cameli ... 1 ... ... ...
Central America ... ... ... 30 Central America
Cepsa ... 4 ... 15-20 Spain
Chevron 20 13 25 15 US
Cibro ... ... 7-10 ... ...
Citgo § 255 310-350 300-320 300-320 US
Clark ... ... ... 8-16 US
Coastal ... 26 15-30 8-10 US
Conoco 20 85 60-70 40 US
Elf ... 7 ... ... ...
Ergon ... 8 15-25 22 US
Exxon ... 25 10-20 ... ...
Hunt ... 6 8 8 US
Koch ... 15 15-25 10 US
Lyondell § ... 1 100 130 US
Mobil 40 35 30-100 130 US
Murphy ... ... ... 15 US
Nynas 30 24 25 ... ...
Nynas Sweden ... ... ... 10 Sweden
Nynas UK ... ... ... 30 UK
Petrobras ... ... ... 50 Brazil
Petrotrin ... ... ... 15 Trinidad
Phibro ... 1 0-75 45 US
Phillips ... ... ... 30 US
RD/Shell 30 23 23 15 Europe
Ruhr Oel 150 200 200 ... ...
San Jose Accord 45 53 50 ... ...
Smith & Hollander ... 6 ... 5 UK
Star Enterprise ... 42 50-60 40 US
Sun 20 37 15-20 ... ...
Tarmac ... 30 ... ... ...
Texaco ... 18 10 35-40 US
Trifinery ... 9 15-20 15 US
Unoven § ... 120 120 135 US
Veba ... ... ... 40 Germany
Total 650 1,117.2-1,157 1,113-1,366 1,281-1,336 ...
Vietnam
Idemitsu ... 7 9 ... ...
Japan Energy Corp. ... ... 8 ... ...
Kuo International ... 7 10-20 ... ...
Marubeni ... 5 5 ... ...
Mitsubishi Corp. ... 25 27 ... ...
Mitsui ... 5 5 ... ...
Nichimen ... 2 ... ... ...
Nippon Oil ... 5 ... ... ...
Nissho Iwai ... 25 27 ... ...
RD/Shell ... 12 ... ... ...
Sinochem ... 7 ... ... ...
Sumitomo ... 3 14 ... ...
Total ... 103 105-115 ... ...
§Joint venture with state PDV in 1995. Crude invoiced at an internal transfer price, based on the crude feedstock netback value.
Citgo venture includes Champlain and Seaview.
Volume Destination
Yemen 1989 1992 1993 1995 in 1995
Agip 20 ... ... ... ...
Chevron ... 10 ... ... ...
Coastal ... ... ... 25 East
Cosmo ... ... ... 10 East
Elf 10 ... ... ... ...
Glencore ... ... ... 25 East
Hess 20 ... ... ... ...
IPG (Kuwait) ... 10 ... 25 East
Mitsubishi Corp. ... ... ... 5 Japan
Mobil ... 22 ... ... ...
Phibro ... ... ... 20 East
RD/Shell 10 ... ... ... ...
Shell US 20 ... ... ... ...
Unocal ... ... ... 20 East
Total 80 42 ... 130 ...
Grand Total 9,920-10,205 14,454-15,311 14,744.1-16,575 14,945-15,490 ...

PIWs TERM DEALS BY COMPANY (In 1,000 b/d)
Volume Destination
Addax 1989 1992 1993 1995 in 1995
Nigeria 100 ... ... ... ...
Africa Middle East
Egypt ... 10 ... ... ...
Agip
Abu Dhabi ... 10 10 ... ...
Iran ... 30-50 ... 50 Italy
Iraq 60 ... ... ... ...
Libya ... ... 100 100 Italy
Saudi Arabia 50 60 60 70 Italy
Syria ... ... 20 20 Italy
Yemen 20 ... ... ... ...
Total 130 100-150 190 240 ...
Amerada Hess
Saudi Arabia ... ... 35 65 US
Yemen 20 ... ... ... ...
Total 20 ... 35 65 ...
American Petrofina
Kuwait ... ... 0-30 ... ...
Mexico 15 20 25 ... ...
Total 15 20 25-55 ... ...
Amni
Nigeria ... ... ... 20 East/West
Amoco
Kuwait 60 ... 0-30 ... ...
Mexico ... 65 65 65 US
Saudi Arabia 50 100 120 50-55 US
Venezuela 40 18 20 50-60 US
Total 150 183 205-235 165-180 ...
Anglo Energy
Ecuador ... 12 12 12 US/Latin America
Egypt ... 6 ... ... ...
Total ... 18 12 12 ...
API
Iran ... ... ... 20-25 Italy
Libya ... ... 20 20 Italy
Saudi Arabia ... 20 ... 20 Italy
Syria ... ... 16-25 10 Italy
Venezuela ... 2 ... ... ...
Total ... 22 36-45 70-75 ...
Arcadia
Nigeria ... ... 20 20 East/West
Ashland
Iraq 35 ... ... ... ...
Kuwait ... ... 0-60 50 US
Saudi Arabia 100 150 150 50 US
Total 135 150 150-210 100 ...
Astra
Malaysia ... 5 ... ... ...
Attock
Nigeria ... 40 45 ... ...
Volume Destination
Bangladesh 1989 1992 1993 1995 in 1995
Abu Dhabi ... 5-10 ... ... ...
Basic Resources
Nigeria ... 30 30 20 East/West
Bayoil
Egypt ... 6-9 ... ... ...
Iran ... 30 60-70 70 Romania/Bulgaria
Syria ... 20 30-33 ... ...
Total ... 56-59 90-103 70 ...
BB Naft
Egypt ... 6 ... ... ...
Borgas (Bulgaria)
Libya ... ... varies ... ...
BP
Colombia 15 17 16 16 US
Kuwait ... ... 0-30 ... ...
Libya ... 15-20 ... ... ...
Malaysia ... 5-10 ... ... ...
Mexico ... ... ... 20 Spain
Oman ... 7 ... 10 East
Saudi Arabia 100 140 190 185 East/West
Syria ... ... ... 25 Europe
Iran ... ... 80-150 200 Europe
Total 115 184-194 286-386 456 ...
BPC
Abu Dhabi ... ... ... 20 Bangladesh
British Aerospace
Qatar ... 10 ... ... ...
Bulk
Egypt ... 5-7 ... ... ...
Burgas Refinery
Iran ... ... ... 30 Bulgaria
Calson (Vitol)
Caltex
Iran ... 60-65 60-130 60 East
Oman ... ... ... 10 East
Total ... 60-65 60-130 70 ...
Cameli
Egypt ... 3 ... ... ...
Iran ... 80-120 ... ... ...
Venezuela ... 1 ... ... ...
Total ... 84-124 ... ... ...
Cargill
Iran ... 60-80 65 ... ...
Caribbean Gulf
Venezuela ... ... ... 35-40 Puerto Rico
Central America
Mexico ... ... ... 50 Central America
Venezuela ... ... ... 30 Central America
Total ... ... ... 80 ...
Volume Destination
Cepsa 1989 1992 1993 1995 in 1995
Iran ... ... ... 15 Spain
Mexico 30 40 ... 20 Spain
Saudi Arabia 100 60 60 75 Spain
Syria ... ... ... 2 Spain
Venezuela ... 4 ... 15-20 Spain
Total 130 104 60 127-132 ...
Chevron
Egypt ... 6 ... ... ...
Iran ... 60 0-60 ... ...
Iraq 70 ... ... ... ...
Kuwait ... ... 65 30-35 US
Mexico 120 120-130 120 125 US
Nigeria 50 50 50 ... ...
Saudi Arabia ... 300-325 300-325 270 East/West
Venezuela 20 13 25 15 US
Yemen ... 10 ... ... ...
Total 260 559-594 560-645 450-455 ...
China
Iran ... ... ... 10-20 China
Cibro
Venezuela ... ... 7-10 ... ...
Citgo
Mexico 75 40 60 20 US
Venezuela 255 310-350 300-320 300-320 US
Total 330 350-390 360-380 320-340 ...
Citizens Resources
Nigeria ... ... 30 ... ...
Egypt ... 3 ... ... ...
Total ... 3 30 ... ...
Clarendon (Glencore)
Clark
Mexico ... 35 30 30 US
Venezuela ... ... ... 8-16 US
Total ... 35 30 38-46 ...
Coastal
China 30-60 30 ... ... ...
Ecuador 15 ... 12 ... ...
Egypt ... 2 ... ... ...
Iran ... 130-150 80-125 130 Europe/Caribbean
Iraq 50-70 ... ... ... ...
Mexico 20 35 30 30 US
Nigeria ... 30 30 ... ...
Venezuela ... 26 15-30 8-10 US
Yemen ... ... ... 25 East
Total 35 253-273 167-227 208-218 ...
Coastal/Holborn
Libya 90 50 50 ... ...
Commoil
Ecuador 15 ... ... ... ...
Volume Destination
Conoco 1989 1992 1993 1995 in 1995
Mexico 50 30 40 80 US
Syria ... ... 30-33 25 Europe
Venezuela 20 85 60-70 40 US
Total 70 115 130-143 145 ...
Copec-Chile
Ecuador 15 ... ... ... ...
Cosmo
Abu Dhabi 10 20-30 20 25 Japan
Iran 30 45 45 45 Japan
Iraq 30 ... ... ... ...
Kuwait ... 30 50 70 Japan
Malaysia ... ... 5 5 Japan
Qatar ... 15 20 20 Japan
Saudi Arabia ... 50 70 60 Japan
Yemen ... ... ... 10 East
Total 70 160-170 210 235 ...
Costa Rica
Colombia ... 6 ... 16 Costa Rica
CPC (Sri Lanka)
Abu Dhabi ... ... ... 9 Sri Lanka
Egypt ... 3 ... ... ...
Iran ... 20 20 ... ...
Malaysia ... 10 6 6 Sri Lanka
Saudi Arabia ... ... ... 5 Sri Lanka
Total ... 33 26 20 ...
CPC (Taiwan)
Abu Dhabi ... 10 10 5 Taiwan
Ecuador 15 24 ... ... ...
Iran ... 40 40 30 Taiwan
Kuwait ... 30 40 40 Taiwan
Malaysia ... ... 9 9 Taiwan
Oman ... ... 15 15 Taiwan
Qatar ... 10 10 10 Taiwan
Saudi Arabia 50-100 100 100 90 Taiwan
Total 65-115 214 224 199 ...
Crown Central
Iraq 35-70 ... ... ... ...
Daewoo
Libya ... 30 30-50 ... ...
DEP (Greece)
Libya ... ... ... 20 Greece
Dreyfus
Iran 100 ... ... ... ...
Nigeria ... 30 30 ... ...
Total 100 30 30 ... ...
Elf
Ecuador ... ... ... 18 US/Latin America
Egypt ... 3 ... ... ...
Iran ... 50-60 90 20-30 France
Iraq varies ... ... ... ...
Libya ... 20-30 30 40 France
Malaysia ... 5-10 ... ... ...
Volume Destination
Elf (cont.) 1989 1992 1993 1995 in 1995
Mexico 20 15 ... ... ...
Nigeria 50 30 60 ... ...
Oman ... 10 10 10 East
Qatar 15 35 ... 15 East
Saudi Arabia 50 50 50 65 France
Syria ... ... 6-12 20 France
Venezuela ... 7 ... ... ...
Yemen 10 ... ... ... ...
Total 145 225-250 246-252 188-198 ...
Ergon
Venezuela ... 8 15-25 22 US
Erik Emborg
Ertoil
Mexico ... 10 ... ... ...
Nigeria 50 30 ... 20 Spain
Total 50 40 ... 20 ...
Exoil
Iraq 10 ... ... ... ...
Malaysia ... 5-10 ... ... ...
Total 10 5-10 ... ... ...
Exxon
Egypt ... 4 ... ... ...
Iran ... 250-300 200-300 250-300 East/West
Iraq 200 ... ... ... ...
Kuwait ... 100 120-140 100-125 East/West
Malaysia ... 30-35 ... ... ...
Mexico 30 30 15 ... ...
Qatar ... 25 ... ... ...
Venezuela ... 25 10-20 ... ...
Saudi Arabia ... 650-700 700-800 450 East/West
Total 230 1,114-1,219 1,060-1,290 800-875 ...
FEOT/JIOC
Indonesia varies 180 220 ... ...
Ferrostaal
Fina
Mexico ... ... ... 30 US
Gdansk Refinery
Iran ... ... ... 30 Poland
General Sekiyu
Iran ... 30 ... ... ...
Ghana
Nigeria ... 30 20 20 Ghana
Glencore
Yemen ... ... ... 25 East
Total ... ... ... 69 ...
Golden Bell
Qatar ... ... ... 10 South Korea
Volume Destination
Gotco 1989 1992 1993 1995 in 1995
Egypt ... 3-4 ... ... ...
Iran ... 25 ... ... ...
Total ... 28-29 ... ... ...
Greece
Egypt ... 8 ... ... ...
Libya ... 20 20 ... ...
Saudi Arabia ... 50 50 80 Greece
Iran ... ... ... 100 Greece
Total ... 78 70 180 ...
Gulf Interstate
Qatar ... 25 ... ... ...
Hachuel Oil
Hanwha
Iran ... ... ... 40 South Korea
Kuwait ... ... ... 20 South Korea
Malaysia ... ... ... 10-15 South Korea
Oman ... ... ... 20 South Korea
Saudi Arabia ... ... ... 20 South Korea
Total ... ... ... 110-115 ...
Honam
Abu Dhabi ... 20 34 20 South Korea
Malaysia ... 15 17 12 South Korea
Oman ... 20 22 20 South Korea
Saudi Arabia ... 30 30 30 South Korea
Qatar ... ... ... 10 South Korea
Total ... 85 103 157 ...
Hunt
Mexico ... 5-10 8 5 US
Saudi Arabia ... ... ... 12 US
Venezuela ... 6 8 8 US
Total ... 11-16 16 25 ...
Hyundai
Abu Dhabi ... ... ... 10 South Korea
Saudi Arabia ... ... ... 50 South Korea
Total ... ... ... 120 ...
Idemitsu
Abu Dhabi 50 60 60 40 Japan
Iraq 40 ... ... ... ...
Kuwait 30 20 40 50 Japan
Malaysia ... 5 5 5 Japan
Oman 40 30-40 30-40 35 Japan
Vietnam ... 7 9 ... ...
Total 180 282-292 304-314 330 ...
Incomed
Nigeria ... ... 30 30 East/West
Volume Destination
Indian Oil Corp. 1989 1992 1993 1995 in 1995
Abu Dhabi 10 20 20 20 India
Iran 20 60 60 60 India
Iraq 70 ... ... ... ...
Kuwait 10 80 80 90-100 India
Malaysia ... 30 30 10 India
Saudi Arabia 60 100 100 120 India
Total 170 290 290 300-310 ...
Indonesia
Iran 30 ... ... ... ...
Iraq 30 ... ... ... ...
Saudi Arabia ... 20 ... ... ...
Total 60 20 ... ... ...
Inpex
Indonesia ... ... 30 ... ...
Interpetrol
Colombia ... 17 ... ... ...
Ecuador ... ... 12 12 US/Latin America
Nigeria ... 30 ... ... ...
Total ... 47 12 12 ...
IPCO
IPG (Kuwait)
Yemen ... 10 ... 25 East
Irving Oil
Saudi Arabia ... 50 50 50 Canada
Isab Garrone
Iran ... 40-50 40-50 35 Italy
Saudi Arabia 35 30-50 30 30 Italy
Syria ... ... 16-25 15 Italy
Total 35 70-100 86-106 80 ...
Israel
Egypt ... 40 ... ... ...
Mexico ... 30 ... ... ...
Total ... 70 ... ... ...
ITOC
Nigeria ... 10 ... ... ...
Itochu
Abu Dhabi ... 10-20 10-20 ... ...
Ecuador 15 ... ... ... ...
Kuwait ... ... 10 ... ...
Oman ... 20 20 15 Japan
Qatar 30 50 50 50 Japan
Total 85 140-150 145-155 115 ...
Ivory Coast
Kuwait ... ... ... 25 Ivory Coast
Jaco Rossi
Libya ... 60 ... ... ...
Japan
China 165 190 180 ... ...
Mexico 180 100 100 80 Japan
Total 345 290 280 80 ...
Volume Destination
Japan Energy Corp. 1989 1992 1993 1995 in 1995
Kuwait ... ... ... 10 Japan
Saudi Arabia 60 100 100 100 Japan
Vietnam ... ... 8 ... ...
Total 60 100 108 110 ...
Kanematsu
Qatar 15 ... ... ... ...
Total 50 47 37 57 ...
Kashima
Iraq 10 ... ... ... ...
Oman 10 12 12 10-15 Japan
Total 20 12 12 10-15 ...
Kitco
Indonesia varies 45-50 ... ... ...
Koch
Egypt ... 5-7 ... ... ...
Mexico ... 10 20 25 US
Venezuela ... 15 15-25 10 US
Total ... 30-32 35-45 35 ...
KPI/KPC
Saudi Arabia ... 75 ... ... ...
Kukdong
Abu Dhabi ... 10 10 ... ...
Iran ... 25 25 ... ...
Oman ... 10 ... ... ...
Saudi Arabia ... 20 45 ... ...
Total ... 65 80 ... ...
Kuo International
Vietnam ... 7 10-20 ... ...
Kuwait Pet. Intl.
Kuwait 130 90 90 ... ...
Kyung-In
China ... ... 20 ... ...
Iran ... ... 20 ... ...
Kuwait ... 20 20 ... ...
Malaysia ... 10-15 21 ... ...
Oman ... 15-20 32 ... ...
Qatar ... 8 10 ... ...
Saudi Arabia ... ... 20 ... ...
Total ... 53-63 143 ... ...
Kyushu
Abu Dhabi ... ... ... 15 Japan
Lebanon
Syria ... 40 20 ... ...
Lion Oil
Saudi Arabia ... 25 ... 25 US
Lucky Goldstar
Ecuador 25 24 27 36 South Korea
Volume Destination
Lyondell 1989 1992 1993 1995 in 1995
Mexico 60 70 30 ... ...
Nigeria 30 ... ... ... ...
Saudi Arabia 50 50 ... ... ...
Venezuela ... 1 100 130 US
Total 140 121 130 130 ...
Mapco
Nigeria 50 ... ... ... ...
Marathon
Iraq 35 ... ... ... ...
Kuwait ... ... 0-30 50 US
Mexico 90 60 60 20-25 US
Total 185 185 185-215 150 ...
Marc Rich
Egypt ... 6-9 ... ... ...
Iran 200 100-120 150-175 ... ...
Nigeria ... 40 30 ... ...
Ecuador ... 12 12 ... ...
Syria ... ... 30-33 3 Europe
Total 200 158-181 222-250 3 ...
Marimpex
Egypt ... 4 ... ... ...
Iran ... ... ... ... ...
Libya ... 20 ... ... ...
Total ... 24 ... ... ...
Marubeni
Abu Dhabi ... ... ... 10 Japan
Oman ... 10 10 10 Japan
Vietnam ... 5 5 ... ...
Total 70 95 93 98 ...
Metalchim
Nigeria ... 20 20 ... ...
Mindo/Pertamina
Saudi Arabia ... ... ... 55 Indonesia
Mitsubishi Corp.
Abu Dhabi ... 20 20 30 Japan
Iraq 20 ... ... ... ...
Kuwait 20 20 20 ... ...
Malaysia ... 5-10 8 8 Japan
Oman ... 17 17 10 Japan
Saudi Arabia 100 ... 58 60 Japan
Vietnam ... 25 27 ... ...
Yemen ... ... ... 5 Japan
Total 210 157-162 225 183 ...
Mitsubishi Oil
Abu Dhabi 15 ... 20 20 Japan
Iran 10 15 15 ... ...
Total 25 65 55 40 ...
Volume Destination
Mitsui 1989 1992 1993 1995 in 1995
Abu Dhabi 10 10-15 10-15 ... ...
Egypt ... 3 ... ... ...
Iran 30 25 20 20-25 Japan
Kuwait 20 ... ... ... ...
Oman ... 12 12 10-15 Japan
Qatar 20 ... ... 30 Japan
Vietnam ... 5 5 ... ...
Total 80 55-60 47-52 60-70 ...
Mobil
Abu Dhabi ... 20 20-30 20-30 East
Colombia ... ... 16 ... ...
Egypt ... 4 ... ... ...
Iran ... 40 25 40-50 East
Malaysia ... 10-15 ... ... ...
Mexico 90 100 125 90 US
Oman 20 ... ... 10 East
Qatar 25 25 25 25 East
Venezuela 40 35 30-100 130 US
Yemen ... 22 ... ... ...
Saudi Arabia ... 375-425 375-425 300-350 East/West
Total 175 631-686 616-746 625-695 ...
Moncrief Oil
Motor Oil Hellas
Egypt ... 6 ... ... ...
Murphy
Colombia 15 17 16 ... ...
Mexico 15 18 ... 15 US
Venezuela ... ... ... 15 US
Total 30 35 16 30 ...
N. Korea
Iran 40 10 ... ... ...
Neste
Abu Dhabi ... 20 20 20 Kenya
Iran ... ... 0-40 ... ...
Nigeria ... 40 40 ... ...
Oman ... 20 20 ... ...
Saudi Arabia 90 30 ... ... ...
Nigeria ... 20 ... ... ...
Total 90 130 80-120 20 ...
Nichimen
Vietnam ... 2 ... ... ...
Nigermed
Nigeria ... 30 30 ... ...
Nippon Oil
Iran ... ... ... 30 Japan
Iraq 35 ... ... ... ...
Malaysia ... 10-15 15 15 Japan
Oman 20 20 20 20 Japan
Volume Destination
Nippon Oil (cont.) 1989 1992 1993 1995 in 1995
Vietnam ... 5 ... ... ...
Total 75 135-140 155 205 ...
Nissho Iwai
Oman ... ... 10 10 Japan
Vietnam ... 25 27 ... ...
Iran 20 ... ... ... ...
Total 20 25 37 10 ...
Nova (Canada)
Libya ... ... ... 10 Europe
Total ... 20 20 30 ...
Nova (Greece)
Iran ... ... 60 ... ...
Libya ... 20-40 40 40 Greece
Total ... 20-40 100 60 ...
Nynas
Venezuela 30 24 25 ... ...
Nynas Sweden
Venezuela ... ... ... 10 Sweden
Nynas UK
Venezuela ... ... ... 30 UK
Oil Tex
Ecuador ... 12 12 24 US/Latin America
OK Petroleum
Iran ... ... ... 30 Sweden
Nigeria ... 20 ... 20 Sweden
Saudi Arabia ... ... ... 50 Sweden
Total ... 20 ... 100 ...
OMV
Egypt ... 7-9 ... ... ...
Iran ... 30 20-30 5-10 Austria
Libya 20 85-90 90 110 Austria
Mexico 5 25 30 ... ...
Syria ... 20 20 10 Austria
Total 25 167-174 160-170 125-130 ...
Oranto (First Fuels)
Pakistan
Abu Dhabi ... 10 10 10 Pakistan
Iran ... 20 40 20 Pakistan
Kuwait ... ... ... 50-70 Pakistan
Qatar ... ... ... 10 Pakistan
Saudi Arabia ... 50 40 45 Pakistan
Total ... 80 90 135-155 ...
Perta
Petro-Canada
Mexico ... 15 15 10 Canada
Volume Destination
Petrobras 1989 1992 1993 1995 in 1995
Ecuador 15 ... 12 ... ...
Iran 60 180 75 60 Brazil
Iraq 150-200 ... ... ... ...
Kuwait 30 ... ... 50 Brazil
Qatar 25 ... 25 20 Brazil
Saudi Arabia 120 150-200 200 150 Brasil
Venezuela ... ... ... 50 Brazil
Total 400-450 330-380 312 330 ...
Petrofina
Abu Dhabi ... 20-30 20 ... ...
Iran ... 50-100 0-75 75 Belgium
Kuwait ... ... ... 25 Belgium
Mexico 20 30 ... 14 Belgium
Saudi Arabia ... 20 20 65 Belgium
Total 20 120-180 40-105 179 ...
Petrogal
Iran ... ... ... 30 Portugal
Mexico 10 30 ... 13 Portugal
Saudi Arabia ... ... ... 65 Portugal
Total 10 30 ... 108 ...
Petrogas (Glencore)
Petrojam
Nigeria ... 20 20 ... ...
Petrolimpex
Saudi Arabia ... 25 ... ... ...
Petromed
Mexico 40 20 ... ... ...
Nigeria 70 ... ... ... ...
Total 110 20 ... ... ...
Petron
Saudi Arabia ... ... ... 150 Philippines
Petronas
Iran ... 15 ... ... ...
Petronor
Iran ... ... ... 30-40 Spain
Mexico 50 ... ... ... ...
Total 50 ... ... 30-40 ...
Petroperu
Colombia ... ... 6 ... ...
Petrotrin
Colombia ... ... ... 16 Trinidad
Venezuela ... ... ... 15 Trinidad
Total ... ... ... 31 ...
Phibro
China 40 25 ... ... ...
Colombia 15 33 16-32 16 US
Ecuador ... ... 0-12 ... ...
Egypt ... 5-7 ... ... ...
Iran 175 30-50 0-80 ... ...
Nigeria 60 ... 30 ... ...
Volume Destination
Phibro (cont.) 1989 1992 1993 1995 in 1995
Saudi Arabia ... 15 ... ... ...
Yemen ... ... ... 20 East
Total 290 109-131 46-229 81 ...
Phillips
Kuwait ... ... 0-30 17 US
Mexico ... ... ... 20 US
Venezuela ... ... ... 30 US
Total 50 60 60-90 132-142 ...
PNOC
China ... 5 2 ... ...
Iran ... 27 20 ... ...
Kuwait ... ... 20 ... ...
Malaysia ... 5-10 ... ... ...
Saudi Arabia ... 60 60 ... ...
Total ... 97-102 102 ... ...
Poland
Iran ... 60-72 50 ... ...
Iraq 25 ... ... ... ...
Total 25 60-72 50 ... ...
PTT (Thailand)
Iran ... 15 ... ... ...
Malaysia ... 15 5-10 10 Thailand
Oman ... 10 ... ... ...
Total ... 40 5-10 10 ...
Queen Petroleum
Rafiron
Iran ... ... ... 65 Romania
Ragma Oil
RD/Shell
Abu Dhabi ... 67 67 20 East
Iraq 50-100 ... ... ... ...
Kuwait ... ... 180 100-150 East/West
Libya ... 20 20 ... ...
Malaysia ... 5-10 ... ... ...
Nigeria 50 30 ... ... ...
Oman ... 40 40 50 East
Venezuela 30 23 23 15 Europe
Vietnam ... 12 ... ... ...
Yemen 10 ... ... ... ...
Iran 70 50-70 70 50 East/West
Saudi Arabia 300 600 800 550-600 East/West
Total 510-560 847-872 1200 785-885 ...
Repsol
Egypt ... 3 ... ... ...
Iran ... ... ... 30-35 Spain
Iraq 100 ... ... ... ...
Kuwait ... ... 0-30 ... ...
Libya 60 90 100 100 Spain
Mexico 100 190 160 85 Spain
Volume Destination
Repsol 1989 1992 1993 1995 in 1995
Nigeria ... ... ... 40 Spain
Saudi Arabia ... 30-50 100 100 Spain
Syria ... ... ... 25 Spain
Total 260 313-333 360-390 380-385 ...
Rheinoil
Saudi Arabia 35 90 90 90 Germany
Syria ... ... 6-12 20 Germany
Total 35 90 96-102 110 ...
Romania
Egypt ... 6 ... ... ...
Iran ... 16 ... ... ...
Total ... 22 ... ... ...
Ruhr Oel
Venezuela 150 200 200 ... ...
S. Korea
Mexico ... 10 ... ... ...
Samudra
San Jose Accord
Mexico 45 53 50 ... ...
Venezuela 45 53 50 ... ...
Total 90 106 100 ... ...
Saras
Saudi Arabia ... ... 35 ... ...
Kuwait ... ... 30 20 Italy
Total ... ... 65 20 ...
Sasol
Kuwait ... ... ... 30 South Africa
Scandinavian Trading
Scanoil
Colombia 15 ... ... ... ...
Seibu
Kuwait ... ... 20 20 Japan
Shell Canada
Mexico ... ... 4 3 Canada
Shell US
Kuwait ... 100 0-60 15 US
Mexico 65 60-70 80 120 US
Saudi Arabia ... 50 50-80 30 US
Yemen 20 ... ... ... ...
Total 85 210-220 130-220 165 ...
Showa Shell
Iraq 10 ... ... ... ...
Total 40 45 48 63 ...
Singapore Petroleum
Malaysia ... 5-10 ... ... ...
Volume Destination
Sinochem 1989 1992 1993 1995 in 1995
Iran ... 20 ... ... ...
Malaysia ... ... ... 20 China
Oman ... ... ... 20 China
Saudi Arabia ... 25 ... 30 China
Vietnam ... 7 ... ... ...
Libya ... ... ... ... ...
Total ... 52 ... 70 ...
Smith & Hollander
Venezuela ... 6 ... 5 UK
Socap
Sonangol (Angola)
Egypt ... 4 ... ... ...
Sonatrach
Iran ... ... 60 ... ...
South Africa ¶
Iran ... ... ... 200-250 South Africa
Southern Petroleum
Nigeria ... 40 30 ... ...
SRC
Kuwait ... ... ... 30 Singapore
Sri Lanka
Iran ... ... ... 20 Sri Lanka
Ssangyong
Ecuador 25 ... ... ... ...
Saudi Arabia ... 200 170-300 350 South Korea
Total 25 200 170-300 350 ...
Star Enterprise
Egypt ... 10 ... ... ...
Venezuela ... 42 50-60 40 US
Total 550 602 600-610 590 ...
Sudan
Libya ... 25 ... ... ...
Sumitomo
Iran 20 15-20 20 40 Japan
Kuwait 20 20 ... ... ...
Oman ... ... 10 10 Japan
Vietnam ... 3 14 ... ...
Total 40 38-43 44 50 ...
Sun
Colombia ... 17 16 16 US
Mexico ... 30 30 15-20 US
Nigeria 75 60 60 ... ...
Venezuela 20 37 15-20 ... ...
Total 145 194 171-176 106-116 ...
Taiyo
Malaysia ... 15-20 15-20 20 Japan
Saudi Arabia ... ... ... 50-60 Japan
Total ... 15-20 15-20 70-80 ...
Volume Destination
Tamoil 1989 1992 1993 1995 in 1995
Libya 100 240-280 250 250 Germany, Switzerland, Italy
Tarmac
Venezuela ... 30 ... ... ...
Tevier
Nigeria ... ... 40 ... ...
Total ... ... 52 12 ...
Texaco
Abu Dhabi 10 ... ... ... ...
Iraq 100-150 ... ... ... ...
Kuwait ... ... ... 35 US
Malaysia ... 10-15 ... ... ...
Nigeria ... 30 30 ... ...
Qatar ... 10 ... ... ...
Saudi Arabia ... 80-100 80-100 80-100 East/West
Venezuela ... 18 10 35-40 US
Total 110-160 148-173 132-152 182-207 ...
Thai Oil
Abu Dhabi ... ... ... 16 Thailand
Togo
Nigeria ... ... ... 10 Togo
Tosco
Ecuador ... ... ... 12 US
Total (France)
Abu Dhabi ... 17 17 ... ...
Iraq varies ... ... ... ...
Libya ... ... 20 10 France
Mexico 60 25 30 20 France/UK
Nigeria 80 ... ... 40 East/West
Qatar ... ... 20 ... ...
Saudi Arabia 50 50 50 90 France/South Africa
Syria ... 20 30-33 30 France
Iran ... 20 0-40 10-15 France
Total 190 132 167-210 200-205 ...
Totisa
Toyomenka
Iran 40 50 50-125 60-70 Japan
Total 40 50 50-125 90-100 ...
Transworld
Oman 50 110 110 50 East
Trifinery
Tripetrol
Ecuador 15 48 12 36 US/Latin America
Tupras
Abu Dhabi ... ... 48 ... ...
Iran ... ... 60-80 100 Turkey
Volume Destination
Tupras (cont.) 1989 1992 1993 1995 in 1995
Libya ... 60 48 50 Turkey
Saudi Arabia ... 160 160-180 176 Turkey
Syria ... ... ... 20 Turkey
Total ... 220 316-356 346 ...
Unocal
Yemen ... ... ... 20 East
Unoven §
Venezuela ... 120 120 135 US
US SPR
Mexico 45 ... ... ... ...
Veba
Nigeria ... 30 30 ... ...
Syria ... 20 30-33 35 Germany
Venezuela ... ... ... 40 Germany
Total ... 50 60-63 75 ...
Vermont (Vitol)
Vitol
Iran 100 50-60 ... ... ...
Total 100 50-60 ... 30 ...
VTT Vulcan
Wickland
Wind Pemiy NV
Wintershall
Nigeria ... ... ... 30 Germany
Yugoslavia
Iran 20 ... ... ... ...
Yukong
Abu Dhabi ... 17 35 20 South Korea
China ... 20 10 ... ...
Ecuador ... 24 24 24 South Korea
Iran ... 70 70 70 South Korea
Kuwait ... 20 60 70 South Korea
Malaysia ... 15-20 32 17 South Korea
Oman ... ... 29 20 South Korea
Qatar ... 10 10 10 South Korea
Saudi Arabia ... 50-100 80 80 South Korea
Total ... 226-281 350 311 ...
US CRUDE OIL IMPORTS BY COMPANY AND COUNTRY OF ORIGIN, 1991-95 (In 1,000 b/d)
Company/Origin 1991 1992 1993 1994 1995 Ashland (cont.) 1991 1992 1993 1994 1995
Amerada Hess Norway ... 7 3 1 ...
Abu Dhabi ... 89 74 10 ... Oman ... ... 3 1 3
Algeria ... ... ... 5 17 Russia ... ... ... 1 ...
Angola ... 13 9 10 7 Saudi Arabia 142 138 80 82 57
Argentina ... 1 ... ... 4 United Kingdom 4 ... 20 15 11
Colombia ... ... ... ... 3 Yemen ... ... ... 1 ...
Congo ... 35 24 26 6 Total 187 183 197 210 233
Gabon ... 14 9 23 19 Astra
Indonesia ... 2 ... 3 ... Canada ... 1 1 ... ...
Kuwait ... ... 5 0.1 ... Malaysia ... ... 4 ... ...
Nigeria ... 35 71 115 145 Thailand ... ... 2 ... ...
Norway ... ... 3 11 3 UAE ... ... 1 ... ...
Saudi Arabia ... 47 28 59 81 Total ... 1 7 ... ...
United Kingdom ... ... 1 38 15
Bayway Refining (Tosco)*
Zaire ... 1 ... 1 2
Algeria ... ... 2 ... 5
Total ... 236 225 301 301
Angola ... ... 5 5 21
Amoco Canada ... ... ... 4 ...
Algeria ... ... ... ... 3 China ... ... 7 22 28
Angola 3 ... ... 1 2 Colombia ... ... ... ... 8
Argentina ... ... ... 8 1 Gabon ... ... 26 43 40
Australia ... ... 3 3 ... Mexico ... ... ... ... 4
Cameroon 2 2 ... ... ... Nigeria ... ... 3 8 1
Canada 118 137 139 143 169 Norway ... ... 56 101 115
Colombia ... ... 8 14 38 United Kingdom ... ... 12 13 22
Congo 2 ... ... ... ... Total ... ... 111 197 245
Ecuador ... ... ... 6 ...
BHP
Gabon ... 1 ... ... 1
Australia ... ... 3 11 16
Guatemala 3 5 6 5 9
China ... ... ... ... 2
Indonesia ... ... ... 5 ...
Ecuador ... ... ... 2 ...
Kuwait 3 3 11 ... ...
Indonesia ... ... 6 28 25
Malaysia 1 ... ... ... ...
Malaysia ... ... 1 ... 2
Mexico 64 75 71 68 70
Oman ... ... ... ... 4
Nigeria 55 56 82 32 44
Papua New Guinea ... ... ... 10 5
Norway 10 1 ... 8 6
Total ... ... 10 50 54
Peru ... ... ... ... 2
Russia ... ... ... 2 3 British Petroleum
Saudi Arabia 117 137 114 110 61 Angola 32 56 53 37 24
Syria ... ... 10 1 ... Argentina ... 1 ... ... ...
Trinidad & Tobago 70 69 54 61 66 Australia 1 ... ... ... ...
United Kingdom 1 ... 1 7 18 Canada 16 16 9 14 15
Venezuela 18 29 33 31 43 Colombia 6 8 28 15 19
Yemen ... ... 1 8 ... Ecuador ... ... 2 ... ...
Total 467 515 533 512 536 Gabon 1 8 2 30 59
Indonesia 2 1 2 ... ...
Arco Malaysia ... ... 2 ... ...
Ecuador ... ... ... ... 2 Mexico ... ... ... 2 ...
Ashland New Zealand ... ... 1 ... ...
Angola ... ... 5 ... ... Nigeria 184 184 211 153 198
Canada 41 30 43 60 97 Norway 12 21 9 14 5
Colombia ... ... ... ... 5 Papua New Guinea ... ... 2 ... ...
Dubai ... ... 3 ... ... Saudi Arabia ... ... ... 2 ...
Kuwait ... ... 35 47 46 Thailand 2 3 1 ... ...
Mexico ... ... ... ... 13 United Kingdom ... 1 ... 5 6
Nigeria ... 8 4 1 ... Venezuela ... ... ... 10 4
*Also see Tosco.

BP (cont.) 1991 1992 1993 1994 1995 Citgo (cont.) 1991 1992 1993 1994 1995
Yemen 2 ... 2 ... ... United Kingdom 3 4 14 10 17
Zaire 3 3 5 4 4 Venezuela 152 294 309 307 348
Total 261 302 331 285 333 Total 203 359 389 375 404
Caribbean Gulf Clarendon
Colombia ... 2 1 ... ... Argentina ... 1 ... ... ...
Ecuador ... 1 3 ... ... Ecuador ... ... 1 ... ...
Venezuela ... 28 30 34 8 Indonesia ... 2 ... ... ...
Total ... 31 33 34 8 Total ... 3 1 ... ...
Cenex Clark
Canada ... 18 22 25 30 Angola ... 1 ... ... 21
Argentina ... ... ... ... 1
Chevron Canada 52 56 52 49 36
Angola 67 68 68 50 ... Colombia ... ... ... 1 4
Argentina ... 2 ... 2 1 Congo ... ... ... 1 1
Australia ... 1 1 ... ... Ecuador ... 2 2 1 14
Canada 1 1 ... ... ... Egypt ... ... 1 ... ...
China 3 11 17 22 22 Gabon ... ... 3 ... 15
Colombia ... ... 3 1 1 Indonesia ... ... ... 2 ...
Congo 1 13 4 3 ... Kuwait ... ... 1 ... ...
Ecuador ... 7 1 26 7 Mexico 34 30 32 25 45
Egypt ... 3 7 2 7 Nigeria ... ... 5 18 22
Gabon 1 18 18 10 ... Norway 2 7 3 ... 8
Indonesia 46 43 34 46 37 Russia 2 1 3 1 3
Italy 3 ... ... ... ... Saudi Arabia 1 ... ... ... ...
Kuwait ... 17 60 52 30 Syria 1 ... ... ... ...
Malaysia ... 3 2 ... 2 Trinidad & Tobago 1 1 ... ... ...
Mexico 131 131 126 155 135 UAE ... ... ... ... 0
Nigeria 89 81 128 61 1 United Kingdom 8 6 ... 4 19
Norway ... ... ... 1 13 Venezuela 1 ... ... 9 22
Oman 2 4 6 19 5 Yemen 3 ... ... ... ...
Russia ... ... 1 ... ... Zaire ... ... ... ... 2
Saudi Arabia 214 172 160 155 176 Total 99 107 102 112 215
Singapore ... ... 1 ... ...
Coastal
Syria ... ... 1 1 ...
Angola 23 61 73 44 52
UAE ... ... ... 2 ...
Argentina ... 1 ... ... ...
United Kingdom 11 7 ... 13 4
Australia 1 ... ... ... ...
Venezuela 10 24 20 13 24
Canada ... 1 ... ... 2
Vietnam ... ... ... ... 1
China 19 8 5 ... ...
Yemen ... ... ... 4 ...
Colombia ... 1 2 1 3
Zaire 18 4 9 6 ...
Ecuador 8 6 2 ... ...
Total 597 609 668 643 465
Egypt ... ... 2 2 ...
Cibro Gabon 39 29 29 36 53
Kuwait ... ... 1 ... ... Indonesia 10 1 ... 6 ...
Venezuela ... 4 2 ... ... Malaysia 4 ... ... 2 ...
Total ... 4 3 ... ... Mexico 34 29 36 31 43
Nigeria ... ... ... 25 26
Citgo Norway ... ... 4 ... 2
Argentina ... ... ... 2 ... Russia ... ... ... 3 ...
Angola ... ... ... ... 2 Saudi Arabia ... 11 1 ... ...
Colombia ... ... ... ... 1 Trinidad & Tobago ... 1 ... ... ...
Ecuador 1 1 ... 1 ... United Kingdom ... ... ... ... 7
Mexico 47 60 66 55 31 Venezuela 22 33 30 42 51
Nigeria ... ... ... ... 1 Yemen 3 ... ... ... ...
Norway ... ... ... ... 1 Zaire 1 2 2 3 1
Peru ... ... ... ... 1 Total 163 182 187 193 240
Colorado D. Shamrock 1991 1992 1993 1994 1995
Canada ... ... ... 2 0.1 Angola 4 ... ... ... 1
Conoco Canada ... ... ... 1 ...
Angola ... ... ... 3 ... Colombia ... ... ... ... 3
Canada 42 37 45 53 60 Indonesia ... ... ... 0.2 ...
Colombia 1 8 7 ... 3 Malaysia ... ... ... 1 ...
Ecuador ... 1 1 2 4 Nigeria ... ... ... 8 1
Egypt ... ... 1 ... ... Norway 13 1 13 3 42
Mexico 31 36 54 82 72 Papua New Guinea ... ... ... 0.2 ...
Nigeria 7 ... 2 ... ... Thailand ... ... 1 ... ...
Peru ... ... ... ... 13 United Kingdom 2 25 29 51 24
Saudi Arabia ... ... 1 ... ... Total 18 26 43 63 72
Syria ... ... 2 ... ... Enron
Trinidad & Tobago ... ... 1 1 ... Canada ... 3 3 ... ...
United Kingdom ... ... 3 ... 0.3 Ecuador ... 1 ... ... ...
Venezuela 76 67 44 44 41 Mexico ... ... 1 ... ...
Total 157 149 161 184 193 United Kingdom ... ... 1 ... ...
Crown Total ... 4 6 ... ...
Algeria 1 ... 1 2 ... Ergon
Angola 18 20 16 15 11 Venezuela ... 12 21 21 19
Argentina ... 1 1 1 5 Exxon
Australia ... ... 1 ... ... Angola 33 12 8 13 20
Benin ... ... 2 ... ... Argentina 1 3 4 10 27
Canada ... 1 2 ... ... Australia 2 ... ... ... ...
Colombia 2 ... 6 ... 2 Benin ... ... ... 1 2
Malaysia ... ... ... 0.2 ... Cameroon 1 4 ... ... ...
Nigeria 6 1 2 2 9 Canada 19 15 16 21 25
Norway 5 6 4 7 10 China 7 24 1 ... ...
Oman ... ... 3 3 ... Colombia 5 1 14 44 58
Papua New Guinea ... ... ... 2 ... Congo ... 3 ... ... 12
Syria 1 ... ... ... ... Dubai ... ... 4 ... ...
Tunisia ... 2 ... ... ... Ecuador ... ... ... 1 2
United Kingdom 17 18 23 18 22 Egypt ... ... 15 3 ...
Yemen ... ... ... 1 ... Gabon 10 24 26 14 18
Zaire ... 4 ... ... 3 Guatemala 1 ... ... ... ...
Total 50 52 60 50 62 Indonesia 1 2 ... 1 ...
Kuwait ... 17 104 102 69
Deer Park Refining Partnership*
Mexico 33 27 43 56 99
Algeria ... ... ... 6 3
Nigeria ... 15 3 ... ...
Cameroon ... ... ... ... 2
Norway 3 49 11 4 2
Colombia ... ... ... ... 3
Oman ... ... 2 4 ...
Ecuador ... ... ... ... 2
Russia ... ... 5 7 2
Indonesia ... ... ... 0.4 ...
Saudi Arabia 237 188 94 117 145
Kuwait ... ... ... 13 ...
Syria ... ... 1 ... ...
Malaysia ... ... ... 2 ...
UAE ... ... ... 3 ...
Mexico ... ... ... 28 129
United Kingdom ... 1 3 15 11
New Zealand ... ... ... 1 ...
Venezuela 18 13 3 4 3
Nigeria ... ... ... 33 6
Yemen ... ... 1 1 ...
Norway ... ... ... 1 ...
Zaire 1 ... ... ... 2
Saudi Arabia ... ... ... 27 5
Total 373 397 360 422 495
Spain ... ... ... ... 1
UAE ... ... ... 1 ... Farmland
United Kingdom ... ... ... 4 ... Congo ... ... 1 1 3
Venezeula ... ... ... ... 1 Fina
Total ... ... ... 115.6 151.3 Angola ... ... 2 ... ...
*Shell Oil and Pemex.

Fina (cont.) 1991 1992 1993 1994 1995 Int. Term (cont.) 1991 1992 1993 1994 1995
Argentina ... 1 ... 1 ... Saudi Arabia ... ... ... ... 1
Australia ... 2 ... ... ... UAE ... ... ... ... 1
Colombia 3 6 4 1 5 Total ... ... ... ... 6
Ecuador 4 ... ... ... ...
Koch
Egypt ... ... 3 ... ...
Algeria 1 ... ... ... ...
Indonesia ... 3 ... ... ...
Angola ... 9 4 4 11
Kuwait 1 1 23 25 18
Argentina 1 ... ... ... 1
Mexico 21 24 38 34 45
Bolivia ... ... ... ... 1
Nigeria ... 8 10 5 ...
Cameroon ... ... ... 2 ...
Norway ... 1 1 ... 3
Canada 158 151 175 167 191
Oman 2 ... ... ... ...
Colombia ... 1 3 13 8
Russia ... 1 3 ... ...
Dubai ... ... ... 2 2
Saudi Arabia 44 19 ... ... ...
Ecuador ... ... ... ... 3
United Kingdom 11 16 14 45 52
Indonesia 1 ... ... 0.4 1
Yemen 3 ... ... ... ...
Malaysia ... ... ... ... 2
Total 89 83 99 112 122
Mexico 8 18 27 35 28
Frontier Nigeria 7 ... 3 37 45
Canada ... ... ... ... 0.3 Norway ... ... ... 6 7
Golden West Papua New Guinea ... ... 2 2 ...
Ecuador ... 1 ... ... ... Singapore ... ... ... ... 1
Saudi Arabia 3 ... ... ... ...
Hunt
Syria ... ... 3 ... ...
Ecuador ... ... ... ... 1
Thailand ... ... ... 2 1
Mexico 6 8 9 7 8
Saudi Arabia 4 7 8 8 3
Venezuela 7 13 18 10 10
Venezuela 7 7 8 7 10
Yemen ... ... ... 7 3
Total 17 22 24 22 22
Zaire ... ... ... ... 1
Indian Refining Total 188 214 257 303 346
Angola ... ... 5 ... ... La Gloria
Canada ... ... ... 14 3 Angola ... ... ... ... 1
Ecuador ... ... 7 2 ... Colombia ... ... ... 1 ...
Nigeria ... ... ... 10 ... Malaysia ... ... ... 1 ...
Norway ... ... ... 3 ... Nigeria ... ... ... ... 1
Russia ... ... ... 3 ... United Kingdom ... ... ... 1 4
United Kingdom ... ... ... 1 ... Yemen ... ... ... 0.3 ...
Total ... ... 12 32 3 Total ... ... ... 3 7
Kerr-McGee Laketon Refining
Abu Dhabi ... ... 1 ... ... Canada ... 4 ... ... ...
Algeria 1 1 4 ... ... Lion
Angola 18 23 16 ... ... Saudi Arabia ... 23 26 33 31
Argentina ... 2 ... ... ... Louisiana Land & Exploration
Australia ... ... 1 ... ... Angola ... ... ... ... 1
Colombia 21 3 3 ... ... Brazil ... ... ... 1 ...
Denmark ... ... 1 ... ... Canada ... 5 10 5 3
Indonesia ... 2 ... ... ... Chile ... ... ... ... 1
New Zealand ... ... 1 ... ... Colombia ... ... ... ... 1
Nigeria 1 1 4 ... ... Ecuador ... ... ... ... 2
Norway ... 3 ... ... ... Indonesia ... ... 1 ... ...
Thailand ... 1 1 ... ... Nigeria ... ... ... 3 ...
United Kingdom 20 14 12 ... ... UAE ... ... ... ... 1
Zaire ... 2 ... ... ... United Kingdom ... ... ... ... 3
Total 61 53 44 ... ... Total ... 5 11 9 12
Intercontinental Term Lyondell
Algeria ... ... ... ... 3 Angola 6 12 3 4 3
Nigeria ... ... ... ... 1 Argentina ... 5 ... ... ...
Lyondell (cont.) 1991 1992 1993 1994 1995 Mobil (cont.) 1991 1992 1993 1994 1995
Colombia 1 ... 6 20 4 United Kingdom 1 3 ... ... 3
Ecuador 5 ... 2 ... 3 Venezuela 37 59 118 121 119
Indonesia ... ... ... 1 ... Zaire 1 ... ... ... ...
Mexico 82 53 31 4 ... Total 356 407 510 572 679
Nigeria 1 ... ... 1 7 Montana Refining
Russia ... 1 ... ... ... Canada ... 5 5 4 6
Saudi Arabia 62 41 ... ... ... Murphy
Thailand ... ... ... 1 ... Angola 1 4 7 7 13
United Kingdom 2 3 ... 1 11 Argentina ... 5 3 ... ...
Venezuela 7 29 134 119 161 Canada 6 6 7 15 33
Zaire ... ... 1 ... ... Colombia 21 15 12 13 14
Total 166 144 176 151 189 Ecuador ... ... ... ... 4
Marathon Mexico 18 1 5 18 21
Angola ... ... 5 23 16 Nigeria 2 2 4 ... 2
Argentina ... 1 ... ... ... Norway ... 3 1 ... ...
Canada 14 18 15 20 22 Oman ... ... ... ... 2
Colombia ... 3 ... ... 5 Saudi Arabia ... 1 ... ... ...
Congo ... ... 7 1 3 United Kingdom 1 7 8 6 ...
Egypt ... 4 4 ... ... Venezuela ... ... ... 14 35
Kuwait ... 1 50 51 56 Total 50 45 47 72 124
Mexico 57 60 47 30 24
Neste
Nigeria 3 ... 3 3 10
Venezuela ... ... ... ... 22
Norway 1 9 7 ... ...
Peru ... ... ... ... 1 North Ridge
Russia ... ... 6 7 5 Canada ... 2 3 ... ...
Saudi Arabia 141 137 110 91 111 Northeast Petro
United Kingdom 2 10 26 31 5 United Kingdom ... 1 ... ... ...
Venezuela ... ... ... 12 9
Oiltanking Houston
Total 218 243 281 267 266
Colombia ... ... ... 1 7
Metallgesellschaft Ecuador ... ... ... 1 6
Angola ... 1 ... ... ... Kuwait ... ... ... ... 3
Canada 1 1 ... ... ... Saudi Arabia ... ... ... 1 ...
Colombia 1 1 ... ... ... United Kingdom ... ... ... 3 ...
Ecuador ... ... 7 ... ... Venezuela ... ... ... 12 16
Nigeria ... 5 ... ... ... Total ... ... ... 18 31
United Kingdom 3 3 ... ... ...
Total 4 10 7 ... ... Pacific Refining
Australia ... 1 ... ... ...
Mobil
Canada ... ... 2 ... 0.3
Angola 3 3 ... ... 2
Colombia ... ... 3 ... ...
Benin 4 1 ... ... ...
Indonesia ... ... ... 1 ...
Canada 103 116 143 175 174
Malaysia ... 1 ... ... ...
Colombia 22 16 ... ... 3
Total ... 2 6 1 0.3
Ecuador 15 10 1 7 11
Egypt ... 3 9 17 13 Pacific Resources*
Gabon 2 1 3 1 1 Australia 12 5 4 ... ...
Guatemala 1 ... ... ... ... China 2 9 2 ... ...
Kuwait 1 ... 1 ... ... Ecuador 2 2 2 ... ...
Mexico 104 131 155 170 224 Guinea ... 2 ... ... ...
Nigeria ... 8 31 19 39 Indonesia 19 15 18 ... ...
Norway 4 ... ... ... 1 Malaysia 10 5 ... ... ...
Peru 1 ... ... ... 1 Oman ... ... 1 ... ...
Russia ... 2 7 3 ... Papua New Guinea ... ... 2 ... ...
Saudi Arabia 59 53 41 59 90 Total 46 37 29 ... ...
*See BHP for 1994-95.

Peerless 1991 1992 1993 1994 1995 Shell (cont.) 1991 1992 1993 1994 1995
Algeria ... 3 1 ... ... Cameroon 6 2 ... 2 ...
Phibro Canada 2 14 48 53 70
Angola 32 47 40 45 53 China ... ... ... ... 1
Argentina 1 ... ... 2 1 Colombia 1 ... ... ... ...
Australia 1 ... 2 ... ... Ecuador 4 ... ... 2 ...
Benin ... ... 1 ... ... Indonesia 1 ... 1 ... ...
Cameroon ... ... 2 ... ... Kuwait ... ... 35 ... ...
Canada ... ... ... 1 ... Malaysia 2 ... 1 2 ...
China 34 10 ... 1 ... Mexico 72 82 110 91 80
Colombia 32 29 33 9 9 New Zealand ... ... 1 ... ...
Congo 5 1 9 1 4 Nigeria 117 142 105 63 39
Ecuador ... 1 2 3 4 Norway ... ... ... 1 ...
Egypt ... 2 1 ... 1 Oman ... ... 6 1 ...
Gabon 32 41 43 55 50 Papua New Guinea ... ... ... 4 ...
Indonesia 5 3 3 1 ... Saudi Arabia 59 48 51 3 15
Malaysia 3 ... ... ... ... Spain ... ... ... ... 0.4
Mexico ... ... ... 2 4 Thailand ... ... 1 2 ...
Nigeria 7 4 3 2 ... UAE ... ... ... 2 1
Norway ... ... ... 5 2 United Kingdom ... 4 16 6 ...
Papua New Guinea ... ... 5 ... ... Venezuela 1 ... ... ... ...
Peru ... 1 ... ... ... Yemen 5 ... ... ... ...
Russia 1 ... 8 1 1 Total 318 333 393 247 224
Saudi Arabia 15 12 1 ... ... Sinclair
Syria 3 ... ... ... ... Canada ... ... ... 12 12
Trinidad & Tobago 1 ... ... 0.3 ... Venezuela ... ... ... 4 3
UAE ... ... 4 ... ... Total ... ... ... 16 15
United Kingdom ... ... ... 1 ...
Sound Refining
Venezuela 7 25 40 34 59
Indonesia ... ... ... 0.1 ...
Zaire 1 2 2 ... 2
Venezuela ... 2 2 3 2
Total 180 178 199 164 190
Total ... ... ... 3 2
Phillips
Southwestern Refining
Angola 9 4 1 4 6
Algeria ... ... ... 3 ...
Argentina ... 1 2 5 ...
Angola ... ... ... 19 16
Cameroon ... ... 5 ... ...
Colombia ... ... ... 7 8
Congo 22 26 29 21 ...
Nigeria ... ... ... 13 5
Egypt ... ... 1 ... ...
Norway ... ... ... 6 ...
Kuwait ... ... 19 15 2
Thailand ... ... ... 3 ...
Mexico ... ... ... 21 9
United Kingdom ... ... ... 10 7
Nigeria 17 22 25 32 56
Total ... ... ... 60 36
Norway 23 ... 4 11 20
Oman ... ... ... 1 ... Star Enterprise
Saudi Arabia 41 64 52 70 75 Ecuador ... ... ... 2 2
United Kingdom 4 7 7 3 14 Egypt 17 21 21 25 13
Venezuela ... ... ... 25 40 Gabon ... ... ... 3 5
Yemen ... ... 3 ... ... Kuwait ... ... 1 3 6
Zaire 1 ... ... ... ... Mexico ... ... 3 4 22
Total 117 125 148 207 220 Nigeria ... ... ... ... 3
Oman ... ... ... 1 ...
Powerine Saudi Arabia 520 496 493 463 514
Ecuador ... ... ... 15 14 United Kingdom ... ... 1 4 ...
Seaview Venezuela 36 52 50 42 49
Venezuela ... 3 ... ... ... Total 573 569 569 547 614
Shell Strategic Petroleum Reserve
Algeria 38 22 16 10 16 Angola ... ... 3 ... ...
Angola 5 12 ... 5 ... Argentina ... ... 1 ... ...
Australia 3 7 4 2 2 Norway ... 6 3 ... ...
SPR (cont.) 1991 1992 1993 1994 1995 Total 1991 1992 1993 1994 1995
United Kingdom ... 4 8 12 ... Canada ... 9 11 11 7
Total ... 10 15 12 ... Colombia ... ... 1 ... 3
Sun Ecuador ... ... ... 5 6
Angola ... ... 5 42 105 Saudi Arabia ... ... ... 1 ...
Canada 52 63 57 54 68 Total ... 9 12 17 17
Colombia 7 32 22 17 12 Trifinery
Denmark ... ... ... 2 ... Venezuela ... 12 16 19 ...
Ecuador ... 14 20 6 16
Tx Petrochem
Gabon ... 3 ... 3 5
Saudi Arabia ... ... ... 1 ...
Mexico 20 31 26 31 15
Nigeria 187 128 92 95 146 Ultramar
Norway ... 6 ... 18 45 Mexico ... 1 ... ... ...
Oman ... ... 1 1 ... United Refining
Saudi Arabia 44 53 44 78 86 Canada ... 60 60 61 68
Unoven
Venezuela 13 19 16 ... 15
Canada ... 17 13 3 17
Yemen ... ... ... ... 2
Venezuela ... 121 121 118 131
Zaire ... ... ... 2 1
Total ... 138 134 120 148
Total 336 390 376 464 610
Tesoro Unocal
Australia ... 1 ... ... ... Australia 1 ... ... ... ...
Canada ... 1 ... ... ...
Texaco
Indonesia 8 ... ... ... ...
Argentina ... ... ... 1 ...
Malaysia 2 ... ... ... ...
Canada 1 8 15 15 22
Mexico ... ... 2 ... ...
China ... 2 ... 1 2
Philippines ... 1 ... ... ...
Colombia ... ... 4 1 4
Thailand 1 ... ... 1 ...
Ecuador 1 ... 3 8 10
Total 11 2 2 1 ...
Indonesia ... ... ... 1 3
Kuwait ... ... ... ... 2 US Oil & Refining
Malaysia ... 1 ... ... ... Canada ... 3 3 3 3
Peru ... ... ... ... 5 Thailand ... ... ... 0.2 ...
Saudi Arabia 1 ... ... ... ... Venezuela ... 1 ... ... ...
United Kingdom ... ... ... 11 ... Total ... 4 3 3 3
Venezuela 14 12 12 16 18 Valero
Total 17 23 35 55 65 Angola ... 1 9 4 15
Thrifty Argentina ... ... ... ... 2
Ecuador 4 1 ... ... ... China ... 21 18 17 2
Malaysia 1 ... ... ... ... Gabon ... ... ... ... 1
Total 5 1 ... ... ... Indonesia ... ... ... ... 1
Nigeria ... ... ... ... 1
Tosco*
Total ... 22 27 21 22
Argentina ... 1 ... 2 6
Canada 8 ... ... ... 4 Wickland
Chile ... ... ... 4 4 Ecuador ... 5 21 ... ...
China ... ... ... 1 ... Argentina ... ... ... 0.2 ...
Colombia ... ... ... 1 1 Total ... 5 21 0.2 ...
Ecuador 2 16 9 3 7 Wyoming Refining
Indonesia ... ... ... 0.4 ... Canada ... ... ... ... 0.2
Mexico 1 ... ... ... ...
Oman ... ... 8 14 5
Grand Total 5,338 6,399 7,043 7,469 8,217
Venezuela ... ... ... 1 ...
Total 10 17 18 27 27 Note: May not add due to rounding.
*See also Bayway Refining.

US CRUDE OIL IMPORTS BY COUNTRY OF ORIGIN AND COMPANY, 1991-95 (In 1,000 b/d)
Origin/Company 1991 1992 1993 1994 1995 Argentina (cont.)1991 1992 1993 1994 1995
Abu Dhabi British Petroleum ... 1 ... ... ...
Amerada Hess ... 89 74 10 ... Chevron ... 2 ... 2 1
Kerr-McGee ... ... 1 ... ... Citgo ... ... ... 2 ...
Total ... 89 75 10 ... Clarendon ... 1 ... ... ...
Algeria Clark ... ... ... ... 1
Amerada Hess ... ... ... 5 17 Coastal ... 1 ... ... ...
Amoco ... ... ... ... 3 Crown ... 1 1 1 5
Bayway Ref.* ... ... 2 ... 5 Exxon 1 3 4 10 27
Crown 1 ... 1 2 ... Fina ... 1 ... 1 ...
Deer Park Ref. ... ... ... 6 3 Kerr-McGee ... 2 ... ... ...
Intercont. Term ... ... ... ... 3 Koch 1 ... ... ... 1
Kerr-McGee 1 1 4 ... ... Lyondell ... 5 ... ... ...
Koch 1 ... ... ... ... Marathon ... 1 ... ... ...
Peerless ... 3 1 ... ... Murphy ... 5 3 ... ...
Shell 38 22 16 10 16 Phibro 1 ... ... 2 1
SW Refining ... ... ... 3 ... Phillips ... 1 2 5 ...
Total 41 26 24 26 47 Strategic Pet. Res. ... ... 1 ... ...
Texaco ... ... ... 1 ...
Angola Tosco ... 1 ... 2 6
Amerada Hess ... 13 9 10 7 Valero ... ... ... ... 2
Amoco 3 ... ... 1 2 Wickland ... ... ... 0.2 ...
Ashland ... ... 5 ... ... Total 3 26 11 34 49
Bayway Ref.* ... ... 5 5 21
British Petroleum 32 56 53 37 24 Australia
Chevron 67 68 68 50 ... Amoco ... ... 3 3 ...
Citgo ... ... ... ... 2 BHP § ... ... 3 11 16
Clark ... 1 ... ... 21 British Petroleum 1 ... ... ... ...
Coastal 23 61 73 44 52 Chevron ... 1 1 ... ...
Conoco ... ... ... 3 ... Coastal 1 ... ... ... ...
Crown 18 20 16 15 11 Crown ... ... 1 ... ...
D. Shamrock 4 ... ... ... 1 Exxon 2 ... ... ... ...
Exxon 33 12 8 13 20 Fina ... 2 ... ... ...
Fina ... ... 2 ... ... Kerr-McGee ... ... 1 ... ...
Indian Refining ... ... 5 ... ... Pacific Refining ... 1 ... ... ...
Kerr-McGee 18 23 16 ... ... Pacific Res. ¶ 12 5 4 ... ...
Koch ... 9 4 4 11 Phibro 1 ... 2 ... ...
La Gloria ... ... ... ... 1 Shell 3 7 4 2 2
LL&E ... ... ... ... 1 Tesoro ... 1 ... ... ...
Lyondell 6 12 3 4 3 Unocal 1 ... ... ... ...
Marathon ... ... 5 23 16 Total 21 17 19 16 18
Metallgesellschaft ... 1 ... ... ... Benin
Mobil 3 3 ... ... 2 Crown ... ... 2 ... ...
Murphy 1 4 7 7 13 Exxon ... ... ... 1 2
Phibro 32 47 40 45 53 Mobil 4 1 ... ... ...
Phillips 9 4 1 4 6 Phibro ... ... 1 ... ...
Shell 5 12 ... 5 ... Total 4 1 3 1 2
SW Refining ... ... ... 19 16
Bolivia
Strategic Pet. Res. ... ... 3 ... ...
Koch ... ... ... ... 1
Sun ... ... 5 42 105
Valero ... 1 9 4 15 Brazil
Total 254 347 337 335 403 LL&E ... ... ... 1 ...
Argentina Cameroon
Amerada Hess ... 1 ... ... 4 Amoco 2 2 ... ... ...
Amoco ... ... ... 8 1 Deer Park Ref. ... ... ... ... 2
*See also Tosco. See also Bayway Refining. Joint venture between Shell and Pemex. § Formerly Pacific Resources. ¶ Now BHP.
Cameroon (cont.) 1991 1992 1993 1994 1995 China (cont.) 1991 1992 1993 1994 1995
Exxon 1 4 ... ... ... BHP § ... ... ... ... 2
Koch ... ... ... 2 ... Chevron 3 11 17 22 22
Phibro ... ... 2 ... ... Coastal 19 8 5 ... ...
Phillips ... ... 5 ... ... Exxon 7 24 1 ... ...
Shell 6 2 ... 2 ... Pacific Res. ¶ 2 9 2 ... ...
Total 9 8 7 4 2 Phibro 34 10 ... 1 ...
Canada Shell ... ... ... ... 1
Amoco 118 137 139 143 169 Texaco ... 2 ... 1 2
Ashland 41 30 43 60 97 Tosco ... ... ... 1 ...
Astra ... 1 1 ... ... Valero ... 21 18 17 2
Bayway Ref.* ... ... ... 4 ... Total 65 85 50 64 57
British Petroleum 16 16 9 14 15 Colombia
Cenex ... 18 22 25 30 Amerada Hess ... ... ... ... 3
Chevron 1 1 ... ... ... Amoco ... ... 8 14 38
Clark 52 56 52 49 36 Ashland ... ... ... ... 5
Coastal ... 1 ... ... 2 Bayway Ref.* ... ... ... ... 8
Colorado ... ... ... 2 0.1 British Petroleum 6 8 28 15 19
Conoco 42 37 45 53 60 Caribbean Gulf ... 2 1 ... ...
Crown ... 1 2 ... ... Chevron ... ... 3 1 1
D. Shamrock ... ... ... 1 ... Citgo ... ... ... ... 1
Enron ... 3 3 ... ... Clark ... ... ... 1 4
Exxon 19 15 16 21 25 Coastal ... 1 2 1 3
Frontier ... ... ... ... 0.3 Conoco 1 8 7 ... 3
Indian Refining ... ... ... 14 3 Crown 2 ... 6 ... 2
Koch 158 151 175 167 191 Deer Park Ref. ... ... ... ... 3
Laketon Refining ... 4 ... ... ... D. Shamrock ... ... ... ... 3
LL&E ... 5 10 5 3 Exxon 5 1 14 44 58
Marathon 14 18 15 20 22 Fina 3 6 4 1 5
Metallgesellschaft 1 1 ... ... ... Kerr-McGee 21 3 3 ... ...
Mobil 103 116 143 175 174 Koch ... 1 3 13 8
Montana Refining ... 5 5 4 6 La Gloria ... ... ... 1 ...
Murphy 6 6 7 15 33 LL&E ... ... ... ... 1
North Ridge ... 2 3 ... ... Lyondell 1 ... 6 20 4
Pacific Refining ... ... 2 ... 0.3 Marathon ... 3 ... ... 5
Phibro ... ... ... 1 ... Metallgesellschaft 1 1 ... ... ...
Shell 2 14 48 53 70 Mobil 22 16 ... ... 3
Sinclair ... ... ... 12 12 Murphy 21 15 12 13 14
Sun 52 63 57 54 68 Oiltanking Houston ... ... ... 1 7
Texaco 1 8 15 15 22 Pacific Refining ... ... 3 ... ...
Tosco 8 ... ... ... 4 Phibro 32 29 33 9 9
Total (France) ... 9 11 11 7 Shell 1 ... ... ... ...
United Refining ... 60 60 61 68 SW Refining ... ... ... 7 8
Unocal ... 1 ... ... ... Sun 7 32 22 17 12
Unoven ... 17 13 3 17 Texaco ... ... 4 1 4
US Oil & Refining ... 3 3 3 3 Tosco ... ... ... 1 1
Wyoming Refining ... ... ... ... 0.2 Total (France) ... ... 1 ... 3
Total 634 799 899 985 1,137 Total 123 126 160 160 235
Chile Congo
LL&E ... ... ... ... 1 Amerada Hess ... 35 24 26 6
Tosco ... ... ... 4 4 Amoco 2 ... ... ... ...
Total ... ... ... 4 5 Chevron 1 13 4 3 ...
China Clark ... ... ... 1 1
Bayway Ref.* ... ... 7 22 28 Exxon ... 3 ... ... 12
Congo (cont.) 1991 1992 1993 1994 1995 Egypt 1991 1992 1993 1994 1995
Farmland ... ... 1 1 3 Chevron ... 3 7 2 7
Marathon ... ... 7 1 3 Clark ... ... 1 ... ...
Phibro 5 1 9 1 4 Coastal ... ... 2 2 ...
Phillips 22 26 29 21 ... Conoco ... ... 1 ... ...
Total 30 78 74 54 29 Exxon ... ... 15 3 ...
Denmark Fina ... ... 3 ... ...
Kerr-McGee ... ... 1 ... ... Marathon ... 4 4 ... ...
Sun ... ... ... 2 ... Mobil ... 3 9 17 13
Total ... ... 1 2 ... Phibro ... 2 1 ... 1
Phillips ... ... 1 ... ...
Dubai Star Enterprise 17 21 21 25 13
Ashland ... ... 3 ... ... Total 17 33 65 49 34
Exxon ... ... 4 ... ...
Koch ... ... ... 2 2 Gabon
Total ... ... 7 2 2 Amerada Hess ... 14 9 23 19
Amoco ... 1 ... ... 1
Ecuador Bayway Ref.* ... ... 26 43 40
Amoco ... ... ... 6 ... British Petroleum 1 8 2 30 59
Arco ... ... ... ... 2 Chevron 1 18 18 10 ...
BHP § ... ... ... 2 ... Clark ... ... 3 ... 15
British Petroleum ... ... 2 ... ... Coastal 39 29 29 36 53
Caribbean Gulf ... 1 3 ... ... Exxon 10 24 26 14 18
Chevron ... 7 1 26 7 Mobil 2 1 3 1 1
Citgo 1 1 ... 1 ... Phibro 32 41 43 55 50
Clarendon ... ... 1 ... ... Star Enterprise ... ... ... 3 5
Clark ... 2 2 1 14 Sun ... 3 ... 3 5
Coastal 8 6 2 ... ... Valero ... ... ... ... 1
Conoco ... 1 1 2 4 Total 85 139 159 218 267
Deer Park Ref. ... ... ... ... 2
Enron ... 1 ... ... ... Guatemala
Exxon ... ... ... 1 2 Amoco 3 5 6 5 9
Fina 4 ... ... ... ... Exxon 1 ... ... ... ...
Golden West ... 1 ... ... ... Mobil 1 ... ... ... ...
Hunt ... ... ... ... 1 Total 5 5 6 5 9
Indian Refining ... ... 7 2 ...
Guinea
Koch ... ... ... ... 3
Pacific Res. ¶ ... 2 ... ... ...
LL&E ... ... ... ... 2
Lyondell 5 ... 2 ... 3 Indonesia
Metallgesellschaft ... ... 7 ... ... Amerada Hess ... 2 ... 3 ...
Mobil 15 10 1 7 11 Amoco ... ... ... 5 ...
Murphy ... ... ... ... 4 BHP § ... ... 6 28 25
Oiltanking Houston ... ... ... 1 6 British Petroleum 2 1 2 ... ...
Pacific Res. ¶ 2 2 2 ... ... Chevron 46 43 34 46 37
Phibro ... 1 2 3 4 Clarendon ... 2 ... ... ...
Powerine ... ... ... 15 14 Clark ... ... ... 2 ...
Shell 4 ... ... 2 ... Coastal 10 1 ... 6 ...
Star Enterprise ... ... ... 2 2 Deer Park Ref. ... ... ... 0.4 ...
Sun ... 14 20 6 16 D. Shamrock ... ... ... 0.2 ...
Texaco 1 ... 3 8 10 Exxon 1 2 ... 1 ...
Thrifty 4 1 ... ... ... Fina ... 3 ... ... ...
Tosco 2 16 9 3 7 Kerr-McGee ... 2 ... ... ...
Total (France) ... ... ... 5 6 Koch 1 ... ... 0.4 1
Wickland ... 5 21 ... ... LL&E ... ... 1 ... ...
Total 46 69 86 93 120 Lyondell ... ... ... 1 ...
Indonesia (cont.)1991 1992 1993 1994 1995 Mexico (cont.) 1991 1992 1993 1994 1995
Pacific Refining ... ... ... 1 ... Bayway Ref.* ... ... ... ... 4
Pacific Res. ¶ 19 15 18 ... ... British Petroleum ... ... ... 2 ...
Phibro 5 3 3 1 ... Chevron 131 131 126 155 135
Shell 1 ... 1 ... ... Citgo 47 60 66 55 31
Sound Refining ... ... ... 0.1 ... Clark 34 30 32 25 45
Texaco ... ... ... 1 3 Coastal 34 29 36 31 43
Tosco ... ... ... 0.4 ... Conoco 31 36 54 82 72
Unocal 8 ... ... ... ... Deer Park Ref. ... ... ... 28 129
Valero ... ... ... ... 1 Enron ... ... 1 ... ...
Total 93 74 65 97 67 Exxon 33 27 43 56 99
Italy Fina 21 24 38 34 45
Chevron 3 ... ... ... ... Hunt 6 8 9 7 8
Koch 8 18 27 35 28
Kuwait
Lyondell 82 53 31 4 ...
Amerada Hess ... ... 5 0.1 ...
Marathon 57 60 47 30 24
Amoco 3 3 11 ... ...
Mobil 104 131 155 170 224
Ashland ... ... 35 47 46
Murphy 18 1 5 18 21
Chevron ... 17 60 52 30
Phibro ... ... ... 2 4
Cibro ... ... 1 ... ...
Phillips ... ... ... 21 9
Clark ... ... 1 ... ...
Shell 72 82 110 91 80
Deer Park Ref. ... ... ... 13 ...
Star Enterprise ... ... 3 4 22
Exxon ... 17 104 102 69
Sun 20 31 26 31 15
Fina 1 1 23 25 18
Tosco 1 ... ... ... ...
Marathon ... 1 50 51 56
Ultramar ... 1 ... ... ...
Mobil 1 ... 1 ... ...
Unocal ... ... 2 ... ...
Oiltanking Houston ... ... ... ... 3
Total 763 797 882 949 1,121
Phillips ... ... 19 15 2
Shell ... ... 35 ... ... New Zealand
Star Enterprise ... ... 1 3 6 British Petroleum ... ... 1 ... ...
Texaco ... ... ... ... 2 Deer Park Ref. ... ... ... 1 ...
Total 5 39 346 308 232 Kerr-McGee ... ... 1 ... ...
Malaysia Shell ... ... 1 ... ...
Amoco 1 ... ... ... ... Total ... ... 3 1 ...
Astra ... ... 4 ... ... Nigeria
BHP § ... ... 1 ... 2 Amerada Hess ... 35 71 115 145
British Petroleum ... ... 2 ... ... Amoco 55 56 82 32 44
Chevron ... 3 2 ... 2 Ashland ... 8 4 1 ...
Coastal 4 ... ... 2 ... Bayway Ref.* ... ... 3 8 1
Crown ... ... ... 0.2 ... British Petroleum 184 184 211 153 198
Deer Park Ref. ... ... ... 2 ... Chevron 89 81 128 61 1
D. Shamrock ... ... ... 1 ... Citgo ... ... ... ... 1
Koch ... ... ... ... 2 Clark ... ... 5 18 22
La Gloria ... ... ... 1 ... Coastal ... ... ... 25 26
Pacific Refining ... 1 ... ... ... Conoco 7 ... 2 ... ...
Pacific Res. ¶ 10 5 ... ... ... Crown 6 1 2 2 9
Phibro 3 ... ... ... ... Deer Park Ref. ... ... ... 33 6
Shell 2 ... 1 2 ... D. Shamrock ... ... ... 8 1
Texaco ... 1 ... ... ... Exxon ... 15 3 ... ...
Thrifty 1 ... ... ... ... Fina ... 8 10 5 ...
Unocal 2 ... ... ... ... Indian Refining ... ... ... 10 ...
Total 23 10 10 8 6 Intercont. Term ... ... ... ... 1
Mexico Kerr-McGee 1 1 4 ... ...
Amoco 64 75 71 68 70 Koch 7 ... 3 37 45
Ashland ... ... ... ... 13 La Gloria ... ... ... ... 1
Nigeria (cont.) 1991 1992 1993 1994 1995 Oman (cont.) 1991 1992 1993 1994 1995
LL&E ... ... ... 3 ... Star Enterprise ... ... ... 1 ...
Lyondell 1 ... ... 1 7 Sun ... ... 1 1 ...
Marathon 3 ... 3 3 10 Tosco ... ... 8 14 5
Metallgesellschaft ... 5 ... ... ... Total 4 4 30 45 19
Mobil ... 8 31 19 39 Papua New Guinea
Murphy 2 2 4 ... 2 BHP § ... ... ... 10 5
Phibro 7 4 3 2 ... British Petroleum ... ... 2 ... ...
Phillips 17 22 25 32 56 Crown ... ... ... 2 ...
Shell 117 142 105 63 39 D. Shamrock ... ... ... 0.2 ...
SW Refining ... ... ... 13 5 Koch ... ... 2 2 ...
Star Enterprise ... ... ... ... 3 Pacific Res. ¶ ... ... 2 ... ...
Sun 187 128 92 95 146 Phibro ... ... 5 ... ...
Valero ... ... ... ... 1 Shell ... ... ... 4 ...
Total 683 700 791 739 809 Total ... ... 11 18 5
Norway Peru
Amerada Hess ... ... 3 11 3 Amoco ... ... ... ... 2
Amoco 10 1 ... 8 6 Citgo ... ... ... ... 1
Ashland ... 7 3 1 ... Conoco ... ... ... ... 13
Bayway Ref.* ... ... 56 101 115 Marathon ... ... ... ... 1
British Petroleum 12 21 9 14 5 Mobil 1 ... ... ... 1
Chevron ... ... ... 1 13 Phibro ... 1 ... ... ...
Citgo ... ... ... ... 1 Texaco ... ... ... ... 5
Clark 2 7 3 ... 8 Total 1 1 ... ... 23
Coastal ... ... 4 ... 2 Philippines
Crown 5 6 4 7 10 Unocal ... 1 ... ... ...
Deer Park Ref. ... ... ... 1 ...
D. Shamrock 13 1 13 3 42 Russia
Exxon 3 49 11 4 2 Amoco ... ... ... 2 3
Fina ... 1 1 ... 3 Ashland ... ... ... 1 ...
Indian Refining ... ... ... 3 ... Chevron ... ... 1 ... ...
Kerr-McGee ... 3 ... ... ... Clark 2 1 3 1 3
Koch ... ... ... 6 7 Coastal ... ... ... 3 ...
Marathon 1 9 7 ... ... Exxon ... ... 5 7 2
Mobil 4 ... ... ... 1 Fina ... 1 3 ... ...
Murphy ... 3 1 ... ... Indian Refining ... ... ... 3 ...
Phibro ... ... ... 5 2 Lyondell ... 1 ... ... ...
Phillips 23 ... 4 11 20 Marathon ... ... 6 7 5
Shell ... ... ... 1 ... Mobil ... 2 7 3 ...
SW Refining ... ... ... 6 ... Phibro 1 ... 8 1 1
Strategic Pet. Res. ... 6 3 ... ... Total 3 5 33 28 14
Sun ... 6 ... 18 45 Saudi Arabia
Total 73 120 122 201 285 Amerada Hess ... 47 28 59 81
Oman Amoco 117 137 114 110 61
Ashland ... ... 3 1 3 Ashland 142 138 80 82 57
BHP § ... ... ... ... 4 British Petroleum ... ... ... 2 ...
Chevron 2 4 6 19 5 Chevron 214 172 160 155 176
Crown ... ... 3 3 ... Clark 1 ... ... ... ...
Exxon ... ... 2 4 ... Coastal ... 11 1 ... ...
Fina 2 ... ... ... ... Conoco ... ... 1 ... ...
Murphy ... ... ... ... 2 Deer Park Ref. ... ... ... 27 5
Pacific Res. ¶ ... ... 1 ... ... Exxon 237 188 94 117 145
Phillips ... ... ... 1 ... Fina 44 19 ... ... ...
Shell ... ... 6 1 ... Hunt 4 7 8 8 3
S. Arabia (cont.) 1991 1992 1993 1994 1995 T&T (cont.) 1991 1992 1993 1994 1995
Intercont. Term ... ... ... ... 1 Phibro 1 ... ... 0.3 ...
Koch 3 ... ... ... ... Total 72 71 55 62 66
Lion ... 23 26 33 31 Tunisia
Lyondell 62 41 ... ... ... Crown ... 2 ... ... ...
Marathon 141 137 110 91 111
United Arab Emirates
Mobil 59 53 41 59 90
Astra ... ... 1 ... ...
Murphy ... 1 ... ... ...
Chevron ... ... ... 2 ...
Oiltanking Houston ... ... ... 1 ...
Clark ... ... ... ... ...
Phibro 15 12 1 ... ...
Deer Park Ref. ... ... ... 1 ...
Phillips 41 64 52 70 75
Exxon ... ... ... 3 ...
Shell 59 48 51 3 15
Intercont. Term ... ... ... ... 1
Star Enterprise 520 496 493 463 514
LL&E ... ... ... ... 1
Sun 44 53 44 78 86
Phibro ... ... 4 ... ...
Texaco 1 ... ... ... ...
Shell ... ... ... 2 1
Total (France) ... ... ... 1 ...
Total ... ... 5 8 3
Tx Petrochem ... ... ... 1 ...
Total 1,704 1,647 1,304 1,360 1,451 United Kingdom
Amerada Hess ... ... 1 38 15
Singapore
Amoco 1 ... 1 7 18
Chevron ... ... 1 ... ...
Ashland 4 ... 20 15 11
Koch ... ... ... ... 1
Bayway Ref.* ... ... 12 13 22
Total ... ... 1 ... 1
British Petroleum ... 1 ... 5 6
Spain Chevron 11 7 ... 13 4
Deer Park Ref. ... ... ... ... 1 Citgo 3 4 14 10 17
Shell ... ... ... ... 0.4 Clark 8 6 ... 4 19
Total ... ... ... ... 1 Coastal ... ... ... ... 7
Syria Conoco ... ... 3 ... 0.3
Amoco ... ... 10 1 ... Crown 17 18 23 18 22
Chevron ... ... 1 1 ... Deer Park Ref. ... ... ... 4 ...
Clark 1 ... ... ... ... D. Shamrock 2 25 29 51 24
Conoco ... ... 2 ... ... Enron ... ... 1 ... ...
Crown 1 ... ... ... ... Exxon ... 1 3 15 11
Exxon ... ... 1 ... ... Fina 11 16 14 45 52
Koch ... ... 3 ... ... Indian Refining ... ... ... 1 ...
Phibro 3 ... ... ... ... Kerr-McGee 20 14 12 ... ...
Total 5 ... 17 2 ... Koch 1 22 22 17 32
La Gloria ... ... ... 1 4
Thailand
LL&E ... ... ... ... 3
Astra ... ... 2 ... ...
Lyondell 2 3 ... 1 11
British Petroleum 2 3 1 ... ...
Marathon 2 10 26 31 5
D. Shamrock ... ... 1 ... ...
Metallgesellschaft 3 3 ... ... ...
Kerr-McGee ... 1 1 ... ...
Mobil 1 3 ... ... 3
Koch ... ... ... 2 1
Murphy 1 7 8 6 ...
Lyondell ... ... ... 1 ...
Northeast Petro ... 1 ... ... ...
Shell ... ... 1 2 ...
Oiltanking Houston ... ... ... 3 ...
SW Refining ... ... ... 3 ...
Phibro ... ... ... 1 ...
Unocal 1 ... ... 1 ...
Phillips 4 7 7 3 14
US Oil & Refining ... ... ... 0.2 ...
Shell ... 4 16 6 ...
Total 3 4 6 9 1
SW Refining ... ... ... 10 7
Trinidad & Tobago Star Enterprise ... ... 1 4 ...
Amoco 70 69 54 61 66 Strategic Pet. Res. ... 4 8 12 ...
Clark 1 1 ... ... ... Sun 14 41 91 115 94
Coastal ... 1 ... ... ... Texaco ... ... ... 11 ...
Conoco ... ... 1 1 ... Total 105 197 312 460 401
*See also Tosco. Joint venture between Shell and Pemex.

Venezuela 1991 1992 1993 1994 1995 Yemen 1991 1992 1993 1994 1995
Deer Park Ref. ... ... ... ... 1 Amoco ... ... 1 8 ...
Amoco 18 29 33 31 43 Ashland ... ... ... 1 ...
British Petroleum ... ... ... 10 4 British Petroleum 2 ... 2 ... ...
Caribbean Gulf ... 28 30 34 8 Chevron ... ... ... 4 ...
Chevron 10 24 20 13 24 Clark 3 ... ... ... ...
Cibro ... 4 2 ... ... Coastal 3 ... ... ... ...
Citgo 152 294 309 307 348 Crown ... ... ... 1 ...
Clark 1 ... ... 9 22 Exxon ... ... 1 1 ...
Coastal 22 33 30 42 51 Fina 3 ... ... ... ...
Conoco 76 67 44 44 41 Koch ... ... ... 7 3
Ergon ... 12 21 21 19 La Gloria ... ... ... 0.3 ...
Exxon 18 13 3 4 3 Phillips ... ... 3 ... ...
Hunt 7 7 8 7 10 Shell 5 ... ... ... ...
Koch 7 13 18 10 10 Sun ... ... ... ... 2
Lyondell 7 29 134 119 161 Total 16 ... 7 22 5
Marathon ... ... ... 12 9 Zaire
Mobil 37 59 118 121 119 Amerada Hess ... 1 ... 1 2
Murphy ... ... ... 14 35 British Petroleum 3 3 5 4 4
Neste ... ... ... ... 22 Chevron 18 4 9 6 ...
Oiltanking Houston ... ... ... 12 16 Clark ... ... ... ... 2
Phibro 7 25 40 34 59 Coastal 1 2 2 3 1
Phillips ... ... ... 25 40 Crown ... 4 ... ... 3
Seaview ... 3 ... ... ... Exxon 1 ... ... ... 2
Shell 1 ... ... ... ... Kerr-McGee ... 2 ... ... ...
Sinclair ... ... ... 4 3 Koch ... ... ... ... 1
Sound Refining ... 2 2 3 2 Lyondell ... ... 1 ... ...
Star Enterprise 36 52 50 42 49 Mobil 1 ... ... ... ...
Sun 13 19 16 ... 15 Phibro 1 2 2 ... 2
Texaco 14 12 12 16 18 Phillips 1 ... ... ... ...
Tosco ... ... ... 1 ... Sun ... ... ... 2 1
Trifinery ... 12 16 19 ... Total 26 18 19 16 18
Unoven ... 121 121 118 131
US Oil & Refining ... 1 ... ... ... Grand Total 5,338 6,399 7,043 7,469 8,217
Total 426 859 1,027 1,072 1,263
Note: May not add due to rounding.
Vietnam
Chevron ... ... ... ... 1
Joint venture between Shell and Pemex. See also Bayway Refining.
Crude Oil Profiles
Table of Contents
Crude Oil Profiles A View Of the Market Through Each Grade . . . . . . . . . .H1
The Crude Oils And Their Key Characteristics . . . . . . . . . . . . . . . . . . . . . . . .H3
Crude Oil Streams Ranked And Indexed By Gravity . . . . . . . . . . . . . . . . . . .H7
Crude Oil Streams Ranked And Indexed By Sulfur Content . . . . . . . . . . . . . .H9
Crude Oil Streams Ranked And Indexed By Volume . . . . . . . . . . . . . . . . . . .H9
Crude Oil Streams Indexed By Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .H11
Crude Oil Profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .H13
Abu Dhabi . . . . . . . . . . . . . . . . . .H13 Libya . . . . . . . . . . . . . . . . . . . . .H147

Algeria . . . . . . . . . . . . . . . . . . . .H27 Malaysia . . . . . . . . . . . . . . . . . .H161
Angola . . . . . . . . . . . . . . . . . . . .H33 Mexico . . . . . . . . . . . . . . . . . . .H171
Argentina . . . . . . . . . . . . . . . . . .H39 Neutral Zone . . . . . . . . . . . . . . .H177
Australia . . . . . . . . . . . . . . . . . . .H47 Nigeria . . . . . . . . . . . . . . . . . . .H183
Brunei . . . . . . . . . . . . . . . . . . . . .H55 Norway . . . . . . . . . . . . . . . . . . .H195
Cameroon . . . . . . . . . . . . . . . . . .H63 Oman . . . . . . . . . . . . . . . . . . . .H211
Canada . . . . . . . . . . . . . . . . . . . .H67 Papua New Guinea . . . . . . . . . .H213
China . . . . . . . . . . . . . . . . . . . . .H73 Qatar . . . . . . . . . . . . . . . . . . . . .H215
Colombia . . . . . . . . . . . . . . . . . . .H77 Russia . . . . . . . . . . . . . . . . . . . .H219
Congo . . . . . . . . . . . . . . . . . . . . .H83 Saudi Arabia . . . . . . . . . . . . . . .H223
Dubai . . . . . . . . . . . . . . . . . . . . .H87 Sharjah . . . . . . . . . . . . . . . . . . .H233
Ecuador . . . . . . . . . . . . . . . . . . .H91 Syria . . . . . . . . . . . . . . . . . . . . .H237
Egypt . . . . . . . . . . . . . . . . . . . . .H93 United Kingdom . . . . . . . . . . . .H241
Gabon . . . . . . . . . . . . . . . . . . . .H103 United States . . . . . . . . . . . . . . .H251
Indonesia . . . . . . . . . . . . . . . . .H109 Venezuela . . . . . . . . . . . . . . . . .H261
Iran . . . . . . . . . . . . . . . . . . . . . .H129 Vietnam . . . . . . . . . . . . . . . . . . .H273
Iraq . . . . . . . . . . . . . . . . . . . . . .H139 Yemen . . . . . . . . . . . . . . . . . . . .H275
Kuwait . . . . . . . . . . . . . . . . . . . .H145 Zaire . . . . . . . . . . . . . . . . . . . . .H279
CRUDE OIL HANDBOOK PIW © H1
CRUDE OIL PROFILES

A View Of The Market Through Each Grade
This section provides detailed profiles of 134 internationally traded crude oils,
including several new crude oils and condensates from Latin America, Europe,
and Asia. This section not only contains the most up-to-date, detailed assays for
the individual crude oil streams, but also complete assessments of their produc-
tion, quality, marketing, pricing, and logistical positions. It is a comprehensive
reference section that is meant to complement the earlier descriptive chapters.
This section essentially allows the reader to have a close look at the pieces that togeth-
er constitute the international crude oil market. The presentation of the information on
the individual crude oils is self-explanatory, with further details on marketing available
in many cases in the sections on country crude oil sales policies in Chapter F. Chapter
E, on refining, also covers the basic technical aspects of the crude oil assays. The infor-
mation on the individual crude oils is as up-to-date and complete as possible, but the
coverage of some crude oils is not as comprehensive as that of others because of the
limited availability of certain data.
All of the crude oil profiles are organized alphabetically according to country.
In order to make this section easy to use, several indexes have also been pre-
pared. For quick comparisons, the first lists the crude oils as they appear in the hand-
book along with some key data on volume, specifications, and loading ports. The next
index lists all of the crude oil names alphabetically both those names currently in use
and the secondary or former names of the crude oils. The third, fourth, and fifth index-
es list all of the crude oils by their API gravities, their sulfur contents, and their supply
volumes.
THE CRUDE OILS AND THEIR KEY CHARACTERISTICS

Gravity API Sulfur Volume Primary
Country/Crude Oil Gravity Content 1,000 b/d Loading Port Page
Abu Dhabi
Abu Bukhoosh 31.5 1.90 35 Abu al-Bukhoosh H13
Mubarraz 39.5 0.90 15 Mubarraz Island H15
Murban 40.4 0.79 890 Jebel Dhanna H17
Thamama Condensate 57.5 0.11 130 Jebel Dhanna H19
Umm Shaif 36.8 1.38 190 Das Island H21
Upper Zakum 32.9 1.78 460 Das Island H23
Zakum 39.2 1.10 245 Das Island H25
Algeria
Algerian Condensate 64.6 <0.01 300 Arzew H27
Saharan Blend 46.1 0.11 700 Arzew/Bejaia/Skikda H29
Zarzaitine 42.8 0.01 100 La Skhirra (Tunisia) H31
Angola
Cabinda 32.0 0.13 430 Cabinda H33
Palanca 38.6 0.14 175 Palanca H35
Soyo 39.5 0.12 95 Quinfuquena H37
Argentina
Canadon Seco 25.7 0.20 90 Celeta Olivia, Caltea Cordova H39
Escalante 24.1 0.19 50 Bahia Blanca H41
Medanito 35.1 0.43 300 Bahia Blanca H43
Rincon 36.1 0.28 95 San Vincente, Chile H45
Australia
Cossack 47.0 0.03 115 Cossack FPSO H47
Gippsland 47.0 0.09 228 Westernport H49
Griffin 55.0 0.03 80 Griffin FPSO H51
Northwest Shelf Condensate 59.5 <0.01 80 Withnell Bay H53
Brunei
Brunei Condensate 66.5 <0.01 20 Seria H55
Brunei Light 40.3 0.06 50 Seria H57
Champion 23.7 0.13 80 Seria H59
Seria Light Export Blend 34.6 0.08 70 Seria H61
Cameroon
Kole 34.8 0.30 75 Kole H63
Lokele 19.6 0.41 20 Lokele H65
Canada
Bow River 25.6 2.37 660 Interprovincial Pipe Line H67
Hibernia 32.0 0.50 ... Hibernia Platform H69
Mixed Blend Sweet 39.0 0.39 250 Interprovincial Pipe Line H71
China
Daqing 32.1 0.11 1,100 Dairen (Dalian) H73
Shengli 22.5 0.90 600 Qingdao (Tsing Tao) H75
Colombia
Cano Limon 29.5 0.47 215 Covenas H77
Cusiana 36.3 0.25 200 Covenas H79
Vasconia 25.3 0.81 145 Covenas H81
Congo
Djeno 27.6 0.23 150 Djeno H83
NKossa 39.5 0.08 90 NKossa H85
Dubai
Dubai 31.0 2.04 250 Fateh H87
Margham Condensate 50.2 0.04 25 Jebel Ali H89
H4 PIW © CRUDE OIL HANDBOOK
THE CRUDE OILS AND THEIR KEY CHARACTERISTICS (cont.)

Ecuador
Oriente 28.8 1.02 350 Esmeraldas H91
Egypt
Belayim Blend 26.1 2.23 200 Wadi El Firan H93
Ras Budran 24.3 2.39 20 Ras Budran H95
Ras Gharib Blend 24.1 3.00 25 Ras Gharib H97
Suez Blend 31.5 1.54 400 Ras Shukheir H99
Zeit Bay 33.8 1.35 20 Zeit Bay H101
Gabon
Lucina 39.2 0.03 8 Lucina H103
Mandji 30.2 1.14 120 Cape Lopez H105
Rabi 34.6 0.06 220 Cape Lopez (Shell) /Gamba (Elf) H107
Indonesia
Ardjuna 36.7 0.09 80 Ardjuna H109
Arun Condensate 54.3 <0.01 90 Lhokseumawe H111
Attaka 42.3 0.09 50 Santan H113
Belida 40.0 0.01 115 Belida H115
Cinta 32.8 0.12 55 Cinta H117
Duri 20.3 0.19 275 Dumai H119
Handil 32.2 0.10 40 Senipah H121
Lalang 39.2 0.11 25 Lalang Marine Terminal H123
Minas 34.1 0.09 395 Dumai H125
Widuri 33.2 0.07 75 Widuri H127
Iran
Foroozan Blend 30.7 2.50 275 Kharg Island H129
Iran Heavy 30.2 1.77 1,500 Kharg Island H131
Iran Light 33.1 1.50 1,300 Kharg Island H133
Lavan Blend 34.3 1.87 140 Lavan Island H135
Sirri 30.3 2.26 30 Sirri Island H137
Iraq
Basrah Light 34.4 2.10 300 Mina Al-Bakr/Ceyhan (Turkey) H139
Fao Blend 27.5 2.90 ... Mina Al-Bakr H141
Kirkuk 37.0 2.00 250 Ceyhan (Turkey) H143
Kuwait
Kuwait 30.5 2.55 1,800 Mina Al Ahmadi H145
Libya
Amna 36.1 0.15 115 Ras Lanuf H147
Bouri 26.0 ... 90 Bouri H149
Brega 39.8 0.20 120 Marsa El Brega H151
Es Sider 37.0 0.27 445 Es Sider H153
Sarir 37.6 0.16 195 Marsa El Hariga H155
Sirtica 42.2 0.40 85 Ras Lanuf H157
Zueitina 41.5 0.31 70 Zueitina H159
Malaysia
Bintulu Condensate 66.2 0.04 60 Bintulu H161
Dulang 39.9 0.12 100 Dulang Terminal H163
Labuan 32.1 0.07 80 Labuan H165
Miri 29.6 0.07 60 Miri H167
Tapis 45.2 0.03 340 Tapis H169
Mexico
Isthmus 33.3 1.22 920 Dos Bocas/Salina Cruz H171
Maya 21.5 3.43 1,350 Cayo Arcas/Salina Cruz H173
Olmeca 39.1 0.72 580 Dos Bocas H175

Neutral Zone
Hout 32.5 1.90 30 Ras al-Khafji H177
Khafji 28.5 2.85 280 Ras al-Khafji H179
Wafra 24.2 4.00 200 Mina Saud (Mina al-Zour) H181
Nigeria
Bonny Light 35.4 0.14 475 Bonny H183
Bonny Medium 26.5 0.22 80 Bonny H185
Brass River 41.5 0.09 150 Brass River H187
Escravos 36.2 0.14 360 Escravos H189
Forcados 28.5 0.19 450 Forcados H191
Qua Iboe 35.9 0.12 340 Qua Iboe H193
Norway
Draugen 39.8 0.15 130 Draugen H195
Ekofisk 39.4 0.19 530 Tees River (UK) H197
Gullfaks 29.9 0.41 460 Gullfaks/Mongstad H199
Heidrun 28.6 0.46 230 Heidrun H201
Oseberg 36.3 0.29 700 Sture H203
Sleipner Condensate 59.0 0.02 110 Karsto H205
Statfjord 38.7 0.24 790 Statfjord/Mongstad H207
Troll 28.6 0.29 200 Mongstad H209
Oman
Oman 35.2 0.89 880 Mina Al Fahal H211
Papua New Guinea
Kutubu 44.0 0.04 100 Kumul H213
Qatar
Dukhan 41.1 1.22 240 Umm Said H215
Qatar Marine 36.2 1.60 200 Halul Island H217
Russia
Siberian Light 35.6 0.46 90* Tuapse H219
Urals 33.4 1.19 2,500* Novorossiysk/Ventspils H221
Saudi Arabia
Arabian Extra Light 36.4 1.19 950 Ras Tanura H223
Arabian Heavy 27.5 2.92 400 Juaymah/Ras Tanura H225
Arabian Light 32.7 1.80 5,000 Juaymah/Ras Tanura/Yanbu H227
Arabian Medium 31.8 2.45 1,300 Juaymah/Ras Tanura H229
Arabian Super Light 50.6 0.04 200 Yanbu H231
Sharjah
Mubarak 38.2 0.57 17 Mubarak H233
Sharjah Condensate 50.0 0.08 40 Hamriyah Terminal H235
Syria
Souedieh 24.0 4.05 150 Baniyas/Tartous H237
Syrian Light 36.5 0.66 450 Baniyas/Tartous H239
United Kingdom
Brent Blend 38.3 0.37 775 Sullom Voe H241
Captain 20.0 0.50 ... Captain FPSO H243
Flotta 35.4 1.22 250 Flotta H245
Forties 40.1 0.34 975 Hound Point H247
Liverpool Bay 43.3 0.24 40 Liverpool Bay Platform H249
United States
Alaskan North Slope 27.5 1.16 1,450 Valdez H251
Light Louisiana Sweet 38.7 0.13 600 St. James H253

API Sulfur Volume Primary
United States (cont.)
Mars Blend 31.0 2.00 70 Clovelly, LOOP H255
West Texas Intermediate 39.6 0.24 750 Cushing/Midland H257
West Texas Sour 34.2 1.30 775 Midland H259
Venezuela
Bachaquero 13.0 2.68 250 Punta Cardon H261
BCF-17 16.2 2.47 ... La Salina H263
Boscan 10.1 5.40 60 Bajo Grande H265
Furrial 30.0 1.10 300 Puerto La Cruz H267
Tia Juana Heavy 12.3 2.82 80 Punta Cardon H269
Tia Juana Light 32.0 1.20 240 La Salina H271
Vietnam
Bach Ho 33.8 0.08 140 Bach Ho Platform H273
Yemen
Marib 48.0 0.10 170 Ras Isa H275
Masila 30.5 0.62 175 Ash Shihr H277
Zaire
Zaire 31.2 0.11 30 Moanda Terminal H279
*Export figures.
CRUDE OIL STREAMS RANKED AND INDEXED BY GRAVITY

Gravity Gravity
API Stream Country Page API Stream Country Page
66.5 Brunei Condensate Brunei H55 36.2 Qatar Marine Qatar H217
66.2 Bintulu Condensate Malaysia H161 36.1 Rincon Argentina H45
64.6 Algerian Condensate Algeria H27 36.1 Amna Libya H147
59.5 Northwest Shelf Cond. Australia H53 35.9 Qua Iboe Nigeria H193
59.0 Sleipner Condensate Norway H205 35.6 Siberian Light Russia H219
57.5 Thamama Condensate Abu Dhabi H19 35.4 Bonny Light Nigeria H183
55.0 Griffin Australia H51 35.4 Flotta UK H247
54.3 Arun Condensate Indonesia H111 35.2 Oman Oman H211
50.6 Arabian Super Light S. Arabia H231 35.1 Medanito Argentina H43
50.2 Margham Condensate Dubai H89 34.8 Kole Cameroon H63
50.0 Sharjah Condensate Sharjah H235 34.6 Seria Light Ex. Blend Brunei H61
48.0 Marib Yemen H277 34.6 Rabi Gabon H107
47.0 Cossack Australia H47 34.4 Basrah Light Iraq H139
47.0 Gippsland Australia H49 34.3 Lavan Blend Iran H135
46.1 Saharan Blend Algeria H29 34.2 West Texas Sour United States H261
45.2 Tapis Malaysia H169 34.1 Minas Indonesia H125
44.0 Kutubu PNG H213 33.8 Zeit Bay Egypt H101
43.3 Liverpool Bay UK H251 33.8 Bach Ho Vietnam H275
42.8 Zarzaitine Algeria H31 33.4 Urals Russia H221
42.3 Attaka Indonesia H113 33.3 Isthmus Mexico H171
42.2 Sirtica Libya H157 33.2 Widuri Indonesia H127
41.5 Zueitina Libya H159 33.1 Iran Light Iran H133
41.5 Brass River Nigeria H187 32.9 Upper Zakum Abu Dhabi H23
41.1 Dukhan Qatar H215 32.8 Cinta Indonesia H117
40.4 Murban Abu Dhabi H17 32.7 Arabian Light S. Arabia H227
40.3 Brunei Light Brunei H57 32.5 Hout Neutral Zone H177
40.1 Forties UK H249 32.2 Handil Indonesia H121
40.0 Belida Indonesia H115 32.1 Daqing China H73
39.9 Dulang Malaysia H163 32.1 Labuan Malaysia H165
39.8 Brega Libya H151 32.0 Cabinda Angola H33
39.8 Draugen Norway H195 32.0 Hibernia Canada H69
39.6 West Texas Intermediate United States H259 32.0 Tia Juana Light Venezuela H273
39.5 Mubarraz Abu Dhabi H15 31.8 Arabian Medium S. Arabia H229
39.5 Soyo Angola H37 31.5 Abu Bukhoosh Abu Dhabi H13
39.5 NKossa Congo H85 31.5 Suez Blend Egypt H99
39.4 Ekofisk Norway H197 31.2 Zaire Zaire H281
39.2 Zakum Abu Dhabi H25 31.0 Dubai Dubai H87
39.2 Lucina Gabon H103 31.0 Mars Blend United States H257
39.2 Lalang Indonesia H123 30.7 Foroozan Blend Iran H129
39.1 Olmeca Mexico H175 30.5 Kuwait Kuwait H145
39.0 Mixed Blend Sweet Canada H71 30.5 Masila Yemen H279
38.7 Statfjord Norway H207 30.3 Sirri Iran H137
38.7 Light Louisiana Sweet United States H255 30.2 Mandji Gabon H105
38.6 Palanca Angola H35 30.2 Iran Heavy Iran H131
38.3 Brent Blend UK H243 30.0 Furrial Venezuela H269
38.2 Mubarak Sharjah H233 29.9 Gullfaks Norway H199
37.6 Sarir Libya H155 29.6 Miri Malaysia H167
37.0 Kirkuk Iraq H143 29.5 Cano Limon Colombia H77
37.0 Es Sider Libya H153 28.8 Oriente Ecuador H91
36.8 Umm Shaif Abu Dhabi H21 28.6 Heidrun Norway H201
36.7 Ardjuna Indonesia H109 28.6 Troll Norway H209
36.5 Syrian Light Syria H241 28.5 Khafji Neutral Zone H179
36.4 Arabian Extra Light S. Arabia H223 28.5 Forcados Nigeria H191
36.3 Cusiana Colombia H79 27.6 Djeno Congo H83
36.3 Oseberg Norway H203 27.5 Fao Blend Iraq H141
36.2 Escravos Nigeria H189 27.5 Arabian Heavy S. Arabia H225
CRUDE OIL STREAMS RANKED AND INDEXED BY GRAVITY (cont.)

Gravity Gravity
API Stream Country Page API Stream Country Page
27.5 Alaskan North Slope United States H253 24.0 Souedieh Syria H239
26.5 Bonny Medium Nigeria H185 23.7 Champion Brunei H59
26.1 Belayim Blend Egypt H93 22.5 Shengli China H75
26.0 Bouri Libya H149 21.5 Maya Mexico H173
25.7 Canadon Seco Argentina H39 20.3 Duri Indonesia H119
25.6 Bow River Canada H67 20.0 Captain UK H245
25.3 Vasconia Colombia H81 19.6 Lokele Cameroon H65
24.3 Ras Budran Egypt H95 16.2 BCF-17 Venezuela H265
24.2 Wafra Neutral Zone H181 13.0 Bachaquero Venezuela H263
24.1 Escalante Argentina H41 12.3 Tia Juana Heavy Venezuela H271
24.1 Ras Gharib Blend Egypt H97 10.1 Boscan Venezuela H267
CRUDE OIL STREAMS RANKED AND INDEXED BY SULFUR CONTENT

Sulfur Sulfur
(%) Stream Country Page (%) Stream Country Page
<0.01 Algerian Condensate Algeria H27 0.12 Dulang Malaysia H163
<0.01 Arun Condensate Indonesia H111 0.12 Qua Iboe Nigeria H193
<0.01 Brunei Condensate Brunei H55 0.13 Cabinda Angola H33
<0.01 Northwest Shelf Cond. Australia H53 0.13 Champion Brunei H59
0.01 Zarzaitine Algeria H31 0.13 Light Louisiana Sweet United States H253
0.01 Belida Indonesia H115 0.14 Palanca Angola H35
0.02 Sleipner Condensate Norway H205 0.14 Bonny Light Nigeria H183
0.03 Cossack Australia H47 0.14 Escravos Nigeria H189
0.03 Griffin Australia H51 0.15 Amna Libya H147
0.03 Lucina Gabon H103 0.15 Draugen Norway H195
0.03 Tapis Malaysia H169 0.16 Sarir Libya H155
0.04 Margham Condensate Dubai H89 0.19 Escalante Argentina H41
0.04 Bintulu Condensate Malaysia H161 0.19 Duri Indonesia H119
0.04 Kutubu PNG H213 0.19 Forcados Nigeria H191
0.04 Arabian Super Light S. Arabia H231 0.19 Ekofisk Norway H197
0.06 Brunei Light Brunei H57 0.20 Canadon Seco Argentina H39
0.06 Rabi Gabon H107 0.20 Brega Libya H151
0.07 Widuri Indonesia H127 0.22 Bonny Medium Nigeria H185
0.07 Labuan Malaysia H165 0.23 Djeno Congo H83
0.07 Miri Malaysia H167 0.24 Statfjord Norway H207
0.08 Seria Light Export Blend Brunei H61 0.24 Liverpool Bay UK H249
0.08 NKossa Congo H85 0.24 West Texas Intermediate United States H257
0.08 Sharjah Condensate Sharjah H235 0.25 Cusiana Colombia H79
0.08 Bach Ho Vietnam H273 0.27 Es Sider Libya H153
0.09 Gippsland Australia H49 0.28 Rincon Argentina H45
0.09 Ardjuna Indonesia H109 0.29 Oseberg Norway H203
0.09 Attaka Indonesia H113 0.29 Troll Norway H209
0.09 Minas Indonesia H125 0.30 Kole Cameroon H63
0.09 Brass River Nigeria H187 0.31 Zueitina Libya H159
0.10 Handil Indonesia H121 0.34 Forties UK H247
0.10 Marib Yemen H275 0.37 Brent Blend UK H241
0.11 Thamama Condensate Abu Dhabi H19 0.39 Mixed Blend Sweet Canada H71
0.11 Saharan Blend Algeria H29 0.40 Sirtica Libya H157
0.11 Daqing China H73 0.41 Lokele Cameroon H65
0.11 Lalang Indonesia H123 0.41 Gullfaks Norway H199
0.11 Zaire Zaire H279 0.43 Medanito Argentina H43
0.12 Soyo Angola H37 0.46 Heidrun Norway H201
0.12 Cinta Indonesia H117 0.46 Siberian Light Russia H219
CRUDE OIL STREAMS RANKED AND INDEXED BY SULFUR CONTENT (cont.)

Sulfur Sulfur
(%) Stream Country Page (%) Stream Country Page
0.47 Cano Limon Colombia H77 1.77 Iran Heavy Iran H131
0.50 Hibernia Canada H69 1.78 Upper Zakum Abu Dhabi H23
0.50 Captain UK H243 1.80 Arabian Light S. Arabia H227
0.57 Mubarak Sharjah H233 1.87 Lavan Blend Iran H135
0.62 Masila Yemen H277 1.90 Abu Bukhoosh Abu Dhabi H13
0.66 Syrian Light Syria H239 1.90 Hout Neutral Zone H177
0.72 Olmeca Mexico H175 2.00 Kirkuk Iraq H143
0.79 Murban Abu Dhabi H17 2.00 Mars Blend United States H255
0.81 Vasconia Colombia H81 2.04 Dubai Dubai H87
0.89 Oman Oman H211 2.10 Basrah Light Iraq H139
0.90 Mubarraz Abu Dhabi H15 2.23 Belayim Blend Egypt H93
0.90 Shengli China H75 2.26 Sirri Iran H137
1.02 Oriente Ecuador H91 2.37 Bow River Canada H67
1.10 Zakum Abu Dhabi H25 2.39 Ras Budran Egypt H95
1.10 Furrial Venezuela H267 2.45 Arabian Medium S. Arabia H229
1.14 Mandji Gabon H105 2.47 BCF-17 Venezuela H263
1.16 Alaskan North Slope United States H251 2.50 Foroozan Blend Iran H129
1.19 Urals Russia H221 2.55 Kuwait Kuwait H145
1.19 Arabian Extra Light S. Arabia H223 2.68 Bachaquero Venezuela H261
1.20 Tia Juana Light Venezuela H271 2.82 Tia Juana Heavy Venezuela H269
1.22 Isthmus Mexico H171 2.85 Khafji Neutral Zone H179
1.22 Dukhan Qatar H215 2.90 Fao Blend Iraq H141
1.22 Flotta UK H245 2.92 Arabian Heavy S. Arabia H225
1.30 West Texas Sour United States H259 3.00 Ras Gharib Blend Egypt H97
1.35 Zeit Bay Egypt H101 3.43 Maya Mexico H173
1.38 Umm Shaif Abu Dhabi H21 4.00 Wafra Neutral Zone H181
1.50 Iran Light Iran H133 4.05 Souedieh Syria H237
1.54 Suez Blend Egypt H99 5.40 Boscan Venezuela H265
1.60 Qatar Marine Qatar H217
CRUDE OIL STREAMS RANKED AND INDEXED BY VOLUME

(1,000 b/d) (1,000 b/d)
Vol. Stream Country Page Vol. Stream Country Page
5,000 Arabian Light S. Arabia H227 660 Bow River Canada H67
2,500 Urals Russia H221 600 Shengli China H75
1,800 Kuwait Kuwait H145 600 Light Louisiana Sweet United States H253
1,500 Iran Heavy Iran H131 580 Olmeca Mexico H175
1,450 Alaskan North Slope United States H251 530 Ekofisk Norway H197
1,350 Maya Mexico H173 475 Bonny Light Nigeria H183
1,300 Iran Light Iran H133 460 Upper Zakum Abu Dhabi H23
1,300 Arabian Medium S. Arabia H229 460 Gullfaks Norway H199
1,100 Daqing China H73 450 Forcados Nigeria H191
975 Forties UK H247 450 Syrian Light Syria H239
950 Arabian Extra Light S. Arabia H223 445 Es Sider Libya H153
920 Isthmus Mexico H171 430 Cabinda Angola H33
890 Murban Abu Dhabi H17 400 Suez Blend Egypt H99
880 Oman Oman H211 400 Arabian Heavy S. Arabia H225
790 Statfjord Norway H207 395 Minas Indonesia H125
775 Brent Blend UK H241 360 Escravos Nigeria H189
775 West Texas Sour United States H259 350 Oriente Ecuador H91
750 West Texas Intermediate United States H257 340 Tapis Malaysia H169
700 Saharan Blend Algeria H29 340 Qua Iboe Nigeria H193
700 Oseberg Norway H203 300 Algerian Condensate Algeria H27
CRUDE OIL STREAMS RANKED AND INDEXED BY VOLUME (cont.)

(1,000 b/d) (1,000 b/d)
Vol. Stream Country Page Vol. Stream Country Page
300 Medanito Argentina H43 100 Kutubu PNG H213
300 Basrah Light Iraq H139 95 Soyo Angola H37
300 Furrial Venezuela H267 95 Rincon Argentina H45
280 Khafji Neutral Zone H179 90 Canadon Seco Argentina H39
275 Duri Indonesia H119 90 NKossa Congo H85
275 Foroozan Blend Iran H129 90 Arun Condensate Indonesia H111
250 Mixed Blend Sweet Canada H71 90 Bouri Libya H149
250 Dubai Dubai H87 90 Siberian Light Russia H219
250 Kirkuk Iraq H143 85 Sirtica Libya H157
250 Flotta UK H245 80 Griffin Australia H51
250 Bachaquero Venezuela H261 80 Northwest Shelf Cond. Australia H53
245 Zakum Abu Dhabi H25 80 Champion Brunei H59
240 Dukhan Qatar H215 80 Ardjuna Indonesia H109
240 Tia Juana Light Venezuela H271 80 Labuan Malaysia H165
230 Heidrun Norway H201 80 Bonny Medium Nigeria H185
228 Gippsland Australia H49 80 Tia Juana Heavy Venezuela H269
220 Rabi Gabon H107 75 Kole Cameroon H63
215 Cano Limon Colombia H77 75 Widuri Indonesia H127
200 Cusiana Colombia H79 70 Seria Light Export Blend Brunei H61
200 Belayim Blend Egypt H93 70 Zueitina Libya H159
200 Wafra Neutral Zone H181 70 Mars Blend United States H255
200 Troll Norway H209 60 Bintulu Condensate Malaysia H161
200 Qatar Marine Qatar H217 60 Miri Malaysia H167
200 Arabian Super Light S. Arabia H231 60 Boscan Venezuela H265
195 Sarir Libya H155 55 Cinta Indonesia H117
190 Umm Shaif Abu Dhabi H21 50 Escalante Argentina H41
175 Palanca Angola H35 50 Brunei Light Brunei H57
175 Masila Yemen H277 50 Attaka Indonesia H113
170 Marib Yemen H275 40 Handil Indonesia H121
150 Djeno Congo H83 40 Sharjah Condensate Sharjah H235
150 Brass River Nigeria H187 40 Liverpool Bay UK H249
150 Souedieh Syria H237 35 Abu Bukhoosh Abu Dhabi H13
145 Vasconia Colombia H81 30 Sirri Iran H137
140 Lavan Blend Iran H135 30 Hout Neutral Zone H177
140 Bach Ho Vietnam H273 30 Zaire Zaire H279
130 Thamama Condensate Abu Dhabi H19 25 Margham Condensate Dubai H89
130 Draugen Norway H195 25 Ras Gharib Blend Egypt H97
120 Mandji Gabon H105 25 Lalang Indonesia H123
120 Brega Libya H151 20 Brunei Condensate Brunei H55
115 Cossack Australia H47 20 Lokele Cameroon H65
115 Belida Indonesia H115 20 Ras Budran Egypt H95
115 Amna Libya H147 20 Zeit Bay Egypt H101
110 Sleipner Condensate Norway H205 17 Mubarak Sharjah H233
100 Zarzaitine Algeria H31 15 Mubarraz Abu Dhabi H15
100 Dulang Malaysia H163 8 Lucina Gabon H103
CRUDE OIL STREAMS INDEXED BY NAME (Primary Names In Bold)

Crude Oil Name Country Page Crude Oil Name Country Page
ABK Abu Dhabi H13 Cossack Australia H47
Abu Bukhoosh Abu Dhabi H13 Cusiana Colombia H79
Abu Bukoosh Abu Dhabi H13 Cusiana Light Colombia H79
Abu Dhabi Abu Dhabi H17 Cusiana/Cupiagua Colombia H79
Agha Jari Iran H133 Cyrus Iran H129
Alaskan North Slope United States H251 Daqing China H73
Alberta Light Canada H71 Darius Iran H129
Algerian Condensate Algeria H27 Djeno Congo H83
Alif Yemen H275 Draugen Norway H195
Amal Libya H147 Dubai Dubai H87
Amana Venezuela H267 Dukhan Qatar H215
Amna Libya H147 Dulang Malaysia H163
ANS United States H251 Duri Indonesia H119
Arabian Extra Light Saudia Arabia H223 Ekofisk Norway H197
Arabian Heavy Saudia Arabia H225 El Morgan Egypt H99
Arabian Light Saudia Arabia H227 Emeraude Congo H83
Arabian Medium Saudia Arabia H229 Es Sider Libya H153
Arabian Super Light Saudia Arabia H231 Escalante Argentina H41
Arabian Ultra Light Saudia Arabia H231 Escravos Nigeria H189
Ardjuna Indonesia H109 Fao Blend Iraq H141
Arjuna Indonesia H109 Fateh Dubai H87
Arun Condensate Indonesia H111 Fereidoon Iran H129
Arzew Algeria H29 Flotta United Kingdom H245
Attaka Indonesia H113 Forcados Nigeria H191
Bach Ho Vietnam H273 Foroozan Blend Iran H129
Bachaquero Venezuela H261 Forouzan Iran H129
Basrah Heavy (before 81) Iraq H141 Forties United Kingdom H247
Basrah Light Iraq H139 Furrial Venezuela H267
Basrah Medium Iraq H141 Gachsaran Iran H131
Bass Strait Australia H49 Gharib Blend Egypt H97
BBQ Nigeria H183 Gippsland Australia H49
BBQ Nigeria H187 Gippsland Blend Australia H49
BBQ Nigeria H193 Griffin Australia H51
BCF-17 Venezuela H263 Gulf of Suez Egypt H99
Belayim Blend Egypt H93 Gullfaks Norway H199
Belida Indonesia H115 Gullfaks A-B Norway H199
Berri Saudia Arabia H223 Gullfaks C Norway H199
Bintulu Condensate Malaysia H161 Handil Indonesia H121
Bonny Light Nigeria H183 Hassi-Messaoud Algeria H29
Bonny Medium Nigeria H185 Heidrun Norway H201
Boscan Venezuela H265 Hibernia Canada H69
Bouri Libya H149 Hout Neutral Zone H177
Bow River Canada H67 Iagifu Papua NG H213
Brass Blend Nigeria H187 Intan-Cinta Indonesia H117
Brass River Nigeria H187 Iran Heavy Iran H131
Brega Libya H151 Iran Light Iran H133
Brent Blend United Kingdom H241 Isthmus Mexico H171
Brunei Condensate Brunei H55 Khafji Neutral Zone H179
Brunei Light Brunei H57 Kirkuk Iraq H143
Cabinda Angola H33 Kole Cameroon H63
Canadian Par Canada H71 Kutubu Papua NG H213
Canadon Seco Argentina H39 Kuwait Kuwait H145
Cano Limon Colombia H77 Labuan Malaysia H165
Captain United Kingdom H243 Lalang Indonesia H123
Champion Brunei H59 Lalang Export Blend Indonesia H123
Cinta Indonesia H117 Lavan Blend Iran H135
Cinta Blend Indonesia H117 Libyan Light Libya H159
CRUDE OIL STREAMS INDEXED BY NAME (Primary Names In Bold)

Crude Oil Name Country Page Crude Oil Name Country Page
Light Louisiana Sweet United States H253 Safaniyah Saudia Arabia H225
Liverpool Bay United Kingdom H249 Saharan Algeria H29
LLS United States H253 Saharan Blend Algeria H29
Lokele Cameroon H65 Salman Iran H135
Lower Zakum Abu Dhabi H25 Sarir Libya H155
Lucina Gabon H103 Sassan Iran H135
Malongo Angola H33 Senipah Indonesia H121
Mandji Gabon H105 Seria Light Export Blend Brunei H61
Margham Condensate Dubai H89 Sharjah Condensate Sharjah H235
Marib Yemen H275 Shengli China H75
Mars Blend United States H255 Siberian Light Russia H219
Masila Yemen H277 Sirri Iran H137
Maya Mexico H173 Sirri Heavy Iran H137
Medanito Argentina H43 Sirtica Libya H157
Mesa Venezuela H267 SLC Indonesia H125
Minas Indonesia H125 Sleipner Condensate Norway H205
Miri Malaysia H167 Souedieh Syria H237
Miri Light Malaysia H167 Soyo Angola H37
Mixed Blend Sweet Canada H71 Statfjord Norway H207
Mubarak Sharjah H233 Suez Blend Egypt H99
Mubarek Sharjah H233 Sumatran Light Indonesia H125
Mubarraz Abu Dhabi H15 Sumatran Light Ex. Blend Indonesia H125
Murban Abu Dhabi H17 Suwaidiyah Syria H237
NKossa Congo H85 Syrian Export Blend Syria H239
Nigerian Export Blend Nigeria H191 Syrian Light Syria H239
Nigerian Light Nigeria H183 Takula Angola H33
Nigerian Light Gulf Nigeria H189 Tapis Malaysia H169
Nigerian Light Mobil Nigeria H193 Tapis Blend Malaysia H169
Nigerian Medium Nigeria H185 Thamama Condensate Abu Dhabi H19
Ninian United Kingdom H241 Tia Juana Heavy Venezuela H269
Northwest Shelf Cond. Australia H53 Tia Juana Light Venezuela H271
Olmeca Mexico H175 Tia Juana Livano Venezuela H271
Oman Oman H211 Tia Juana Pesado Venezuela H269
Oriente Ecuador H91 Troll Norway H209
Oseberg Norway H203 Umm Shaif Abu Dhabi H21
Oseberg Blend Norway H203 Upper Zakum Abu Dhabi H23
Palanca Angola H35 Urals Russia H221
Pulai Malaysia H169 Vasconia Colombia H81
Qatar Land Qatar H215 Wafra Neutral Zone H181
Qatar Marine Qatar H217 Wanaea/Cossack Australia H47
Qua Iboe Nigeria H193 West Texas Intermediate United States H257
Rabi Gabon H107 West Texas Sour United States H259
Rabi Export Blend Gabon H107 White Tiger Vietnam H273
Rabi Kounga Gabon H107 Widuri Indonesia H127
Rabi Light Gabon H107 Widuri Blend Indonesia H127
Ras Budran Egypt H95 WTI United States H257
Ras Gharib Egypt H97 WTS United States H259
Ras Gharib Blend Egypt H97 Zaire Zaire H279
Rincon Argentina H45 Zakum Abu Dhabi H25
Rincon De Los Sauces Argentina H45 Zarzaitine Algeria H31
Rio Negro Argentina H43 Zeit Bay Egypt H101
Rostam Iran H135 Zueitina Libya H159
ABU BUKHOOSH Abu Dhabi
Gravity: 31.5 Sulfur: 1.90 Loading Port: Abu al-Bukhoosh

Other Names: ABK, Abu Bukoosh
Production
About 35,000 barrels a day from an offshore field discovered in 1973. Output was 60,000
b/d in 1986 before platform was accidentally attacked in Iraq-Iran war. Restarted in
spring of 1987.
Quality
A medium to heavy Mideast crude oil similar in quality to Arabian Medium.
Producers
Total-ABK: Total (operator) (75%) , Japan Indonesia Petroleum (25%). Previous share
holders include Amerada Hess, Charter, and Kerr Mc-Gee.
Pricing And Marketing

Marketed mainly to Japan and other countries East of Suez by the equity producers and
marketing intermediaries. Japan imported 28,000 b/d in 1995. No regular term-contract
price determination by state Adnoc due to small volumes and dominant sales role of
equity producers. Rarely moves to Atlantic Basin.
Sellers
Total Petroleum Services Ltd.: 101-103 Baker St., London W1M 1FD, UK. Tel.: (44-
171) 935-3222, Fax: (44-171) 935-3102.
Main Customers
Japanese trading houses and refiners.
Loading Port
Abu al-Bukhoosh. 25.29 N. 53.08 E. The crude oil-loading terminal is at the production
platform and is capable of accommodating ships with a maximum of 300,000 deadweight
tons and maximum draft of 22 meters. A 230,000 dwt tanker is used for storage, and ves-
sels moor along side to load.
ABU BUKHOOSH ASSAY

Crude Oil Crude Oil
Specifications Unit Value Specifications Unit Value
Gravity (60 F) API 31.5 Sulfur Content % Weight 1.9
Barrels /Metric Ton 7.255 Pour Point Temp. C -27
Viscosity Centistokes 17.3 Reid Vapor Press. Lbs/Sq. In. 3
(Kinematic) at 50 F
REFINED PRODUCT BREAKDOWNS AND PROPERTIES
Cut Points Yield
Product Temp. C/F % Vol. % Wt. Properties Unit Value
LPG <5/<41 1.2 0.8
Light Naphtha 5-85 6.2 4.9 Light Naphtha
41-185 Octane RON Clear Octane 66
Int. Naphtha 85-165 14.1 12.1 Intermediate Naphtha
185-329 Paraffins % Wt. 62
Naphthenes % Wt. 22
Aromatics % Wt. 16
Kerosine 165-235 13.3 12.2 Kerosine
329-455 Sulfur Content % Wt. 0.15
Light Gas Oil 235-300 12.3 12 Light Gas Oil
Cetane Index 51.8
Int. Gas Oil 300-350 9.1 9.2 Intermediate Gas Oil
Cetane Index 54
Residue >350 44.2 48.8 Residue
>662 Sulfur Content % Wt. 3.24
Pour Point Temp. C/F 24/75.2
Viscosity (Kin) Cen at 210 F 32
Asphaltenes % Wt. 2
Conradson Carbon R % Wt. 9
Vanadium Parts/mill. 17
Year Of Crude Oil Sample: 1975 Nickel Parts/mill. 9
MUBARRAZ Abu Dhabi
Gravity: 39.5 Sulfur: 0.90 Loading Port: Mubarraz Island
Production
Output of 15,000 barrels a day comes from a group of small producing fields off the coast
of Abu Dhabi, just south of the major producing center at Zakum.
Quality
Extra-light Mideast crude oil similar in quality to Murban, Abu Dhabis benchmark grade.
Producers
Abu Dhabi Oil Co.: Cosmo (66.7%) ; Japan Energy Corp. (Nikko Kyodo) (33.3%).

Complete Japanese ownership in this tiny field translates into shipments that move
almost exclusively to the owners. Pricing is internally generated but does take into
account spot Oman and Dubai grades as well as the Asian Petroleum Price Index.
Sellers
Cosmo Tokyo: Toshiba Building, 1-1 Shibaura 1-chome, Minatoku, Tokyo, Japan
105. Tel.: (03) 3798-3211.
Cosmo New York: 280 Park Ave., New York, NY 10017. Tel.: (212) 949-9710.
Cosmo London: 7 Old Park Lane, London W1Y 3LJ, UK. Tel.: (44-171) 629-3031, Fax:
(44-171) 491-3205.
Main Customers
The Japanese consortium rarely sells the barrels out of its own system. A few spot sales
have gone to other Japanese firms.
Loading Port
Mubarraz Island. 24.26 N. 53.32 E. The island is located approximately 55 miles west
of the port of Abu Dhabi. Tank storage on the island accommodates 2.238-million bar-
rels of crude oil. Facilities for crude oil loading include a single-buoy mooring system
installed about 8 miles offshore east of the island. The maximum loading rate is 40,000
barrels an hour, or 6,400 kiloliters/hr.
MUBARRAZ ASSAY
Crude Oil Crude Oil
Viscosity Centistokes 11.8 Reid Vapor Press. Lbs/Sq. In. 6.3
(Kinematic) at 50 F
Cut Points Yield
Product Temp. C/F % Vol. Properties Unit Value
LPG <32/<90 0.8
Light Naphtha 32-85 7.7 Light Naphtha
90-185 Octane RON Clear Octane 65.8
Int. Naphtha 85-165 18.5 Intermediate Naphtha
185-329 Paraffins % Wt. 68.6
Naphthenes % Wt. 19.4
Aromatics % Wt. 12.6
Kerosine 165-235 15.8 Kerosine
Light Gas Oil 235-300 12.9 Light Gas Oil
Cloud Point Temp. C. -1
Cetane Index 57
Int. Gas Oil 300-350 9.1 Intermediate Gas Oil
Cloud Point Temp. C. 10
Cetane Index 55.9
Viscosity (Kin) 100 F 6.4
Residue >350 35.2 Residue
Year Of Crude Oil Sample: 1994 Asphaltenes % Wt. 2.6
MURBAN Abu Dhabi
Gravity: 40.4 Sulfur: 0.79 Loading Port: Jebel Dhanna

Other Names: Abu Dhabi
Production
Murbans output of 880,000-900,000 barrels a day comes from three main onshore fields:
Bab, Bu Hasa, and Asab. Murbans total capacity is 1.3-million b/d following the expan-
sion of the Bab field in 1994, and it accounts for most of the emirates shut-in produc-
tion. Other than the Sahil field, the Murban stream provides the only onshore produc-
tion in Abu Dhabi. Murban is the largest crude oil stream in the country.
Quality
A typical extra-light Mideast crude oil that is prized for its relatively low sulfur content by
Mideast standards, large yield of middle distillates, and petrochemical-oriented naphtha cut.
Producers
Adco: State Adnoc (60%) , British Petroleum (9.5%) , Shell (9.5%) , Total (9.5%) , Exxon
(4.75%) , Mobil (4.75%) , P&E (2%).

Abu Dhabi sets its crude prices retroactively, using published Dubai prices as a partial
reference. Murban is the highest-priced Abu Dhabi export grade, selling at parity or
slightly higher than Lower Zakum. It is marketed primarily in the Far East to a long list
of Japanese term customers, which alone take some 500,000 b/d. However, many of
these customers place Murban in the Mideast spot market, where five to 10 cargoes per
month are actively traded.
Sellers
Adnoc: P.O. Box 270, Abu Dhabi, United Arab Emirates. Tel.: (971-2) 666-100, Fax:
(971-2) 669-785.
BP Oil International, Ltd.: Britannic House, 1 Finsbury Circus, London EC2M 7BA,
UK, Tel.: (44-171) 496-4000.
Shell International Trading & Shipping (Stasco) : Shell Mex House, Strand,
London WC2R 07A, UK, Tel.: (44-171) 546-1234, Fax: (44-171) 546-4448.
Total Petroleum Services, Ltd.: 101-103 Baker St., London W1M 1FD, UK. Tel.: (44-
171) 935-3102.
Other equity producers.
Main Customers
Adnoc maintains at least 15 term customers for Murban, mostly in Japan and South
Korea. The equity producers also regularly move volumes into their East of Suez refin-
ing systems.
Loading Port
Jebel Dhanna. 24.13 N. 52.40 E. There are 3 conventional-buoy mooring (CBM) berths
at the crude oil terminal, each capable of accepting tankers up to 330,000 deadweight
tons and 1,215 feet (370.3 meters) in length. Maximum loading rates range from 6,000-
9,500 tons/hour. Acceptable draft ranges from 45-49 ft. The terminal also has a single
point mooring (SPM) that can accommodate vessels up to 450,000 dwt.
MURBAN ASSAY
Crude Oil Crude Oil
Barrels /Metric Ton 7.66 Pour Point Temp. F 0
Viscosity Centistokes 2.9
(Kinematic) at 40 C
Cut Points Yield
Product Temp. F % Vol. Properties Unit Value
LPG 2.0
Octane RON Clear Octane 64
Paraffins % Wt. 64
Naphthenes % Wt. 22
Aromatics % Wt. 14
Heavy Naphtha 300-400 12.5 Heavy Naphtha
Paraffins % Wt. 55
Naphthenes % Wt. 24
Aromatics % Wt. 21
Sulfur Content % Wt. 0.11
Freezing Point Temp. F. -30
Gas Oil 500-650 16.6 Gas Oil
Cetane Index 53
Viscosity (Kin) 50 C 3.16
Pour Point Temp. C/F 27/80
Year Of Crude Oil Sample: 1990 Viscosity (Kin) Cst at 50 C 41.2
MURBAN TERM CONTRACT PRICES, 1986-93
At Port Of Loading In Dollars Per Barrel
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $24.95 $17.85 $16.42 $15.20 $19.20 $20.70 $17.25 $16.90
Feb. 16.65 17.92 15.92 15.45 18.20 16.10 17.50 17.90
March 12.50 17.92 14.15 17.10 17.20 16.65 17.50 17.95
April 11.30 17.92 15.52 18.00 15.45 17.15 18.50 17.85
May 11.00 17.92 15.50 16.70 15.65 17.95 19.50 17.55
June 11.00 17.92 14.40 16.35 14.30 17.60 21.00 17.25
July 8.45 17.92 13.67 16.40 16.45 18.60 20.45 16.00
Aug. 13.85 17.92 13.77 16.00 27.00 18.90 19.70 16.50
Sept. 13.65 17.92 11.70 16.65 32.60 20.30 20.10 15.90
Oct. 13.85 17.92 10.81 17.15 34.34 21.10 19.70 16.65
Nov. 14.40 17.92 10.95 17.32 30.60 20.60 18.60 15.40
Dec. 15.55 17.92 13.25 18.35 25.55 17.35 17.85 14.00
MURBAN SPOT PRICES, 1987-93
Month 1987 1988 1989 1990 1991 1992 1993
Jan. $17.65 $16.15 $15.25 $19.10 $21.70 $17.40 $17.20
Feb. 17.50 15.85 15.55 18.65 15.75 17.60 18.05
March 17.55 13.90 16.95 17.25 15.95 17.40 18.45
April 17.70 15.50 18.05 15.50 16.70 18.30 18.25
May 17.70 15.45 16.75 15.50 17.60 19.25 17.80
June 17.80 14.30 16.60 14.50 17.30 20.60 17.55
July 18.10 13.65 16.45 16.60 18.45 20.05 16.50
Aug. 17.85 13.70 15.85 25.80 18.95 19.40 16.70
Sept. 17.50 12.20 16.50 31.75 20.05 20.15 16.05
Oct. 17.60 10.80 17.10 34.00 21.35 20.00 16.70
Nov. 17.40 11.15 17.25 30.70 20.60 18.80 15.85
Dec. 16.35 13.25 18.55 25.70 17.65 18.05 14.25
Note: More recent prices can be found in Chapter I.
THAMAMA CONDENSATE Abu Dhabi
Gravity: 57.5 Sulfur: 0.11 Loading Port: Jebel Dhanna
Production
A stream of condensate associated with the Thamama gas formations of the onshore Bab
field. Following start-up in April of 1996, volumes were expected to rise to 130,000 bar-
rels a day by year-end with total flows of 270,000 b/d expected when two further phas-
es of development are completed.
Quality
A naphtha-oriented condensate that also produces a large amount of kerosine.
Producers
Adnoc by law owns all of the emirates gas resources and is managing the Thamama
development on behalf of Adco, which operates the Bab field. Adcos ownership is as
follows: State Adnoc (60%) , British Petroleum (9.5%) , Shell (9.5%) , Total (9.5%) , Exxon
(4.75%) , Mobil (4.75%) , P&E (2%).

Adnoc plans to eventually refine all of the Thamama condensate at the nearby Ruwais
refinery in order to maximize revenue, but until the plant is expanded to handle more
of the condensate, it is selling most of the production on the international market. As of
late 1996 it was in the process of lining up term customers. Most sales are expected to
go to Asia, and Adnoc hopes to use a simple Murban-related pricing system, as with its
other term crude oil contracts.
Seller
(971-2) 669-785.
Loading Port
Jebel Dhanna. 24.13 N. 52.40 E. There are 3 conventional-buoy mooring (CBM) berths
at the crude oil terminal, each capable of accepting tankers up to 330,000 deadweight
tons and 1,215 feet (370.3 meters) in length. Maximum loading rates range from 6,000-
9,500 tons/hour. Acceptable draft ranges from 45-49 ft. The terminal also has a single
point mooring (SPM) that can accommodate vessels up to 450,000 dwt.
THAMAMA CONDENSATE ASSAY

Crude Oil Crude Oil
Barrels /Metric Ton 8.42 Pour Point Temp. F -39
Viscosity Centistokes 0.76 Reid Vapor Press. kg/cm2 4.8
(Kinematic) at 40 C
Cut Points Yield
Product Temp. C % Vol. % Wt.
LPG 1.04 1.02
Naphtha <150 56.46 52.69
Kerosine 150-250 25.04 26.51
Gas Oil 250-395 14.58 16.31
Residue >395 2.93 3.47
Year Of Crude Oil Sample: 1996
UMM SHAIF Abu Dhabi
Gravity: 36.8 Sulfur: 1.38 Loading Port: Das Island
Production
About 180,000-200,000 barrels a day is produced from these offshore fields out of total
capacity of 220,000 b/d. Capacity is due to rise to about 300,000 b/d shortly after 2000.
Umm Shaif is tied in with the 20,000 b/d Al-Bunduq field production, which is slightly
higher in quality.
Quality
A light to extra-light Mideast crude oil slightly inferior in quality to Abu Dhabi bench-
mark grade Murban. Although the assay below is dated, it is still broadly representative
of the crude oils current quality.
Producers
Adma-Opco: State Adnoc (60%) , British Petroleum (14.66%) , Total (13.33%) , Jodco
(12%).

Umm Shaif is exported almost exclusively to Japan, which imported 175,000 b/d in 1995.
Prices are set retroactively every month by Adnoc, using the spot Dubai market as a
rough guide.
Sellers
(971-2) 669-785.
UK. Tel.: (44-171) 496-4000.
171) 935-3222, Fax: (44-171) 935-3102.
Main Customers
Each of the sellers listed above markets barrels, which end up mainly with refiners in
Japan. There are relatively few sales to Singapore and South Korea.
Loading Port
Das Island. 25.09 N. 52.52 E. Located approximately 100 miles northwest of the city of
Abu Dhabi, the port has two crude oil-loading berths. Berth 2 is a fixed-platform berth
located approximately 2,400 feet (750 meters) east of Das Island, with the capability of
serving vessels up to 265,000 deadweight tons. Berth 3 is a single-point mooring (SPM)
located approximately 7,500 ft (2,285 m) east of Das Island, with a maximum berthing
draft of 72 ft (22 m) and maximum vessel size of 410,000 dwt. Total crude oil storage
amounts to 8.9-million barrels in 15 tanks. There are plans to expand the terminal due
to rising output capacity.
UMM SHAIF ASSAY

Crude Oil Crude Oil
(Kinematic) at 10 C Hydrogen Sulfide Parts/mill. 20
Cut Points Yield
LPG <32/<90 3 2
Light Naphtha 32-85 8.8 7 Light Naphtha
Naphthenes % Wt. 16
Aromatics % Wt. 22
Light Gas Oil 235-300 12.3 12.3 Light Gas Oil
Cetane Index 53
Int. Gas Oil 300-350 9 9.2 Intermediate Gas Oil
Cetane Index 55.5
Asphaltenes % Wt. 0.16
Conradson Carbon R % Wt. 5.2
Year Of Crude Oil Sample: 1969 Nickel Parts/mill. <1
UMM SHAIF TERM CONTRACT PRICES, 1978-93
Prices At Port Of Loading In Dollars Per Barrel
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $13.04 $13.78 $29.36 $36.36 $35.30 $34.36 $29.36 $29.11
Feb. 13.04 14.62 29.36 36.36 35.30 34.36 29.36 28.05
March 13.04 14.62 29.36 36.36 34.36 29.36 29.36 28.05
April 13.04 16.88 29.36 36.36 34.36 29.36 29.36 28.05
May 13.04 17.68 31.36 36.36 34.36 29.36 29.36 28.05
June 13.04 17.68 31.36 36.36 34.36 29.36 29.36 28.05
July 13.04 21.36 31.36 36.36 34.36 29.36 29.36 28.05
Aug. 13.04 21.36 31.36 36.36 34.36 29.36 29.36 28.05
Sept. 13.04 21.36 33.36 36.36 34.36 29.36 29.36 28.05
Oct. 13.04 21.36 33.36 36.36 34.36 29.36 29.36 28.05
Nov. 13.04 27.36 33.36 35.50 34.36 29.36 29.36 28.05
Dec. 12.65 27.36 33.36 35.50 34.36 29.36 29.36 28.05
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $24.75 $17.65 $16.22 $14.89 $18.75 $20.40 $16.95 $16.55
Feb. 16.40 17.72 15.72 15.15 17.80 15.80 17.20 17.55
March 12.25 17.72 13.85 16.83 16.85 16.35 17.20 17.55
April 11.05 17.72 15.25 17.73 15.10 16.85 18.20 17.45
May 12.10 17.72 15.25 16.35 15.30 17.65 19.20 17.15
June 10.75 17.72 14.12 16.00 13.95 17.30 20.70 16.85
July 8.25 17.72 13.36 16.07 15.10 18.30 20.15 15.60
Aug. 13.65 17.72 13.50 15.65 26.80 18.60 19.40 16.10
Sept. 13.40 17.72 11.47 16.27 32.25 20.00 19.80 15.50
Oct. 13.60 17.72 10.54 16.77 33.95 20.80 19.40 16.25
Nov. 14.20 17.72 10.65 16.94 30.25 20.30 18.30 15.00
Dec. 15.35 17.72 12.92 17.95 25.35 17.05 17.55 13.55
UPPER ZAKUM Abu Dhabi
Production
Output is 450,000-470,000 barrels a day, with the upper limit reflecting full capacity,
which is due to reach 500,000 b/d in 1997 as part of an ongoing expansion program.
With reserves of 48-billion barrels, offshore Upper Zakum is Abu Dhabis largest field,
although Murban output is higher, due in part to Upper Zakums relatively high pro-
duction costs by Mideast standards.
Quality
A mid-grade Mideast sour crude oil that yields a generous middle distillate cut.
Producers
Zadco: State Adnoc (88%) , Jodco (12%). Operated by Total under a long-term service
contract.

If not refined in Abu Dhabi, Upper Zakum is almost exclusively sold in the Far East, with
Japan importing 240,000 b/d in 1995. Most Upper Zakum is sold on term contracts, mak-
ing it one of Abu Dhabis least-traded spot crude oils. Term-contract prices are set
retroactively every month by Adnoc, using the spot Dubai market as a rough guide.
Sellers
(971-2) 669-785.
171) 935-3222, Fax: (44-171) 935-3102.
Main Customers
Nippon Refining is the largest single user of Upper Zakum. It is also widely used
throughout the Japanese refining community, as well as in South Korea and Singapore.
Loading Port
located approximately 2,400 feet (750 meters) east of Das Island, with capability of serv-
ing vessels up to 265,000 deadweight tons. Berth 3 is a single-point mooring (SPM) locat-
ed approximately 7,500 ft (2,285 m) east of Das Island, with a maximum berthing draft
of 72 ft (22 m) and maximum vessel size of 410,000 dwt. Total crude oil storage amounts
to 8.9-million barrels in 15 tanks. There are plans to expand the terminal due to rising
output capacity.
UPPER ZAKUM ASSAY

Crude Oil Crude Oil
(Kinematic) at 10 C
Cut Points Yield
LPG <32/<90 2.2 1.4
Naphthenes % Wt. 18
Aromatics % Wt. 20
Cetane Index 53.4
Cetane Index 55.5
Viscosity (Kin) Cen at 60 C 153
ZAKUM Abu Dhabi

Other Names: Lower Zakum
Production
Output from this offshore field is about 240,000-250,000 barrels a day with total capaci-
ty of 280,000. Sustainable capacity is due to rise to 320,000 b/d in the future. All associ-
ated gas goes to the Das Island LNG plant.
Quality
Extra-light Mideast crude oil similar in quality to Abu Dhabi benchmark Murban.
Producers
Adma-Opco: State Adnoc (60%) , British Petroleum (14.66%) , Total (13.33%) , Jodco
(12%).

Zakum is almost exclusively sold into the Far East under term contracts. Japanese refin-
ers control 85%-90% of purchase volumes, but they have been known to trade Zakum
outside Japan on occasion. Japan imported 217,000 b/d in 1995. Prices are set monthly
on a retroactive basis by Adnoc using the spot Dubai market as the main reference level.
Sellers
(971-2) 669-785.
UK. Tel.: (44-171) 496-4000.
171) 935-3222, Fax: (44-171) 935-3102.
Main Customers
Japanese Idemitsu and Nippon Oil are the largest buyers, although Zakum is purchased
by at least 10 other refineries in Japan.
Loading Port
located approximately 2,400 feet (750 meters) east of Das Island, with capability of serv-
ing vessels up to 265,000 deadweight tons. Berth 3 is a single-point mooring (SPM) locat-
ed approximately 7,500 ft (2,285 m) east of Das Island, with a maximum berthing draft
of 72 ft (22 m) and maximum vessel size of 410,000 dwt. Total crude oil storage amounts
to 8.9-million barrels in 15 tanks. There are plans to expand the terminal due to rising
output capacity.
ZAKUM ASSAY
Crude Oil Crude Oil
Barrels /Metric Ton 7.597 Pour Point Temp. C <-38
(Kinematic) at 10 C Hydrogen Sulfide Parts/mill. <3
Cut Points Yield
LPG <32/<90 3.7 2.5
Int. Naphtha 85-165 17 15.4 Intermediate Naphtha
Naphthenes % Wt. 18
Aromatics % Wt. 18
Light Gas Oil 235-300 13 13.1 Light Gas Oil
Cetane Index 54.7
Cetane Index 55.1
Viscosity (Kin) Cen at 50 C 94.9
Asphaltenes % Wt. <0.05
ZAKUM TERM CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. 13.17 14.01 29.46 36.46 35.40 34.46 29.46 29.21
Feb. 13.17 15.03 29.46 36.46 35.40 34.46 29.46 28.10
March 13.17 15.03 29.46 36.46 34.46 29.46 29.46 28.10
April 13.17 17.01 29.46 36.46 34.46 29.46 29.46 28.10
May 13.17 17.81 31.46 36.46 34.46 29.46 29.46 28.10
June 13.17 17.81 31.46 36.46 34.46 29.46 29.46 28.10
July 13.17 21.46 31.46 36.46 34.46 29.46 29.46 28.10
Aug. 13.17 21.46 31.46 36.46 34.46 29.46 29.46 28.10
Sept. 13.17 21.46 33.46 36.46 34.46 29.46 29.46 28.10
Oct. 13.17 21.46 33.46 36.46 34.46 29.46 29.46 28.10
Nov. 13.17 27.46 33.46 35.60 34.46 29.46 29.46 28.10
Dec. 13.08 27.46 33.46 35.60 34.46 29.46 29.46 28.10
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. 24.85 17.75 16.32 14.97 18.95 20.55 17.15 16.80
Feb. 16.50 17.82 15.82 15.23 17.95 15.95 17.40 17.80
March 12.35 17.82 13.95 16.90 17.00 16.50 17.40 17.85
April 11.15 17.82 15.32 17.80 15.25 17.05 18.40 17.75
May ... 17.82 15.30 16.45 15.45 17.85 19.40 17.45
June ... 17.82 14.17 16.10 14.10 17.50 20.90 17.15
July ... 17.82 13.42 16.15 16.25 18.50 20.35 15.90
Aug. 13.75 17.82 13.58 15.75 26.65 18.80 19.60 16.40
Sept. 13.50 17.82 11.55 16.40 32.40 20.20 20.00 15.80
Oct. 13.75 17.82 10.61 16.90 34.10 21.00 19.60 16.55
Nov. 14.30 17.82 10.73 17.07 30.40 20.50 18.50 15.30
Dec. 15.45 17.82 13.00 18.10 25.20 17.25 17.75 13.90
ALGERIAN CONDENSATE Algeria
Gravity: 64.6 Sulfur: <0.01 Loading Port: Arzew
Production
State Sonatrach is the sole producer of some 300,000 barrels a day, all of which comes
in association with gas production and is used almost entirely for export. Much of the
gas is reinjected after the liquids are stripped out, but volumes have been in decline due
to the decreasing proportion of wet gas in total gas output.
Quality
A naphtha-oriented condensate that produces large amounts of paraffinic naphtha in
straight distillation, making it an excellent petrochemical feedstock.

Sold to the US, Brazil, and Europe mainly for petrochemical manufacturing. Prices are
based on monthly negotiations and are usually tied to Rotterdam refined product mar-
kets, less a discount that is related to freight and quality. Almost all sales are on a term-
contract basis. About 20-25 cargoes are exported per month, usually carrying 425,000
tons each, with the US Gulf Coast absorbing about half of them. Sonatrach handles all
sales directly through its marketing department, but volumes are also sometimes avail-
able from an independent trading affiliate, Sonatrach Petroleum Corp.
Sellers
Sonatrach: Liquid Hydrocarbon Marketing Department, 46 Boulevard Mohamed V,
Algiers, Algeria. Tel.: (213-2) 71-12-24, Fax: (213-2) 64-50-58, Telex: 62388 DZ.
Main Customers
Petrobras, Lyondell, Dow Chemical, OMV, and US Shell are among the regular term-con-
tract customers.
Loading Port
Arzew. 35.50 N. 00.08 W. Arzew is located on the Algerian coastline about 200 miles
west of Algiers and consists of the ports of Arzew and Arzew El Djedid. There are three
crude oil or condensate loading berths at Arzew, with capacities from 50,000-120,000
deadweight tons. Arzew El Djedid has three crude oil-loading berths with maximum ves-
sel size of 250,000 dwt. The port is prone to closure from storms, particularly in January
and February.
ALGERIAN CONDENSATE ASSAY

Crude Oil Crude Oil
Gravity (60 F) API 64.6 Sulfur Content % Weight <0.01
Barrels /Metric Ton 8.724 Pour Point Temp. C 7
(Kinematic) at 10 C
Cut Points Yield
LPG <32/<90 8.8 7.1
Naphthenes % Wt. 26
Aromatics % Wt. 5
329-455 Sulfur Content % Wt. <0.01
Freezing Point Temp. C -56
Cloud Point Temp. C -24
Cetane Index 64.6
Cloud Point Temp. C 6
Cetane Index 66.1
Year Of Crude Oil Sample: 1982 Viscosity (Kin) 40 C 7.57
ALGERIAN CONDENSATE TERM CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $14.20 $14.75 $36.00 $41.00 $36.00 $31.00 $27.50 $25.00
Feb. 14.20 14.75 37.21 41.00 33.00 31.00 28.25 25.00
March 14.20 14.75 37.21 41.00 35.50 30.50 28.25 29.50
April 14.05 21.54 37.21 39.00 30.00 28.00 28.50 26.89
May 14.05 20.95 39.21 39.00 30.00 29.00 28.50 26.89
June 14.05 20.95 39.21 39.00 33.00 29.00 28.50 26.89
July 14.05 24.00 40.00 35.50 33.00 29.75 27.50 26.89
Aug. 14.05 24.00 40.00 35.50 31.50 29.75 26.00 26.55
Sept. 14.05 24.00 37.00 35.50 31.50 30.25 26.65 26.55
Oct. 14.05 26.22 37.50 35.50 32.50 30.00 27.00 27.46
Nov. 14.05 26.22 37.50 36.70 32.50 29.25 26.50 27.46
Dec. 14.05 30.40 37.50 36.70 32.50 28.50 25.00 27.23
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $25.17 $17.50 $16.25 $16.65 $19.90 $25.45 $18.85 $18.85
Feb. 25.17 16.15 15.85 16.15 19.50 20.25 19.05 18.83
March 13.50 17.25 14.90 17.60 18.05 20.05 18.95 18.97
April 13.25 18.10 16.45 18.50 16.55 20.10 20.25 20.45
May 14.55 17.40 16.90 17.85 15.95 20.70 21.00 19.33
June 12.00 18.40 15.75 18.00 15.00 19.75 20.86 19.36
July 9.55 19.00 14.55 16.95 17.00 20.20 21.03 18.71
Aug. 11.80 17.25 14.40 15.50 28.60 19.85 20.50 18.61
Sept. 12.60 17.10 13.60 17.05 36.20 19.00 20.75 17.58
Oct. 12.45 17.80 12.65 16.35 35.46 21.05 21.59 18.04
Nov. 13.00 16.95 13.40 17.35 32.60 23.45 19.96 15.32
Dec. 13.85 15.60 14.65 19.00 28.55 19.60 18.78 14.81
SAHARAN BLEND Algeria
Gravity: 46.1 Sulfur: 0.11 Loading Ports: Arzew, Bejaia, Skikda

Other Names: Saharan, Arzew, Hassi-Messaoud
Production
About 700,000 barrels a day produced by state Sonatrach mainly from the mature Hassi-
Messaoud field and others mostly to the south. This production is growing and is likely
to reach 800,000 b/d or so in 1997 due to new capacity being brought on stream by inter-
national oil companies, including Italian Agip, Spanish Cepsa, Petro-Canada, US
Anadarko.
Quality
An extremely light, low-sulfur crude oil that is rich in gasoline.

Sold to Europe and the US, with Italy and Spain the primary markets. Term-contract
prices are set according to formulas tied to dated Brent with a premium. Sonatrach han-
dles most sales directly through its marketing department, but volumes are also some-
times available from an independent trading affiliate, Sonatrach Petroleum Corp., which
was established in the early 1990s to trade oil in the spot market. International equity
producers have rights to market 20%-25% of their production directly, but they have not
yet emerged as significant third-party sellers. Saharan Blend is also the primary feedstock
for domestic refineries, which take about 350,000 b/d.
Sellers
Also, Agip, Cepsa, Petro-Canada, and Anadarko.
Main Customers
Mobil, Exxon, British Petroleum, Shell, Total, Ultramar, Elf, and OMV.
Loading Ports
Arzew. 35.50 N. 00.08 W. Arzew is located on the Algerian coastline about 200 miles
west of Algiers and consists of the ports of Arzew and Arzew El Djedid. There are three
crude oil-loading berths at Arzew, with capacities from 50,000-100,000 deadweight tons.
Arzew El Djedid has three crude oil-loading berths with maximum size ranging to
250,000 dwt. The port is prone to closure from storms, particularly in January and
February.
Bejaia. 36.45 N. 05.05 E. Bejaia, located about 100 miles east of Algiers, has three crude
oil-loading piers. The maximum drafts are 11.5 meters for Pier 1, 12.5 m for Pier 2, and
13 m for Pier 3.
Skikda. 36.53 N. 6.54 E. Maximum draft for tankers is the following at New Port: NP 1
& 2, 12.8 m; NP 3, 14.8 m; NP 5, 10.5 m; A1, 10.5 m; M1, 11 m; M2, 12 m.
SAHARAN BLEND ASSAY

Crude Oil Crude Oil
(Kinematic) at 10 C
Cut Points Yield
LPG <32/<90 5.3 3.8
Naphthenes % Wt. 32
Aromatics % Wt. 9
Cetane Index 53.8
Cetane Index 56.7
Vanadium Parts/mill. <1
SAHARAN BLEND PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $14.25 $14.81 $33.00 $40.00 $37.00 $37.30 $30.95 $30.95
Feb. 14.25 14.81 37.21 41.60 37.00 31.50 30.95 28.65
March 14.25 16.56 36.10 41.60 35.50 30.50 30.95 29.50
April 14.10 18.55 36.10 41.60 37.30 30.50 30.95 29.50
May 14.10 21.00 38.21 40.60 37.30 30.50 30.95 29.50
June 14.10 21.40 38.10 39.90 37.30 30.50 30.95 29.50
July 14.10 23.50 40.00 37.90 37.30 30.50 30.95 27.90
Aug. 14.10 23.50 40.00 37.90 37.30 30.50 30.95 27.90
Sept. 14.10 23.50 37.00 37.90 37.30 30.50 30.95 27.90
Oct. 14.30 26.27 37.00 37.90 37.30 30.95 30.95 27.90
Nov. 14.30 27.50 37.00 37.50 37.30 30.95 30.95 27.90
Dec. 14.30 30.45 38.60 37.50 37.30 30.95 30.95 27.90
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $27.90 $18.45 $16.75 $17.50 $21.65 $24.85 $19.25 $17.80
Feb. 23.90 18.87 15.70 17.30 20.20 21.05 19.30 18.90
March 23.90 18.87 14.80 19.05 18.65 20.45 18.45 19.10
April 23.90 18.87 16.70 20.60 16.75 19.85 19.60 19.05
May 13.80 18.87 16.55 19.05 16.60 19.65 20.50 18.85
June 11.90 18.87 15.75 17.90 15.10 18.70 21.55 17.70
July 9.45 18.87 15.30 17.90 17.25 20.05 20.70 17.30
Aug. 13.65 18.87 15.05 16.95 27.75 20.45 20.20 17.35
Sept. 14.20 18.87 13.50 17.90 36.45 21.45 20.65 16.60
Oct. 13.80 18.87 12.70 19.15 37.80 23.35 20.95 17.10
Nov. 14.50 18.87 13.25 19.05 34.40 22.35 19.95 15.80
Dec. 15.85 18.87 15.70 20.15 29.50 19.50 18.95 14.20
Note: Spot prices from 2/86-2/87, and from 1/88 to present. Others are term-contract prices. Note: More recent
prices can be found in Chapter I.
ZARZAITINE Algeria
Gravity: 42.8 Sulfur: 0.06 Loading Port: La Skhirra (Tunisia)

Other Names: Zarzatine, El Borma
Production
Declining output of less than 100,000 barrels a day by state Sonatrach, partly from the El
Borma field that straddles the border with Tunisia and from the Zarzaitine field further
south.
Quality
A high-quality North African light, sweet crude oil similar to Algerian benchmark grade
Saharan Blend.

Although the crude oil stream is produced mainly in Algeria, it is sold from the Tunisian
port of La Skhirra to save on pipeline-transport costs to Algerian ports. Only about 20,000
b/d of the Tunisian share of production is exported, and Algeria only sells an estimated
50,000 b/d internationally. The crude oil is sold to European customers, with Italy the
main market. It is usually priced in relation to dated Brent. Sonatrach handles sales
directly through its marketing department.
Seller
Loading Port
La Skhirra, Tunisia. 34.14 N. 10.04 E. Two loading berths are available, one on each
side of the terminal. Depth at loading berths is 15-16 meters. The loading platform is
served by three 30-inch oil pipelines. The maximum loading rate is 12,000 cubic m an
hour. Maximum size accommodated is 300 m length, 47 feet 6 in draft, or up to 50 ft at
high water. The crude oil terminal has 1.9-million barrels of storage capacity and Paktank
Mediterranee operates a near independent storage terminal for refined products.
ZARZAITINE ASSAY
Crude Oil Crude Oil
Gravity (60 F) API 42.8 Sulfur Content % Volume 0.06
(Kinematic) at 40 C
Cut Points Yield
LPG 2.7
Paraffins % Wt. 66
Naphthenes % Wt. 35
Aromatics % Wt. 9
Paraffins % Wt. 53
Naphthenes % Wt. 33
Aromatics % Wt. 14
Gas Oil 500-650 15 Gas Oil
Cetane Index 55
Year Of Crude Oil Sample: 1984 Pour Point Temp. F 65
CABINDA Angola
Gravity: 32.0 Sulfur: 0.13 Loading Port: Cabinda

Other Names: Malongo, Takula
Production
Output of 390,000 barrels a day in 1995, rising to 430,000 b/d in 1996 and 450,000 b/d in
1998. Produced from two mainly offshore systems in the Cabinda enclave: Malongo and
Takula. The two grades had been treated separately before commingling in May 1992.
Quality
Medium gravity, low-sulfur West African crude oil with high wax content. Malongo,
which is shown in the assay below, is slightly heavier and higher in sulfur than the
Takula stream or the now-commingled blend. The quality differential between the two
was minor, typically only 5¢ a barrel. Takula is a 32.5-gravity stream with sulfur content
of 0.11%, kinematic viscosity at 40 degrees centigrade of 13.9 centistokes, and pour point
of 10 degrees centigrade. The crude oils high wax content makes it solidify at tempera-
tures below 13-16 degrees centigrade and restricts sales destinations to warm seas or
ports with heated tankage.
Producers
State Sonangol has a majority stake with partners Chevron (operator) , Elf, and Agip.
Volumes in 1995 were about as follows: Sonangol 160,000 b/d; Chevron 152,000 b/d; Elf
39,000 b/d; and Agip 39,000 b/d.

Sonangol has sold most of its share of production under term contracts with prices set
on a cargo-by-cargo basis and tied to spot prices of UK Brent Blend, with about two-
thirds moving to the US. Chevron and Agip tend to keep their crude oil within their own
systems with only occasional spot sales. The oil increasingly moves to the Far East if arbi-
trage opportunities exist and both Taiwans CPC and South Korean Hanwha are among
Asian refiners that now have term contracts. Key term customers include British
Petroleum, Elf, Exxon, Petrobras, Coastal, and Glencore. Regular spot buyers include US
refiners Sun and Tosco.
Sellers
Sonangol: Rua I Congresso do MPLA, C.P. 113, Luanda, Angola. Tel.: (244-2) 392-
643/392-595, Telex: 3148 SONONGAN.
Chevron (UK) Ltd.: c/o Mail Centre, 2 Portman St., London W1H 0AN, UK. Tel.: (44-
171) 487-8100, Fax: (44-171) 487-8142.
Agip Spa: 89-91 Via del Serafico, Rome 00142, Italy. Tel.: (39-6) 503-921, Fax: (39-6)
503-922-41/503-923-20.
Elf Trading S.A.: P.O. Box 532 1215, Geneva 15 Airport, Switzerland. Tel.: (41-22)
710-1112, Fax: (41-22) 710-1110.
Loading Port
Cabinda. 05.32 S. 12.11 E. The facilities at Cabinda provide for deep-water loading of
crude oil at two single-buoy moorings, Berth M (Malongo) and Berth T (Takula) , 30 miles
away. Berth M was expanded in 1992 to handle VLCCs, and it became the primary load-
ing facility following the commingling of the Takula and Malongo crude oil streams.
CABINDA (MALONGO) ASSAY

Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG <5/<41 1.5 0.9
Naphthenes % Wt. 39
Aromatics % Wt. 8
Cetane Index 54.2
Cetane Index 58.7
CABINDA SPOT PRICES, 1986-93
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $25.15 $17.55 $15.25 $15.40 $19.35 $22.05 $16.55 $15.80
Feb. 16.65 16.10 14.15 15.05 18.30 17.80 16.50 17.15
March 11.65 16.70 13.15 17.10 16.85 17.85 16.05 17.45
April 11.20 17.00 15.00 18.15 15.15 17.65 17.40 17.70
May 12.45 17.65 14.80 16.75 15.10 17.70 18.40 17.60
June 10.00 17.80 13.95 15.90 14.10 16.60 19.65 16.52
July 7.75 18.80 13.30 16.15 15.95 17.40 18.75 15.55
Aug. 11.95 18.05 13.35 15.50 25.45 18.15 18.20 15.40
Sept. 12.45 17.10 11.70 16.20 32.50 18.85 18.90 14.75
Oct. 12.80 17.60 10.85 17.40 34.45 20.55 19.00 15.35
Nov. 13.50 16.50 11.40 17.55 31.40 19.70 18.00 13.65
Dec. 14.85 15.70 13.55 18.25 26.40 16.75 16.90 12.05
PALANCA Angola
Gravity: 38.6 Sulfur: 0.14 Loading Port: Palanca
Production
A combination of offshore fields south of the Soyo field that are operated by Elf, pro-
ducing 175,000 barrels a day in 1996 and expected to rise to 190,000 b/d. In addition to
Palanca itself, which is now mature, the other adjacent fields include Cobo, Oombe, and
Pambi, which are providing a second production peak.
Quality
Lighter than Cabinda with a lower wax content and lower pour point. The crude oil also
features a high N+A naphtha that is good for gasoline manufacturing.
Producers
Elf holds a 50% interest in the fields, with other holdings varying by field among state
Sonangol, INA (Croatia) , Naftagas (Serbia) , Agip, Repsol, Svenska, and Mitsubishi.

Palanca is sold using a dated Brent-related formula, usually with a slight premium to the
North Sea benchmark grade. Export volumes flow mainly toward the Atlantic Basin, but
increasing sales have been made to the Asia-Pacific region. Asian customers include
Taiwans state CPC and Thailands state PTT.
Sellers
710-1112, Fax: (41-22) 710-1110.
643/392-595, Telex: 3148 SONONGAN.
503-922-41/503-923-20.
Loading Port
Palanca. 06.57S. 12.24E. The terminal is located at the offshore Palanca field some 230
km northwest of Luanda. It consists of a single loading point mooring that is supplied
by a 274,000 deadweight tons floating storage vessel that gathers all of the production.
Tankers from 40,000 to 280,000 dwt can be accommodated.
PALANCA ASSAY
Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG 2.6
Paraffins % Wt. 48
Naphthenes % Wt. 42
Aromatics % Wt. 10
Paraffins % Wt. 41
Naphthenes % Wt. 46
Aromatics % Wt. 13
Cetane Index 52
Pour Point Temp. F 68
SOYO Angola
Gravity: 39.5 Sulfur: 0.12 Loading Port: Quinfuquena
Production
A combination of onshore and offshore flows totaled 90,000-100,000 barrels a day from
northern Angola in mid-1996, with volumes expected to rise to about 120,000-130,000
b/d in 1997 with full restoration of onshore production of 30,000 b/d, which was shut-
down due to the civil war. Texaco produces 90,000 b/d offshore, with Essungo and
Lombo East the largest of the fields but several small new fields raising total volumes.
Petrofina is the onshore operator.
Quality
Similar to Palanca with low sulfur content and relatively light compared to Cabinda. The
assay below is for the offshore production. Onshore output is a bit heavier, which should
degrade the quality of the stream as it picks up in 1996-97.
Producers
Braspetro (27.5%) , Total (27.5%) , Sonangol (25%) , and Texaco (20%) hold the offshore
concession. Petrofina (32.6%) , Texaco (16.4%) , and Sonangol (51%) hold the onshore
area.

Soyo is sold using a dated Brent-related formula, with volumes mainly flowing toward
the Atlantic Basin, but sales have also grown to the Asia-Pacific region. Texaco and
Sonangol are the largest spot sellers of Soyo, while the other equity partners tend to use
their shares within their systems.
Sellers
643/392-595, Telex: 3148 SONONGAN.
Texaco Oil Trading Co.: 1 Knightsbridge Green, London SW1X 7QJ, UK. Tel.: (44-
171) 584-5000, Fax: (44-171) 589-2877.
Loading Port
Quinfuquena. 06.20 S. 12.14 E. The terminal is 15 miles south of the mouth of the Zaire
River, about 7.5 nautical miles offshore. It consists of two loading points. The first is a
ready-made dolphin in about 72 feet of water at Lat. 6 19 45 S., Long. 12 14 42 E.
Maximum draft is 47 ft and maximum cargo size is 104,500 tons. The second is a single-
point mooring in 120 ft of water at Lat. 6 20 18 S., Long. 12 09 48 E. It takes tankers
up to 250,000 deadweight tons. The onshore terminal was destroyed in the civil war and
is unlikely to be rebuilt.
SOYO ASSAY
Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
Product Temp. F % Vol. % Wt. Properties Unit Value
LPG 2.7 1.8
Light Naphtha To 180 5.9 4.8 Light Naphtha
Octane RON Clear Octane 69.6
Paraffins % Wt. 53
Naphthenes % Wt. 38
Aromatics % Wt. 9
Heavy Naphtha 265-350 9.6 9.1 Heavy Naphtha
Paraffins % Wt. 50
Naphthenes % Wt. 28
Aromatics % Wt. 22
Light Kerosine 350-425 7.2 7 Light Kerosine
Freeze Point F -50
Heavy Kerosine 425-500 9.3 9.2 Heavy Kerosine
Freeze Point F -25
Gas Oil 500-650 15.9 16.1 Gas Oil
Cloud Point Temp. F 26
Cetane Index 62
Year Of Crude Oil Sample: 1993 Pour Point Temp. C/F 39/102.2
CANADON SECO Argentina
Gravity: 25.7 Sulfur: 0.20 Loading Ports: Celeta Olivia, Celeta Cordova
Production
Canadon Seco is produced from long-established onshore fields in the province of Santa
Cruz, which is in the southern Patagonian region. The key producing area is the San
Jorge Basin, which contains about 25% of the countrys proven reserves. Some fields
from the extreme south also feed into Canadon Seco. Exports in 1996 were just under
90,000 b/d, making it Argentinas second most plentiful grade behind Rincon.
Quality
A medium- to heavy-gravity, low-sulfur Latin American crude oil with a relatively high
wax content.
Producers
In addition to former state YPF, which is the primary exporter, local independents Astra
and Perez Companc are producers and sellers of the crude oil.

Usually sold on an f.o.b. basis from Argentina at prices linked to US West Texas
Intermediate grade. In the autumn of 1996, the discount to WTI was running at about
$2.50 a barrel, up from 1994-95 levels. Exports in 1996 had risen to 87,000 b/d, up from
75,000 b/d in 1995 and 50,000 b/d in 1994, with most supplies going to Brazil, Chile, and
the US Gulf Coast. Traders play an active role in the marketing of the crude oil.
Sellers
YPF: 777 Avenue Pte. Roque Saenz Pena, Buenos Aires, Argentina. Tel.: (541) 329-
2000. Fax: (541) 326-0641.
Loading Ports
Celeta Olivia. 46.26 S. 67.31 W. A crude oil-loading terminal located on the coast of the
south Atlantic, about 1,000 miles south of Buenos Aires, on the San Jorge Gulf, in the
port area of Comodoro Rivadavia. The oil terminal consists of two offshore tanker berths
and a single-buoy mooring at a depth of 22 meters. It is capable of handling vessels up
to 150,000 deadweight tons.
Celeta Cordova. 45.46 S. 67.22 W. A crude oil-loading terminal located on the coast of
the south Atlantic, about 1,000 miles south of Buenos Aires, on the San Jorge Gulf, in
the port area of Comodoro Rivadavia. The oil terminal consists of an offshore tanker
berth at a depth of 43 feet.
CANADON SECO ASSAY

Crude Oil Crude Oil
Barrels /Metric Ton 7 Pour Point Temp. C -0.3
(Kinematic) at 20/40 C Wax Content % Weight 9.8
Cut Points Yield
Product Temp. C % Vol. Properties Unit Value
LPG 0.05 LPG
Naphtha <145 9.83 Naphtha
Octane RON 44
Sulfur Content Parts/mill. 33.91
Pour Point Temp. C -9
Cetane Index 56.1
Pour Point Temp. C 36
Viscosity (Kin) Cen at 50/100 C 460/18.4
Vanadium Parts/mill. 2.45
Year Of Crude Oil Sample: 1995 Nickel parts/mill. 2.55
ESCALANTE Argentina
Gravity: 24.1 Sulfur: 0.19 Loading Port: Bahia Blanca
Production
Output comes from a group of onshore fields located in the Rio Negro and Neuquen
provinces in central Argentina. Most of the output is used in local refineries, with exports
of about 50,000 b/d in 1996.
Quality
A medium- to heavy-gravity crude oil that is relatively low in sulfur, similar to Ecuadors
Oriente.
Producers
In addition to former state YPF, local independent Perez Companc also produces and
sells the crude oil.

Intermediate grade. In 1996, the discount to WTI was running at about $3.40-$3.50 a bar-
rel. The primary markets for the 50,000 b/d of exports in 1996 were Brazil and the US.
Sellers
2000. Fax: (541) 326-0641.
Loading Port
Bahia Blanca. 39.03 S. 61.50 W. The port, about 300 miles southwest of Buenos Aires,
contains a crude oil-loading terminal consisting of two loading points in water depths of
18-29 meters. The terminal has 500,000 barrels of storage.
ESCALANTE ASSAY
Crude Oil Crude Oil
Viscosity (Kin) cts at 100F 307.2 Pour Point Temp. F 30
Reid Vapor Pressure psi 1.4

Cut Points Yield
LPG <55 0.04 0.02 LPG
Paraffins % Wt. 67
Naphthenes % Wt. 31
Aromatics % Wt. 2
Heavy Naphtha 220-300 2.45 2 Heavy Naphtha
Paraffins % Wt. 65
Naphthenes % Wt. 29
Aromatics % Wt. 5
Sulfur Content ppm 35
Pour Point Temp. F -30
Viscosity (kin) cts at 100 F 4.47
Year Of Crude Oil Sample: 1992 Nickel Parts/mill. 1.9
MEDANITO Argentina
Gravity: 35.1 Sulfur: 0.431 Loading Port: Bahia Blanca

Other Names: Rio Negro
Production
The countrys primary crude oil stream, with production of about 300,000 barrels a day.
But most of this oil is consumed at domestic refineries. Output comes from the large
Neuquen province in the central, western part of the country near the border with Chile.
The provinces of Rio Negro and La Pampa also contribute smaller volumes to the
Medanito stream.
Quality
A medium- to light-gravity crude oil that is relatively low in sulfur, making it attractive
for most refiners.
Producers
In addition to former state YPF, local independents Pluspetrol and Perez Companc are
producers and sellers of the crude oil.

Intermediate grade. In 1996, the discount to WTI was running at about $1.75 a barrel, a
bit narrower than in 1994-95. The new 100,000 b/d Trans-Andean export pipeline to
Chile is also taking some Medanito. In 1996, Medanito exports were running at about
30,000 b/d, down slightly from 1994 levels. Most of these exports go to Brazils state
Petrobras or US Gulf Coast refiners.
Sellers
2000. Fax: (541) 326-0641.
Loading Port
Bahia Blanca. 39.03 S. 61.50 W. The port, about 300 miles southwest of Buenos Aires,
contains a crude oil-loading terminal consisting of two loading points in water depths of
18-29 meters. The terminal has 500,000 barrels of storage.
MEDANITO ASSAY
Crude Oil Crude Oil
Viscosity (Kin) cts at 100F 6 Pour Point Temp. F 30

Cut Points Yield
LPG <80 1.22 0.87 LPG
Octane RON 70
Paraffins % Wt. 56
Naphthenes % Wt. 37
Aromatics % Wt. 7
Paraffins % Wt. 51
Naphthenes % Wt. 35
Aromatics % Wt. 14
Cetane Index 51.8
Cetane Index 50.7
Viscosity (Kin) Cen at 150 F 94.5
RINCON Argentina
Gravity: 36.1 Sulfur: 0.28 Loading Port: San Vincente, Chile

Other Names: Rincon De Los Sauces
Production
The countrys primary export crude oil stream, with international sales of about 95,000
b/d in 1996. Production is from fields that lie in the Andes foothills and feed into both
domestic pipelines and the Trans-Andean pipeline to Chile.
Quality
The highest-quality Argentine export grade is fairly light and sweet, with good yields of
gasoline and mid-distillates.
Producers
In addition to former state YPF, local independents are also producers and sellers of the
crude oil.

Exports of about 95,000 b/d move west to Chile via the 100,000 b/d Trans-Andean
pipeline, and most of the crude oil is used in Chile. Some 5,000-10,000 b/d of the grade
moves from Chile to the Far East, but these volumes are down from 1995 levels. Prices
are linked to WTI with a discount of about $1 a barrel in 1996.
Sellers
2000. Fax: (541) 326-0641.
Loading Port
San Vincente Terminal (Chile). 36.44 S. 73.09 W. The port lies south of Valaparaiso
on the Pacific coast of Chile. The Trans-Andean pipeline terminates at the loading port,
which has 1-million barrels of storage capacity. The terminal can handle vessels up to
70,000 deadweight tons at a single berth with maximum draft of 43 feet. Larger tankers
can be loaded through top-off operations in Conception Bay.
RINCON ASSAY
Crude Oil Crude Oil
Viscosity (Kin) cts at 100F 4.86 Pour Point Temp. F 25
Hydrogen Sulfide ppm <1 Reid Vapor Pressure psi <0.2

Cut Points Yield
LPG 0.36 0.26 LPG
Light Naphtha <160 4.05 3.09 Light Naphtha
Octane RON 73
Paraffins % Wt. 56
Naphthenes % Wt. 36
Aromatics % Wt. 8
Paraffins % Wt. 52
Naphthenes % Wt. 31
Aromatics % Wt. 16
Kerosine 300-480 22 21 Kerosine
Cetane Index 52.6
Cetane Index 51.5
COSSACK Australia
Gravity: 47.0 Sulfur: 0.03 Loading Port: Cossack FPSO

Other Names: Wanaea/Cossack
Production
The two Northwest Shelf fields, Wanaea and Cossack, began production in late 1995
from an FPSO (floating production, storage, and offloading) vessel and quickly reached
peak flows of 115,000 barrels a day. However, output has been disrupted at times by
severe storms, which make the offshore production system vulnerable to disruption. The
crude oil is offloaded.
Quality
A high-quality Asia-Pacific light, sweet crude oil excellent for gasoline manufacture, but
with a relatively high wax content. Its residue is excellent cracker feedstock. It is similar
to Gippsland and Papua New Guineas Kutubu grade.
Producers
The fields are operated by Woodside Petroleum and are owned by the same group of
firms that hold the nearby Northwest Shelf LNG project: Woodside, Shell, Chevron, BP,
BHP, and the Japanese Mimi consortium. All firms have equal shares.

The grade is sold by all of the partners into Asian and US West Coast export markets and
is also used in Australia as a replacement for declining Gippsland production. Japanese
refiners were some of the first buyers of the grade.
Sellers
Woodside Petroleum Ltd.: G.P.O. Box 839J, Melbourne, VIC 3001, Australia. Tel.:
(61-3) 9605-0605, Fax: (61-3) 9602-5621.
BHP Petroleum Pty. Ltd.: BHP Petroleum Plaza, 120 Collins St., Melbourne, VIC
3000, Australia. Tel.: (61-3) 9652-6666, Fax: (61-3) 9652-6693. Other marketing offices:
Singapore: (65) 539-8410; Houston: (1-713) 961-8668; London: (44-171) 408-7116; Tokyo:
(813) 5251-1371.
BP Developments Australia: 1 Albert Road, Melbourne, VIC 3000, Australia. Tel.:
(61-3) 9268-4111.
Chevron Asiatic Ltd.: 385 Bourke St., Melbourne, VIC 3000, Australia. Tel.: (61-3)
9670-5511.
Shell Development (Australia) : 1 Spring St., Melbourne, VIC 3000, Australia. Tel.:
(61-3) 9666-5444.
Loading Port
Cossack Pioneer FPSO 19.35 S 116.26 E. The floating production unit at the Cossack
field has storage capacity of 1-million barrels of crude oil and can accommodate tankers
up to 150,000 dead-weight tons.
COSSACK ASSAY
Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
Product Temp. C % Vol. % Wt. Properties Unit Value
LPG 2.56
Paraffins % Wt. 52
Naphthenes % Wt. 44
Aromatics % Wt. 3
Paraffins % Wt. 50
Naphthenes % Wt. 39
Aromatics % Wt. 11
Kerosine 190-230 9 9.1 Kerosine
Sulfur Content % Wt. <0.01
Gas Oil 230-360 25.5 27.2 Gas Oil
Cetane Index 51.7
Year Of Crude Oil Sample: 1995 Conradson Carbon R % Wt. 2.2
GIPPSLAND Australia
Gravity: 47.0 Sulfur: 0.09 Loading Port: Westernport

Other Names: Gippsland Blend, Bass Strait
Production
Some 20 offshore fields provided a combined 228,000 barrels a day in 1995 from the Bass
Strait area, which lies between the southern coast of Victoria and the island of Tasmania.
The area is mature, and output peaked in 1985 at about 500,000 b/d, but the decline has
been slowed by enhanced recovery and development of small satellite fields. Gippsland
is still Australias primary crude oil stream, and it is expected to produce about 200,000
b/d through 2000.
Quality
A high-quality Asia-Pacific light, sweet grade excellent for gasoline manufacture, but with
a relatively high wax content. Its residue is excellent cracker feedstock.
Producers
Exxon is the operator and equal partner with BHP in all of the fields.

Most of this crude oil is now used locally in Australia with an occasional international
spot sales. Neither Exxon nor BHP has downstream networks in Australia, and they resell
the oil to domestic refineries, usually at prices linked to Malaysian Tapis Blend.
Sellers
Exxon Australia Ltd.: 360 Elizabeth St., Melbourne, Victoria 3000, Australia. Tel.:
(61-3) 9270-3333, Fax: (61-3) 9270-3898.
BHP Petroleum Pty. Ltd.: BHP Petroleum Plaza, 120 Collins St., Melbourne, Victoria
(813) 5251-1371.
Loading Port
Westernport. 38.21 S. 145.14 E. The Westernport terminal consists of three crude oil-
loading berths, two at Crib Point Jetty and one at Long Island Jetty. No. 1 Crib Point can
accommodate 100,000-ton tankers with a depth of 15.8 meters. No. 2 Crib Point takes up
to 40,000-ton tankers with a depth of 12.8 m. The loading berth at Long Island Jetty
accommodates tankers up to 100,000 tons.
GIPPSLAND ASSAY
Crude Oil Crude Oil
Gravity (60 F) API 47 Sulfur Content % Weight 0.09
Viscosity Centistokes 2.509 Wax Content % Weight 7.6
(Kinematic) at 20 C
Cut Points Yield
Naphtha 70-165 26.5 25 Naphtha
158-329 Paraffins % Wt. 50.3
Aromatics % Wt. 6.8
Gas Oil 240-360 25.8 27.6 Gas Oil
Cetane Index 52.9
GRIFFIN Australia
Gravity: 55.0 Sulfur: 0.03 Loading Port: Griffin FPSO
Production
About 80,000 barrels a day is produced from this offshore oil and gas field which lies
just south of the main gas fields on the Northwest Shelf. The production is from a float-
ing production, storage and offloading unit, which must be disconnected during severe
storms. This causes occasional disruptions to production flows.
Quality
A high-quality Asia-Pacific light, sweet crude oil with high yields of naphtha and high
quality middle distillates.
Producers
The fields are operated by BHP Petroleum, which holds a 45% stake along with Mobil
(35%) and Inpex Alpha (20%).

The crude oil is sold by the partners independently into the Australian market and to
Asian and US export markets. It is also used in Australia as a replacement for declining
Gippsland production.
Sellers
(813) 5251-1371.
Mobil Sales & Supply Corp., Singapore: 18 Pioneer Road, 2262 Singapore. Tel.:
(65) 660-6401, Fax: (65) 264-1693.
Loading Port
Griffin Venture FPSO 21.13 S. 114.38 E. The floating production unit at the Griffin field
has storage capacity of 820,000 barrels of crude oil and can accommodate tankers up to
150,000 deadweight tons.
GRIFFIN ASSAY
Crude Oil Crude Oil
(Kinematic) at 20 C
Cut Points Yield
<158 Octane RON 68
Paraffins % Wt. 96
Naphthenes % Wt. 4
Aromatics % Wt. 0
Int. Naphtha 70-135 30.2 28.4 Int. Naphtha
Naphthenes % Wt. 39
Aromatics % Wt. 11
Gas Oil 270-360 11.6 13 Gas Oil
Cetane Index 53.4
Year Of Assay: 1991 Asphaltenes % Wt. 0.4
NORTHWEST SHELF CONDENSATE Australia
Gravity: 59.5 Sulfur: <0.01 Loading Port: Withnell Bay
Production
Condensate output of 80,000 barrels a day from the North Rankin and Goodwyn fields
is associated with gas output for liquefied natural gas exports. Volumes rose sharply in
1995 with the addition of Goodwyn A supplies.
Quality
A very light, gasoline-rich condensate that is not as middle distillate-oriented as
Indonesian Arun Condensate, the main regional grade.
Producers
The partners of the Northwest Shelf LNG project share the condensate in the same pro-
portions as the gas. They are Woodside, BHP, Chevron, Shell, British Petroleum, and
Japanese Mimi (Mitsubishi-Mitsui). They all have equal shares.

The firms sell their output individually except for Mimis volumes, which have been han-
dled by BHP. BP is the only producer to take volumes for its domestic refining system,
with the rest exported, mainly to Japan, South Korea, and Taiwan.
Sellers
Woodside Petroleum Ltd.: G.P.O. Box 839J, Melbourne, Victoria 3001, Australia.
Tel.: (61-3) 9605-0605, Fax: (61-3) 9602-5621.
BHP Petroleum Pty. Ltd.: BHP Petroleum Plaza, 120 Collins St., Melbourne, Victoria
(813) 5251-1371.
BP Developments Australia: 1 Albert Road, Melbourne, Victoria 3000, Australia.
Tel.: (61-3) 9268-4111.
Chevron Asiatic Ltd.: 385 Bourke St., Melbourne, Victoria 3000, Australia. Tel.: (61-
3) 9670-5511.
Shell Development (Australia) : 1 Spring St., Melbourne, Victoria 3000, Australia.
Tel.: (61-3) 9666-5444.
Loading Port
Withnell Bay. 20.35 S. 116.45 E. The Withnell Bay terminal is part of the port of Dampier
and is operated by Woodside for the loading of LNG and some oil production. Tankers
from 20,000 deadweight tons to 150,000 dwt can be accommodated and total storage
amounts to 1.8-million barrels.
NORTHWEST SHELF CONDENSATE ASSAY

Crude Oil Crude Oil
Gravity (60 F) API 59.5 Sulfur Content ppm 120
(Kinematic) at 20 C
Cut Points Yield
<158 Octane RON 75.3
Paraffins % Wt. 90
Naphthenes % Wt. 9
Aromatics % Wt. 1
Naphthenes % Wt. 52
Aromatics % Wt. 6
Kerosine 140-290 28.4 31 Kerosine
284-554 Sulfur Content ppm <3
Year Of Assay: 1995 Pour Point Temp. C -15
Year Of Crude Oil Sample: 1995 Viscosity (Kin) Cen at 40 C 8.9
BRUNEI CONDENSATE Brunei
Gravity: 66.5 Sulfur: <0.01 Loading Port: Seria
Production
Output of about 20,000 barrels a day in conjunction with gas supply to a liquefied nat-
ural gas export plant.
Quality
Similar in quality to Indonesian Arun Condensate, with large yields of naphtha and gas
oil. The naphtha is well suited for gasoline manufacturing.
Producers
Brunei Shell Petroleum, a 50/50 joint venture between the government and the Royal
Dutch/Shell Group, is the sole producer.

All sales are handled by Brunei Shell independently of Shell International. Most sales are
on a term-contract basis to Japan, with prices set retroactively every month. Light Southeast
Asian spot-traded crude oils and Arun Condensate are used as pricing reference points.
Spot deals are sporadic, with Australia and the US West Coast the main destinations.
Sellers
Brunei Shell Petroleum Co. Ltd.: RBA Plaza Jalan Sultan, 2nd Floor, Bandar Seri
Begawan 1999, Negara Brunei Darussalam. Tel.: (673-2) 29269, Fax: (673-2) 41417, Telex:
BU 2573.
Loading Port
Seria. 04.43 N. 114.19 E. The Seria terminal is an open-sea berth consisting of two sin-
gle-buoy moorings located approximately 5.4 miles off the coast. Size restrictions are the
following: 313,000 deadweight tons and maximum draft 15.8 meters at SBM 1; 200,000
dwt and maximum draft 17 m at SBM 2.
BRUNEI CONDENSATE ASSAY

Crude Oil Crude Oil
Gravity (60 F) API 66.5 Sulfur Content % Weight <0.01
Cut Points Yield
LPG 4.0 3.4
<185 Octane RON Clear Octane 74
Int. Naphtha 85-165 35.7 38 Intermediate Naphtha
Naphthenes % Wt. 52
Aromatics % Wt. 13
Freezing Point Temp. C <-61
Cetane Index 57.5
Cetane Index 69.1
Residue >350 0 0 Residue
>662
BRUNEI LIGHT Brunei
Gravity: 40.3 Sulfur: 0.06 Loading Port: Seria
Production
Output of about 50,000 barrels a day mainly from offshore fields, of which about 20,000-
25,000 b/d is blended with Champion to make Seria Light Export Blend.
Quality
A light, low-sulfur Asian crude oil with a high wax content that is similar to Malaysian
Tapis.
Producers

All of the roughly 25,000 b/d of exports are sold by Brunei Shell Petroleum on a spot
basis, with Singapore, the Philippines, Australia, and China the main importers.
Sellers
BU 2573.
Loading Port
BRUNEI LIGHT ASSAY

Crude Oil Crude Oil
Cut Points Yield
LPG 1.7 1.2
Naphthenes % Wt. 53
Aromatics % Wt. 17
Cetane Index 45.2
Cetane Index 54.9
CHAMPION Brunei
Production
About 80,000 barrels a day from offshore fields, with 45,000-50,000 b/d blended into the
Seria Light Export Blend stream.
Quality
A typical heavy, low-sulfur Asian crude oil with high wax content, making it similar in
quality to Indonesian Duri but somewhat lower in sulfur.
Producers

Champion exports are about 30,000-35,000 b/d. All of the production is sold by BSP,
mostly on term contracts to third parties in Southeast Asia, Japan, and South Korea.
Japanese imports in 1995 were 10,000 b/d. Prices are set on a retroactive basis every
month at a narrow discount to higher-quality Seria Light Export Blend, Bruneis main
export crude oil. Security of supply and access to Bruneis higher-quality light crude oils
and condensate compensate for the relatively stiff price terms.
Sellers
BU 2573.
Loading Port
CHAMPION ASSAY
Crude Oil Crude Oil
Cut Points Yield
LPG 0.4 0.3
Naphthenes % Wt. 71
Aromatics % Wt. 9
Cloud Point Temp. C <-30
Cetane Index 31.5
Cetane Index 33.7
CHAMPION TERM CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $13.80 $14.60 $32.95 $39.90 $35.10 $29.10 $29.10 $29.10
Feb. 13.80 14.60 32.95 39.90 35.10 29.10 29.10 27.85
March 13.80 15.70 32.95 39.15 34.10 29.10 29.10 27.85
April 13.80 17.00 32.95 39.15 34.10 29.10 29.10 27.85
May 13.80 17.50 34.95 37.75 34.10 29.10 29.10 27.85
June 13.80 19.90 35.65 36.50 34.10 29.10 29.10 27.85
July 13.80 22.75 35.65 36.50 34.10 29.10 29.10 27.85
Aug. 13.80 22.75 35.65 36.50 34.10 29.10 29.10 27.85
Sept. 13.80 22.75 35.65 36.50 34.10 29.10 29.10 27.85
Oct. 13.80 22.75 35.65 36.50 34.10 29.10 29.10 27.85
Nov. 13.80 26.05 35.65 35.10 34.10 29.10 29.10 27.85
Dec. 13.80 27.45 36.15 35.10 34.10 29.10 29.10 27.85
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $27.85 $17.60 $17.20 $16.40 $20.20 $27.10 $21.05 $19.30
Feb. 20.90 18.30 17.30 18.10 20.60 22.65 19.50 19.00
March 16.50 17.70 16.65 17.80 20.05 19.20 18.65 20.15
April ... 18.05 15.85 18.80 18.75 18.35 18.30 20.80
May ... 18.15 16.75 19.25 16.80 18.85 19.60 20.25
June ... 18.35 16.75 18.85 15.55 19.50 21.20 19.50
July ... 18.60 14.70 18.65 15.10 20.00 22.95 18.75
Aug. 10.85 19.00 14.70 17.85 20.80 20.10 22.50 18.75
Sept. 12.75 18.70 14.05 17.35 29.50 20.60 21.70 18.70
Oct. 13.40 18.70 12.50 18.10 38.90 21.70 21.35 18.10
Nov. 14.00 18.70 12.15 18.95 36.30 22.75 21.20 17.50
Dec. 14.55 18.05 13.65 19.30 31.20 23.30 20.40 15.85
SERIA LIGHT EXPORT BLEND Brunei

Other Names: SLEB
Production
An export blend of about 70,000 barrels a day made up of 45,000-50,000 b/d of
Champion and 20,000-25,000 b/d of Brunei Light. No output from other sources.
Quality
A medium, low-sulfur Asian crude oil that is similar to Indonesian Minas grade but with
a larger kerosine yield.
Producers

All exports are sold by Brunei Shell Petroleum, mostly on term contracts to third parties
in Singapore, Japan, and Thailand. Japan imported 35,000 b/d in 1995. Prices are set on
a retroactive basis every month on the basis of spot prices for similar quality Asian
grades.
Sellers
BU 2573.
Loading Port
SERIA LIGHT EXPORT BLEND ASSAY

Crude Oil Crude Oil
Cut Points Yield
LPG 1.4 0.9
Naphthenes % Wt. 54
Aromatics % Wt. 20
Cetane Index 39
Cetane Index 47.7
SERIA LIGHT EXPORT BLEND TERM CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $14.15 $14.95 $33.40 $40.35 $36.10 $30.10 $30.10 $28.35
Feb. 14.15 14.95 33.40 40.35 36.10 30.10 30.10 28.35
March 14.15 16.10 33.40 39.60 35.10 30.10 30.10 28.35
April 14.15 17.45 33.40 39.60 35.10 30.10 30.10 28.35
May 14.15 17.95 35.40 38.60 35.10 30.10 30.10 28.35
June 14.15 20.35 36.10 37.10 35.10 30.10 30.10 28.35
July 14.15 23.20 36.10 37.10 35.10 30.10 30.10 28.35
Aug. 14.15 23.20 36.10 37.10 35.10 30.10 30.10 28.35
Sept. 14.15 23.20 36.10 37.10 35.10 30.10 30.10 28.35
Oct. 14.15 23.20 36.10 37.10 35.10 30.10 29.60 28.35
Nov. 14.15 26.50 36.10 36.10 35.10 30.10 28.35 28.35
Dec. 14.15 27.90 36.60 36.10 35.10 30.10 28.35 28.35
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $28.35 $17.60 $17.20 $16.50 $20.20 $27.25 $21.15 $19.40
Feb. 21.50 18.30 17.40 18.20 20.60 22.75 19.60 19.10
March 17.00 17.90 16.75 17.90 20.10 19.30 18.75 20.25
April ... 18.25 15.95 18.90 18.80 18.45 18.40 20.90
May ... 18.35 16.85 19.35 16.90 18.95 19.70 20.35
June 12.00 18.50 16.85 18.90 15.65 19.60 21.30 19.60
July 10.20 18.70 14.80 18.75 15.20 20.10 23.05 18.85
Aug. 11.10 19.00 14.80 17.95 20.90 20.20 22.60 18.85
Sept. 12.95 18.70 14.15 17.45 29.60 20.70 21.80 18.80
Oct. 13.60 18.70 12.60 18.20 39.00 21.80 21.45 18.20
Nov. 14.10 18.70 12.25 19.05 36.40 22.85 21.30 17.60
Dec. 14.55 18.05 13.75 19.30 31.30 23.40 20.50 15.95
KOLE Cameroon
Gravity: 34.8 Sulfur: 0.30 Loading Port: Kole
Production
Kole is a heavy, sweet grade that is a blend of multiple offshore crude oil streams known
as Rio del Rey. Production is declining and was about 75,000 barrels a day in 1995. Kole
is the largest production stream in Cameroon.
Quality
A medium-to-light, low-sulfur West African crude oil that is prized by refiners for its high-
quality middle distillate yield. Its high metals content poses problems for cracking.
Producers
Societe Nationale des Hydrocarbures (Cameroon) (70%) , French Elf Aquitaine (15.3%) ,
US Shell affiliate Pecten (14.7%).

Almost all production is exported by the three equity producers with volumes divided
according to their shares. Shells Pecten and Elf market their barrels on a spot basis, while
Cameroons state SNH sells its share in the form of term contracts with some of the oil
resold on a spot basis. In the early 1990s, Elf marketed SNHs share of the grade. All sales
are priced on a dated Brent basis. Elf and Shell occasionally take Kole into their own
refining systems.
Sellers
Pecten Trading Co.: P.O. Box 2099, Houston, Texas 77252. Tel.: (713) 241-6161, Fax:
(717) 241-0004.
710-1112, Fax: (41-22) 710-1110.
Main Customers
Traditionally cargoes move to the US and Europe with some traders holding term con-
tracts with SNH. Since 1992, cargoes have also increasingly found their way to the Far
East, where middle distillate demand has been strong, and where the grade is used as a
substitute for similar Asia-Pacific grades.
Loading Port
Kole. 04.13 N. 08,33 E. The offshore Kole loading point is located about 26 miles from
Cape Debunsha and consists of one single-buoy mooring designed for tankers of
approximately 50,000-250,000 deadweight tons. The maximum draft is 72 feet (22
meters).
KOLE ASSAY
Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG 2.8 1.8
Naphthenes % Wt. 65
Aromatics % Wt. 6
Cetane Index 49.7
Cetane Index 55.9
KOLE SPOT PRICES, 1987-93
1987 1988 1989 1990 1991 1992 1993
Jan. $17.75 $15.95 $16.15 $20.15 $21.15 $17.20 $16.70
Feb. 16.85 14.85 15.95 19.00 18.50 17.15 17.55
March 17.50 13.80 17.75 17.40 17.60 16.65 18.10
April 17.70 15.65 19.40 15.15 17.45 18.15 17.90
May 18.10 15.30 17.90 15.05 17.65 19.15 17.55
June 18.25 14.30 16.70 13.50 16.65 20.45 16.70
July 19.10 14.25 16.80 15.45 17.90 19.55 15.90
Aug. 18.25 13.95 15.80 25.55 18.40 19.00 15.80
Sept. 17.45 12.25 16.90 33.75 19.15 19.55 15.20
Oct. 18.00 11.45 18.00 35.40 20.95 19.65 15.75
Nov. 16.95 12.05 17.70 31.85 20.40 18.55 14.30
Dec. 16.05 14.35 19.00 26.65 17.45 17.60 12.75
LOKELE Cameroon
Gravity: 19.6 Sulfur: 0.41 Loading Port: Lokele

Other Names: Moudi
Production
Although declining, this is the second-largest stream in Cameroon with output of about
20,000 barrels a day in 1995.
Quality
A heavy but low-sulfur crude oil with a high yield of high-pour residual fuel.
Producers
Societe Nationale des Hydrocarbures (Cameroon) (70%) , French Elf Aquitaine (15.3%) ,
US Shell affiliate Pecten (14.7%).

Like Kole, Lokele is marketed primarily in the Atlantic Basin. It is mostly sold on a term-
contract basis, with prices set at a differential to dated Brent. Shells Pecten, Elf, and state
SNH each sell their equity volumes separately, but they sometimes combine cargoes for
sales to the Far East, which have grown more common.
Sellers
Pecten Trading Co.: P.O. Box 2099, Houston, Texas 77252. Tel.: (713) 241-6161, Fax:
(717) 241-0004.
710-1112, Fax: (41-22) 710-1110.
Main Customers
Mostly sold into Europe, particularly France, with some sales into Far East markets.
Loading Port
Lokele. 04.07 N. 08.29 E. The Lokele loading terminal, located in the Gulf of Guinea
about 50 nautical miles west of Limbe, consists of one floating storage unit (the Moudi,
a converted 220,000-ton tanker) and one single-point mooring. The facility accommo-
dates tankers from 50,000-280,000 deadweight tons.
LOKELE ASSAY
Crude Oil Crude Oil
Cut Points Yield
LPG 0.8 0.5
Naphthenes % Wt. 83
Aromatics % Wt. 4
Cetane Index 33.2
Cetane Index 35.4
Viscosity (Kin) Cen at 60 C 1,734
BOW RIVER Canada
Gravity: 25.6 Sulfur: 2.37 Pipeline: Interprovincial
Production
One of many Canadian conventional heavy, sour crude oil production streams from
Alberta and other western provinces totaling some 660,000 barrels a day of production
in 1995. Other similar crude oils include Hardisty Heavy and the Lloydminster grades,
totaling about 250,000 b/d of production. Deliveries of all conventional heavy crude oils
by the Interprovincial Pipe Line system amounted to about 550,000 b/d in 1995.
Quality
Bow River is one of a group of heavy, high-sulfur crude oils that are often good for pro-
ducing asphalt or for deep conversion refining. This limits the potential refinery outlets,
especially in Canada.
Producers
Produced by a wide range of small independents and other larger oil companies.

Interprovincial Pipe Lines shipments of heavy grades like Bow River go mainly to US
Midwest refiners, with only about 100,000 b/d used by Eastern Canadian refiners. An
active spot trade exists at the Chicago terminal of the IPL with prices linked to West
Texas Intermediate. Canadian prices are based on refiner postings and are responsive to
price trends in the US.
Buyers And Sellers

The main buyers include US deep conversion refiners such as Koch, Amoco, and Mobil.
Key sellers include Canadian marketers such as Northridge Petroleum.
Pipelines
The main gathering point for Bow River and other Western Canadian heavy crude oils
is along the Interprovincial Pipe Line starting in in Edmonton, Alberta. The 1.6-million
b/d pipeline system, which carries over 60 grades of crude oil and condensate, extends
eastward to Duluth, Minnesota, where it splits into a northern branch across Michigan
and into Ontario and a southern branch to Chicago. The section that runs east from
Sarnia, Ontario, has carried about 160,000 b/d of Canadian domestic crude oil to eastern
refiners, but this is due to be reversed in 1998 to allow increased imports of Atlantic
Basin grades. This should release an equivalent volume of Canadian crude oil to the US
Midwest market.
BOW RIVER ASSAY

Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG 1.1
Light Naphtha 55-175 5 Light Naphtha
Paraffins % Wt. 54
Naphthenes % Wt. 36
Aromatics % Wt. 10
Paraffins % Wt. 41
Naphthenes % Wt. 44
Aromatics % Wt. 15
Cetane Index 44
Sulfur Content % Wt. 3
Year Of Crude Oil Sample: 1989 Viscosity (Kin) Cst at 50 C 121
INTERPROVINCIAL PIPE LINE SPECIFICATIONS FOR SELECTED HEAVY CRUDE OILS 1995
API Pour Point Viscosity
Gravity % Sulfur Temp.C (cts) 40C
Bow River 25.6 2.37 <-27 17.36
Cold Lake 22.1 3.5 <-27 41.29
Lloydminster Hardisty 22.2 3.09 <-27 34.16
HIBERNIA Canada
Gravity: 32 Sulfur: 0.5 Loading Port: Hibernia Platform
Production
The field, which lies offshore eastern Newfoundland in the North Atlantic is due to begin
production in late 1997 with output rising to a plateau level of 125,000 barrels a day in
2000. Other adjacent fields are likely to be added, keeping overall flows at these levels
or higher.
Quality
A waxy, sweet crude oil with a relatively high pour point of as much as 60 degrees
Fahrenheit. It is likely to be good for upgrading but may present some handling prob-
lems. A full assay is not available until commercial production begins.
Producers
Produced by Mobil (33%), Chevron (27%), Petro-Canada (25%), Murphy (6.5%), and
Canada Hibernia Holdings (6.5%).

Pricing terms have yet to be determined, but the crude oil seems likely to trade at a dif-
ferential to West Texas Intermediate. The crude oil should be easily marketed to nearby
eastern Canadian and US refiners.
Loading Port
The crude oil will be loaded at the Hibernia platform which lies 315 kilometers east-
southeast of St. Johns, Newfoundland. The platform will have storage capacity of 1-mil-
lion barrels and will be served by dedicated tankers of 120,000 deadweight tons that will
deliver the crude oil to a transshipment terminal at Whitten Head near Newfoundlands
Come By Chance refinery. From the terminal it will be shipped to East Coast refiners in
Canada and the US.
HIBERNIA ASSAY
Crude Oil Crude Oil
Viscosity Centistokes 2.5 Total Acid mg KOH/g 0.15
(Kinematic) at 40 C
Cut Points Yield
LPG 1.7 LPG
Paraffins % Wt. 48
Naphthenes % Wt. 41
Aromatics % Wt. 11
Paraffins % Wt. 45
Naphthenes % Wt. 42
Aromatics % Wt. 13
Cetane Index 51
MIXED BLEND SWEET Canada
Gravity: 39-40 Sulfur: 0.25-0.5 Pipeline: Interprovincial
Other Names: Canadian Par, Alberta Light

Main Crude Oils: Federated, Pease, Pembina, and Rainbow
Production
Output comes from a host of fields mainly in Alberta and elsewhere in Western Canada.
The light, sweet crude oil volumes delivered on the Interprovincial Pipe Line in 1995,
which were equivalent to Canadian Par, amounted to just under 250,000 barrels a day,
with just over 100,000 b/d destined for export to the US. This appears to be about half
of the total production. Canadian Par and Mixed Blend Sweet are broad pipeline streams
that contain many of the same crude oils.
Quality
A light, sweet crude oil that is equivalent to West Texas Intermediate. It has excellent
gasoline manufacturing capabilities. The assay is for Mixed Blend Sweet.
Producers
Produced by a wide range of companies.

Interprovincial Pipe Line shipments of this grade are split about equally between refin-
ers in Eastern Canada and the US Midwest. An active spot trade exists in the US Great
Lakes region with prices linked to West Texas Intermediate. Canadian prices are based
on refiner postings and are responsive to price trends in the US.
Buyers And Sellers

The main buyers include Canadian refiners such as Imperial, Shell and Petro-Canada as
well as Chicago and Detroit area refiners in the US. Key sellers include Canadian mar-
keters such as Northridge Petroleum.
Pipelines
The main gathering point for Canadian Par is at the Interprovincial Pipe Line in
Edmonton, Alberta. The 1.6-million b/d pipeline system extends eastward to Duluth,
Minnesota, where it splits into a northern branch across Michigan and into Ontario and
a southern branch to Chicago. The section that runs east from Sarnia, Ontario, has car-
ried about 160,000 b/d of Canadian crude oil to eastern refiners, but this is due to be
reversed in 1998 to allow increased imports of Atlantic Basin grades. This should release
an equivalent volume of Canadian crude oil to the US Midwest market.
MIXED BLEND SWEET ASSAY

Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG 2.6
Paraffins % Wt. 44
Naphthenes % Wt. 45
Aromatics % Wt. 11
Paraffins % Wt. 45
Naphthenes % Wt. 40
Aromatics % Wt. 15
Cetane Index 52
Residue >650 36 Residue
INTERPROVINCIAL PIPE LINE SPECIFICATIONS FOR SELECTED LIGHT CRUDE OILS 1995
API Pour Point Viscosity
Gravity % Sulfur Temp.C (cts) 40C
Federated 39.2 0.27 <-27 2.70
Peace 40.3 0.47 -21 2.81
Pembina 39.0 0.28 -12 3.56
Rainbow 40.3 0.39 -18 2.85
Mixed Blend Sweet 39.8 0.35 -7 2.89
DAQING China
Gravity: 32.1 Sulfur: 0.11 Loading Port: Dairen (Dalian)

Other Names: Taching
Production
Exports of just over 200,000 barrels a day are about one-fifth of the 1.1-million b/d out-
put of Chinas largest field, where flows are maintained by extensive water flooding. The
field lies in the Songliao Basin of northeastern China, the countrys main oil producing
region. Output is expected to decline to 1-million b/d or less in the late 1990s due to
aging of the field, which, along with rapidly rising domestic oil demand, should curb
exports. Exports were about 300,000 b/d in 1993.
Quality
Medium-gravity, low-sulfur Asian crude oil that is high in wax content. It is very similar
to Indonesian Minas.
Producers
Produced exclusively by state China National Petroleum Co.

Sold primarily to Japan, which absorbed 200,000 b/d in 1995, with smaller volumes going
to Singapore and other destinations. A large share of the Japanese volume is used as boil-
er fuel by electric utilities. Japanese sales are at retroactive monthly prices that track
Indonesian Minas levels. The primary seller is state Sinochem, but it no longer holds an
exclusive monopoly on exports. Spot sales are rare.
Sellers
Sinochem International Oil (Hong Kong) Co.: 47/F Office Tower, Convention
Plaza, 1 Harbour Road, Wanchai, Hong Kong. Tel.: (852) 824-0100, Fax: (852) 824-2002.
Sinochem International Oil (Singapore) Pte. Ltd.: 4 Shenton Way, #09-08/12
Shing Kwan House, 0106, Singapore. Tel.: (65) 225-5188, Fax: (65) 225-3878.
Loading Port
Dairen (Dalian). 38.55 N. 121.40 E. The Dairen terminal, located on the Bohai coast on
the southern edge of Chinas northern Liaodong Peninsula, has two tanker berths on the
crude oil-loading jetty. Size restrictions are 100,000 deadweight tons and a maximum
draft of 15 meters for Berth No. 1, and a maximum draft of 12 m for Berth No. 2. The
port is being expanded to take 150,000-dwt tankers and has loaded ships up to 125,000
dwt.
DAQING ASSAY
Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG 0.5
Paraffins % Wt. 54
Naphthenes % Wt. 42
Aromatics % Wt. 4
Paraffins % Wt. 66
Naphthenes % Wt. 38
Aromatics % Wt. 6
Cetane Index 60
DAQING TERM-CONTRACT PRICES, 1986-91
Month 1986 1987 1988 1989 1990 1991
Jan. $17.58 $17.15 $16.83 $17.06 $19.21 $24.23
Feb. 17.58 17.15 16.83 17.06 19.21 20.55
March 17.58 17.15 16.83 17.06 19.21 16.47
April 10.62 17.40 16.29 18.15 16.09 17.21
May 10.62 17.40 16.29 18.15 16.09 17.88
June 10.62 17.40 16.29 18.15 16.09 18.22
July 10.65 17.78 14.48 17.12 15.20 18.57
Aug. 10.65 17.78 14.48 17.12 15.20 18.80
Sept. 10.65 17.78 14.48 17.12 29.75 19.04
Oct. 13.12 17.50 12.68 17.40 35.42 19.83
Nov. 13.12 17.50 12.68 17.40 33.60 20.45
Dec. 13.12 17.50 12.68 17.40 27.71 19.59
DAQING SPOT PRICES, 1987-92
Month 1987 1988 1989 1990 1991 1992
Jan. $16.65 $17.05 $16.80 $19.80 $23.40 $17.80
Feb. 17.00 17.00 17.35 20.80 19.85 17.55
March 16.90 15.55 17.05 18.65 17.20 17.10
April 17.15 15.95 18.20 16.75 17.10 17.20
May 17.25 16.30 18.15 15.75 17.75 17.80
June 17.35 16.15 18.05 14.90 18.20 19.95
July 17.65 15.00 17.95 16.00 18.65 21.00
Aug. 18.25 14.40 16.90 23.45 18.70 19.85
Sept. 17.80 13.50 16.50 30.00 18.80 19.25
Oct. 18.05 11.75 16.70 35.25 19.40 19.70
Nov. 17.85 12.10 17.35 33.10 20.25 20.05
Dec. 16.65 13.85 17.85 27.30 19.00 19.40
SHENGLI China
Gravity: 22.5 Sulfur: 0.90 Loading Port: Qingdao (Tsing Tao)
Production
Total output dropped to 600,000 barrels a day or 3% in 1995 from Chinas second-largest
field, which lies onshore just south of Bohai Bay. Exports have declined and amount to
about 50,000 b/d. The field is mature, and extensive enhanced recovery efforts are under
way to slow its natural decline.
Quality
A heavy Asia-Pacific crude oil similar to Indonesian Duri that is not particularly attractive
to refiners and is used for direct burning by Japanese utilities. The assay below is some-
what dated, and recent tests indicate that the gravity has slipped to 22.5 with a sulfur
content of 0.9% and a pour point of 28 degrees centigrade.
Producers
Produced exclusively by state China National Petroleum Co.

Sold primarily to Japan, which absorbed 27,000 b/d in 1995, with smaller volumes mov-
ing to Singapore and elsewhere. Most of the Japanese volume is used as boiler fuel by
electric utilities. Japanese sales are at retroactive monthly prices that track Indonesian
Duri levels plus a premium. The primary seller is state Sinochem, but it no longer holds
an exclusive monopoly on exports.
Sellers
Sinochem International Oil (Hong Kong) Co.: 47/F Office Tower, Convention
Plaza, 1 Harbour Road, Wanchai, Hong Kong. Tel.: (852) 824-0100, Fax: (852) 824-2002.
Sinochem International Oil (Singapore) Pte. Ltd.: 4 Shenton Way, #09-08/12
Shing Kwan House, 0106, Singapore. Tel.: (65) 225-5188, Fax: (65) 225-3878.
Loading Port
Qingdao (Tsing Tao). 36.05 N. 120.18 E. The terminal, located on the Yellow Sea coast
about 380 miles north of Shanghai, has two crude oil-loading berths capable of handling
vessels up to 50,000 deadweight tons. Maximum draft is 12 meters on the West berth and
13 m on the East berth. It is connected by pipeline to the Shengli field.
SHENGLI ASSAY
Crude Oil Crude Oil
Viscosity Centistokes 124 Reid Vapor Press. Lbs/Sq. In. 1.6
Cut Points Yield
LPG <5/<41 0.4 0.3
Naphthenes % Wt. 46
Aromatics % Wt. 11
Cetane Index 50.9
Cetane Index 59.7
Asphaltenes % Wt. 1
CANO LIMON Colombia
Gravity: 29.5 Sulfur: 0.47 Loading Port: Covenas

Other Names: Colombian Blend
Production
Production has been declining in recent years from peak levels of almost 500,000 barrels
a day and flows in 1995 were about 215,000 b/d with exports of about 125,000 b/d. The
crude oil from the Cano Limon field, which lies in the Amazon Basin, travels through a
490-mile pipeline across the Andes to the Caribbean export terminal at Covenas.
Quality
A medium- to heavy-gravity crude oil that is relatively low in sulfur, similar in quality to
US Alaskan North Slope. Although from early production, the assay below is still accu-
rate.
Producers
US Occidental is the operator, but it has sold off significant stakes and now holds only
a 6.5% share with partners state Ecopetrol (50%), Shell (25%), and Repsol (18.5%).

Cano Limon has been Colombias main export crude oil in the late 1980s and first half
of the 1990s, but it is being overtaken by fast rising Cusiana. State Ecopetrol sells about
half of the volume through a combination of term contracts and spot sales to indepen-
dent refiners and traders, mainly in the US. Ecopetrol holds regular tenders for these term
contracts as they expire. With the exception of Occidental, the equity producers tend to
keep the crude oil within their own systems. Ecopetrols prices are on an f.o.b. basis and
linked by formulas to spot prices of US West Texas Intermediate grade. Sales are fre-
quently interrupted due to periodic attacks on the vulnerable export pipeline by antigov-
ernment guerrillas.
Sellers
Ecopetrol: Carrera 12, No. 36-24, Apdo. Aereo 5938, Santa Fe de Bogota, D.C.
Colombia. Tel.: (57-1) 285-6400.
Shell International Trading And Shipping Company (STASCO): Shell-Mex
House, Strand, London WC2R 07A. Tel.: (44-171) 546-1234. Fax: (44-171) 546-4448.
Loading Port
Covenas. 09.25 N. 75.42 W. The Covenas offshore terminal is located in the Gulf of
Morresquillo about 56 miles south-southwest of Cartagena in the Caribbean Sea. Loading
facilities consist of a single-buoy mooring and a floating storage unit, which is a perma-
nently moored 390,000-deadweight ton tanker. Size restrictions are maximums of 145,000
dwt and vessel length of 265 meters for berthing at the FSU, and 145,000 dwt and ves-
sel length of 300 m for berthing at the SBM.
CANO LIMON ASSAY

Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG 0.2 0.1
Naphthenes % Wt. 36
Aromatics % Wt. 2
Cetane Index 52.9
Cetane Index 57.1
Residue >350 48.8 53 Residue
CANO LIMON SPOT AND TERM-CONTRACT PRICES, 1986-93
At Port Of Loading In Dollars Per Barrel. Spot Prices For 1986-87, And Term-Contract Prices Thereafter.
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. ... $18.55 $15.33 $16.00 $20.25 $20.30 $15.79 $16.43
Feb. ... 17.55 14.73 16.17 19.77 15.04 16.10 17.58
March ... 18.05 14.18 17.65 18.36 16.57 16.36 17.87
April ... 18.40 16.18 19.93 14.66 18.21 17.71 17.79
May 13.80 19.10 15.23 18.10 14.39 17.77 18.51 17.55
June 11.65 19.45 14.58 17.52 13.35 17.32 20.18 16.64
July 9.90 20.35 14.16 17.45 15.67 18.15 19.44 14.99
Aug. 13.70 19.05 13.96 16.60 26.37 18.51 18.81 15.28
Sept. 13.80 18.45 12.71 16.85 33.66 18.95 19.34 14.88
Oct. 14.05 18.90 11.55 17.65 32.17 20.18 19.39 15.73
Nov. 14.35 17.50 11.45 17.85 29.58 19.17 18.16 14.07
Dec. 15.65 15.80 14.10 19.30 24.91 16.43 17.19 12.11
CUSIANA Colombia

Other Names: Cusiana Light, Cusiana/Cupiagua
Production
Production reached 200,000 barrels a day at end-1995 and is scheduled to hit 500,000
b/d by end-1997. The field lies in the foothills of the eastern Andes and with neighbor-
ing Cupiagua contains at least 2-billion barrels of reserves. Exports were running at about
100,000 b/d in 1996 and should reach about 400,000 b/d in 1998. The fields are con-
nected to the Caribbean port of Covenas by a 500-mile pipeline system that is being
expanded to handle the increased output.
Quality
Cusiana itself is a light, low-sulfur crude oil that is comparable to North Sea Brent or
Nigerian Bonny Light. It has wide cuts of reforming naphtha and middle distillates and is
excellent for use with high-conversion units. Quality is likely to improve in 1998 with the
addition of some 200,000 b/d of lighter 42-gravity Cupiagua grade into the export stream.
Producers
In addition to operator BP (15.2%), other partners are state Ecopetrol (60%), Total
(15.2%) and Triton Energy (9.6%).

Cusiana is sold on the international market by all of the equity partners, with Ecopetrol
relying primarily on term contracts with US Gulf Coast refiners while others tend to sell
on a spot basis. In 1996, Ecopetrols main term customers were Tosco and Fina. Other
buyers include Sun, Mapco, and Amoco. Ecopetrols prices are on an f.o.b. basis and
linked by formulas to spot prices of US West Texas Intermediate grade. Spot sales by
other producers are on a similar basis.
Sellers
Ecopetrol: Carrera 12, No. 36-24, Apdo. Aereo 5938, Santa Fe de Bogota, D.C.
Colombia. Tel.: (57-1) 285-6400. Contacts Enrique Lee or Fernando Cardenas. Tel. (57-
1) 287-0240 or (57-1) 285-2456.
British Petroleum: Contacts Marty Power or Keith Chipchase. Tel: (713) 560-5515
or (216) 586-6091.
Total: Contact Alberto Valcarcel (713) 739-3446.
Triton Energy: Contact Rick Stevens (214) 691-5200.
Loading Port
CUSIANA ASSAY
Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG 2.2 1.85
Naphtha <300 20.8 17.9 Intermediate Naphtha
Paraffins % Wt. 57
Naphthenes % Wt. 29
Aromatics % Wt. 14
Freezing Point Temp. F -83
Gas Oil 450-648 24.3 24.9 Gas Oil
Cetane Index 45
Viscosity (Kin) Cts at 122 F 3.01
VASCONIA Colombia
Production
Production is about 145,000 barrels a day with about 100,000 b/d used in Colombia and
the remainder exported. The crude oil comes from a group of fields in central Colombia.
The fields are connected to the Caribbean port of Covenas by pipeline.
Quality
Vasconia is a medium- to low-sulfur, medium-weight crude oil. It is good for gasoline
manufacturing, and the middle distillates have good cold properties.
Producers
Royal/Dutch Shell is the field operator and main producer along with Ecopetrol.

Vasconia is marketed internationally by Shell, which sells it primarily on a spot basis to
US refiners at prices linked to West Texas Intermediate grade. Ecopetrol uses its share of
production locally.
Sellers
Shell International Trading And Shipping Company (STASCO): Shell-Mex
House, Strand, London WC2R 07A. Tel.: (44-171) 546-1234. Fax: (44-171) 546-4448. Also:
Houston: (713) 241-6343.
Loading Port
VASCONIA ASSAY
Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG 1.1
Light Naphtha <85 4.1 Light Naphtha
Naphthenes % Wt. 50
Aromatics % Wt. 14
Light Gas Oil 235-300 11.5 Light Gas Oil
Cetane Index 43
Cetane Index 48
VASCONIA SPOT PRICES, 1993
1993
Jan. $16.43
Feb. 17.58
March 17.87
April 17.79
May 17.55
June 16.64
July 14.99
Aug. 15.28
Sept. 14.88
Oct. 15.73
Nov. 14.07
Dec. 12.11
DJENO Congo
Gravity: 27.6 Sulfur: 0.23 Loading Port: Djeno

Other Names: Emeraude
Production
Output of about 150,000 barrels a day comes from several mature offshore fields includ-
ing Emeraude, Loango, Yanga, Sendji, and Tchibouela, which are operated by French Elf
and Italian Agip. State Hydro Congo has no direct equity stake in these fields.
Quality
A heavy, low-sulfur West African crude oil, with high wax content and a high pour point.

Traditionally, the crude oil was used primarily in the internal refining systems of Elf and
Agip, but open market sales have increased to both Europe and Asia in the mid-1990s
in addition to occasional sales to the US and Caribbean. Taiwans CPC has a 30,000 b/d
term contract and Hungarys Mol is also a buyer. Prices are set according to discounts to
UK Brent Blend, which typically are about $2.50 a barrel.
Sellers
Elf Trading SA, Geneva: P.O. Box 532 1215, Geneva 15 Airport, Switzerland. Tel.:
(41-22) 710-1112, Fax: (41-22) 710-1110.
Agip Spa: 89-91 Via del Serafico, Rome 00142, Italy. Tel.: (39-6) 503-92-241, Fax: (39-
6) 503-92-320.
Loading Port
Djeno. 04.56 S. 11.54 E. The loading point at the Djeno terminal is about 2.2 miles (3.8
kilometers) from the coast, and about 9.5 miles south-southeast of the main Pointe Noire
lighthouse. The single-buoy mooring facility is designed for tankers of approximately
40,000-140,000 deadweight tons or partly loaded tankers of up to 240,000 dwt. The max-
imum draft is 16 meters.
DJENO ASSAY
Crude Oil Crude Oil
(Kinematic) at 100 F
Cut Points Yield
LPG 1.3
Naphthenes % Wt. 41
Aromatics % Wt. 7
Naphthenes % Wt. 54
Aromatics % Wt. 9
Atmos. Gas Oil 500-650 12.9 Atmospheric Gas Oil
Cetane Index 50
Year Of Crude Oil Sample: 1987 Pour Point Temp. F 73.4
NKOSSA Congo
Gravity: 39.5 Sulfur: 0.08 Loading Port: NKossa
Production
Output of about 90,000 barrels a day comes from West Africas first deep-water field. The
field lies in 180-350 meters of water just north of the Angola-Cabinda border. Output is
expected to peak at 120,000 b/d in 1998.
Quality
A light, low-sulfur West African crude oil that is well suited to gasoline manufacturing.
Higher quality than typical West African grades, similar to Angola Palanca.
Producers
The NKossa field is operated by Elf. Other shareholders include Chevron and South
Africas Engen.

Initial sales have been primarily to Europe and the US at prices linked to dated Brent
crude oil. While these are likely to remain primary markets for the crude oil, Asian sales
are also likely from time to time.
Sellers
Elf Trading SA, Geneva: P.O. Box 532 1215, Geneva 15 Airport, Switzerland. Tel.:
(41-22) 710-1112, Fax: (41-22) 710-1110.
Loading Port
NKossa. 05.20 S. 11.35 E. The crude oil is loaded from a dedicated storage tanker at the
field. The terminal is located about 25 miles offshore.
NKOSSA ASSAY
Crude Oil Crude Oil
Barrels /Metric Ton 7.62

Cut Points Yield
Product Temp. C % Wt.
LPG 1.3
Light Naphtha <80 4.5
Int. Naphtha 80-150 10.5
Kerosine 150-230 13.5
Gas Oil 230-400 32.9
Residue >400 37.3
DUBAI Dubai
Gravity: 31.0 Sulfur: 2.04 Loading Port: Fateh

Other Names: Fateh
Production
Output is in decline, dropping to an expected 250,000 barrels a day in 1997. Production
from the offshore Fateh, Faleh, Southwest Fateh, and Rashid fields peaked in 1990 at
about 415,000 b/d. Additional drilling and a limited gas injection program have helped
slow the decline, but a major gas injection program requires much larger imports, which
have been difficult to obtain from neighboring countries and emirates at an attractive
enough price. The investment costs may also require a major adjustment to the fiscal
regime.
Quality
A typical light, sour Mideast crude oil. Usually designated as a 32-gravity crude oil, but
flows are a bit heavier. Although slightly heavier than Saudi benchmark Arabian Light, it
is considered a reasonably good substitute by most refiners.
Producers
Dubai Producing Co.: Conoco (30%), Repsol (25%), Total (25%), Texaco (10%), Sun (5%),
and Wintershall (5%). Conoco is operator. The companies receive a fixed margin on their
production.

Little of the crude oil is committed on a term basis, and even those volumes are usually
resold into the Arabian Gulfs most active spot crude oil market. The vast majority of car-
goes are sold into the spot market through forward trading. While the equity producers
and numerous international oil companies are active in forward trading, physical cargoes
rarely move to the Atlantic Basin. However, spread trading between North Sea Brent and
Dubai dominates the forward market. Eastern shipments focus on Japan and shorter-haul
customers in Singapore and the Indian subcontinent. Japan imported 46,000 b/d in 1995,
down by over 40% from 1994. (See detailed discussion of the Dubai market on pB20).
Sellers
In addition to the largest equity producers, many large crude oil traders and Wall Street
firms are active in both forward and physical Dubai trading. These include Statoil, BP,
Shell, and Morgan Stanley.
Conoco Ltd.: Park House, 116 Park St., London W1Y 4NN, UK. Tel.: (44-171) 408-
6000, Fax: (44-171) 408-6969.
Total Petroleum Services Ltd.: 101-103 Baker St., London W1M 1FD, UK. Tel.: (44-
171) 935-3222, Fax: (44-171) 935-3102.
Repsol SA: Paseo de la Castellana 89, 28046 Madrid, Spain. Tel.: (91) 348-8100, Fax:
(91) 555-7671.
Loading Port
Fateh. 25.35 N. 54.25 E. Located approximately 60 miles north-northwest off the coast of
Dubai, the Fateh terminal has 2 single-point moorings. Maximum displacement is 350,000
tons, with no draft restriction.
DUBAI ASSAY
Crude Oil Crude Oil
Cut Points Yield
LPG 2.3 1.5
Naphthenes % Wt. 31
Aromatics % Wt. 14
Cetane Index 47.8
Cetane Index 49.9
Year Of Crude Oil Sample: 1981 Viscosity (Kin) Cen at 60 C 212
AVERAGE MONTHLY DUBAI SPOT PRICES, 1987-93
Month 1987 1988 1989 1990 1991 1992 1993
Jan. $17.20 $15.40 $14.45 $17.45 $19.40 $15.20 $15.20
Feb. 16.70 15.05 14.60 16.80 14.45 15.75 16.00
March 16.90 13.40 15.95 15.80 14.85 15.80 16.30
April 16.95 14.95 16.90 14.30 15.35 16.70 16.35
May 17.05 14.85 15.65 14.60 15.90 17.60 16.00
June 17.25 13.80 15.40 13.25 15.40 19.00 15.60
July 17.75 13.05 15.50 15.30 16.25 18.50 14.25
Aug. 17.30 13.15 15.00 25.00 16.65 17.80 14.75
Sept. 17.00 11.55 15.60 30.30 17.80 18.30 14.20
Oct. 17.05 10.30 16.15 31.55 18.95 18.25 14.80
Nov. 16.60 10.60 16.15 27.95 18.45 17.15 13.70
Dec. 15.50 12.50 17.10 23.25 15.30 16.25 12.05
AVERAGE MONTHLY DUBAI-BRENT PRICE SPREAD, 1987-93
Brent Minus Dubai In Dollars Per Barrel
Month 1987 1988 1989 1990 1991 1992 1993
Jan. $1.20 $1.45 $2.55 $3.05 $3.85 $2.90 $2.30
Feb. 0.60 0.70 2.05 2.95 4.15 2.35 2.45
March 1.00 1.35 2.75 2.85 4.00 1.85 2.55
April 1.15 1.65 2.85 2.65 3.90 2.30 2.45
May 1.70 1.55 2.70 2.50 3.25 2.40 2.65
June 1.60 1.75 2.10 2.35 2.90 2.20 2.10
July 2.05 1.85 2.25 2.40 3.20 1.85 2.55
Aug. 1.65 1.80 2.10 1.95 3.15 2.00 2.05
Sept. 1.35 1.75 2.20 3.30 2.70 1.95 1.95
Oct. 1.75 2.15 2.85 4.00 3.20 2.10 1.90
Nov. 1.20 2.40 3.00 3.95 2.85 2.10 1.65
Dec. 1.60 2.65 2.60 4.05 3.05 2.05 1.55
MARGHAM CONDENSATE Dubai
Gravity: 50.2 Sulfur: 0.04 Loading Port: Jebel Ali
Production
About 25,000 barrels a day of condensate produced in association with natural gas from
an onshore field, with rising gas output used mainly to maintain pressure in the Dubai
crude oil fields.
Quality
A full-range condensate that produces both gasoline and middle distillates, as well as a
small volume of residue.
Producers
Operator Arco holds 100%.

Rarely appears in the market, but this may be due to its small volume.
Loading Port
Jebel Ali. 25.00 N. 55.03 E. Located in the west of the emirate. A single-tanker berth is
capable of loading vessels up to 400,000 deadweight tons.
MARGHAM CONDENSATE ASSAY

Crude Oil Crude Oil
Cut Points Yield
LPG 5.6 4.1
Naphthenes % Wt. 24
Aromatics % Wt. 37
Cetane Index 50.9
Int. Gas Oil 300-350 7.2 8 Intermediate Gas Oil
Cetane Index 57.1
ORIENTE Ecuador
Gravity: 28.8 Sulfur: 1.02 Loading Port: Esmeraldas
Production
About 350,000 barrels a day of Oriente crude oil is produced mainly by state
Petroecuador from the Shushufindi field and a series of smaller fields on the east side of
the Andes Mountains which all feed into the same pipeline to the Pacific. Petroecuador
itself produces about 305,000 b/d. Up to 125,000 b/d is refined domestically, leaving
about 200,000-225,000 b/d for export. Some 40,000 b/d is also exported via Colombia
because of the capacity limitations of the Trans-Andean pipeline.
Quality
A medium-gravity, medium-sour crude oil that is similar to US Alaskan North Slope, but
with higher metals content.
Producers
Petroecuador and a long-standing joint venture with US City Investing Co. and Oryx.
Other producers include YPFs Maxus unit, Occidental, Tripetrol, and Elf.

Petroecuador sells its crude oil exclusively on a term-contract basis, but its buyers are
actively engaged in re-trading these barrels, usually in the spot market. About half the
barrels are equally divided between the US Gulf Coast and South Korea, but cargoes also
go to the Caribbean, Latin America, and the US West Coast. Oriente is usually priced at
a differential to WTI on the US Gulf Coast, but West Coast ANS prices are also used when
appropriate. Term buyers sign one-year contracts, which are bid upon by offering pre-
miums to Petroecuadors established formula. Term customers include Korean refiners,
Tosco, and Texaco. Traders such as Tripetrol and Glencore often control a large share
of the exports through front companies. As a result, the 12 or so term customers actual-
ly represent a smaller group.
Sellers
Petroecuador: Apartado 5007, Alpallana y Ave. 6 de Decembre, Quito, Ecuador. Tel.:
(593-2) 521-436.
Tripetrol: Five Post Oak Park, Suite 2360, Houston, TX 77027. Tel.: (713) 877-8733,
Fax: (713) 877-1723.
Loading Port
Esmeraldas. 01.00 N. 79.39 W. The Esmeraldas terminal, located on the coast in north-
ern Ecuador, has two loading berths designed to accommodate vessels up to 200 meters
in length and 10.5 m (35 feet) maximum draft.
ORIENTE ASSAY
Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG 1.5 1
Naphthenes % Wt. 48
Aromatics % Wt. 8
Cetane Index 47.4
Cetane Index 52.8
Residue >350 49 53.6 Residue
Asphaltenes % Wt. 9
ORIENTE TERM CONTRACT PRICES, 1986-93
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $21.00 $17.95 $14.14 $14.68 $19.02 $19.84 $14.67 $15.20
Feb. 14.00 17.02 13.54 14.83 18.53 14.58 14.75 16.52
March 12.40 17.02 13.00 16.16 17.09 16.11 14.88 16.59
April 12.20 17.02 14.88 18.34 13.50 16.65 16.36 16.42
May 13.80 17.02 13.94 16.46 13.00 16.94 17.27 15.77
June 11.55 17.02 13.30 15.87 12.17 15.97 19.09 14.84
July 9.75 17.02 12.85 15.82 12.41 17.09 18.25 13.66
Aug. 13.45 17.02 12.65 15.04 22.44 17.35 17.45 14.16
Sept. 13.45 17.02 11.42 15.58 29.76 18.11 17.92 13.41
Oct. 13.65 18.45 10.33 16.57 30.61 18.98 18.05 13.88
Nov. 13.85 17.40 10.23 16.77 28.00 17.83 16.82 12.07
Dec. 15.10 15.50 12.85 18.28 23.45 15.34 15.84 10.18
ORIENTE SPOT PRICES, 1988-93
Delivered To US Gulf Coast In Dollars Per Barrel
Month 1988 1989 1990 1991 1992 1993
Jan. $17.95 $15.45 $16.50 $22.90 $15.85 $16.55
Feb. 16.90 14.65 16.65 17.05 15.90 18.30
March 17.45 14.10 17.90 18.00 16.25 18.15
April 15.35 20.05 15.00 18.45 17.65 18.05
May 15.45 18.15 14.75 17.45 18.45 17.55
June 14.70 17.50 13.40 17.40 20.55 16.60
July 14.65 17.50 15.95 18.15 19.75 15.30
Aug. 14.00 16.55 25.70 18.40 18.85 15.60
Sept. 13.05 17.10 32.20 19.05 19.30 15.15
Oct. 11.80 17.90 32.90 20.10 19.65 15.55
Nov. 11.80 18.25 30.65 19.40 18.60 13.55
Dec. 14.30 19.80 26.05 16.85 17.55 11.75
BELAYIM BLEND Egypt
Gravity: 26.1 Sulfur: 2.23 Loading Port: Wadi El Firan
Production
200,000 barrels a day from both onshore and offshore fields in the Gulf Of Suez. Original
discovery of Belayim Marine field in 1955 by Agip. Output has been maintained at these
levels after steady increases in the late 1980s and early 1990s.
Quality
Heavy, high-sulfur crude oil with high metals content, similar to heavier Venezuelan and
Mexican grades.
Producers
Petrobel: a joint venture operated by state EGPC (50%), Italian Agip (35%), and local
interests (15%).

The EGPC term price formula was changed to direct Brent linkage in January 1996 due
to dissatisfaction with the earlier basket mechanism. EGPC has increased its terms sales
on the international market and reduced usage in domestic refineries as it seeks to make
more light products. It has also reduced its reliance on traders and increased sales to
refiners. Agip takes almost all of its 60,000-70,000 b/d share of production about four
cargoes a month into its Italian refinery system.
Sellers
EGPC: Osman Abdel Hafiz St., Nasr City, PO Box 2130, Cairo, Egypt. Tel.: (20) 603-899.
503-922-41/503-923-20.
Loading Port
Wadi El Firan. 28.44 N. 33.13 E. The terminal is located on the Sinai coast in the Gulf
of Suez in the Red Sea about 100 miles south of Suez. Loading facilities include three
berths. Maximum draft and deadweight tons are the following: Berth 1, 75 feet and
50,000 dwt; Berth 2, 58 ft and 50,000 dwt; Berth 3, 65 ft and 80,000 dwt.
BELAYIM BLEND ASSAY

Crude Oil Crude Oil
Cut Points Yield
LPG 1.5 0.9
Int. Naphtha 85-165 12 10 Intermediate Naphtha
Naphthenes % Wt. 33
Aromatics % Wt. 12
Cetane Index 49.8
Cetane Index 54.8
Residue >350 56 61 Residue
BELAYIM BLEND TERM-CONTRACT PRICES, 1979-93
Month 1979 1980 1981 1982 1983 1984 1985
Jan. $12.23 $29.00 $37.00 $30.50 $28.00 $26.50 $25.60
Feb. 12.23 29.00 37.00 28.65 27.00 25.00 25.75
March 15.05 29.00 37.00 28.00 25.25 26.75 25.75
April 15.32 29.00 35.50 28.00 25.25 25.60 25.75
May 15.32 29.00 33.00 28.00 25.75 25.60 26.00
June 17.60 29.00 33.00 28.50 26.00 25.60 23.00
July 26.50 29.00 30.00 28.50 26.25 25.60 24.25
Aug. 26.50 29.00 30.00 28.50 26.25 25.60 24.25
Sept. 26.50 29.00 30.00 28.50 26.75 25.60 24.55
Oct. 26.50 29.00 30.00 28.60 26.75 25.60 25.00
Nov. 26.50 29.00 31.40 29.00 26.75 25.60 25.00
Dec. 28.00 31.00 31.00 28.75 26.75 25.60 25.45
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $21.50 $16.52 $14.60 $13.28 $18.28 $20.11 $13.11 $13.01
Feb. 18.00 16.84 14.58 13.90 17.35 15.66 13.16 13.72
March 12.50 16.65 12.78 14.85 15.70 15.17 12.79 13.96
April 11.75 16.65 13.70 16.55 12.93 15.33 14.28 13.89
May 11.25 16.65 14.43 16.67 13.58 14.54 15.28 13.74
June 11.25 16.65 13.75 14.80 11.65 13.78 16.49 12.85
July 11.25 16.90 11.90 15.03 12.15 14.75 15.72 12.07
Aug. 10.44 17.63 12.85 14.15 24.11 15.35 15.26 12.15
Sept. 12.05 16.32 11.53 14.73 35.10 16.03 15.88 11.68
Oct. 11.68 15.85 10.30 16.15 33.02 17.49 16.09 12.37
Nov. 12.83 15.55 10.05 16.15 29.15 16.24 15.24 11.08
Dec. 13.58 15.05 11.90 17.28 23.05 13.21 14.16 9.66
RAS BUDRAN Egypt
Gravity: 24.3 Sulfur: 2.39 Loading Port: Ras Budran
Production
Output is in decline, with less than 20,000 barrels a day in 1995 from the Ras Budran off-
shore field along the northern Sinai Coast of the Gulf of Suez.
Quality
A heavy, high-sulfur crude oil with high metals content, similar in quality to heavy
Mexican and Venezuelan crude oils.
Producers
Suez Oil Co. (Suco): state EGPC (50%), with the remaining 50% shared equally among
Shell, Repsol, and Deminex.

to dissatisfaction with the earlier basket mechanism. Use of these heavier crude oils in
EGPC refineries has been reduced in favor of lighter Suez Blend in order to produce
more light products. The crude oils primary markets are in the Mediterranean and with
sophisticated US refiners.
Sellers
Loading Port
Ras Budran. 26.56 N. 33.08 E. The crude oil-loading facilities at Ras Budran in the Red
Sea consist of one single-buoy mooring. Size restrictions are 250,000 deadweight tons
and draft of 27.4 meters.
RAS BUDRAN ASSAY

Crude Oil Crude Oil
Cut Points Yield
LPG 1.8 1.1
Naphthenes % Wt. 37
Aromatics % Wt. 12
Cetane Index 49
Cetane Index 54.2
RAS BUDRAN TERM-CONTRACT PRICES, 1987-93
Month 1987 1988 1989 1990 1991 1992 1993
Jan. $16.02 $14.10 $12.13 $17.13 $18.96 $11.51 $11.66
Feb. 16.27 13.60 12.75 16.20 14.51 11.56 12.47
March 16.00 12.28 13.70 14.55 14.02 11.19 12.90
April 16.00 13.00 15.10 11.78 14.18 12.68 12.84
May 16.00 13.20 15.22 12.43 13.24 13.68 12.74
June 16.15 12.85 13.35 10.50 12.48 14.89 11.90
July 16.40 10.75 13.58 11.00 13.45 14.12 11.22
Aug. 17.13 11.70 13.00 22.96 15.05 13.76 11.35
Sept. 15.82 10.38 13.58 33.95 15.73 14.38 10.88
Oct. 15.35 9.15 14.70 31.77 17.29 14.59 11.57
Nov. 14.95 8.90 14.70 28.00 16.04 13.74 10.33
Dec. 14.55 10.75 16.13 22.90 11.91 12.66 8.86
RAS GHARIB BLEND Egypt
Gravity: 24.1 Sulfur: 3.00 Loading Port: Ras Gharib

Other Names: Ras Gharib, Gharib Blend
Production
About 25,000 barrels a day from the Gharib field and others nearby on the west side of
the Gulf Of Suez. The Gharib field is Egypts oldest. It was discovered in 1938, and it still
produces 5,000 b/d.
Quality
A heavy, high-sulfur crude oil similar in quality to heavier Mexican and Venezuelan
crude oils. It is now slightly lighter than the sample below.
Producer
General Petroleum Co. (GPC): an affiliate of state EGPC. Operated by Gulf Of Suez
Petroleum Co. (Gupco), a joint venture between Amoco and EGPC.

to dissatisfaction with the earlier basket mechanism. Ras Gharib has long been one of
EGPCs primary export grades after Suez Blend, with most sales on a term-contract basis.
Its primary markets are in the Mediterranean and with sophisticated US refiners.
Seller
Loading Port
Ras Gharib. 28.21 N. 33.07 E. Located in the Gulf of Suez with two piers for crude oil
tankers. Pier 2 is for ships up to 30,000 deadweight tons with maximum draft of 36 feet.
New Pier is for ships up to 100,000 dwt and maximum draft of 78 ft.
RAS GHARIB BLEND ASSAY

Crude Oil Crude Oil
Viscosity Centistokes 70
(Kinematic) at 40 C
Cut Points Yield
LPG 0.4
Naphthenes % Wt. 36
Aromatics % Wt. 9
Heavy Naphtha 300-400 7 Heavy Naphtha
Naphthenes % Wt. 42
Aromatics % Wt. 14
Cetane Index 48
Year Of Crude Oil Sample: 1983 Viscosity (Kin) Cen at 50 C 6,100
RAS GHARIB BLEND TERM CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. ... $11.40 $24.00 $32.00 $27.80 $26.00 $24.65 $25.60
Feb. ... 11.40 24.00 32.00 26.65 25.00 25.00 25.75
March ... 14.06 24.00 32.00 26.00 23.00 25.00 25.75
April ... 14.33 24.00 31.50 26.00 23.00 25.60 25.75
May ... 14.33 24.00 30.00 26.00 23.25 25.60 25.00
June ... 16.90 24.00 30.00 26.50 23.25 25.60 23.00
July ... 21.00 24.00 27.00 26.50 23.50 25.60 22.25
Aug. ... 21.00 24.00 27.00 26.50 23.50 25.60 22.25
Sept. ... 21.00 24.00 27.00 26.50 24.50 25.60 23.25
Oct. $10.73 21.00 24.00 27.00 26.50 24.50 25.60 23.50
Nov. 10.73 21.00 24.00 28.30 26.75 24.50 25.60 23.50
Dec. 10.73 24.00 26.00 28.00 26.25 24.50 25.60 23.85
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $19.70 $15.40 $13.50 $11.83 $16.83 $18.66 $11.21 $11.11
Feb. 16.50 15.72 14.15 12.45 15.90 14.21 11.26 11.82
March 11.25 15.40 11.68 13.40 14.25 13.72 10.89 12.10
April 11.25 15.40 12.35 15.40 11.48 13.88 12.28 12.04
May 10.60 15.40 14.00 15.52 12.13 13.09 13.28 11.94
June 10.60 15.55 12.15 13.65 10.20 12.33 14.49 11.10
July 10.60 15.80 10.45 13.88 10.70 13.30 13.72 10.42
Aug. 9.19 16.53 11.40 12.70 22.66 14.90 13.26 10.55
Sept. 10.00 15.22 10.08 13.28 33.65 15.58 13.88 10.08
Oct. 10.43 14.75 8.85 15.00 31.47 17.29 14.09 10.77
Nov. 10.65 14.45 8.60 15.00 27.70 14.79 13.24 9.53
Dec. 12.33 13.95 10.45 15.83 22.60 11.96 12.16 8.06
SUEZ BLEND Egypt
Gravity: 31.5 Sulfur: 1.54 Loading Port: Ras Shukheir

Other Names: El Morgan, Gulf of Suez
Production
About 400,000 barrels a day, from the main fields of Morgan, October, and Ramadan.
Output is declining gradually, but still represents almost half of Egypts total production.
Quality
A medium-gravity, sour crude oil similar in quality to Arabian Light and Russian Urals.
Usually referred to as a 33-gravity crude oil, although it is actually somewhat heavier, as
the test below indicates.
Producers
Gulf Of Suez Petroleum Co. (Gupco), in which Amoco and state EGPC each have 50%
equity ownership.

Suez Blend exports have been declining as EGPC has refined more of it locally in order
to expand light products output. As a result, exports have dwindled to about 175,000 b/d
from about 225,000 b/d in the early 1990s. EGPC only exports about 50,000 b/d against
total EGPC crude oil sales of 170,000-180,000 b/d. Amoco sells about 75% of its 125,000
b/d of exports on a term-contract basis, with the remainder sold spot. Spot trading has
declined with reduced exports and a greater emphasis on term sales to refiners, reduc-
ing the role of Suez Blend as a Mediterranean spot benchmark grade. EGPC term con-
tract prices moved to a simple dated Brent formula in January 1996, when the old crude
oil basket system was abandoned.
Sellers
Amoco Shipping and Trading: 140 Park Lane, Suite 23, London SW1X 9NE, UK.
Tel.: (44-171) 408-1750, Fax: (44-171) 409-0785.
Main Customers
Egypts largest customer is Israel, but EGPC also maintains about 15 term contracts,
including major oil companies and Mediterranean refiners. Chevron and Shell dropped
out in 1996. Volumes also regularly move to India and other Asian destinations.
Loading Port
Ras Shukheir. 28.08 N. 33.17 E. The terminal is on the western coast of the Gulf Of Suez
and consists of two sea berths. Maximum draft is 25.6-27.4 meters, with maximum length
of 305 meters.
SUEZ BLEND ASSAY

Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG <5/<41 2.5 1.6
Naphthenes % Wt. 40
Aromatics % Wt. 11
Cetane Index 50.7
Cetane Index 54.4
SUEZ BLEND SPOT PRICES, 1986-93
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $22.70 $17.12 $15.45 $14.13 $19.13 $20.96 $15.06 $14.41
Feb. 19.00 17.44 15.00 14.75 18.20 16.51 15.11 15.22
March 13.50 17.25 13.63 15.70 16.55 16.02 14.74 15.44
April 12.50 17.25 14.55 17.40 13.78 16.18 16.13 15.34
May 12.00 17.25 14.85 17.52 14.42 15.94 17.08 15.19
June 11.00 17.25 14.60 15.65 12.50 15.18 18.24 14.25
July ... 17.55 12.75 15.88 13.00 16.15 17.42 13.47
Aug. 11.16 18.33 13.70 15.00 24.96 16.75 16.91 13.55
Sept. 12.80 17.10 12.38 15.58 35.95 17.43 17.48 13.08
Oct. 12.42 16.70 11.15 17.00 33.87 19.29 17.64 13.72
Nov. 12.40 16.40 10.90 17.00 30.00 18.04 16.74 12.43
Dec. 14.18 15.90 12.75 18.12 24.90 15.11 15.56 11.01
SUEZ BLEND TERM-CONTRACT PRICES, 1987-93
Month 1987 1988 1989 1990 1991 1992 1993
Jan. $16.95 $14.95 $14.50 $18.85 $20.25 $15.05 $14.15
Feb. 16.25 14.25 14.40 17.30 16.50 15.10 15.10
March 16.65 12.95 16.20 15.70 15.85 14.70 15.55
April 17.00 14.55 17.95 13.55 16.00 16.25 15.30
May 17.15 14.40 16.50 13.20 15.85 17.10 15.10
June 17.25 13.50 15.20 11.70 14.60 18.20 14.75
July 17.95 12.85 15.25 13.95 16.00 17.45 13.45
Aug. 17.55 12.85 14.50 25.00 16.55 16.85 13.55
Sept. 16.65 11.05 15.55 33.80 17.45 17.40 13.00
Oct. 16.70 10.15 16.65 33.20 19.20 17.75 13.65
Nov. 15.70 10.75 16.40 29.30 18.10 16.70 12.40
Dec. 14.80 13.15 17.50 24.35 15.15 15.35 10.90
ZEIT BAY Egypt
Gravity: 33.8 Sulfur: 1.35 Loading Port: Zeit Bay
Production
Output is declining and was less than 20,000 barrels a day in 1995 from a group of off-
shore fields at the southern end of the Gulf of Suez.
Quality
A medium, sour crude oil that is slightly higher in quality than benchmark Suez Blend.
Producers
Suez Oil Co. (Suco): state EGPC (50%), with the remaining 50% shared equally among
Shell, Repsol, and Deminex.

to dissatisfaction with the earlier basket mechanism. Use of lighter grades such as Zeit
Bay has been increased in EGPC refineries in order to produce more light products,
which limits export availabilities. The crude oils primary markets are in the
Mediterranean.
Sellers
Loading Port
Zeit Bay. 27.50 N. 33.36 E. Located about 35 miles north of Hurgada in the Red Sea, the
terminal is equipped with one single-buoy mooring. The maximum vessel size is 240,000
deadweight tons.
ZEIT BAY ASSAY

Crude Oil Crude Oil
Gravity (60 F) API 33.8 Sulfur Content % Wt 1.35
(Kinematic) at 40 C
Cut Points Yield
LPG <5/<41 3.8 2.5
Naphthenes % Wt. 34
Aromatics % Wt. 21
Cetane Index 48.1
572-662 Sulfur Content % Wt. 1
Cetane Index 54.5
LUCINA Gabon
Gravity: 39.2 Sulfur: 0.03 Loading Port: Lucina
Production
A small offshore stream of 8,000 barrels a day of light, sweet crude oil. Output comes
from the two Lucina fields and adjacent MBaya, which was tied in by pipeline in 1996.
Quality
Gabons highest-quality oil is somewhat less attractive than other top West African crude
oils such as Nigerian Bonny Light because of its high wax content and pour point. The
assay is for Lucina with MBaya slightly heavier at 36-gravity.
Producers
Perenco (formerly Kelt) is the operator with 90% and the government holds the remain-
ing 10%. The fields were acquired from Elf, Shell, and Repsol in 1994-95.

Cargoes are priced at a differential to dated Brent, with a typical discount of 25¢-50¢ a
barrel. Lucina is sold in 50,000- to 100,000-ton parcels on the spot market, usually into
Europe.
Sellers
Perenco (formerly Kelt): 130 Jermyn Street, London SW1Y 4UJ, UK. Tel. (44-171) 930-
9861. Fax: (44-171) 873-0908.
Loading Port
Lucina. 03.40 S. 10.46 E. The terminal is in the South Atlantic and consists of a single-
buoy mooring located 1 kilometer from the floating-storage vessel that is moored near
the offshore production platforms. No limitation on tanker size.
LUCINA ASSAY
Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG <5/<41 2.5 1.7
Naphthenes % Wt. 37
Aromatics % Wt. 11
Cetane Index 57.6
Cetane Index 62.3
MANDJI Gabon
Gravity: 30.2 Sulfur: 1.14 Loading Port: Cape Lopez
Production
About 120,000 barrels a day of offshore output from several fields, and Gabons second-
largest stream after the onshore Rabi system.
Quality
A medium-gravity crude oil with a higher sulfur content than most West African grades.
Similar in quality to US Alaskan North Slope. Quality may vary as new streams are
brought on and old ones decline.
Producers
Elf-Gabon: a joint venture between French Elf Aquitaine (75%) and the government
(25%).

Sales are tied to a dated Brent formula with a discount of about $2-$2.75 a barrel. Elf
handles all of the marketing, and the firm also sometimes takes significant volumes into
its own refining system. Volumes are increasingly being sold into Asia.
Sellers
Elf Trading: World Trade Center, 10 Route de lAeroport, 1215 Geneva 15 Airport,
Switzerland. Tel.: (41-22) 710-1112, Fax: (41-22) 710-1110.
Loading Port
Cape Lopez. 00.38 S. 08.43 E. The terminal, located about 100 miles south of Libreville,
is designed for tankers of up to 250,000 deadweight tons with maximum drafts of 67 feet
(20.5 meters).
MANDJI ASSAY
Crude Oil Crude Oil
Cut Points Yield
LPG <5/<41 1.5 1
Naphthenes % Wt. 40
Aromatics % Wt. 9
Cetane Index 53.8
Cetane Index 57.7
MANDJI OFFICIAL GOVERNMENT SELLING PRICES, 1978-85
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $12.70 $13.23 $28.00 $35.00 $30.50 $33.00 $26.50 $28.00
Feb. 12.70 13.23 30.00 35.00 28.65 27.00 25.00 25.75
March 12.70 15.05 30.00 35.00 28.00 29.00 26.75 25.75
April 12.70 16.00 30.00 35.50 28.00 29.00 25.60 25.75
May 12.70 16.80 32.00 33.00 28.00 25.75 25.60 26.00
June 12.70 18.10 32.00 33.00 28.50 26.00 25.60 23.00
July 12.70 22.00 32.00 30.00 28.50 26.25 25.60 24.25
Aug. 12.70 22.00 32.00 30.00 28.50 26.25 25.60 24.25
Sept. 12.70 22.00 32.00 30.00 28.50 26.75 25.60 24.55
Oct. 11.57 22.00 32.00 30.00 28.60 26.75 25.60 25.00
Nov. 11.57 24.50 32.00 31.30 29.00 26.75 25.60 25.00
Dec. 11.57 28.00 31.00 31.00 28.75 26.75 25.60 25.45
MANDJI SPOT PRICES, 1986-93
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $21.50 $17.35 $14.75 $15.40 $19.45 $20.35 $15.00 $14.60
Feb. 18.00 17.32 13.60 15.25 17.75 16.25 15.25 15.65
March 12.50 17.32 12.75 16.95 16.25 15.05 14.85 16.10
April 11.75 17.32 13.65 18.60 13.70 15.50 16.45 16.15
May 11.25 17.32 14.20 17.05 13.40 15.25 17.40 16.20
June 10.50 17.32 13.35 16.00 11.80 14.70 18.60 15.40
July 7.95 17.32 13.15 15.85 14.15 15.85 17.90 14.65
Aug. 11.90 17.32 12.70 14.85 25.15 16.45 17.55 14.30
Sept. 12.40 17.32 11.30 16.00 32.10 17.35 18.00 13.70
Oct. 12.30 17.32 10.60 17.15 32.60 19.45 18.15 14.50
Nov. 12.80 17.32 11.25 16.90 28.90 18.25 17.15 13.10
Dec. 14.25 17.32 13.65 18.00 24.00 15.25 16.00 11.65
RABI Gabon
Gravity: 34.6 Sulfur: 0.06 Loading Ports: Gamba (Shell), Cape Lopez (Elf)
Other Names: Rabi Kounga, Rabi Export Blend, Rabi Light
Production
At 220,000 barrels a day in 1996, Rabi is still Gabons largest and most important pro-
ducing area. The fields are undergoing infill drilling and other efforts to maintain flows,
but output is expected to decline gradually in the years ahead. The area lies 60 miles
inland, with several adjacent fields contributing to the export streams. It is split into two
slightly different streams for export. Shells Rabi Export Blend is mixed with heavier 31-
gravity Gamba crude oil and other lighter streams, while Elfs Rabi Light is not.
Quality
A medium-gravity, low-sulfur crude oil with relatively high wax content, making it sim-
ilar to Angolan Cabinda but of higher quality. The test below is representative of Elfs
Rabi Light stream rather than Shells Rabi Export Blend, but both are quite similar.
Producers
Shell-Gabon (75% Royal Dutch/Shell, 25% government) and Elf-Gabon (75% French Elf
Aquitaine, 25% government) are the dominant partners, and they operate different parts
of the producing area. Shares are Elf-Gabon (48%), Shell-Gabon (32%), state Petrogab
(15%), and Amerada Hess (5%).

Rabi is usually priced at a differential to Brent even though most volumes go to the US
or Asia. It is sold regularly on a spot market basis by both Shell and Elf. Shell sells its
output from the loading port of Gamba in central Gabon, while Elf pipes its barrels to
Cape Lopez, 110 miles northwest. Both grades typically sell at a discount to Brent of 10¢-
20¢ a barrel.
Sellers
Royal Dutch/Shell: Shell International Trading And Shipping Co. (Stasco), Shell-Mex
House, Strand, London WC2R 07A, UK. Tel.: (44-171) 546-1234, Fax: (44-171) 546-4448.
Elf Trading: World Trade Center, 10 Route de lAeroport, 1215 Geneva 15 Airport,
Switzerland. Tel.: (41-22) 710-1112, Fax: (41-22) 710-1110.
Main Customers
Rabi is actively traded in the Atlantic Basin and the Far East, but it appeals to specific
end-users because of its quality. Exxon, Chevron, Phibro, British Petroleum, and Coastal
have been among the largest US buyers. But since late 1992, Rabi has also moved to the
Far East as a substitute for similar quality Asian grades.
Loading Ports
Gamba. 02.50 S. 09.56 E. This Shell operated terminal consists of a single-buoy mooring
for vessels up to 130,000 deadweight tons with maximum draft of 41 feet (12.5 meters).
Cape Lopez. 00.38 S. 08.43 E. This Elf terminal, located about 100 miles south of Libreville,
is designed for tankers of up to 250,000 dwt with maximum drafts of 67 ft (20.5 m).
RABI ASSAY
Crude Oil Crude Oil
Cut Points Yield
LPG <5/<41 0.8 0.5
Naphthenes % Wt. 61
Aromatics % Wt. 8
Cetane Index 57.7
Cetane Index 61.9
ARDJUNA Indonesia
Gravity: 36.7 Sulfur: 0.09 Loading Port: Ardjuna

Other Names: Arjuna
Production
Output of about 80,000 barrels a day in 1995 from some 20 small offshore fields on the
northern edge of western Java. Arimbi and Bima crude oil streams also come from the
same block. Production peaked in the mid-1980s, and it is expected to drop to about
50,000 b/d by 2000, even with enhanced-recovery efforts.
Quality
Typical light Asian crude oil with little sulfur but high wax content. The high-pour-point
residual oil is viscous and difficult to handle even by Indonesian standards.
Producers
Operator Arco (46%), Maxus (24.3%), Repsol (12.3%), Inpex (7.3%), Deminex (5%),
Itochu (2.6%), Warrior Oil (2.4%). Production split is 85-15 in favor of Pertamina after
allowing for cost-recovery oil going to producers and excluding set volumes that pro-
ducers must sell to the domestic market at discounted prices.
Exports amount to no more than 15,000-20,000 b/d as compared to 40,000 b/d in the
mid-1980s. The drop is due to declining production and greater use of the crude oil in
Indonesian refineries.
Pricing is based on a complex retroactive formula known as the ICP, or Indonesian
Contract Price. This formula has two components of equal weight. The first component
is linked to the average prices for five spot crude oils Indonesian Minas, Malaysian
Tapis, Australian Gippsland, Dubai, and Oman over the calendar month as reported
by the Asian Petroleum Price Index. The average differential between the basket and the
spot price of Ardjuna over the last 52 weeks is then applied to arrive at a 50% weight-
ing for the term-contract price. The second 50% component is the average of Ardjuna
spot prices over the month in Platt's and Rim. These two components are averaged to
arrive at the final ICP price.
Sellers
In addition to any volumes sold by equity producers, Pertamina sells the crude oil via
four marketing affiliates. For sales to Japan, Indonesias largest market, Pacific Petroleum
And Trading Company is used, a 50-50 joint ventures between Pertamina and Japanese
buyers. Sales to Korea are handled by Korea-Indonesia Petroleum Company (Kipco), and
sales to China go through Perta.
Pacific Petroleum And Trading Company: East Tower 11F, Akasaka Twin Tower,
17-22 Akasaka 2, Chome Minatoku, Tokyo, Japan. Tel.: (81-3) 5562-6501. Fax: (81-3)
5562-6504.
Kipco: Donghwa Building, 10th Floor, 58-7, Seosomun-dong, Chung-gu, Seoul,
Korea 10010. Tel: (822) 752-0592. Fax: (822) 752-0596.
Perta Oil Marketing: 1107 Connaught Centre, Connaught Road Central, Hong Kong.
Tel: (852-5) 260-341. Fax: (852-5) 2519-8909.
Permindo: Wisma Bakrie Bldg., Jl. H.R. Rasuna Said Kav B1, Kuningan, Jakarta. Tel:
(62-21) 525-0120.
Loading Port
Ardjuna. 05.54 S. 107.44 E. This open mooring in the Java Sea, situated 18.5 miles off
the north coast of Java, has a total of four single-buoy mooring berths intended for crude
oil loading. It is designed for tankers of up to 200,000 deadweight tons. Crude oil is
stored in storage tankers Arco Ardjuna, Ardjuna Sakti, and Cempaka Nusantra.
ARDJUNA ASSAY
Crude Oil Crude Oil
Cut Points Yield
Int. Naphtha 100-150 13 Intermediate Naphtha
Paraffins % Wt. 35
Naphthenes % Wt. 44
Smoke Point mm 14
Cetane Index 43.9
ARDJUNA OFFICIAL TERM-CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $13.70 $14.40 $28.95 $36.45 $36.45 $35.20 $30.20 $30.20
Feb 13.70 14.40 30.95 36.45 36.45 30.20 30.20 28.65
March 13.70 14.40 30.95 36.45 36.45 30.20 30.20 28.65
April 13.70 16.45 30.95 36.45 36.45 30.20 30.20 28.65
May 13.70 17.20 32.95 36.45 36.45 30.20 30.20 28.65
June 13.70 19.70 32.95 36.45 36.45 30.20 30.20 28.65
July 13.70 21.56 32.95 36.45 36.45 30.20 30.20 28.65
Aug. 13.70 21.56 32.95 36.45 36.45 30.20 30.20 28.65
Sept. 13.70 21.56 32.95 36.45 36.45 30.20 30.20 28.65
Oct. 13.70 21.56 32.95 36.45 36.45 30.20 30.20 28.65
Nov. 13.70 23.50 32.95 36.45 35.20 30.20 30.20 28.65
Dec. 13.70 26.70 32.95 36.45 35.20 30.20 30.20 28.65
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $28.65 $17.55 $18.09 $15.53 $19.47 $25.59 $18.89 $18.40
Feb. 28.65 18.09 18.09 18.09 19.51 21.98 18.47 17.96
March 12.85 18.09 17.99 18.09 18.97 17.97 17.97 18.84
April 11.00 18.09 16.53 18.47 17.63 17.65 18.07 19.23
May 12.25 18.09 17.13 18.88 16.46 19.29 18.83 18.99
June 11.75 18.09 16.98 18.29 15.71 18.59 20.18 18.62
July 9.85 18.09 16.98 18.17 14.95 18.36 21.38 17.57
Aug. 12.10 18.09 15.33 17.39 19.32 19.80 20.94 17.65
Sept. 13.70 18.09 15.33 17.21 28.15 19.29 20.38 17.07
Oct. 13.65 18.09 13.73 17.61 35.39 20.85 20.46 17.17
Nov. 13.75 18.09 12.63 18.13 33.64 21.50 20.14 16.12
Dec. 14.65 18.09 13.03 18.35 29.07 20.86 19.31 14.58
ARUN CONDENSATE Indonesia
Gravity: 54.3 Sulfur: >0.01 Loading Port: Lhokseumawe
Production
About 90,000 barrels a day in association with gas produced for Arun liquefied natural
gas exports, and volumes have been declining as the gas becomes drier. Output is
expected to hit 20,000 b/d or so by 2000.
Quality
A high-quality, naphtha-rich condensate excellent for gasoline manufacturing or blend-
ing with heavy crude oils to improve refined product yield.
Producer
Operated by Mobil under a production-sharing contract with state Pertamina. Production
is split 70-30 in favor of Pertamina.

Almost the entire production is exported, making it the third-largest export stream after
Minas and Duri, with a wide range of buyers. Mobil handles sales on behalf of Pertamina.
Since liquids production is linked to LNG facilities, output cannot be shut in without dis-
rupting gas supply.
Contract Price. This formula has two components of equal weight. The first component is
linked to the average prices for five spot crude oils Indonesian Minas, Malaysian Tapis,
Australian Gippsland, Dubai, and Oman over the calendar month as reported by the
Asian Petroleum Price Index. The average differential between the basket and the spot
price of Ardjuna over the last 52 weeks is then applied to arrive at a 50% weighting for
the term-contract price. The second 50% component is the average of spot prices over the
month in Platt's and Rim. The two components are averaged to arrive at the final ICP
price.
Sellers
In addition to absorbing supplies within its own refining system, Mobil markets about
30,000-40,000 b/d to third parties, acting as a marketing agent for Pertamina. Pertamina
also sometimes sells about 10,000-20,000 b/d through its Japanese marketing affiliate (see
Ardjuna for details).
Mobil Sales & Supply Corp., Singapore: 18 Pioneer Road, 2262 Singapore. Tel.:
(65) 660-6401, Fax: (65) 264-1693.
Loading Port
Lhokseumawe. 05.15 N. 97.07 E. The terminal is located on the north coast of Sumatra,
and it contains several oil-loading berths, in addition to LNG-loading facilities. The sin-
gle-buoy mooring facility is designed for tankers of 40,000-280,000 deadweight tons.
ARUN CONDENSATE ASSAY

Crude Oil Crude Oil
Cut Points Yield
LPG 7.3
Light Naphtha <100 24.1
Paraffins % Wt. 42
Smoke Point mm 17
Cetane Index 53
ATTAKA Indonesia
Gravity: 42.3 Sulfur: 0.09 Loading Port: Santan
Production
About 50,000 barrels a day from fields that lie mostly offshore eastern Kalimantan
(Borneo) under a production-sharing contract with state Pertamina.
Quality
Light, low-sulfur crude oil with a high light-product yield and an unusually low pour point
for an Indonesian grade. Despite the crude oils low wax content, it still produces a waxy
residual oil with a high pour point. Sometimes sold as a blend with Badak crude oil.
Producers
Operator Unocal (50%) with Japanese Inpex (50%). Production split is 85-15 in favor of
Pertamina after allowing for cost-recovery oil going to producers and excluding set vol-
umes that producers must sell to the domestic market at discounted prices.
Exports have risen to about 40,000 b/d as less of the grade is being absorbed locally at the
Cilacap refinery on Java. Japan alone accounts for about 15,000 b/d of Attaka purchases.
Asian Petroleum Price Index. The average differential between the basket and the spot price
of Ardjuna over the last 52 weeks is then applied to arrive at a 50% weighting for the term-
contract price. The second 50% component is the average of spot prices over the month in
Platt's and Rim. These two components are averaged to arrive at the final ICP price.
Sellers
And Trading Company is used, a 50-50 joint ventures between Pertamina and Japanese
buyers. Sales to Korea are handled by Korea-Indonesia Petroleum Company (Kipco) and
5562-6504.
Korea 10010. Tel: (822) 752-0592. Fax: (822) 752-0596.
Tel: (852-5) 260-341. Fax: (852-5) 2519-8909.
(62-21) 525-0120.
Unocal International Supply & Trading Co.: Jakarta Representative Office, Mulia
Tower, Suite 1511, Jl. Jendral Gatot Subroto Kav. 9-11, Jakarta 1293, Indonesia. Tel.: (62-
21) 517-274, Fax: (62-21) 517-276.
Loading Port
Santan. 00.07 S. 117.32 E. The Santan terminal, located on the east coast of Kalimantan
about 80 miles north of Balikpapan, consists of a single-point mooring loading berth
approximately 4.3 miles offshore in about 87 feet (28 meters) of water. Size restrictions
are a minimum of 18,000 deadweight tons and a maximum of 125,000 dwt.
ATTAKA ASSAY
Crude Oil Crude Oil
Cut Points Yield
Paraffins % Wt. 41
Naphthenes % Wt. 35
Smoke Point mm 16
Cetane Index 52.6
ATTAKA OFFICIAL TERM-CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $14.10 $14.95 $30.25 $37.75 $37.55 $36.25 $30.95 $30.95
Feb. 14.10 14.95 32.25 37.75 37.55 30.95 30.95 28.65
March 14.10 14.95 32.25 37.75 37.55 30.95 30.95 28.65
April 14.10 17.00 32.25 37.75 37.55 30.95 30.95 28.65
May 14.10 18.00 34.25 37.75 37.55 30.95 30.95 28.65
June 14.10 21.00 34.25 37.75 37.55 30.95 30.95 28.65
July 14.10 23.50 34.25 37.75 37.55 30.95 30.95 28.65
Aug. 14.10 23.50 34.25 37.75 37.55 30.95 30.95 28.65
Sept. 14.10 23.50 34.25 37.55 37.55 30.95 30.95 28.65
Oct. 14.10 23.50 34.25 37.55 37.55 30.95 30.95 28.65
Nov. 14.10 23.50 34.25 37.55 36.25 30.95 30.95 28.65
Dec. 14.10 27.90 34.25 37.55 36.25 30.95 30.95 28.65
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $28.65 $18.20 $18.79 $15.63 $20.15 $26.18 $19.17 $19.22
Feb. 28.65 18.79 18.79 18.79 20.19 22.59 19.37 18.73
March 13.55 18.79 18.69 18.79 19.66 18.62 18.86 19.58
April 11.45 18.79 17.23 18.67 18.31 18.31 18.96 19.96
May 12.90 18.79 17.83 19.12 17.13 18.95 19.73 19.67
June 12.25 18.79 17.68 18.57 16.36 19.27 21.13 19.24
July 10.15 18.79 17.68 18.51 15.57 19.60 20.34 18.09
Aug. 11.90 18.79 16.03 17.77 19.53 20.10 21.95 18.09
Sept. 13.55 18.79 16.03 17.68 28.76 20.64 21.41 17.46
Oct. 13.95 18.79 14.43 18.07 35.98 21.69 21.48 17.54
Nov. 14.25 18.79 12.73 18.67 34.23 22.35 21.13 16.49
Dec. 15.40 18.79 13.13 18.98 29.70 21.69 20.23 14.98
BELIDA Indonesia
Gravity: 40.0 Sulfur: 0.01 Loading Port: Belida
Production
The first major light, sweet crude oil find in Indonesia in more than a decade began pro-
duction at the end of 1992 from an offshore field in the South China Sea that lies south
of Natuna Island. Output was about 115,000 barrels a day in 1995, up from 75,000 b/d
in 1992.
Quality
Asian-type light, low-sulfur crude oil with high wax content.
Producers
Operator Conoco (40%) with Texaco (25%), Chevron (17.5%), and Japans Inpex (17.5%).
Production split 85-15 in favor of Pertamina after allowing for cost-recovery oil going to
producers and excluding set volumes that producers must sell to the domestic market.
About 65,000-70,000 b/d is exported to a wide variety of customers with cargoes going
to Australia, Singapore, the US West Coast, and Japan.
Pricing is based on a complex retroactive formula known as the ICP or Indonesian
price of Ardjuna over the last 52 weeks is then applied to arrive at a 50% weighting for the
term-contract price. The second 50% component is the average of spot prices over the
month in Platt's and Rim. These two components are averaged to reach the final ICP price.
Sellers
And Trading Company is used, a 50-50 joint venture between Pertamina and Japanese
buyers. Sales to Korea are handled by Korea-Indonesia Petroleum Company (Kipco) and
5562-6504.
Korea 10010. Tel: (822)752-0592. Fax: (822) 752-0596.
Tel: 5-260-341. Fax: 5-2519-8909.
(62-21) 525-0120.
Conoco International (Singapore): 80 Marine Parade Road 17-01A, Parkway
Parade, Singapore 1544. Tel.: (65) 348-0771, Fax: (65) 345-0792.
Loading Port
Belida. Offshore loading facility at the production platform in the South China Sea. No
practical restrictions on vessel size.
BELIDA ASSAY
Assay not available.
CINTA Indonesia
Gravity: 32.8 Sulfur: 0.12 Loading Port: Cinta
Other Names: Cinta Blend, Intan-Cinta
Production
Output of about 50,000-60,000 barrels a day from offshore fields near southeast Sumatra.
The Cinta field is adjacent to the more recent Widuri and Intan discoveries. Intan was ini-
tially commingled with Cinta due to its similar quality, but it is now exported with Widuri.
Quality
A typical medium-gravity Asian crude oil with low-sulfur but high-wax content, similar
in quality to Indonesian benchmark Minas. Well-suited for cracking.
Producers
Maxus is the operator (55.68%), with small minority stakes held by Japans Inpex
(13.07%), Repsol (9.87%), Itochu (7.68%), Deminex (5%), Warrior Oil (3.77%), Oryx
(3.71%), and TCR (1.23%). Production split is 85-15 in favor of Pertamina after allowing
for cost-recovery oil going to producers and excluding set volumes that producers must
sell to the domestic market at discounted prices.
The crude oil has been sold mainly to Japan, which takes about 90% of total exports of
about 45,000 b/d. Japan uses the crude oil mainly for direct burning in power plants.
Contract Price. This formula has two components of equal weight. The first is linked to
the average prices for five spot crude oils Indonesian Minas, Malaysian Tapis,
month in Platt's and Rim. These two are averaged to reach the final ICP price.
Sellers
And Trading Company, a 50-50 joint venture between Pertamina and Japanese buyers, is
used. Sales to Korea are handled by Korea-Indonesia Petroleum Company (Kipco), and
17-22 Akasaka 2, Chome Minatoku, Tokyo, Japan. Tel.: (81-3) 5562-6501. Fax: -6504.
Korea 10010. Tel: (822)752-0592. Fax: (822) 752-0596.
Tel: (852-5) 260-341. Fax: (852-5) 2519-8909.
(62-21) 525-0120.
Maxus Energy Trading Co.: 1 Scotts Road, #18-03 Shaw Centre, 0922 Singapore.
Tel.: (65) 732-9266, Fax: (65) 733-3397.
Loading Port
Cinta. 05.27 S. 106.14 E. The offshore Cinta terminal, located about 40 miles north of the
Java coast and east of the southern tip of Sumatra in the Java Sea, consists of two stor-
age vessels and two export single-buoy moorings. The system is designed to accommo-
date tankers of up to 175,000 deadweight tons, but due to limited storage, ships of that
size can only take partial cargoes without waiting for storage to fill up again.
CINTA ASSAY
Crude Oil Crude Oil
Viscosity Centistokes 17.86 Wax Content % Weight 19.56
Cut Points Yield
Paraffins % Wt. 78.3
Aromatics % Wt. 8.2
Smoke Point mm 28
Cetane Index 74
CINTA OFFICIAL TERM-CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $13.15 $13.50 $27.00 $34.50 $34.00 $33.30 $28.25 $28.25
Feb. 13.15 13.50 29.00 34.50 34.00 28.25 28.25 27.25
March 13.15 13.50 29.00 34.50 34.00 28.25 28.25 27.25
April 13.15 15.20 29.00 34.50 34.00 28.25 28.25 27.25
May 13.15 15.70 31.00 34.50 34.00 28.25 28.25 27.25
June 13.15 17.75 31.00 34.50 34.00 28.25 28.25 27.25
July 13.15 21.01 31.00 34.50 34.00 28.25 28.25 27.25
Aug. 13.15 21.01 31.00 34.50 34.00 28.25 28.25 27.25
Sept. 13.15 21.01 31.00 34.00 34.00 28.25 28.25 27.25
Oct. 13.15 21.01 31.00 34.00 34.00 28.25 28.25 27.25
Nov. 13.15 23.50 31.00 34.00 33.30 28.25 28.25 27.25
Dec. 13.15 25.40 31.00 34.00 33.30 28.25 28.25 27.25
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $27.25 $16.08 $17.20 $14.64 $18.85 $25.10 $17.88 $17.29
Feb. 27.25 17.10 17.20 17.20 18.90 21.44 17.42 16.91
March ... 17.10 17.10 17.20 18.39 17.38 16.87 17.82
April ... 17.10 15.64 17.99 17.04 17.04 16.97 18.23
May ... 17.10 16.14 18.41 15.85 17.68 17.68 18.03
June ... 17.10 16.09 17.82 15.10 17.96 18.97 17.75
July ... 17.10 16.09 17.68 14.35 18.21 20.12 16.78
Aug. 9.30 17.20 14.44 16.87 18.74 18.65 19.64 16.92
Sept. 11.60 17.20 14.44 16.71 27.59 19.11 19.05 16.35
Oct. 12.60 17.20 12.84 17.03 34.85 20.08 19.13 16.47
Nov. 13.20 17.20 11.74 17.50 33.16 20.64 18.87 15.40
Dec. 13.20 17.20 12.14 17.69 28.61 19.91 18.11 13.84
DURI Indonesia
Gravity: 20.3 Sulfur: 0.19 Loading Port: Dumai

Production
About 250,000-300,000 barrels a day is produced from fields in central Sumatra, follow-
ing an extensive steam-flooding program. About 20% of the total, or 50,000-60,000 b/d,
is used to generate the steam for injection into the reservoirs.
Quality
A typical heavy Asian crude oil with an extremely high wax content and a high yield of
hard-to-handle low-sulfur waxy residual oil.
Producers
Caltex Pacific Indonesia, a 50-50 joint venture between Chevron and Texaco, is the oper-
ator, with no other partners. State Pertamina receives the majority share of output after
allowing for cost-recovery oil going to the producer and excluding a set volume that
Caltex must sell to the domestic market at a discounted price. Pertamina also sells some
volumes back to Caltex for international marketing.
The crude oil is sold widely in Asia, mainly on a term-contract basis, with exports of
about 130,000 b/d. Japan is the main importer, taking about 35,000 b/d, with over half
of that volume for direct burning. South Korea and China are also buyers. Over 70,000
b/d is used as feedstock at the Indonesian refineries of Dumai and Balikpapan. Chevron
sometimes takes volumes to Singapore and its West Coast refineries, but Texaco rarely
uses the crude oil in its own system.
Sellers
and Trading Company, a 50-50 joint venture between Pertamina and Japanese buyers, is
used. Sales to Korea are handled by Korea-Indonesia Petroleum Company (Kipco) and
Pacific Petroleum and Trading Company: East Tower 11F, Akasaka Twin Tower,
5562-6504.
Korea 10010. Tel: (822)752-0592. Fax: (822) 752-0596.
Tel: (852-5) 260-341. Fax: (852-5) 2519-8909.
(62-21) 525-0120.
Caltex Trading Pte. Ltd.: Caltex House, 30 Raffles Place, 0104 Singapore. Tel.: (65)
533-3000.
Loading Port
Dumai. 01.41 N. 101.27 E. The Dumai terminal, located on the northeast coast of the
island of Sumatra, 150 miles west of Singapore, has four crude oil-loading berths. Size
restrictions are up to 150,000 deadweight tons and draft of 57 feet.
DURI ASSAY
Crude Oil Crude Oil
(Kinematic) at 100 F Wax Content % Weight 13
Cut Points Yield
Smoke Point mm 13
Cetane Index 41.1
DURI OFFICIAL TERM-CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $13.55 $13.90 $27.50 $35.00 $35.00 $33.10 $27.85 $25.95
Feb. 13.55 13.90 29.50 35.00 35.00 27.85 27.85 25.95
March 13.55 13.90 29.50 35.00 35.00 27.85 27.85 25.95
April 13.55 15.65 29.50 35.00 35.00 27.85 25.95 25.95
May 13.55 16.15 31.50 35.00 35.00 27.85 25.95 25.95
June 13.55 18.25 31.50 35.00 35.00 27.85 25.95 25.95
July 13.55 21.12 31.50 35.00 35.00 27.85 25.95 25.95
Aug. 13.55 21.12 31.50 35.00 35.00 27.85 25.95 24.00
Sept. 13.55 21.12 31.50 35.00 35.00 27.85 25.95 24.00
Oct. 13.55 21.12 31.50 35.00 35.00 27.85 25.95 24.00
Nov. 13.55 23.50 31.50 35.00 33.10 27.85 25.95 24.00
Dec. 13.55 25.50 31.50 35.00 33.10 27.85 25.95 24.00
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $24.00 $14.28 $16.10 $13.54 $17.09 $22.79 $14.90 $15.32
Feb. 24.00 15.60 16.10 16.10 17.86 19.14 14.20 14.96
March ... 15.60 16.00 16.10 17.26 15.14 13.72 15.92
April ... 15.60 14.54 16.57 15.75 14.61 13.81 16.61
May ... 15.60 15.14 16.99 14.37 15.06 14.51 16.70
June ... 15.60 14.99 16.39 13.48 15.29 15.78 16.07
July ... 15.60 14.99 16.25 12.59 15.38 17.02 14.68
Aug. 7.90 16.10 13.34 15.41 16.77 15.57 16.78 14.34
Sept. 9.90 16.10 13.34 14.81 25.41 15.71 16.36 13.70
Oct. 10.80 16.10 11.74 15.10 32.66 16.26 16.40 13.92
Nov. 11.40 16.10 10.64 15.72 30.90 16.97 16.38 12.87
Dec. 11.40 16.10 11.04 15.94 26.40 16.58 15.94 11.18
HANDIL Indonesia
Gravity: 32.2 Sulfur: 0.1 Loading Port: Senipah
Other Names: Senipah
Production
About 40,000 barrels a day from offshore fields on the east coast of Kalimantan, down
from a peak of over 140,000 b/d in 1986.
Quality
Typical medium-gravity, low-sulfur Asian crude oil similar to Indonesian benchmark
Minas. High wax content produces hard-to-handle, high-pour-point fuel oil. Good for
gasoline production through reforming, also has a wide kerosine cut.
Producers
Operator Total (50%) with Japans Inpex (50%). The production split is 85-15 in favor of
state Pertamina after allowing for cost-recovery oil going to producers and excluding set
volumes that producers must sell to the domestic market at discounted prices.
With Pertamina absorbing a larger share of declining output internally at the nearby
Balikpapan refinery, international spot sales are rare, and most of the overseas sales of
about 25,000 b/d are committed on a term basis to Japan, where the crude oil is used
both for refining and direct burning.
the term-contract price. The second 50% component is the average of spot prices for the
crude oil over the month in Platt's and Rim. These two are averaged to arrive at the final
ICP price.
Sellers
and Trading Company, a 50-50 joint venture between Pertamina and Japanese buyers, is
5562-6504.
Korea 10010. Tel: (822) 752-0592. Fax: (822) 752-0596.
Tel: (852-5) 260-341. Fax: (852-5) 2519-8909.
(62-21) 525-0120.
Total Petroleum (Southeast Asia) Pte. Ltd.: 331 North Bridge Road, #23-01 Odeon
Tower, Singapore 0718. Tel.: (65) 336-1333, Fax: (65) 336-7100.
Loading Port
Senipah. 01.03 S. 117.13 E. The Senipah Sea Terminal, located about 26 miles (45 kilo-
meters) northeast of Balikpapan on the east coast of Kalimantan, consists of two berths.
The maximum size vessel is 125,000 deadweight tons. The terminal has storage for
631,000 barrels of Bekapai and 1.91-million barrels of Handil.
HANDIL ASSAY
Crude Oil Crude Oil
(Kinematic) at 100 F Wax Content % Weight 22
Cut Points Yield
Paraffins % Wt. 18
Aromatics % Wt. 53
Smoke Point mm 12
Cetane Index 50.5
HANDIL OFFICIAL TERM-CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $13.30 $13.95 $27.55 $35.30 $34.00 $34.80 $29.50 $29.50
Feb. 13.30 13.95 29.55 35.30 34.00 29.50 29.50 28.00
March 13.30 13.95 29.55 35.30 34.00 29.50 29.50 28.00
April 13.30 15.70 29.55 35.30 34.00 29.50 29.50 28.00
May 13.30 16.30 31.55 35.30 34.00 29.50 29.50 28.00
June 13.30 18.30 31.55 35.30 34.00 29.50 29.50 28.00
July 13.30 21.16 31.55 35.30 34.00 29.50 29.50 28.00
Aug. 13.30 21.16 31.55 35.30 34.00 29.50 29.50 27.80
Sept. 13.30 21.16 31.55 34.00 34.00 29.50 29.50 27.80
Oct. 13.30 21.16 31.55 34.00 34.00 29.50 29.50 27.80
Nov. 13.30 23.50 31.55 34.00 34.80 29.50 29.50 27.80
Dec. 13.30 25.60 31.55 34.00 34.80 29.50 29.50 27.80
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. ... ... $17.61 $15.15 $19.25 $25.38 $18.39 $17.88
Feb. ... $17.61 17.61 17.61 19.29 21.77 17.92 17.48
March ... 17.61 17.51 17.61 18.75 17.76 17.39 18.38
April ... 17.61 16.05 18.73 17.41 17.42 17.51 18.76
May ... 17.61 16.65 18.65 16.24 18.05 18.25 18.54
June ... 17.61 16.50 18.09 15.49 18.34 19.56 18.21
July ... 17.61 16.50 17.97 14.74 18.61 20.72 17.19
Aug. ... 17.61 14.85 17.17 19.10 19.06 20.25 17.31
Sept. ... 17.61 14.85 17.05 27.95 19.54 19.68 16.74
Oct. ... 17.61 13.25 17.40 35.17 20.53 19.76 16.87
Nov. ... 17.61 12.15 17.90 33.43 21.11 19.49 15.82
Dec. ... 17.61 12.65 18.09 28.86 20.43 18.72 14.29
LALANG Indonesia
Gravity: 39.2 Sulfur: 0.11 Loading Port: Lalang Marine Terminal

Other Names: Lalang Export Blend
Production
Output of about 25,000 barrels a day from a cluster of small offshore fields off the east
coast of central Sumatra under a standard Indonesian production-sharing contract. The
main fields are Lalang, Melibur, Kurau, and Mengkapan. Output peaked at about 60,000
b/d in 1989-90.
Quality
A typical light, low-sulfur Asian grade with high wax content. Good yields of gasoline
and middle distillates are possible.
Producers
Lasmo is the operator with a 23.4% share, along with partners Arco (32.58%), Oryx
(21.46%), Nippon Oil (17.55%), and Kondur Petroleum (5%). Production split is 85-15 in
favor of Pertamina after allowing for cost-recovery oil going to producers and excluding
set volumes that producers must sell to the domestic market at discounted prices.
Exports have slipped to about 15,000 b/d, with about half going to Japan and about half
to nearby Singapore. The remainder of the grade is absorbed locally.
the average prices for five spot grades Indonesian Minas, Malaysian Tapis, Australian
Gippsland, Dubai, and Oman over the calendar month as reported by the Asian
Petroleum Price Index. The average differential between the basket and the spot price of
Ardjuna over the last 52 weeks is then applied to arrive at a 50% weighting for the term-
contract price. The second 50% component is the average of spot prices over the month
in Platt's and Rim. These two are averaged to reach the final ICP price.
Sellers
In addition to any volumes sold by equity producers, Pertamina sells the grade via four
marketing affiliates. For sales to Japan, Indonesias largest market, Pacific Petroleum and
Trading Company, a 50-50 joint venture between Pertamina and Japanese buyers, is
5562-6504.
Korea 10010. Tel: (822)752-0592. Fax: (822) 752-0596.
Tel: (852-5) 260-341. Fax: (852-5) 2519-8909.
(62-21) 525-0120.
Loading Port
Lalang Marine Terminal. 01.22 S. 102.15.03 E. The terminal is located off the east coast
of central Sumatra south of Dumai and about 80 kilometers west of Singapore. It can
handle ships up to 140,000 deadweight tons with a depth of 22.7 meters. Storage capac-
ity is 1.012-million barrels.
LALANG ASSAY
Crude Oil Crude Oil
(Kinematic) at 100 F Wax Content % Weight 27.4
Cut Points Yield
Aromatics % Wt. 3.1
Smoke Point mm 28
Cetane Index 72
MINAS Indonesia
Gravity: 34.1 Sulfur: 0.09 Loading Port: Dumai

Other Names: Sumatran Light, Sumatran Light Export Blend, SLC
Production
About 385,000-400,000 barrels a day is produced from the Minas field and others onshore
in central Sumatra. Minas is by far the largest crude oil stream in Indonesia.
Quality
Indonesias benchmark grade is typical of medium-gravity Asian crude oils, which are
low in sulfur but high in wax content and pour point.
Producers
Caltex Pacific Indonesia, a 50-50 joint venture between Chevron and Texaco, is the oper-
ator, with no other partners. State Pertamina receives a 90% share of the output after
allowing for cost-recovery oil going to the producer and excluding a set volume that
Caltex must sell to the domestic market at a discounted price. Pertaminas share was
increased in 1992, when the contract with Caltex was extended to 2023.
About 235,000 b/d of Minas is exported, and Japan is the primary market, taking about
195,000 b/d both from Pertamina and Caltex sources in 1995. The grade is often used as
boiler fuel by Japanese utilities. Caltex, Chevron, and Texaco also take some of the grade
for their own refining systems. Pertamina has increased its reliance on the grade for local
needs, which has reduced export volumes from over 300,000 b/d in the late 1980s. Minas
is one of the most actively traded spot crude oils in the region with about 6-8 wet bar-
rel deals a month.
Pricing is based on a complex retroactive formula known as the ICP or Indonesian
price of Ardjuna over the last 52 weeks is then applied to arrive at a 50% weighting for the
term-contract price. The second 50% component is the average of Ardjuna spot prices over
the month in Platt's and Rim. These two are averaged to reach the final ICP price.
Sellers
Korea 10010. Tel: (822)752-0592. Fax: (822) 752-0596.
Tel: (852-5) 260-341. Fax: (852-5) 2519-8909.
(62-21) 525-0120.
Caltex Trading Pte. Ltd.: Caltex House, 30 Raffles Place, 0104 Singapore. Tel.: (65)
533-3000.
Loading Port
Dumai. 01.41 N. 101.27 E. The Dumai terminal, located on the northeast coast of the
island of Sumatra, 150 miles west of Singapore, has three crude oil-loading berths. Size
restrictions are up to 150,000 deadweight tons and draft of 57 feet.
MINAS ASSAY
Crude Oil Crude Oil
(Kinematic) at 100 F Wax Content % Weight 34.2
Cut Points Yield
Paraffins % Wt. 60
Naphthenes % Wt. 37
Aromatics % Wt. 3
Smoke Point mm 26
Cetane Index 61.8
MINAS OFFICIAL TERM-CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $13.55 $13.90 $27.50 $35.00 $35.00 $34.53 $29.53 $29.53
Feb. 13.55 13.90 29.50 35.00 35.00 29.53 29.53 28.53
March 13.55 13.90 29.50 35.00 35.00 29.53 29.53 28.53
April 13.55 15.65 29.50 35.00 35.00 29.53 29.53 28.53
May 13.55 16.15 31.50 35.00 35.00 29.53 29.53 28.53
June 13.55 18.25 31.50 35.00 35.00 29.53 29.53 28.53
July 13.55 21.12 31.50 35.00 35.00 29.53 29.53 28.53
Aug. 13.55 21.12 31.50 35.00 35.00 29.53 29.53 28.33
Sept. 13.55 21.12 31.50 35.00 35.00 29.53 29.53 28.33
Oct. 13.55 21.12 31.50 35.00 35.00 29.53 29.53 28.33
Nov. 13.55 23.50 31.50 35.00 34.53 29.53 29.53 28.33
Dec. 13.55 25.50 31.50 35.00 34.53 29.53 29.53 28.33
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $28.33 $16.28 $17.56 $15.00 $19.24 $25.48 $18.32 $17.89
Feb. 28.33 17.56 17.56 17.56 19.32 21.79 17.88 17.51
March 12.90 17.56 17.46 17.56 18.83 17.72 17.35 18.42
April 10.45 17.56 16.00 18.21 17.49 17.37 17.47 18.84
May 11.35 17.56 16.60 18.64 16.30 18.01 18.20 18.67
June 11.15 17.56 16.45 18.07 15.55 18.30 19.51 18.41
July 9.50 17.56 16.45 17.94 14.81 18.56 20.67 17.44
Aug. 10.10 17.56 14.80 17.15 19.19 19.00 20.22 17.56
Sept. 12.00 17.56 14.80 17.02 28.03 19.49 19.64 17.01
Oct. 13.00 17.56 13.20 17.36 35.29 20.45 19.73 17.13
Nov. 13.50 17.56 12.10 17.86 33.57 21.04 19.47 16.07
Dec. 13.50 17.56 12.50 18.07 29.01 20.34 18.70 14.50
WIDURI Indonesia
Gravity: 33.2 Sulfur: 0.07 Loading Port: Widuri
Other Names: Widuri Blend
Production
Output of about 75,000 barrels a day in 1995 included volumes from both the Widuri
and Intan fields, which lie offshore between the northwest coast of Java and the south-
east tip of Sumatra. This is down from peak levels of about 100,000 b/d.
Quality
A typical medium-gravity Indonesian crude oil somewhat inferior to Minas. It is espe-
cially good for cracking, but Widuri initially faced problems establishing market outlets
due to its high wax content.
Producers
Maxus is the operator (55.68%), with small minority stakes held by Inpex (13.07%),
Repsol (9.87%), Itochu (7.68%), Deminex (5%), Warrior Oil (3.77%), Oryx (3.71%), and
TCR (1.23%). Production split is 85-15 in favor of Pertamina after allowing for cost-recov-
ery oil going to producers and excluding set volumes that producers must sell to the
domestic market at discounted prices.
Virtually all production is exported, making Widuri one of Indonesias larger export
streams after Minas, Duri, Arun, and Belida. Japanese buyers take about half of the
exports. China is also a buyer along with Australia.
Contract Price. This formula has two components of equal weight. The first is linked to the
average prices for five spot crude oils Indonesian Minas, Malaysian Tapis, Australian
Gippsland, Dubai, and Oman over the calendar month as reported by the Asian
Petroleum Price Index. The average differential between the basket and the spot price of
Ardjuna over the last 52 weeks is then applied to arrive at a 50% weighting for the term-
contract price. The second 50% component is the average of Ardjuna spot prices over the
Sellers
Korea 10010. Tel: (822)752-0592. Fax: (822) 752-0596.
Tel: (852-5) 260-341. Fax: (852-5) 2519-8909.
(62-21) 525-0120.
Maxus Energy Trading Co.: 1 Scotts Road, #18-03 Shaw Centre, 0922 Singapore.
Tel.: (65) 732-9266, Fax: (65) 733-3397.
Loading Port
Widuri. 4.40.16 S. 106.39.50 E. The offshore terminal has two single-buoy moorings that
can each take ships up to 175,000 deadweight tons. They are served by a 1.9-million-
barrel storage vessel.
WIDURI ASSAY
Crude Oil Crude Oil
Barrels /Metric Ton 7.338 Pour Point Temp. C/F 45/113
Viscosity Centistokes 8.98 Reid Vapor Press. Lbs/Sq. In. <0.5
(Kinematic) at 60 C Wax Content % Weight 39.3
Cut Points Yield
<149 Octane RON Clear Octane 61.2
Naphthenes % Wt. 17
Aromatics % Wt. 0.2
149-212 Octane RON Clear Octane 53.8
Aromatics % Wt. 0.7
Aromatics % Wt. 2.3
302-482 Freezing Point Temp. C -39.5
Cetane Index 57.5
Heavy Gas Oil 300-370 12.51 12.06 Heavy Gas Oil
572-698 Cloud Point Temp. C 13
FOROOZAN BLEND Iran
Gravity: 30.7 Sulfur: 2.5 Loading Port: Kharg Island

Other Names: Forouzan, Fereidoon, Darius, Cyrus
Production
Combined flows of about 275,000 barrels a day from the offshore Foroozan, Dorood,
Abuzar, and Soroosh fields, which were severely damaged in the war with Iraq but have
now been restored with further increases in capacity to over 500,000 b/d by 2000.
Quality
Similar to Iranian Heavy, but somewhat higher in sulfur. The assay below reflects the
combined fields at their restored volume, but quality may change with rising output.
Producers
State National Iranian Oil Co. is the exclusive producer.

Cargoes are mainly exported on an f.o.b. basis from the nearby Kharg Island terminal to
customers in the Asia-Pacific region, mainly on a term-contract basis. Japan imports over
50,000 b/d. Prices are set according to a formula similar to Iran Heavy. Spot sales are rare.
Sellers
NIOC is the exclusive seller. The firm has offices around the world, including a trading
subsidiary in London called Nafta-Iran.
NIOC Iran: Crude Oil Marketing, NIOC Central Building, Taleghani Ave., Tehran,
Iran. Phone: (98-21) 646-0351. Fax: (98-21) 646-0302.
NIOC and Nafta-Iran Intertrade: NIOC House, 4 Victoria St., London SW1H 0NE,
UK. Tel.: (44-171) 227-2138, Fax: (44-171) 976-8315.
NIOC Toronto: 4950 Young St., Suite 808, North York, Toronto, Ontario, Canada
M2N 6K1. Tel.: (416) 459-9426, Fax: (416) 590-9836.
NIOC Singapore: 70 Shenton Way, 17-03 Marina House, 0207 Singapore. Tel.: (65)
227-3722, Fax: (65) 227-3622.
Loading Port
Kharg Island. 29.14 N. 50.19 E. Located at the northeast end of the Mideast Gulf,
Kharg Island has a main terminal and the four-berth Sea Island on the west side of
Kharg. The terminals T-jetty has a total of 10 crude oil-loading berths. Only about half
the berths are in use, with the others requiring further reconstruction. Damage to
onshore storage during the war with Iraq requires the use of storage tankers to main-
tain smooth loading operations.
FOROOZAN BLEND ASSAY

Crude Oil Crude Oil
Viscosity Centistokes 8.61 Reid Vapor Press. psi 5.7
(Kinematic) at 40 C Nickel ppm 13
Hydrogen Sulfide ppm 6 Vanadium ppm 48
Con. Carbon Residue % Weight 6.16 Iron ppm 10
Wax Content % Weight 7.18 Lead ppm 2.7
Sodium ppm 14
IRAN HEAVY Iran

Other Names: Gachsaran
Production
In 1995-96, Iran Heavy production was about 1.5-million barrels a day, with exports of
around 1.1-million b/d. Iran Heavy flows are slightly larger than those of Iran Light, mak-
ing it the countrys largest crude oil stream. Among the biggest fields in the Iran Heavy
stream are Gachsaran and Bibi Hakimeh, which are heavily dependent on gas injection
programs to maintain output levels.
Quality
A typical medium-heavy, high-sulfur Mideast crude oil similar in quality to Arab Medium
or Kuwait. Iran Heavy has become slightly heavier and higher in sulfur over the last 10
years.
Producers
Cargoes are sold from the Kharg Island terminal into Northwest Europe, the
Mediterranean, and the Far East. Volumes are usually acquired on a term or spot basis
from NIOC. Traders sometimes resell the grade into the Mediterranean spot market, but
this practice has decreased with NIOCs greater focus on sales to refiners, which was rein-
forced by the US ban on purchases by American companies in 1995. The traditional dis-
tinctions between spot and term sales are particularly blurred in the case of Irans main
export grades. The country maintains a stable of some 40 regular buyers, although some
buy only monthly spot cargoes, while others hold contracts of up to a year in length.
Prices to Europe are set on a cargo-by-cargo basis according to a formula that is set
on a variable differential to dated Brent quotes. Supplies can be purchased both on an
f.o.b. basis from Kharg Island and on a delivered basis from Rotterdam storage. To the
Far East, Iran Heavy is sold at a variable differential to spot Dubai with a special adjust-
ment in the formula to compensate for swings in the Oman-Dubai price spread.
Sellers
NIOC is the exclusive seller of f.o.b. cargoes from Kharg Island, and has offices around
the world.
Iran. Phone: (98-21) 646-0351. Fax: (98-21) 646-0302.
UK. Tel.: (44-171) 227-2138, Fax: (44-171) 976-8315.
M2N 6K1. Tel.: (416) 459-9426, Fax: (416) 590-9836.
227-3722, Fax: (65) 227-3622.
Loading Ports
Kharg Island. 29.14 N. 50.19 E. Located at the northeast end of the Mideast Gulf, Kharg
Island has a main terminal and the four-berth Sea Island on the west side of Kharg. The
terminals T-jetty has a total of 10 crude oil-loading berths. Only about half the berths are
in use, with the others requiring further reconstruction. Damage to onshore storage during
the war with Iraq requires the use of storage tankers to maintain smooth loading opera-
IRAN HEAVY ASSAY

Crude Oil Crude Oil
Con. Carbon Residue % Weight 6.17 Iron ppm 9.1
Sodium ppm 7.9
IRAN HEAVY TERM-CONTRACT PRICES, 1988-93
Month 1988 1989 1990 1991 1992 1993
Jan. $15.20 $13.90 $17.29 $18.16 $14.49 $14.26
Feb. 14.84 14.05 16.53 13.32 14.34 14.98
March 13.18 15.40 15.61 13.82 15.14 15.21
April 14.67 16.75 13.84 14.72 16.14 15.19
May 14.63 15.50 14.13 14.48 17.42 14.91
June 13.53 15.25 12.78 14.26 17.70 14.26
July 12.78 15.35 14.23 15.67 17.26 13.31
Aug. 12.88 14.85 23.91 16.73 17.00 13.47
Sept. 11.28 15.45 30.86 17.77 17.43 12.99
Oct. 9.65 16.00 31.73 16.94 16.93 13.63
Nov. 9.95 16.00 28.19 15.81 15.89 12.56
Dec. 11.85 16.95 23.46 14.73 15.10 11.22
Note: 1/88-3/91 prices are for f.o.b. sales to Far East destinations. Prices for 4/91-12/93 represent a weighted average of f.o.b.
prices for sales to the Far East and Europe.
IRAN HEAVY SPOT PRICES, 1987-93
Month 1987 1988 1989 1990 1991 1992 1993
Jan. $17.15 $15.30 $13.90 $17.35 $19.35 $14.75 $14.70
Feb. 16.70 14.95 14.05 16.60 14.35 15.35 15.60
March 16.80 13.00 15.55 15.65 14.80 15.35 15.85
April 16.70 14.70 17.40 13.85 15.15 16.15 15.85
May 17.05 14.50 16.25 13.60 16.00 17.10 15.70
June 17.10 13.40 15.55 12.05 15.25 18.50 14.70
July 17.40 13.10 15.65 14.10 15.75 17.95 14.00
Aug. 17.10 12.75 15.10 23.45 16.10 17.45 14.00
Sept. 17.05 11.35 15.90 29.40 17.35 18.05 13.70
Oct. 17.05 9.85 16.00 31.30 18.45 18.25 14.40
Nov. 15.80 10.10 15.95 27.70 18.10 17.25 13.05
Dec. 15.30 12.10 16.90 22.95 14.80 15.80 11.95
IRAN LIGHT Iran

Other Names: Agha Jari
Production
In 1995-96, output was about 1.3-million barrels a day, with exports of about 1-million
b/d from several onshore fields including Agha Jari, Marun, Karanj, and Pazanan. The
Agha Jari field supplies about 270,000 b/d. Both the Karanj and Parsi fields have bene-
fited from extensive investment in gas injection in the early 1990s to maintain flow rates.
Quality
Similar to Arabian Light, Dubai, and other light Mideast grades, it has become a bit heav-
ier and higher in sulfur in recent years as indicated by the earlier assay from 1982.
Producers
Cargoes are sold from the Kharg Island terminal into Northwest Europe, the
Mediterranean, and the Far East. Volumes are usually acquired on a term or spot basis
from NIOC. Traders sometimes resell the grade into the Mediterranean spot market, but
this practice has decreased with NIOCs greater focus on sales to refiners, which was
reinforced by the US ban on purchases by US companies in 1995. The traditional dis-
tinctions between spot and term sales are particularly blurred in the case of Irans main
export grades. The country maintains a stable of some 40 regular buyers, although some
buy only monthly spot cargoes, while others hold contracts of up to a year in length.
Prices to Europe are set on a cargo-by-cargo basis according to a formula that is set
on a variable differential to dated Brent quotes. Supplies can be purchased both on an
f.o.b. basis from Kharg Island and on a delivered basis from Rotterdam storage. To the
Far East, Iran Heavy is sold at a variable differential to spot Dubai with a special adjust-
ment in the formula to compensate for swings in the Oman-Dubai price spread.
Sellers
NIOC is the exclusive seller of f.o.b. cargoes from Kharg Island. Since Iran Light regu-
larly appears in the spot market, traders compete with NIOC in Europe and the Far East
for customers. NIOC has offices around the world.
Iran. Phone: (98-21) 646-0351. Fax: 98-21) 646-0302.
UK. Tel.: (44-171) 227-2138, Fax: (44-171) 976-8315.
M2N 6K1. Tel.: (416) 459-9426, Fax: (416) 590-9836.
227-3722, Fax: (65) 227-3622.
Loading Port
Kharg Island. 29.14 N. 50.19 E. Located at the northeast end of the Mideast Gulf, Kharg
Island has a main terminal and the four-berth Sea Island on the west side of Kharg. The
terminals T-jetty has a total of 10 crude oil-loading berths. Only about half the berths are
in use, with the others requiring further reconstruction. Damage to onshore storage during
the war with Iraq requires the use of storage tankers to maintain smooth loading opera-
tions.
IRAN LIGHT ASSAY

Crude Oil Crude Oil
Con. Carbon Residue % Weight 4.89 Iron ppm 12
Year Of Crude Oil Sample: 1993 Sodium ppm 6.9
IRAN LIGHT AVERAGE TERM-CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $12.64 $13.45 $30.37 $37.00 $34.20 $31.20 $28.00 $29.11
Feb. 12.64 13.45 32.87 37.00 30.20 31.20 28.00 28.05
March 12.64 14.27 32.87 37.00 30.20 28.00 28.00 28.05
April 12.64 16.57 35.37 37.00 30.20 28.00 28.00 28.05
May 12.64 17.09 29.93 37.00 30.20 28.00 28.00 28.05
June 12.64 18.47 29.93 37.00 30.20 28.00 28.00 28.05
July 12.64 22.00 31.93 36.00 31.20 28.00 28.00 28.05
Aug. 12.64 22.21 31.93 36.00 31.20 28.00 28.00 28.05
Sept. 12.64 22.21 31.93 36.00 31.20 28.00 28.00 28.05
Oct. 12.64 23.71 31.93 36.00 31.20 28.00 28.00 26.20
Nov 12.64 25.93 31.93 34.60 31.20 28.00 28.00 27.10
Dec. 12.64 28.71 31.93 34.60 31.20 28.00 28.00 26.40
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $26.65 $17.90 $14.27 $15.35 $17.01 $17.85 $15.85 $15.37
Feb. 14.80 17.50 14.45 16.84 15.64 15.59 15.52 16.24
March 12.20 17.50 14.35 17.36 14.18 16.81 16.54 16.33
April 11.10 17.50 14.49 17.15 13.05 16.09 17.45 16.21
May 11.95 17.50 14.03 15.76 13.44 15.93 18.83 15.94
June 10.95 17.50 13.38 15.38 17.47 16.28 18.78 15.25
July 8.40 17.50 12.51 15.66 24.32 17.33 18.33 14.39
Aug. 12.70 17.50 11.66 16.23 32.97 18.37 18.26 14.62
Sept. 13.70 17.50 10.92 16.67 31.60 19.35 18.64 14.05
Oct. 13.85 17.50 11.02 16.98 29.65 17.96 17.84 14.64
Nov. 14.30 17.50 12.57 18.03 26.08 16.70 16.77 13.53
Dec. 15.55 17.50 14.25 18.17 21.39 16.18 15.62 12.30
Note: Official government selling prices through 1/86, netback formulas from 2/86-2/87, official government selling
price from 2/87-12/87, average spot crude-linked formula price for 1988-93. Note: More recent prices can be found
in Chapter I.
LAVAN BLEND Iran
Gravity: 34.3 Sulfur: 1.87 Loading Port: Lavan Island

Other Names: Sassan, Salman, Rostam
Production
About 140,000 barrels a day comes from three offshore fields in the southeastern part of
the Mideast Gulf to make up the blend. Most output is from the Salman field, the main
platform of which was destroyed by US forces during the Iraq-Iran war and was rebuilt
in the early 1990s. Other fields are Reshadat and Resalat. With the addition of the Balal
field volumes should rise to over 200,000 b/d.
Quality
Similar in quality to Iran Light.
Producers

Cargoes are sold on an f.o.b. basis from Lavan Island, with almost all production enter-
ing the export market and going mainly to customers in the Asia-Pacific region on a term-
contract basis. State Indian Oil Corp. and Japanese companies are the main customers.
Extra volumes have sometimes been fed into the Iran Light export stream. Prices are set
according to a formula similar to that for Iran Light. Spot sales are rare.
Sellers
Iran. Phone: (98-21) 646-0351. Fax: 98-21) 646-0302.
UK. Tel.: (44-171) 227-2138, Fax: (44-171) 976-8315.
M2N 6K1. Tel.: (416) 459-9426, Fax: (416) 590-9836.
227-3722, Fax: (65) 227-3622.
Loading Port
Lavan Island. 26.47 N. 53.20 E. Located on the southeast coastline of Iran, Lavan Island,
which is 13 miles long and about 2.5 miles wide, has two crude oil-loading berths and
storage capacity for 5.5-million barrels. Ships of up to 200,000 deadweight tons can be
accommodated.
LAVAN BLEND ASSAY

Crude Oil Crude Oil
Viscosity Centistokes 4.98 Reid Vapor Press. psi 10
(Kinematic) at 40 C Nickel ppm 6.6
Hydrogen Sulfide ppm ... Vanadium ppm 14
Con. Carbon Residue % Weight 4.6 Iron ppm 4.7
Sodium ppm 2
SIRRI Iran
Gravity: 30.3 Sulfur: 2.26 Loading Port: Sirri Island

Other Names: Sirri Heavy
Production
About 30,000 barrels a day from an offshore field in the southeastern Mideast Gulf adja-
cent to Sirri Island. Output could rise to 200,000 b/d in the future, since there is scope
for significant further development work in the field.
Quality
Slightly heavier and higher in sulfur than Iran Heavy.
Producer

Cargoes are sold on an f.o.b. basis from Sirri Island, with almost all production entering
the export market and going mainly to the Asia-Pacific region on a term-contract basis.
Japan alone takes over 20,000 b/d. Prices are set according to a formula similar to that
for Iran Heavy.
Sellers
Iran. Phone: (98-21) 646-0351. Fax: 98-21) 646-0302.
UK. Tel.: (44-171) 227-2138, Fax: (44-171) 976-8315.
M2N 6K1. Tel.: (416) 459-9426, Fax: (416) 590-9836.
227-3722, Fax: (65) 227-3622.
Loading Port
Sirri Island. 25.54 N. 54.33 E. The loading terminal is on the southeast part of the island
of Sirri, with crude oil loaded from a one-berth jetty approximately 600 feet offshore that
can handle ships up to 330,000 deadweight tons.
SIRRI ASSAY
Crude Oil Crude Oil
Con. Carbon Residue % Weight 4.9 Vanadium ppm 45
Wax Content % Weight 5.5 Iron ppm 1.6
Sodium ppm 9.4
Cut Points Yield
Product Temp. C % Vol. % Wt.
LPG 0.95
Naphtha <150 14.8 12.3
Kerosine 150-250 17.5 16.1
Gas Oil 250-350 18.9 18.8
Residue >350 44.2 49.7
BASRAH LIGHT Iraq
Gravity: 34.4 Sulfur: 2.1 Loading Ports: Mina Al-Bakr, Ceyhan (Turkey)
Production
Limited by the United Nations embargo that was placed on Iraq following its invasion of
Kuwait in 1990. Output was about 300,000 barrels a day, which is less than 50% of capac-
ity until December 1996. Before the embargo, production was over 1.5-million b/d from
several fields in the south, including the Rumaila fields, Zubair, and Luhais.
Quality
Typical light Mideast crude oil similar to Arabian Light, Iran Light, and Dubai. Although
the test below is old, it remains broadly representative of Basrah Light.
Producer
State-owned Southern Oil Co. is the sole producer.

Prior to the United Nations-sponsored humanitarian oil sales program in 1996, Basrah pro-
vides the countrys only UN-approved exports, with about 50,000 b/d sold to Jordan at dis-
counted prices and delivered over land by tanker truck. Most of the UN-sponsored sales
are of Kirkuk grade, with Basrah Light accounting for a smaller share of sales from the
Mideast Gulf. Before the invasion of Kuwait, Basrah Light was the only Iraqi crude oil that
was widely sold to all of the main world markets: the Far East, Europe, and the Americas.
The grade can be loaded from Iraqs southern Mina al-Bakr terminal in the Gulf, or
it can be piped north via the Strategic Pipeline and the Turkish export line for loading
from Ceyhan, Turkey.
Seller
State Oil Marketing Organization has been responsible for all international oil sales in the
past.
SOMO Jordan: Amman, Jordan. Fax: (9626) 694-007.
Iraqi Oil Ministry, SOMO: Baghdad, Iraq. Fax: (9641) 885-3014.
Loading Ports
Mina al-Bakr. 29.41 N. 48.48 E. Located in the northwest end of the Mideast Gulf, south-
southeast of the Shatt-al-Arab waterway and south of the Fao Peninsula, the terminal has
been destroyed twice, once in the Iraq-Iran war, and during the bombings that preced-
ed the invasion of Iraq by UN forces in 1991. It has estimated capacity of 300,000-500,000
b/d from three operational berths, but with little storage capacity.
Ceyhan/Botas. 36.53 N. 35.56 E. The Ceyhan/Botas terminal, located on the Turkish
Mediterranean coast, about 40 miles from the border with Syria, has four crude oil-load-
ing berths. Maximum size is 300,000 deadweight tons at the two outer berths and 150,000
dwt at the two inner berths.
BASRAH LIGHT ASSAY

Crude Oil Crude Oil
(Kinematic) at 10 C
Cut Points Yield
LPG 2.9 1.9
Naphthenes % Wt. 19
Aromatics % Wt. 15
Cetane Index 55.3
Cetane Index 58.3
FAO BLEND Iraq
Gravity: 27.5 Sulfur: 2.9 Loading Port: Mina Al-Bakr

Other Names: Basrah Medium, Basrah Heavy (prior to 1981)
Production
The heavier crude oil produced from the southern Iraqi fields, including Buzurgan and
Abu Ghirab near the Iranian border. Output was about 500,000 barrels a day before the
United Nations embargo in the summer of 1990. Little if any of this grade is currently in
production due to the UN restrictions on exports.
Quality
Introduced after the end of the Iraq-Iran war in late 1989 as an Arabian Heavy equiva-
lent, the grade is essentially a combination of former 23-gravity Basrah Heavy and 30-
gravity Basrah Medium plus some other production. Although termed a 27.5-gravity
crude oil, quality varied considerably, creating serious marketing problems. The test
below is at the light end of the quality range.
Producers
State-owned Southern Oil Co.

No current sales due to the UN embargo against Iraq. Sold mainly to the US and the Far
East in late 1989 and early 1990 at a rate of 500,000 b/d with plans to go higher before
the invasion of Kuwait. Priced on a formula basis with linkage to spot markets for region-
al benchmark grades.
Seller
State Oil Marketing Organization has handled all international oil sales in the past.
Loading Port
Mina al-Bakr. 29.41 N. 48.48 E. Located in the northwest end of the Mideast Gulf, south-
southeast of the Shatt-al-Arab waterway and south of the Fao Peninsula, the terminal has
been destroyed twice, once in the Iraq-Iran war, and once during the bombings that pre-
ceded the invasion of Iraq by UN forces in 1991. It has estimated capacity of 300,000-
500,000 b/d from three operational berths, but with little storage capacity.
FAO BLEND ASSAY

Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG <55 2
Naphthenes % Wt. 19
Aromatics % Wt. 11
Naphthenes % Wt. 20
Aromatics % Wt. 16
Cetane Index 50
Pour Point Temp F 49
KIRKUK Iraq
Gravity: 37.0 Sulfur: 2.00 Loading Port: Ceyhan (Turkey)
Production
Kirkuk is the countrys single-largest and oldest producing complex, with capacity of
1.3-million barrels a day prior to Iraqs invasion of Kuwait in 1990. Output was about
250,000 b/d from Kirkuk itself and its satellite fields, and has risen to about 600,000-
700,000 b/d with the UN-sponsored humanitarian oil sales program in late 1996.
Capacity is some 800,000 b/d. Other fields in the Kirkuk export stream include Ain
Zalah, Jambur, and Butma.
Quality
Lighter than Arabian Light and Iran Light, but not as high in quality as top Mideast grades
such as Abu Dhabi Murban. Although the test below dates from the early 1970s and is
slightly heavier than some later assays, it is still broadly representative of Kirkuks char-
acteristics. Quality may have been harmed by the injection of surplus fuel oil into Iraqi
fields during the embargo period.
Transportation
When exported, the crude oil is transported by the 1.6-million b/d capacity Turkish
export pipeline, which runs 1,050 kilometers from Kirkuk to the Mediterranean port of
Ceyhan.
Producers
All production under the control of state Northern Oil Co.

Prior to the Gulf war, Kirkuk was a mainstay of the sour crude oil market in the Atlantic
Basin, with its Mediterranean outlet putting it on an equal footing with Russian exports.
Key customers at that time included Brazils state Petrobras, Exxon, Texaco, Coastal, and
Tupras of Turkey, and prices were tied to benchmark spot grades. Under the UN-spon-
sored humanitarian oil sales program, contracts have been reestablished with many of
these same firms as well as new ones such as Russian traders and producers.
Sellers
State Oil Marketing Organization has been the exclusive marketer of Iraqi crude oil in
the past.
Loading Port
Ceyhan/Botas, Turkey. 36.53 N. 35.56 E. The Ceyhan/Botas terminal, located on the
Turkish Mediterranean coast about 40 miles from the border with Syria, has four crude
oil-loading berths. Maximum size is 300,000 deadweight tons at the two outer berths and
150,000 dwt at the two inner berths.
KIRKUK ASSAY
Crude Oil Crude Oil
(Kinematic) at 100 F Hydrogen Sulfide Parts/mill. <1
Cut Points Yield
LPG 1.9 1.3
Naphthenes % Wt. 26
Aromatics % Wt. 12
Cetane Index 54.9
Cetane Index 55.8
KIRKUK TERM-CONTRACT PRICES, 1978-90
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $13.50 $13.83 $29.29 $37.50 $34.21 $34.83 $29.43 $29.43
Feb. 13.50 13.83 29.29 37.50 34.21 34.83 29.43 28.18
March 13.50 15.03 29.29 37.50 34.83 29.83 29.43 28.18
April 13.50 16.28 29.29 37.50 34.83 29.43 29.43 28.18
May 13.50 16.98 31.29 37.50 34.83 29.43 29.43 28.18
June 13.50 20.39 31.29 36.93 34.83 29.43 29.43 28.18
July 13.17 22.29 33.29 36.93 34.83 29.43 29.43 28.18
Aug. 13.17 22.00 33.29 36.93 34.83 29.43 29.43 28.18
Sept. 13.17 22.00 33.29 36.93 34.83 29.43 29.43 28.18
Oct. 13.17 23.29 33.29 34.93 34.83 29.43 29.43 28.18
Nov. 13.17 25.29 33.29 34.93 34.83 29.43 29.43 28.18
Dec. 13.17 27.29 33.29 34.93 34.83 29.43 29.43 28.18
Month 1986 1987 1988 1989 1990
Jan. $28.18 $17.55 $15.40 $15.72 $19.10
Feb. 28.18 17.60 14.36 16.73 17.58
March 10.50 17.60 14.78 18.39 15.82
April 10.90 17.60 15.48 18.39 14.35
May 12.20 17.60 14.83 17.05 14.33
June 10.35 17.60 14.08 16.05 12.69
July 8.20 17.60 13.75 15.65 15.78
Aug. 11.65 17.60 12.93 16.20 23.98
Sept. 13.00 17.60 11.68 17.20 ...
Oct. 12.35 17.60 11.48 17.65 ...
Nov. 12.80 17.60 12.78 18.15 ...
Dec. 14.80 17.60 14.84 19.89 ...
Note: Official government selling prices until 2/86, netbacks from 3/86-2/87, official prices for remainder of 1987, and average
formula prices thereafter. Note: More recent prices can be found in Chapter I.
KUWAIT Kuwait
Gravity: 30.5 Sulfur: 2.55 Loading Port: Mina Al Ahmadi
Production
Output has been stable at about 1.8-million barrels a day since 1993, following recovery
from the Iraqi invasion in 1990. Capacity is about 2.2-million b/d and slated to rise to
about 3-million b/d by 2000. The Burgan field is the largest producing area, with capac-
ity of about 1.5-million b/d followed by Ahmadi and Magwa. Kuwaits only other crude
oil streams are those from the Neutral Zone and some 100,000 b/d of lighter Marat grade
that is produced from areas lying below the main Burgan field. Marat is not marketed
separately.
Quality
A typical medium-heavy Mideast crude oil similar to Arabian Medium and Iran Heavy.
Producers
All production is controlled by state-owned Kuwait Petroleum Corp. through its Kuwait
Oil Co. unit.

Some 1-million b/d of Kuwait crude oil was being exported in early 1996, with the bal-
ance consumed in the countrys 830,000 b/d of domestic refinery capacity. With the
expansion of domestic refining, less crude oil has been available for export in recent
years. Refined product exports amount to about 700,000 b/d and are expected to rise
further with additional refinery expansion. KPCs crude oil exports include about 50,000
b/d to its European refineries and a similar volume in processing deals in Asia. Kuwait
has focused on all of the main international markets in rebuilding its crude oil export
volumes, but the Far East is the dominant market with about 50% of the total. Japan
alone takes 220,000 b/d.
Kuwait prices its crude oil at the prevailing Arabian Medium formulas in the US and
Europe and 10¢ below Arab Medium in Asia. KPC sells its crude oil on a term-contract
basis, rarely resorting to spot sales.
Sellers
Kuwait Petroleum Corp.: P.O. Box 26565, Safat, Kuwait, 13126. Tel.: (965) 245-
5455, Fax: (965) 246-7159.
KPC London: 80 New Bond St., London W1Y 9DA, UK. Tel.: (44-171) 491-4000, Fax:
(44-171) 629-2617.
Loading Port
Mina Al Ahmadi. 29.04 N. 48.09 E. Located on the western shore of the Gulf, the port
of Mina Al Ahmadi is Kuwaits main crude oil-export point, and it has been reconstruct-
ed following the war with Iraq. The berths at the old Sea Island Terminal are no longer
operable and have been replaced by a single-buoy mooring system. Very large crude car-
rier-sized ships can also be accommodated at the North Pier Terminal and the South Pier
Terminal. Mina Al Ahmadi has 18-million barrels of crude oil storage capacity.
KUWAIT ASSAY
Crude Oil Crude Oil
Cut Points Yield
LPG 2.6 1.7
Naphthenes % Wt. 70
Aromatics % Wt. 15
Cetane Index 54.1
Cetane Index 56.6
KUWAIT TERM-CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $12.27 $12.83 $27.50 $35.50 $32.30 $32.30 $27.30 $27.55
Feb 12.27 14.03 27.50 35.50 32.30 28.30 27.30 27.30
March 12.27 15.32 27.50 35.50 32.30 27.30 27.30 27.30
April 12.27 15.80 27.50 35.50 32.30 27.30 27.30 27.30
May 12.27 16.40 29.50 35.50 32.30 27.30 27.30 27.30
June 12.27 19.00 29.50 35.50 32.30 27.30 27.30 27.30
July 12.27 19.49 31.50 35.50 32.30 27.30 27.30 27.30
Aug. 12.27 19.49 31.50 35.50 32.30 27.30 27.30 27.30
Sept. 12.27 19.49 31.50 35.50 32.30 27.30 27.30 27.30
Oct. 12.27 23.50 31.50 35.50 32.30 27.30 27.30 27.30
Nov. 12.27 25.50 31.50 33.00 32.30 27.30 27.30 27.30
Dec. 12.27 27.50 31.50 33.00 32.30 27.30 27.30 27.30
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $25.75 $17.00 ... $13.78 $17.14 ... $14.22 $14.24
Feb. 14.40 16.67 ... 13.98 16.43 ... 14.68 15.02
March 11.35 16.67 13.24 15.38 15.50 ... 14.73 15.28
April 10.20 16.67 14.75 16.83 13.75 ... 15.75 15.38
May 11.05 16.67 14.58 15.53 14.15 ... 16.75 15.04
June 9.65 16.67 13.43 15.20 12.71 ... 18.12 14.67
July 7.40 16.67 12.65 15.23 14.15 ... 17.57 13.42
Aug. 11.75 16.67 12.78 14.70 23.89 ... 16.84 13.68
Sept. 12.50 16.67 11.18 15.33 ... ... 17.40 13.13
Oct. 12.65 16.67 9.43 15.88 ... 17.66 17.36 13.83
Nov. 13.10 16.67 9.75 15.83 ... 17.12 16.28 12.84
Dec. 14.50 16.67 11.73 16.90 ... 13.90 15.28 11.22
Note: Official selling prices up to 1986 and from 2/87-12/87. Netback prices in 1986 and 1/87. Prices based only on Far East
sales formulas from 1988-93. Note: More recent prices can be found in Chapter I.
AMNA Libya
Gravity: 36.1 Sulfur: 0.15 Loading Port: Ras Lanuf

Other Names: Amal
Production
About 115,000 barrels a day, mainly from the Amal field, one of the first discoveries in
Libya, found in 1959. In decline since the late 1960s.
Quality
A light, paraffinic crude oil that is a bit heavier and higher in wax than the top-quality
Libyan grades.
Equity Producers
State National Oil Co. 51%, Veba 49%.

Priced according to a formula that is linked to spot quotes for dated Brent like all the
other main Libyan export grades. No sales to the US due to embargo against Libyan oil
that began in 1986. This confines sales almost exclusively to Europe, where Libya has
developed an extensive refining and marketing network to guarantee offtake. Amna is
one of the waxier Libyan grades, which also restricts sales outlets. Most supplies are
taken by Veba as part of its equity supply. Other volumes move to Spains Repsol,
Austrias OMV, and German Rheinoel.
Sellers
National Oil Co.: International Marketing, Administrative Office, P.O. Box 2655,
Tripoli, Libya. Tel.: (218) 21-32141, Fax: (218) 21-37149, Telex: 20729.
Veba Oel A.G.: P.O. Box 20 10 45 W-4650, Gelsenkirchen 2, Germany. Tel.: (49-209)
3661, Fax: (49-209) 366-7820.
Loading Port
Ras Lanuf. 30.31 N. 18.35 E. Two terminals located on the southeastern side of the Gulf
of Sirte about 12 miles (20 kilometers) south of Es Sider. The former Mobil terminal has
three conventional berths designed for tankers of up to 60 feet draft and 130,000 dead-
weight tons, and one single-point mooring intended for vessels of up to 75 ft of draft
and 265,000 dwt. The second terminal has two crude oil-loading berths, with maximum
sizes of 50,000 dwt and 41 ft draft.
AMNA ASSAY
Crude Oil Crude Oil
(Kinematic) at 37.8 C
Cut Points Yield
120-250 Paraffins % Wt. 69.9
Aromatics % Wt. 3.7
Freezing Point Temp. C/F 0.86
Light Gas Oil 228-316 15 Light Gas Oil
Pour Point Temp. C/F Sep-48
BOURI Libya
Gravity: 26.0 Loading Port: Bouri
Production
After declining to about 60,000 barrels a day output is being restored to previous highs
of about 90,000 b/d. A second phase of development could take production consider-
ably higher in the future. The Mediterraneans largest offshore oil field, with 5-billion bar-
rels of oil and considerable gas, was discovered in the early 1980s, but it did not begin
producing until 1991.
Quality
Libyas heaviest crude oil stream is of unusually low quality compared to other North
African oils. High natural gas content at the wellhead complicates the production
process.
Producer
Italian Agip is the operator under a production-sharing agreement with state NOC in
which its share is now 30%, up from the previous level of 19%.

Bouri crude oil almost never appears on the international market, and it is absorbed
entirely in producer Agips downstream system. This is understandable given the crude
oils relatively poor quality. Prices are generally $2-$3 a barrel below North Sea Brent,
but they are largely notional.
Seller
Loading Port
Bouri. 33.54 N. 12.39 E. An offshore loading facility in the Mediterranean Sea located
near the fields two production platforms off the northwest coast of Libya. The facility
has 1.3-million barrels of storage.
BOURI ASSAY
Assay not available.
BREGA Libya
Gravity: 39.8 Sulfur: 0.20 Loading Port: Marsa El Brega
Production
About 120,000 barrels a day mainly from the Nafoora-Augila complex of fields discov-
ered in 1966 about 200 miles southeast of the Marsa El Brega terminal and between the
Amal and Bu Attifel fields. Despite enhanced recovery efforts, output is in decline.
Quality
Light, high-quality North African oil.
Producers
All output is controlled by Arabian Gulf Oil Co., a fully owned subsidiary of state
National Oil Co.

All export sales are handled by NOC with prices set close to similar-quality Zueitina
crude oil in recent years. Libyan price formulas are tied to the spot price of UK Brent
Blend. In 1995-96 all Brega export volumes were going to Libyas downstream refining
and marketing operations in Italy through its Tamoil affiliate.
Sellers
Loading Port
Marsa El Brega. 30.25 N. 19.34 E. Located on the southeastern shore of the Gulf of Sirte,
Marsa El Brega has three crude oil-loading berths with the following restrictions: No. 2,
42 feet draft, 65,000 deadweight tons; No. 3, 48 ft draft, 100,000 dwt; No. 5 (single-point
mooring), unrestricted draft, 300,000 dwt.
BREGA ASSAY
Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG 2 1.4
Naphthenes % Wt. 32
Aromatics % Wt. 14
329-455
Cetane Index 56.7
Cetane Index 63.6
BREGA TERM CONTRACT PRICES, 1987-93
Month 1987 1988 1989 1990 1991 1992 1993
Jan. $17.90 $18.67 $15.18 $21.30 $22.14 $18.93 $17.72
Feb. 18.67 15.35 14.63 19.77 19.95 17.95 18.65
March 18.67 14.30 16.20 18.34 19.38 18.80 18.82
April 18.67 16.25 20.82 16.37 20.27 19.83 18.75
May 18.67 16.05 19.40 16.31 18.91 20.90 18.50
June 18.67 15.20 18.07 15.08 18.34 20.81 17.55
July 18.67 14.65 16.62 17.13 19.86 20.28 16.79
Aug. 18.67 14.70 16.72 27.31 20.34 20.07 16.75
Sept. 18.67 13.05 17.72 36.95 21.67 20.53 16.10
Oct. 18.67 12.25 18.95 37.05 22.40 19.79 16.48
Nov. 18.67 12.85 18.75 34.21 19.85 18.83 15.03
Dec. 18.67 15.05 19.95 29.05 18.48 17.94 13.53
ES SIDER Libya
Gravity: 37.0 Sulfur: 0.27 Loading Port: Es Sider
Production
The countrys largest volume crude oil stream at about 440,000-450,000 barrels a day
from the main fields of Defa, Dahra, Gialo, and Waha.
Quality
Libyas benchmark grade. A high-quality, light, sweet North African crude oil.
Producers
The operator was the US Oasis group, now renamed Waha. Its equity stakes were divid-
ed among state National Oil Co. (59.2%), Conoco (16.3%), Marathon (16.3%), and
Amerada Hess (8.2%). However, the involvement of the American companies was com-
pletely suspended following US sanctions against Libya in 1986. US firms are prohibited
from all Libyan activities, but the companies and the Libyans still hope to eventually
resume joint operations. Meanwhile, control is in the hands of NOC.

Es Sider is Libyas main export grade, and it used to be regularly traded on Mediterranean
spot markets. NOC has gradually cut back on spot sales, preferring to sell its crude oil
to its downstream refining and marketing operations in Italy, Switzerland, and Germany,
as well as in state-to-state deals and third-party sales to equity producers and
Mediterranean refiners. State NOCs term-contract prices for Es Sider and other grades are
based on a formula tied to the spot market for UK Brent Blend.
Es Sider has the widest range of customers. In 1996 the largest buyers in this group
included OMV, an equity producer in Libya, as well as Libyas Italian refining and mar-
keting affiliate Tamoil. Italian independent refiners Isab and Api, Portugal's Petrogal and
Turkeys Tupras were also buyers. NOC also runs about 100,000 b/d as feedstock for its
domestic refineries.
Seller
Loading Port
Es Sider. 30.38 N. 18.22 E. Located on the Gulf of Sirte approximately 375 miles south-
southeast of Tripoli, the port of Es Sider has three conventional berths and two single-
buoy mooring berths. Draft and/or tonnage limitations are as follows: numbers 1, 2, and
3 51 feet draft; no. 4 62 ft draft, maximum vessel size 250,000 deadweight tons;
no. 5 73 ft draft, maximum vessel size 300,000 dwt.
ES SIDER ASSAY
Crude Oil Crude Oil
Cut Points Yield
LPG 3.2 2.1
Light Naphtha <85 8.6 7 Light Naphtha
Naphthenes % Wt. 49
Aromatics % Wt. 7
Cetane Index 53.8
Cetane Index 58.7
ES SIDER TERM-CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $13.80 $14.52 $34.50 $40.78 $36.50 $35.15 $30.15 $30.15
Feb. 13.80 15.20 34.50 40.78 36.50 30.15 30.15 30.15
March 13.80 15.90 34.50 40.78 36.50 30.15 30.15 30.15
April 13.68 18.08 34.50 40.78 35.15 30.15 30.15 30.15
May 13.68 21.09 36.50 40.78 35.15 30.15 30.15 30.15
June 13.68 21.09 36.50 40.78 35.15 30.15 30.15 30.15
July 13.68 23.28 36.78 39.68 35.15 30.15 30.15 30.15
Aug. 13.68 23.28 36.78 39.68 35.15 30.15 30.15 30.15
Sept. 13.68 23.28 36.78 39.68 35.15 30.15 30.15 30.15
Oct. 13.68 26.05 36.78 39.68 35.15 30.15 30.15 30.15
Nov. 13.68 26.05 36.78 37.28 35.15 30.15 30.15 30.15
Dec. 13.68 29.78 36.78 37.28 35.15 30.15 30.15 30.15
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $25.75 $17.60 $18.52 $14.95 $20.85 $20.84 $17.93 $17.12
Feb. 16.55 18.52 15.05 14.40 19.32 18.65 17.05 18.10
March 13.20 18.52 14.10 15.97 17.89 18.22 17.85 18.27
April 11.70 18.52 15.95 20.60 15.97 19.27 18.88 18.20
May 12.45 18.52 15.75 19.15 15.91 17.99 20.10 17.95
June 10.50 18.52 14.90 17.85 14.68 17.54 20.06 16.95
July 8.65 18.52 14.35 16.20 16.68 19.06 19.53 16.19
Aug. 12.30 18.52 14.40 16.30 26.91 19.54 19.37 16.15
Sept. 13.15 18.52 12.75 17.30 36.60 20.82 19.83 15.50
Oct. 12.90 18.52 11.95 18.52 36.25 21.55 19.14 15.88
Nov. 13.70 18.52 12.55 18.32 32.96 18.95 18.23 14.44
Dec. 15.00 18.52 14.75 19.52 27.75 17.48 17.34 12.93
SARIR Libya
Gravity: 37.6 Sulfur: 0.16 Loading Port: Marsa El Hariga
Production
About 190,000-200,000 barrels a day from the Sarir and North Sarir fields.
Quality
A light, sweet crude oil with a high wax content that gives it a high pour point and makes
it difficult to handle.
Producers
Output is 100% controlled by state National Oil Co. through its affiliate, Arabian Gulf Oil
Co. (Agoco).

All export sales are handled by NOC, with prices in the same range as for similar-quali-
ty Amna crude oil. Libyan price formulas are tied to the spot price of UK Brent Blend.
Due to a US embargo, export sales are mainly in the Mediterranean. Libyas Italian affil-
iate Tamoil is a regular lifter, as are Italian independent refiners Isab and Api, each tak-
ing about 20,000 b/d in 1996. Other customers include Frances Elf, Turkeys Tupras, and
Greece. About 70,000 b/d are used in Libyas domestic refineries. Some spot sales have
gone to Asia when prices there are attractive.
Seller
Loading Port
Marsa El Hariga. 32.04 N. 24.00 E. The Mediterranean oil-loading terminal at Marsa El
Hariga located on the south side of the harbor of Tobruk, about 100 miles west of the
Libya-Egypt border accommodates loading at two jetty berths at a maximum draft of
56 feet. There is also a loading buoy system.
SARIR ASSAY
Crude Oil Crude Oil
Gravity (60 F) API 37.6 Sulfur Content % Wt 0.16
Cut Points Yield
LPG 2.3 1.5
Naphthenes % Wt. 42
Aromatics % Wt. 8
Cetane Index 61.1
Cetane Index 67.4
Asphaltenes % Wt. 1
SIRTICA Libya
Gravity: 42.2 Sulfur: 0.40 Loading Port: Ras Lanuf
Production
About 85,000 barrels a day mainly from the onshore Zelten field.
Quality
A high-quality, light, sweet North African crude oil.
Producers
Sirte is the operator, and it is owned 100% by state National Oil Co. US Exxon and W.R.
Grace were former concessionaires.

Sirtica is one of Libyas top-quality crude oils, making it relatively easy to sell in its
restricted European market. In 1996, NOCs customers for the grade were Austrian OMV,
German Veba and Repsol, all equity producers in Libya, as well as Spanish refiner Cepsa.
About 30,000 b/d is used in the Ras Lanuf refinery. NOCs term-contract prices are based
on a formula tied to the spot market for UK Brent Blend.
Seller
Loading Port
Ras Lanuf. 30.31 N. 18.35 E. Two terminals located on the southeastern side of the Gulf
of Sirte about 12 miles (20 kilometers) south of Es Sider. The former Mobil terminal has
three conventional berths designed for tankers of up to 60 feet draft and 130,000 dead-
weight tons, and one single-buoy mooring intended for vessels of up to 75 ft of draft and
265,000 dwt. The second terminal has two crude oil-loading berths, with maximum size
of 50,000 dwt and 41 ft draft.
SIRTICA ASSAY
Crude Oil Crude Oil
(Kinematic) at 20 C
Cut Points Yield
LPG 4.1 2.8
Light Naphtha <85 12 9.9 Light Naphtha
Naphthenes % Wt. 39
Aromatics % Wt. 12
Cetane Index 54.1
Cetane Index 58.5
ZUEITINA Libya
Gravity: 41.5 Sulfur: 0.31 Loading Port: Zueitina

Other Names: Libyan Light
Production
Output has been in decline, falling to about 70,000 barrels a day in 1995-96 from the
Intisar system, which is a network of five fields.
Quality
A light, sweet crude oil similar to US West Texas Intermediate.
Producers
Zueitina Oil Co., a joint venture between state National Oil Co. (87.5%) and Austrian
OMV (12.5%), which replaced the former US Occidental-led producing group after the
forced withdrawal of US companies in 1986 due to Washingtons sanctions.

The grade is sometimes traded in the Mediterranean, but NOC mainly sells it to its Italian
affiliate Tamoil and equity producers such as Austrian OMV and German Veba. Like
other Libyan grades, the price formula is tied to dated Brent, and price terms are set on
a monthly basis. Zueitina is usually the highest-priced Libyan export grade.
Sellers
OMV AG: Otto Wagner Platz 5, A-1090, Vienna, Austria. Tel.: (43-1) 404-400, Fax: (43-
1) 9453.
OMV (UK) Ltd.: 14 Ryder St., London SW1Y 6QB, UK. Tel.: (44-171) 333-1600, Fax:
(44-171) 333-1610.
Loading Port
Zueitina. 30.51 N. 20.00 E. The Zueitina sea terminal consists of five crude oil-loading
berths, two of which are conventional-buoy moorings and three of which are single-buoy
moorings. The CBM berths are 2.5 miles offshore at an average depth of 70-80 feet, while
the SBM berths are approximately three miles offshore at an average depth of 100 ft.
ZUEITINA ASSAY
Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG 2.2 1.5
Naphthenes % Wt. 34
Aromatics % Wt. 9
Cetane Index 57.1
Cetane Index 61.9
ZUEITINA TERM-CONTRACT PRICES, 1986-93
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $30.40 $17.85 $18.67 $15.20 $21.35 $24.68 $18.98 $17.72
Feb. 30.40 18.67 15.40 14.65 19.82 19.96 18.05 18.65
March 30.40 18.67 14.40 16.22 18.39 19.56 18.85 18.82
April 30.40 18.67 16.25 20.87 16.42 20.27 19.83 18.75
May 13.00 18.67 16.05 19.45 16.36 19.06 20.90 18.50
June 11.25 18.67 15.20 18.12 15.13 18.76 20.81 17.55
July 9.10 18.67 14.65 16.65 17.18 19.86 20.28 16.84
Aug. 12.75 18.67 14.70 16.75 27.36 20.34 20.07 16.80
Sept. 13.35 18.67 13.05 17.75 37.00 21.67 20.53 16.15
Oct. 13.25 18.67 12.25 18.97 37.20 22.45 19.79 16.53
Nov. 14.05 18.67 12.85 18.77 34.26 19.90 18.83 15.08
Dec. 15.30 18.67 15.05 19.97 29.05 18.53 17.94 13.58
ZUEITINA SPOT PRICES, 1987-93
Month 1987 1988 1989 1990 1991 1992 1993
Jan. $17.85 $16.50 $17.10 $21.25 $24.45 $24.45 $17.45
Feb. 17.00 15.40 16.75 19.75 20.45 20.45 18.55
March 17.55 14.40 18.50 18.35 19.85 19.85 18.85
April 18.00 16.30 20.05 16.55 19.55 19.55 18.70
May 18.45 16.05 18.60 16.25 19.40 19.40 18.60
June 18.70 15.30 17.40 14.90 18.20 18.20 17.75
July 19.30 14.80 17.50 16.95 19.55 19.55 16.95
Aug. 18.70 14.75 16.65 26.45 19.85 19.85 16.85
Sept. 17.85 12.95 17.70 33.55 20.75 20.75 16.15
Oct. 18.35 12.20 18.80 37.15 22.60 22.60 16.60
Nov. 17.45 12.90 18.60 33.75 21.70 21.70 15.20
Dec. 16.80 15.40 19.75 28.95 18.95 18.95 13.65
BINTULU CONDENSATE Malaysia
Gravity: 66.2 Sulfur: 0.04 Loading Port: Bintulu
Production
About 60,000 barrels a day of condensate from offshore fields on the northern coast of
Sarawak (Borneo) in eastern Malaysia, just to the west of Brunei. Condensate output is
growing as associated natural gas production increases. Volumes are expected to reach
100,000 b/d or more by 2000. The area produces large volumes of natural gas for
Malaysias liquefied natural gas export projects. Bintulu grade, which is also light and low
in sulfur, was included in the condensate export stream until 1991, but it is now sold
separately. Its output is less than 50,000 b/d.
Quality
Very light condensate with excellent petrochemical and gasoline manufacturing charac-
teristics.
Producer
Operated by the Royal Dutch/Shell Group under a production-sharing contract with state
Petronas.

Up until early 1996, volumes were used almost exclusively in the domestic Malacca refin-
ery, but exports are increasingly common, with the first term contracts pricing the grade
at a slight discount to Malaysian benchmark Tapis grade.
Sellers
Petronas: International Marketing Division, Menara Dayabumi Komplex, Dayabumi,
Kuala Lumpur, Selangor, Malaysia 50778. Tel.: (60-3) 274-8011, Telex: MA31123 PETRON.
Loading Port
Bintulu. 03.16 N. 113.04 E. The Bintulu terminal, located off the coast of Sarawak, con-
sists of a single-buoy mooring loading system positioned in the open sea. The facilities
can accommodate tankers with a maximum 320,000 deadweight tons and a maximum
draft of 52 feet.
BINTULU CONDENSATE ASSAY

Crude Oil Crude Oil
Viscosity Centistokes 0.58 Reid Vapor Press. Lbs/sq. in. 6
(Kinematic) at 40 C
Cut Points Yield
LPG 2.6
Light Gasoline 15-65 33.7 Light Gasoline
Naphthenes % Wt. 8
Aromatics % Wt. 0.4
Naphthenes % Wt. 55
Aromatics % Wt. 2.6
Naphthenes % Wt. 57
Aromatics % Wt. 9.8
Naphthenes % Wt. 30
Jet Kerosine 140-165 5.5 Jet Kerosine
284-329 Smoke Point Temp. C 18
Kerosine 185-200 4.7
Gas Oil 200-225 2.6
Residue >225 4.9

DULANG Malaysia
Gravity: 39.9 Sulfur: 0.12 Loading Port: Dulang Terminal
Production
About 100,000 barrels a day from a group of small fields off the east coast of the Malay
Peninsula adjacent to Exxons Trengganu area. Output is expected to grow, but flow
rates are subject to the restrictions of Malaysias national depletion policy. The field
extends into Exxons area, and the firm receives a share of the output under a unitiza-
tion agreement.
Quality
A light, low-sulfur crude oil with high wax content and a high pour point. Quality is vari-
able, with high metals content making the grade undesirable for cracking and thus often
relegated to use as boiler feed.
Producer
Operated by Petronas Carigali, the upstream unit of state Petronas. Exxon receives about
a 20% share of production because the field extends into its area.

All production is exported, but the grade is used mainly as a boiler fuel in southern China
and Japan. As with other Malaysian crude oils, Petronas sets prices retroactively at the
end of each month in response to Asian spot market trends.
Seller
Loading Port
Dulang. 05.45 N. 104.10 E. A deep-water offshore loading terminal supported by a float-
ing storage vessel.
DULANG ASSAY
Crude Oil Crude Oil
Viscosity Centistokes 3.342 Flash Point Temp. C 13.5
(Kinematic) at 50 C Hydrogen Sulfide Parts/mill. 0.002
Wax Content % Wt. 12.6 Water Content % Vol. 0.05
Asphaltenes Con. % Wt. 0.1 Conradson Car. R % Wt. 0.36
No refined product breakdown available.

LABUAN Malaysia
Gravity: 32.1 Sulfur: 0.07 Loading Port: Labuan
Production
About 80,000 barrels a day from offshore fields on the north coast of Sabah Province
(Borneo) in eastern Malaysia. Output peaked in 1990 at around 120,000 b/d, and it is
now in decline from the Samarang, Ketam, West Erb, St. Joseph, St. Furious, Barton, and
Tembungo fields that make up the stream.
Quality
A medium-gravity, low-sulfur Asian crude oil with an excellent middle distillate yield,
which makes it popular for both straight-run refining and cracking.
Producers
The Royal Dutch/Shell Group operates all of the fields under a production-sharing agree-
ment with state Petronas.

About 60,000 b/d of production is exported, but the low-sulfur grade rarely leaves the
Far East and often ends up in Singapore. Japanese buyers take about 35,000 b/d. Like all
of Malaysias five export grades, Labuan is priced retroactively by state Petronas based
on spot quotes for Tapis appearing in Platts and Asian Petroleum Price Index plus a vari-
able monthly differential. Prices are generally quite close to much lighter Tapis, reflect-
ing successful niche marketing by Petronas.
Sellers
Kuala Lumpur, Selangor, Malaysia 50778. Tel.: (60) 3-274-8011, Telex: MA31123 PETRON.
Shell Malaysia Trading Sdn. Bhd.: Jalan Semantan, Damansara Heights, Kuala
Lumpur, Malaysia. Tel.: (60-3) 255-9144, Fax: (60-3) 251-2957.
Shell International Eastern Trading Co.: 50 Raffles Place, #39-00 Shell Tower, 0104
Singapore. Tel.: (65) 224-7777, Fax: (65) 224-0379.
Loading Port
Labuan. 05.17 N. 115.15 E. The Labuan terminal is located on the island of Labuan, 4.5
miles off the northwest coast of Borneo at the entrance to Brunei Bay. The single-buoy
mooring loading berth is designed for tankers of up to 320,000 deadweight tons and
maximum draft of 74 feet.
LABUAN ASSAY
Crude Oil Crude Oil
Viscosity Centistokes 2.67 Reid Vapor Press. Lbs/sq. in. 3.3
(Kinematic) at 40 C
Cut Points Yield
LPG 0.7 0.5
Naphthenes % Wt. 48
Aromatics % Wt. 26
455-572 Sulfur % Wt. 0.04
Cetane Index 34.9
Cetane Index 44.8
MIRI Malaysia
Gravity: 29.6 Sulfur: 0.07 Loading Port: Miri

Other Names: Miri Light
Production
About 60,000 barrels a day from a group of offshore fields on the northern coast of the
province of Sarawak (Borneo) in eastern Malaysia and from the onshore Miri field. The
fields lie along the western border of Brunei and in addition to Miri include Baram,
Bakau, Baronia, Betty, Bokor, Tukau, and Siwa. Production is in decline after peaking at
about 140,000 b/d in 1990.
Quality
A typical low-sulfur Asian crude oil with high wax content and high pour point. The
grade was significantly lighter in the early 1980s, and quality has deteriorated as satellite
fields have been introduced into the stream.
Producers
The Royal Dutch/Shell Group controls 100% of all of the fields through its Shell Sarawak
affiliate under a production-sharing agreement with state Petronas.

About 45,000 b/d is exported. It often goes to Singapore as well as to Northeast Asia,
with Japan taking about 30,000 b/d mainly for use as boiler fuel. Shell also uses the grade
in its domestic refining system in Malaysia. Like all of Malaysias five export grades, Miri
is priced retroactively by state Petronas on the basis of spot quotes for Tapis from Platts
and the Asian Petroleum Price Index plus a variable differential. Prices are generally
quite close to Tapis despite its inferior quality.
Sellers
Kuala Lumpur, Selangor, Malaysia 50778. Tel.: (60) 3-274-8011, Telex: MA31123 PETRON.
Shell Malaysia Trading Sdn. Bhd.: Jalan Semantan, Damansara Heights, Kuala
Shell International Eastern Trading Co.: 50 Raffles Place, #39-00 Shell Tower, 0104
Loading Port
Miri. 04.26 N. 113.55 E. The Miri terminal, located off the coast of Sarawak, has four sin-
gle-buoy mooring berths situated in the open sea. The following maximum specifications
hold: No. 1 draft 37 feet, tonnage 30,000 deadweight tons; No. 2 37 ft, 75,000 dwt;
No. 4 39 ft, 100,000 dwt; No. 5 56 ft, 125,000 dwt.
MIRI ASSAY
Crude Oil Crude Oil
Viscosity Centistokes 4.208 Flash Point Temp. C -18
Wax Content % Wt. 38 Water Content % Vol. <0.05
No refined product breakdown available.
MIRI TERM-CONTRACT PRICES, 1978-93

Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. ... $15.05 $33.60 $41.30 $36.50 $35.60 $29.85 $29.85
Feb. ... 15.05 33.60 40.80 36.50 29.85 29.85 27.95
March ... 16.18 35.30 40.80 36.50 29.85 29.85 27.95
April ... 18.45 35.30 40.80 35.60 29.85 29.85 27.95
May ... 18.45 35.30 39.80 35.60 29.85 29.85 27.95
June ... 20.90 37.30 39.10 35.60 29.85 29.85 27.95
July ... 23.70 37.30 37.10 35.60 29.85 29.85 27.25
Aug. ... 23.70 37.30 37.10 35.60 29.85 29.85 27.25
Sept. ... 23.70 37.30 37.10 35.60 29.85 29.85 27.25
Oct. 14.30 23.70 37.30 37.10 35.60 29.85 29.85 27.25
Nov. 14.30 26.75 37.30 37.10 35.60 29.85 29.85 27.25
Dec. 14.30 26.75 37.80 37.10 35.60 29.85 29.85 27.25
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $27.25 $17.35 $16.90 $16.45 $20.05 $27.30 $21.15 $19.20
Feb. 23.25 17.85 17.25 17.95 20.45 22.70 19.50 19.00
March ... 17.75 16.75 17.80 19.95 19.30 18.65 20.05
April ... 17.75 16.10 18.80 18.65 18.30 18.25 20.70
May ... 17.90 16.70 19.25 16.70 18.70 19.60 20.25
June ... 18.15 16.70 18.80 15.45 19.70 21.20 19.40
July ... 18.35 14.75 18.55 15.00 19.90 22.85 18.85
Aug. 10.80 18.60 14.65 17.70 20.90 20.10 22.45 18.85
Sept. 12.45 18.35 14.00 17.40 29.60 20.30 21.65 18.85
Oct. 13.30 18.15 12.40 18.15 38.80 21.60 21.35 18.20
Nov. 13.80 18.40 12.10 18.90 36.20 22.65 21.15 17.60
Dec. 14.15 17.90 13.70 19.25 31.40 23.30 20.30 15.95
TAPIS Malaysia
Gravity: 45.2 Sulfur: 0.03 Loading Port: Tapis

Other Names: Tapis Blend, Pulai
Production
About 340,000 barrels a day is produced from a cluster of fields offshore the eastern coast
of the Malaysian Peninsula. Output is expected to decline gradually from these mature
fields, and flow rates are also subject to the restrictions of Malaysias national depletion
policy.
Quality
A high-quality, light, low-sulfur Asian crude oil. Especially prized for its wide cut of kero-
sine and gas oil. However, the smoke point of the kerosine can pose quality problems.
Producers
Exxon holds 100% of the fields and operates under a production-sharing agreement with
state Petronas.

The spot market for this light, sweet grade provides a marker for the region with about
four to six wet barrel spot deals a month. Although both Exxon and Petronas are sell-
ers, Exxon uses the grade mainly in its own downstream system and Petronas also has
been using more domestically. Exports amount to about 150,000-200,000 b/d, with sales
all over the region. Japan imported about 25,000 b/d in 1995, and significant volumes
are also refined in Singapore. Other customers include South Korea, India, Indonesia,
and Thailand. Petronas uses a monthly retroactive official selling price that is tied direct-
ly to average quotes from Platts and the Asia Petroleum Price Index plus an adjustment
factor. Tapis also provides the basis for extensive paper trading and swaps.
Sellers
Exxon Malaysia Berhad: Kompleks Antarabangsa, Jalan Sultan Ismail, 50718 Kuala
Exxon Singapore Private Limited: 1 Raffles Place, #37-00 OUB Centre, 0104
Loading Port
Tapis. 05.31 N. 105.01 E. The Tapis terminal is a deep-water offshore loading and stor-
age facility located in the South China Sea. Maximum vessel size is 100,000 deadweight
tons.
TAPIS ASSAY
Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG 1.9 1.3
Naphthenes % Wt. 23
Aromatics % Wt. 26
Cetane Index 56.8
Cetane Index 68.7
TAPIS TERM-CONTRACT PRICES, 1986-93
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $27.90 $18.00 $17.20 $16.75 $20.35 $27.60 $21.45 $19.50
Feb. 23.90 18.55 17.55 18.25 20.75 23.00 19.80 19.30
March 17.10 18.45 17.05 18.10 20.25 19.60 18.95 20.35
April 13.50 18.45 16.40 19.10 18.95 18.60 18.55 21.00
May 12.50 18.60 17.00 19.55 17.00 19.00 19.90 20.55
June 12.85 18.85 17.00 19.10 15.75 19.90 21.50 19.70
July 10.50 19.05 15.05 18.85 15.30 20.20 23.15 18.95
Aug. 11.35 19.30 14.95 18.00 21.00 20.30 22.75 18.95
Sept. 13.00 18.85 14.30 17.70 29.70 20.90 21.95 18.95
Oct. 13.80 18.80 12.70 18.45 39.10 21.90 21.65 18.30
Nov. 14.35 18.80 12.40 19.20 36.50 22.95 21.45 17.70
Dec. 14.80 18.00 14.00 19.55 31.70 23.60 20.60 16.05
TAPIS SPOT PRICES, 1987-93
Month 1987 1988 1989 1990 1991 1992 1993
Jan. $18.20 $17.40 $18.00 $20.60 $24.85 $20.30 $19.00
Feb. 18.40 17.55 18.00 20.45 21.30 19.45 19.65
March 18.25 16.15 18.35 19.75 18.95 18.35 20.80
April 18.55 17.00 19.60 18.20 18.60 18.95 20.80
May 18.60 17.10 19.20 16.75 19.30 20.35 20.30
June 18.80 16.50 19.00 15.25 19.95 22.35 19.20
July 19.20 14.95 18.55 16.50 20.10 23.25 18.80
Aug. 19.20 14.95 17.65 25.60 20.40 22.55 19.00
Sept. 18.65 13.90 17.80 31.90 21.40 21.75 18.40
Oct. 18.85 12.45 18.85 38.55 22.40 21.50 18.25
Nov. 18.60 12.95 19.35 35.50 23.50 21.15 17.00
Dec. 17.45 15.30 19.80 29.10 22.70 20.05 15.55
ISTHMUS Mexico
Gravity: 33.3 Sulfur: 1.22 Loading Ports: Dos Bocas, Salina Cruz
Production
Isthmus accounted for 920,000 barrels a day of Mexicos 2.85-million b/d crude oil out-
put in the first half of 1996. Most comes from multiple fields in shallow water or onshore
along the Bay of Campeche in southeastern Mexico. Isthmus is mainly refined domesti-
cally, leaving only 200,000 b/d for exports.
Quality
Similar to Arabian Light and US West Texas Sour, Isthmus is a medium- to light-gravity,
high-sulfur crude oil. However, it appears to have become somewhat lower in sulfur and
heavier in recent years.
Producer
State Petroleos Mexicanos is the sole producer.
Export barrels are sold almost exclusively on a term-contract basis and priced off a bas-
ket of crude oil and fuel oil benchmarks with separate formulas for US, European, and
Far East customers. Unlike other producers, Mexico does not use West Texas
Intermediate as a pricing benchmark for its US sales.
For the US, the formula in late 1996 was 40% of the sum of West Texas Sour and Light
Louisiana Sweet plus 20% of Dated Brent plus the adjustment factor. For Europe, the for-
mula was 88.7% of the Dated Brent price plus 11.3% of the Rotterdam price of 3.5% sul-
fur fuel oil minus 16% of the difference between 1% and 3.5% sulfur fuel oil plus an
adjustment factor. For the Far East, the benchmark was the average of Oman and Dubai
over the calendar month of loading. All crude oil sales are made on an f.o.b. basis.
Seller
Petroleos Mexicanos Internacional is the exclusive marketer of Isthmus grade and is a
90%-owned subsidiary of Pemex.
PMI Mexico City: Av. Marina Nacional 329, Col. Huasteca, Piso 22, Mexico 11311,
DF. Tel.: (525) 227-0121.
PMI Houston: 909 Fannin, Suite 3200, Houston, Texas 77010. Tel.: (713) 655-7333,
Fax: (713) 951-0354.
PMI London: Grosvenor Place, London SWIX 7HB, UK. Tel.: (44-171) 823-2242, Fax:
(44-171) 823-1813.
PMI Tokyo: 28 Mori Building, 10th Floor, 4-16-13, Nishi-Azabu, Minato-Ku, Tokyo
106, Japan. Tel.: (03) 449-1481, Fax: (03) 499-1484.
Main Customers
Spanish Repsol, Chevron, Mobil, and Shell Oil are among the bigger buyers of Isthmus.
Pemex also has a 65,000 b/d government-to-government deal with a group of Japanese
refiners.
Loading Ports
Dos Bocas (Caribbean). 18.37 N. 93.10 W. The Dos Bocas terminal, located on the south-
ern shore of the Gulf of Campeche in Tabasco state, consists of two single-buoy moor-
ings designed for loading tankers from 150,000-250,000 deadweight tons. A total of 10
crude oil tanks provide 5-million barrels of storage capacity.
Salina Cruz (Pacific). 16.10 N. 95.12 W. The Salina Cruz terminal is located on the west
coast of Mexico at the northern head of the Gulf of Tehuantepec. One of the three sin-
gle-point moorings is designed for crude oil tankers between 100,000-250,000 dwt.
ISTHMUS ASSAY
Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG 1.3
Paraffins % Wt. 61
Naphthenes % Wt. 26
Aromatics % Wt. 13
Paraffins % Wt. 56
Naphthenes % Wt. 27
Aromatics % Wt. 17
Cetane Index 50
Pour Point Temp. C/F 21
ISTHMUS TERM-CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $13.40 $14.10 $32.00 $38.50 $35.00 $32.50 $29.00 $29.00
Feb. 13.40 14.10 32.00 38.50 35.00 29.00 29.00 27.75
March 13.40 14.10 32.00 38.50 32.50 29.00 29.00 27.75
April 13.40 17.10 32.00 38.50 32.50 29.00 29.00 27.75
May 13.40 17.10 33.50 38.50 32.50 29.00 29.00 27.75
June 13.40 17.10 33.50 34.50 32.50 29.00 29.00 26.75
July 13.10 22.60 34.50 36.50 32.50 29.00 29.00 26.54
Aug. 13.10 22.60 34.50 34.00 32.50 29.00 29.00 26.54
Sept. 13.10 22.60 34.50 34.00 32.50 29.00 29.00 26.54
Oct. 13.10 24.60 34.50 34.00 32.50 29.00 29.00 27.15
Nov. 13.10 24.60 34.50 35.00 32.50 29.00 29.00 27.15
Dec. 13.10 24.60 38.50 35.00 32.50 29.00 29.00 26.11
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $21.09 $16.98 $15.41 $15.66 $19.18 $20.88 $15.99 $16.42
Feb. 15.57 16.60 14.37 15.88 18.33 16.62 15.95 17.35
March 12.21 17.62 14.30 17.78 17.13 16.80 16.29 17.57
April 11.98 17.80 15.65 19.26 15.04 17.90 17.46 17.77
May 13.09 18.28 15.43 17.69 15.07 17.91 18.61 17.20
June 10.80 18.62 14.19 17.31 13.68 17.11 19.73 16.01
July 9.21 19.46 13.80 17.06 17.12 18.21 19.04 15.28
Aug. 13.45 18.23 13.47 16.65 25.94 18.45 18.72 15.07
Sept 13.48 17.82 12.40 17.06 33.61 19.26 19.24 15.13
Oct. 13.18 17.96 11.46 17.43 33.11 20.38 19.03 15.14
Nov. 13.56 16.95 11.91 17.91 30.03 18.48 18.13 13.81
Dec. 15.18 15.29 13.94 19.51 25.66 16.04 16.79 12.37
Note: Estimated volume-weighted average of US, European, and Asian prices from 1986. Note: More recent prices can be found
in Chapter I.
MAYA Mexico
Gravity: 21.5 Sulfur: 3.43 Loading Ports: Cayo Arcas, Salina Cruz
Production
Output of Mexicos largest crude oil stream was running at a steady 1.35-million barrels
a day in 1996, and is expected to rise by 250,000 b/d or more by late 1997. Maya is pro-
duced from multiple offshore fields in the Bay of Campeche, just off the coast of Ciudad
del Carmen and the expansion in production is coming from investments in existing
fields. Cantarell, which produces 1.1-million b/d, and Ku are the two largest producing
areas. Maya exports averaged 860,000 b/d in the first half of 1996, making it the largest
Latin American export grade.
Quality
A typical heavy, high-sulfur Latin American crude oil. High metals content makes it par-
ticularly difficult for cracking.
Producers
Most Maya crude oil is sold on term contracts to customers in the US, Europe, and the
Far East. The US Gulf Coast is the primary market and Pemex has managed to lock in
some 110,000 b/d of sales through a joint-venture investment at Shell Oils Deer Park,
Texas, refinery. Unlike other producers, Mexico does not use West Texas Intermediate
as a pricing benchmark for its US sales.
Prices are set on a monthly basis using a multiple crude oil and fuel oil formula. In
late 1996, the formulas were as follows: for Europe, 52.7% of the Dated Brent price plus
46.7% of 3.5% sulfur fuel oil minus 25% of the difference between 1% sulfur fuel oil and
3.5% sulfur fuel oil minus a differential; for the US, 40% of the sum of West Texas Sour
and 3% sulfur fuel oil plus 10% of the sum of Light Louisiana Sweet and Dated Brent
minus a differential; and for Asia, the average of Dubai and Oman less a differential.
Sellers
DF. Tel.: (525) 227-0121.
Fax: (713) 951-0354.
(44-171) 823-1813.
PMI Tokyo: 28 Mori Building, 10th Floor, 4-16-13, Nishi-Azabu, Minato-Ku, Tokyo
106, Japan. Tel.: (03) 449-1481, Fax: (03) 499-1484.
Main Customers
Sophisticated US refiners are the main purchasers of Maya, with the Shell-Pemex joint
venture taking 110,000 b/d and other large buyers including Mobil, Chevron, Conoco,
and Amoco. For quality reasons, the grade is harder to market to Europe and Asia.
Japanese refiners only take about 10,000 b/d.
Loading Ports
Cayo Arcas (Caribbean). 20.11 N. 91.59 W. Cayo Arcas is an open-sea terminal situated
approximately 85 miles west of Campeche in the Gulf of Mexico. Facilities include two
single-buoy moorings and two storage tankers. Size restrictions are 250,000 maximum
deadweight tons at SBM 2 and 350,000 dwt at SBM 3.
Salina Cruz (Pacific). 16.10 N. 95.12 W (see Isthmus, px for details).
MAYA ASSAY
Crude Oil Crude Oil
Viscosity Centistokes 71
(Kinematic) at 40 C
Cut Points Yield
LPG 0.7
Paraffins % Wt. 63
Naphthenes % Wt. 26
Aromatics % Wt. 11
Paraffins % Wt. 58
Naphthenes % Wt. 27
Aromatics % Wt. 15
Kerosine 400-500 8 Kerosine
Cetane Index 47
Pour Point Temp. C/F 72
MAYA TERM-CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $13.40 $14.10 $28.00 $34.50 $26.50 $25.00 $25.00 $25.50
Feb. 13.40 14.10 28.00 34.50 26.50 23.00 25.00 25.50
March 13.40 14.10 28.00 34.50 25.00 23.00 25.00 25.50
April 13.40 17.10 28.00 32.00 25.00 23.00 25.00 25.50
May 13.40 17.10 33.50 32.00 25.00 23.00 25.50 25.50
June 13.40 17.10 33.50 28.00 25.00 23.00 25.50 24.00
July 13.10 22.60 29.00 30.00 25.00 23.00 25.50 23.45
Aug. 13.10 22.60 29.00 28.50 25.00 24.00 25.50 23.45
Sept. 13.10 22.60 29.00 28.50 25.00 24.00 25.50 23.45
Oct. 13.10 24.60 29.00 28.50 25.00 25.00 25.50 23.05
Nov. 13.10 24.60 29.00 35.00 25.00 25.00 25.50 23.05
Dec. 13.10 24.60 34.50 35.00 25.00 25.00 25.50 21.98
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $19.34 $14.66 $12.06 $12.36 $15.12 $16.09 $9.93 $11.95
Feb. 13.80 14.54 11.88 12.42 14.16 11.18 10.18 12.58
March 10.71 15.01 10.91 13.56 13.09 11.55 10.50 12.98
April 9.36 15.81 12.75 15.95 11.48 12.79 12.25 13.05
May 9.38 16.97 13.02 15.57 11.13 12.80 13.99 12.34
June 9.02 17.12 11.92 15.23 9.59 12.36 15.25 11.22
July 7.56 17.78 11.16 15.23 11.85 13.39 15.30 11.03
Aug. 9.66 16.80 11.51 14.17 20.36 13.05 14.80 11.29
Sept. 10.63 15.50 9.91 14.41 25.26 13.41 15.07 11.43
Oct. 10.85 15.81 8.66 14.97 26.40 14.38 15.29 11.24
Nov. 10.90 14.87 9.11 14.99 23.93 13.54 14.51 9.81
Dec. 11.66 11.61 10.50 16.73 20.55 10.74 12.56 9.00
Note: Estimated volume-weighted average of US, European, and Asian prices from 1986. Note: More recent prices can be found
in Chapter I.
OLMECA Mexico
Gravity: 39.1 Sulfur: 0.72 Loading Port: Dos Bocas
Production
Split out of the Isthmus crude stream in 1988, Olmeca is produced from the Bay of
Campeche and southern onshore fields. Volumes are rising with higher output of light
crude oil, reaching an average of 580,000 barrels a day in first-half 1996 and are due to
rise further. Exports of light crude oil are being maximized to boost export earnings, and
international sales of Olmeca amounted to 480,000 b/d in first-half 1996.
Quality
Mexicos light, low-sulfur export crude oil is not as good for making gasoline as US West
Texas Intermediate, but it provides good feedstock for lubricants and petrochemicals.
Producers

Exports have almost doubled since the early 1990s and are likely to reach 500,000 b/d
in 1997. Olmeca is sold primarily on a term-contract basis to US customers, although
some cargoes do go to Europe. The grade has become especially popular with sweet
crude oil refiners on the US Gulf Coast. Unlike other producers, Mexico does not use
West Texas Intermediate as a pricing benchmark for its US sales.
Prices are set on a monthly basis using the following formula for the US: the average
of dated Brent, Light Louisiana Sweet, and West Texas Sour, minus a small differential.
Sellers
DF. Tel.: (525) 227-0121.
Fax: (713) 951-0354.
(44-171) 823-1813.
Main Customers
US Gulf Coast refiners are the primary outlet, with traditional buyers such as Chevron,
Exxon, Shell Oil, and Mobil being supplemented by sales to sweet crude oil refiners such
as Clark, Fina, and Ashland.
Loading Port
Dos Bocas (Caribbean). 18.37 N. 93.10 W. The Dos Bocas terminal, located on the south-
ern shore of the Gulf of Campeche in Tabasco state, consists of two single-buoy moor-
ings designed for loading tankers from 150,000-250,000 deadweight tons. A total of 10
crude oil tanks provide 5-million barrels of storage capacity.
OLMECA ASSAY
Crude Oil Crude Oil
Barrels /Metric Ton 7.596 Pour Point Temp. F. -20
(Kinematic) at 40 C
Cut Points Yield
LPG 2.5 LPG
Paraffins % Wt. 59
Naphthenes % Wt. 27
Aromatics % Wt. 14
Paraffins % Wt. 54
Naphthenes % Wt. 23
Aromatics % Wt. 23
Cetane Index 51
OLMECA TERM-CONTRACT PRICES TO THE US, 1988-93
Month 1988 1989 1990 1991 1992 1993
Jan. ... $16.80 $20.78 $23.45 $17.77 $17.92
Feb. ... 16.80 20.21 18.46 17.98 19.04
March ... 18.76 19.51 18.56 17.76 19.18
April ... 20.62 16.59 19.56 19.19 19.14
May ... 19.65 16.42 19.66 20.14 18.94
June 15.56 19.10 14.93 18.88 21.42 17.81
July 14.98 18.47 17.13 20.03 20.61 16.68
Aug. 14.80 17.38 27.13 20.51 20.10 16.76
Sept. 13.76 18.11 34.57 21.01 20.53 16.30
Oct. 12.59 18.66 35.38 22.30 20.43 16.73
Nov. 12.90 18.82 32.51 21.09 19.65 15.04
Dec. 15.24 20.13 27.28 18.49 18.48 13.49
HOUT Neutral Zone
Gravity: 32.8 Sulfur: 1.9 Loading Port: Ras al-Khafji
Production
Output averages 30,000 barrels a day from offshore fields in the Neutral Zone jointly held
by Saudi Arabia and Kuwait.
Quality
Although originally similar to Saudi benchmark grade Arabian Light, the grade has
become heavier over the years, and is now more like Arabian Medium.
Producers
Japans Arabian Oil Co. is the producer under concession agreements with the govern-
ments of Kuwait and Saudi Arabia that date from 1957 and begin to expire in 1999.

All of the production is exported to customers in the Asia-Pacific region by AOC under
prices determined by Saudi Arabia and Kuwait. As with Asian sales of Saudi and Kuwaiti
crude oil, the price is tied by a formula to the average of the monthly spot prices for
Oman and Dubai grades. The formula is tied to the term contract price of Arabian Light
less a discount.
Sellers
The grade is sold by AOC, with government revenue divided equally between Saudi
Arabia and Kuwait.
Arabian Oil Co. Ltd.: Crude Oil Marketing Dept., 3-2-3 Marunouchi Chiyoda-Ku,
P.O. Box 1679, Tokyo Central Post Office, Tokyo, Japan. Tel.: (81-33) 214-4319, Fax: (81-
33) 214-7019.
Main Customers
Most of the grade is sold to Japanese National Oil Co., which uses the oil in the coun-
trys strategic stockpile, as well as Japanese refiners. Other volumes also go to Taiwans
state CPC.
Loading Port
Ras al-Khafji. 28.25 N. 48.32 E. The port is located in the offshore area of the Divided
or Neutral Zone of Saudi Arabia and Kuwait. Two four-buoy system berths and two sin-
gle-buoy mooring system berths are available for loading tankers up to ultra-large crude
carrier size.
HOUT ASSAY
Crude Oil Crude Oil
(Kinematic) at 30 C Hydrogen Sulfide ppm 1
Cut Points Yield
212-338 Paraffins % Wt. 63.8
Freezing Point Temp. C -46.5
Cetane Index 56
Cetane Index 58
KHAFJI Neutral Zone
Gravity: 28.5 Sulfur: 2.85 Loading Port: Ras al-Khafji
Production
Khafji is the single-largest Neutral Zone field, producing 280,000 barrels a day in 1996
from an offshore complex that is a northern extension of the large Saudi Safaniyah struc-
ture. Output levels can be influenced by Opec quota agreements and higher winter
demand from Japanese refiners. Capacity is expected to be expanded slightly as part of
an investment program that is meant primarily to sustain current flows well into the next
century.
Quality
The grade is very similar to Arabian Heavy. The test below is old, but it is still consid-
ered representative of the crude oils quality.
Producers
Japans Arabian Oil Co. is the producer under concession agreements with the govern-
ments of Kuwait and Saudi Arabia that date from 1957 and begin to expire in 1999.

Sales are exclusively to the Far East, with over two-thirds sold to Japanese refiners. The
balance of sales are taken by other Asia-Pacific refiners. Over 90% of crude oil sales are
on a term-contract basis. Khafji is priced at parity with the Saudi formula terms for Arab
Heavy to the Far East.
Sellers
The grade is sold by AOC, with government revenue divided equally between Saudi
Arabia and Kuwait.
Arabian Oil Co. Ltd.: Crude Oil Marketing Dept., 3-2-3 Marunouchi Chiyoda-Ku,
P.O. Box 1679, Tokyo Central Post Office, Tokyo, Japan. Tel.: (81-33) 214-4319, Fax: (81-
33) 214-7019.
Loading Port
Ras al-Khafji. 28.25 N. 48.32 E. The port is located in the offshore area of the Divided
or Neutral Zone of Saudi Arabia and Kuwait. Two four-buoy system berths and two sin-
gle-buoy mooring system berths are available for loading tankers up to ultra-large crude
carrier size.
KHAFJI ASSAY
Crude Oil Crude Oil
(Kinematic) at 50 F/10 C Hydrogen Sulfide ppm <1
Cut Points Yield
212-338 Paraffins % Wt. 66.5
Pour Point Temp. C -17.5
Cetane Index 53.4
Cetane Index 54.4
KHAFJI TERM -CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $12.03 $12.53 $27.20 $35.20 $31.03 $31.03 $26.03 $26.53
Feb. 12.03 13.73 27.20 35.20 31.03 27.03 26.03 26.53
March 12.03 15.32 27.20 35.20 31.03 26.03 26.03 26.53
April 12.03 15.46 27.20 35.20 31.03 26.03 26.03 26.53
May 12.03 16.06 29.20 35.20 31.03 26.03 26.03 26.53
June 12.03 18.66 29.20 35.20 31.03 26.03 26.03 26.53
July 12.03 19.19 31.20 35.20 31.03 26.03 26.03 26.03
Aug. 12.03 19.19 31.20 35.20 31.03 26.03 26.03 26.03
Sept. 12.03 19.19 31.20 35.20 31.03 26.03 26.03 26.03
Oct. 12.03 23.50 31.20 35.20 31.03 26.03 26.03 26.03
Nov. 12.03 25.20 31.20 31.65 31.03 26.03 26.03 26.03
Dec. 12.03 27.50 31.20 31.65 31.03 26.03 26.03 26.03
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. ... ... $16.27 $13.43 $16.65 $16.43 $12.87 $13.19
Feb. ... 16.27 16.27 13.63 16.03 ... 13.33 13.77
March ... 16.27 12.59 15.18 15.00 ... 13.38 14.08
April ... 16.27 14.10 16.33 13.30 ... 14.55 14.28
May ... 16.27 14.08 15.13 13.58 ... 15.70 13.94
June ... 16.27 12.93 14.80 12.26 13.29 17.07 13.57
July ... 16.27 12.15 14.83 13.80 14.13 16.52 12.34
Aug. ... 16.27 12.28 14.30 23.54 14.51 15.89 12.58
Sept. ... 16.27 10.73 14.93 29.46 15.69 16.45 12.13
Oct. ... 16.27 9.43 15.48 29.97 16.66 16.46 12.88
Nov. ... 16.27 9.75 15.33 25.26 15.82 15.38 11.89
Dec. ... 16.27 11.73 16.40 20.52 12.70 14.38 10.22
Note: Production was shut-in during early 1991 due to the liberation of Kuwait. In 1986 and early 1987, netback pricing pre-
vailed, for which no data are available. Note: More recent prices can be found in Chapter I.
WAFRA Neutral Zone
Gravity: 24.2 Sulfur: 4.0 Loading Port: Mina Saud (Mina al-Zour)
Other Names: Ratawi
Production
The onshore block in the northern part of the Neutral Zone produces about 200,000 bar-
rels a day from three fields, with Wafra itself being the largest. The production facilities
at the fields and the adjacent refinery were heavily damaged during the Iraqi occupation
of Kuwait, but capacity has been fully restored and an aggressive expansion program is
under way. Targets are to raise capacity to 300,000 b/d by 1999, 400,000 b/d by 2003,
and 500,000 b/d by 2005, all of which will be heavy crude oil. This includes flows of
heavier, 18-gravity Eocene grade.
Quality
A heavy, high-sulfur crude oil, even by Mideast standards, but relatively low in metals,
asphaltenes, and acidity for a crude oil that is this heavy. The main export grade has
been Wafra or Ratawi, but a heavier 18-gravity grade came on in 1996 and is making an
important contribution to higher output. The heavier Eocene grade comes from a differ-
ent producing layer of the field.
Producer
A 50-50 joint venture between Texaco and state Kuwait Oil Co. in which Texaco is the
operator. As with the other Neutral Zone crude oils, Saudi Arabia and Kuwait split rev-
enues from the crude oil 50-50. The concession is due to expire in 2010.

The grade is difficult to market because of its quality, which tends to restrict it to more
sophisticated refineries. Wafra rarely appears in the open market, but Texaco is making
greater efforts to market the rising production, which it refers to as Ratawi and Eocene.
It has been lining up term contract customers for monthly liftings on either an f.o.b. or
delivered basis. Significant volumes are also absorbed in Kuwaits large domestic refiner-
ies, which are capable of handling such grades, and in Texacos downstream network.
About 45,000 b/d moved to Japan in 1995.
Sellers
Texaco International Trader: 2000 Westchester Ave., White Plains, NY 10650. Tel.:
(914) 253-4000, Fax: (914) 253-7178.
Kuwait Petroleum Corp.: P.O. Box 26565, Safat, Kuwait 13126. Tel.: (965) 245-5455,
Fax: (965) 246-7159.
KPC London: 80 New Bond St., London W1Y 9DA, UK. Tel.: (44-171) 491-4000, Fax:
(44-171) 629-2617.
Loading Port
Mina Saud. 28.45 N. 48.24 E. The port is located just south of Ras Az Zaur. The termi-
nal is connected by pipelines to the field and production center at Wafra, 31 miles to the
northwest. There are two loading berths. Each is a conventional multi-buoy mooring
capable of handling VLCCs.
WAFRA ASSAY
Crude Oil Crude Oil
Gravity (60 F) API 24.2 Sulfur Content % Weight 4
(Kinematic) at 40C Hydrogen Sulfide Parts/mill. 4
Cut Points Yield
LPG 2.2 1.4 LPG
Octane RON clear 62
Aromatics % Wt. 12
Cetane Index 50.6
Vacuum Gas Oil 650-1000 25.4 26 Vacuum Gas Oil
Aniline Point Temp. F 165
Viscosity (Kin) 50C 28.8
Viscosity (Kin) Cen at 50C 849298
BONNY LIGHT Nigeria
Gravity: 35.4 Sulfur: 0.14 Loading Port: Bonny

Other Names: Nigerian Light, BBQ (acronym for similar-quality Nigerian crude oils:
Bonny Light, Brass River, and Qua Iboe)
Production
About 450,000-500,000 barrels a day, mainly from many small fields onshore on the east
side of the Niger delta.
Quality
Nigerias benchmark grade. A high-quality, light, sweet crude oil that is particularly val-
ued for making gasoline.
Producers
Produced mainly by a joint venture operated by Shell (30%) with state NNPC (55%), Agip
(5%), and Elf (10%). Some production comes from a smaller joint venture operated by
Chevron (40%) with NNPC (60%).

The primary market for Bonny Light is the US, which takes about half of Nigerias total
crude oil exports of 1.6-million b/d. Volumes also move regularly to Europe and occa-
sionally to the Far East. State NNPC sells to a wide and variable range of term-contract
customers that include both traders and refiners. The price formulas for all Nigerian
crude oils are tied to the spot market prices of UK Brent Blend. NNPC also offers
deferred pricing with an extra premium. Bonny Light is one of the most actively spot-
traded West African streams, especially in the summer, when its high gasoline yield
makes it particularly attractive to the US market.
Sellers
NNPC is the main seller, but it also uses about 125,000 b/d as feedstock for its domestic
refineries, leaving only about 325,000 b/d for export. Among equity producers, Shell is
more active as a reseller of the crude oil, while Elf and Agip are more prone to using
their shares within their own international downstream systems.
NNPC: General Manager, Crude Oil Marketing Division, 7 Kofo Abayomi St., Victoria
Island, PMB 12701, Lagos, Nigeria. Tel.: (234-1) 614-228, Telex: 21609 NG.
Shell International Trading And Shipping Co. (Stasco): Shell Mex House, Strand,
London, WC2R O7A, UK. Tel.: (44-171) 546-1234, Fax: (44-171) 546-4448.
Agip Spa: 89-91 Via Del Serafico, Rome 00142, Italy. Tel.: (39-6) 503-921, Fax: (39-6)
503-922-41.
Elf Trading S.A.: P.O. Box 532, 1215 Geneva 15 Airport, Switzerland. Tel.: (41-22)
710-1112, Fax: (41-22) 710-1110.
Loading Port
Bonny Offshore Terminal. 04.11 N. 07.14 E. The Bonny loading facility consists of an
offshore terminal with two single-buoy moorings. Size restrictions are a maximum
BONNY LIGHT ASSAY

Crude Oil Crude Oil
Cut Points Yield
LPG 2.1 1.4 LPG
Naphthenes % Wt. 53
Aromatics % Wt. 14
Cetane Index 44.3
Cetane Index 51.9
BONNY LIGHT TERM-CONTRACT PRICES, 1986-93
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $25.10 $17.45 $15.75 $17.14 $20.54 $21.40 $18.53 $17.94
Feb. 18.00 18.92 15.08 17.96 19.42 19.47 18.37 19.00
March 16.90 18.92 14.67 19.62 17.56 19.09 17.94 19.22
April 14.95 18.92 16.71 19.59 16.45 19.50 19.43 19.24
May 16.15 18.92 16.40 18.26 15.85 19.38 20.47 18.85
June 12.75 18.92 15.49 17.25 15.75 18.46 21.64 17.75
July 10.20 18.92 15.71 16.90 21.82 19.70 20.74 17.24
Aug. 13.65 18.92 15.02 17.45 30.50 20.13 20.32 17.28
Sept. 13.35 18.92 13.98 18.53 38.34 20.84 20.85 16.51
Oct. 13.35 18.92 13.76 18.90 34.36 22.56 20.57 16.69
Nov. 14.00 18.92 14.78 19.40 31.36 21.41 19.53 15.23
Dec. 14.30 18.92 15.46 21.59 27.83 18.72 18.57 14.03
BONNY LIGHT SPOT PRICES, 1987-93
Month 1987 1988 1989 1990 1991 1992 1993
Jan. $18.45 $16.95 $17.35 $21.65 $24.20 $18.60 $17.80
Feb. 17.55 15.90 17.15 20.20 20.30 18.55 19.10
March 18.05 14.85 19.05 18.70 19.45 18.10 19.40
April 18.35 16.75 20.55 16.85 19.30 19.60 19.25
May 18.80 16.50 18.95 16.70 19.45 20.60 19.05
June 18.95 15.65 17.90 15.40 18.50 21.80 18.10
July 19.95 15.10 17.95 17.55 19.90 20.95 17.50
Aug. 19.00 15.10 16.90 28.00 20.20 20.40 17.20
Sept. 18.50 13.40 17.95 35.90 21.10 20.85 16.50
Oct. 19.00 12.55 19.20 36.80 22.80 20.90 17.05
Nov. 18.10 13.15 19.15 33.90 21.85 19.90 15.75
Dec. 17.15 15.45 20.25 28.75 18.90 18.70 14.05
BONNY MEDIUM Nigeria
Gravity: 26.5 Sulfur: 0.22 Loading Port: Bonny

Other Names: Nigerian Medium
Production
About 80,000 barrels a day from many small fields on the east side of the Niger delta.
Quality
A heavier, low-sulfur Nigerian grade that is especially rich in middle distillates.
Producers
Elf (40%) with NNPC (60%).

Prized as a gas oil grade, Bonny Medium is readily absorbed into the US and European
markets, particularly in winter. State NNPC sells to a wide and variable range of term-
contract customers that include both traders and refiners. The price formulas for all
Nigerian crude oils are tied to the spot market prices of UK Brent Blend. NNPC also
offers deferred pricing with an extra premium. Bonny Medium is rarely traded in the spot
market except in the winter months. The crude oil is usually sandwiched with Bonny
Light in the same cargo, due to limitations of the loading facility.
Sellers
NNPC is the main seller, and virtually all of production is exported. The equity produc-
ers tend to use their shares in their international downstream systems.
503-922-41.
710-1112, Fax: (41-22) 710-1110.
Loading Port
Bonny Offshore Terminal: 04.11 N. 07.14 E. Bonny Medium is loaded in combined
cargoes with Bonny Light due to the storage and handling limitations of the terminal. The
Bonny loading facility consists of an offshore terminal with two single-buoy moorings.
Size restrictions are a maximum 320,000 deadweight tons. The inshore terminal is no
longer used for crude oil loading.
BONNY MEDIUM ASSAY

Crude Oil Crude Oil
Cut Points Yield
LPG 0.6 0.4 LPG
Naphthenes % Wt. 66
Aromatics % Wt. 13
Cetane Index 36
Cetane Index 42.7
BONNY MEDIUM TERM CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $13.68 $14.25 $28.72 $38.72 $33.77 $33.52 $28.02 $27.02
Feb. 13.68 14.25 32.93 38.72 33.77 28.02 28.02 27.62
March 13.68 14.25 32.93 38.72 33.52 28.02 28.02 27.62
April 13.57 17.52 33.44 38.72 33.52 28.02 28.02 27.62
May 13.57 20.02 35.44 38.72 33.52 28.02 28.02 27.62
June 13.57 20.02 35.44 38.72 33.52 28.02 28.02 27.62
July 13.57 22.02 35.75 38.72 33.52 28.02 28.02 27.62
Aug. 13.57 22.02 35.75 34.72 33.52 28.02 28.02 27.62
Sept. 13.57 22.02 35.75 34.72 33.52 28.02 28.02 27.62
Oct. 13.57 22.02 35.75 33.22 33.52 28.02 27.02 27.62
Nov. 13.57 24.79 35.75 35.22 33.52 28.02 27.02 27.62
Dec. 13.57 28.72 35.75 35.22 33.52 28.02 27.02 27.62
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $27.62 $18.25 ... ... $19.99 $20.50 $18.18 $17.19
Feb. 27.62 17.42 ... 17.16 18.87 18.77 17.57 18.45
March 15.68 17.42 ... 18.82 17.01 18.24 17.04 18.82
April ... 17.42 ... 18.79 15.70 18.50 18.78 18.77
May 13.29 17.42 ... 17.46 15.10 18.23 19.72 18.55
June ... 17.42 ... 16.46 15.00 17.31 20.89 17.60
July ... 17.42 ... 15.90 20.92 18.70 20.04 16.82
Aug. ... 17.42 ... 16.45 29.60 19.23 19.77 16.86
Sept. ... 17.42 ... 17.53 37.64 20.34 20.45 16.31
Oct. ... 17.42 ... 18.30 33.51 22.26 20.22 16.49
Nov. 14.15 17.42 ... 18.80 30.56 21.06 19.28 15.03
Dec. 15.50 17.42 ... 21.01 26.93 18.37 16.34 13.86
BRASS RIVER Nigeria
Gravity: 41.5 Sulfur: 0.09 Loading Port: Brass River

Other Names: Brass Blend, BBQ (an acronym for three similar-quality Nigerian crude
oils: Bonny Light, Brass River, and Qua Iboe)
Production
About 150,000 barrels a day mainly from small onshore fields along the coast in the mid-
dle of the Niger delta between the Bonny and Escravos systems.
Quality
Nigerias lightest export crude oil is a typical high-quality West African gasoline-oriented
grade.
Producers
Output by a joint venture operated by Agip (20%), with state NNPC (60%), and Phillips
(20%). Ashland also has a smaller venture with NNPC split 40-60 that feeds into this
stream.

NNPC sells its share mainly on term contracts at prices slightly above Bonny Light and
Qua Iboe grades. The price formula is tied to the spot market prices of UK Brent Blend.
Deferred pricing is available from NNPC for a premium. Brass River rarely appears in the
spot market. The main customers are in the US due to the grades high gasoline yield.
Sellers
NNPC is the main seller, with both Agip and Phillips using the grade within their own
downstream systems.
503-922-41.
Loading Port
Brass River Terminal. 04.04 N. 06.17 E. The Brass River Terminal, located 13.5 miles
off the South Nigerian coast, consists of two single-buoy moorings. Size restrictions are
300,000 deadweight tons and 1,200 feet overall length.
BRASS RIVER ASSAY

Crude Oil Crude Oil
Gravity API 41.5 Sulfur Content % Weight 0.09
(Kinematic) at 40 C
Cut Points Yield
LPG 2.7 LPG
Naphthenes % Wt. 49
Aromatics % Wt. 12
Naphthenes % Wt. 40
Aromatics % Wt. 15
Atm. Gas Oil 500-650 15.3 Atmospheric Gas Oil
Sulfur Content % Wt 0.09
Cetane Index 51
Gravity API 18.8
ESCRAVOS Nigeria
Gravity: 36.2 Sulfur: 0.14 Loading Port: Escravos

Other Names: Nigerian Light Gulf
Production
About 360,000 barrels a day, mostly from small fields on the west side of the Niger delta
and offshore.
Quality
A high-quality, light, low-sulfur crude oil similar to benchmark Bonny Light.
Producers
Equity ownership shared by state NNPC (60%) and Chevron (40%). Interest acquired by
Chevron in its takeover of Gulf Oil in 1984.

Exports amount to about 240,000 b/d, with NNPC selling only part of its share interna-
tionally on term contracts and using about 120,000 b/d for domestic refining. Chevron
generally keeps the grade within its own downstream system, but cargoes sometimes
appear on the spot market. Prices are set by NNPC at a slight discount below the top
Nigerian grades. The price formula is tied to the spot market prices of UK Brent Blend.
Deferred pricing is also available at a premium to the regular f.o.b formula.
Sellers
Chevron (UK) Ltd.: c/o Mail Centre, 2 Portman St., London W1H 0AN, UK. Tel.: (44-
171) 487-8100, Fax: (44-171) 487-8142.
Loading Port
Escravos. 05.30 N. 05.00 E. The terminal consists of two single-buoy mooring berths.
Sea Terminal Berth No. 2 handles vessels up to 120,000 deadweight tons and has a depth
of 65 feet. Berth No. 3 takes ships up to 300,000 dwt at a depth of 100 ft.
ESCRAVOS ASSAY
Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG 1.9 LPG
Light Naphtha <175 6 Light Naphtha
Naphthenes % Wt. 49
Aromatics % Wt. 16
Naphthenes % Wt. 51
Aromatics % Wt. 14
Cetane Index 48
Year Of Crude Oil Sample: 1987 Viscosity (Kin) Cen at 100 C 14
FORCADOS Nigeria
Gravity: 28.5 Sulfur: 0.19 Loading Port: Forcados

Other Names: Nigerian Export Blend
Production
About 450,000 barrels a day taken from many small onshore fields on the west side of
the Niger Delta. Volume is about the same as Bonny Light, but less is used internally,
making it Nigerias largest export crude oil stream.
Quality
Although heavier than the top-quality Nigerian grades, Forcados has an extremely large
gas oil yield that makes it popular among refiners in the winter.
Producers
Chevron (40%) with NNPC (60%).

Almost all production is exported. Under normal market conditions, NNPC sells its share
mainly on term contracts at prices tied to the spot market for UK Brent Blend. In the
summer, Forcados is generally priced by NNPC at about 20¢ a barrel below Bonny Light,
but in the winter, it is often at a slight premium. This inversion is even more pronounced
in the spot market. The main destinations are Northwest Europe and the US. Forcados is
one of the more actively spot traded West African streams, particularly in the autumn and
the winter, when its high gas oil yield is especially prized.
Sellers
NNPC is the main seller, but it also uses about 5,000-10,000 b/d as feedstock for domes-
tic refineries. Among equity producers, Shell is more active as a reseller of the grade,
while Elf and Agip are more prone to using their share within their own international
downstream systems.
503-922-41.
710-1112, Fax: (41-22) 710-1110.
Loading Port
Forcados. 05.10 N. 05.10 E. The Forcados single-buoy moorings are located approxi-
mately 11 miles offshore. Crude oil is loaded through a 48-inch, 14-mile submarine line.
Maximum vessel size is 320,000 deadweight tons with a maximum draft of 65 feet.
FORCADOS ASSAY
Crude Oil Crude Oil
Cut Points Yield
LPG 1 0.6
Naphthenes % Wt. 57
Aromatics % Wt. 17
Cetane Index 37.3
Cetane Index 43.3
FORCADOS TERM CONTRACT PRICES, 1986-93
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $28.07 $18.45 $15.47 $16.39 $20.54 $20.95 $18.48 $17.34
Feb. 18.00 18.52 14.54 17.66 19.42 19.12 17.82 18.66
March 13.90 18.52 14.04 19.32 17.56 18.59 17.29 18.94
April 12.65 18.52 16.14 19.29 16.15 18.80 19.03 18.92
May 13.95 18.52 15.61 17.96 15.55 18.53 19.97 18.65
June 11.65 18.52 14.66 16.96 15.45 17.61 21.14 17.75
July 9.20 18.52 14.67 16.30 21.37 19.05 20.29 17.02
Aug 13.50 18.52 14.31 16.85 30.05 19.53 20.02 17.06
Sept. 14.05 18.52 13.26 17.93 38.19 20.69 20.70 16.56
Oct. 13.95 18.52 12.85 18.88 34.16 22.51 20.47 16.74
Nov. 14.50 18.52 14.08 19.38 31.06 21.36 19.48 15.29
Dec. 15.85 18.52 15.17 21.58 27.38 18.72 17.01 14.11
FORCADOS SPOT PRICES, 1988-93
Month 1988 1989 1990 1991 1992 1993
Jan. $16.95 $17.30 $21.80 $23.75 $18.35 $17.45
Feb. 15.85 17.05 20.10 19.65 17.90 18.70
March 14.80 18.90 18.35 18.80 17.70 19.15
April 16.60 20.45 16.30 18.60 19.15 19.05
May 16.30 18.75 16.20 18.70 20.15 19.00
June 15.45 17.20 14.90 17.75 21.35 18.00
July 14.90 17.20 17.10 19.30 20.75 17.30
Aug. 14.90 16.65 27.45 19.95 20.25 17.20
Sept. 13.30 17.95 35.80 21.00 20.70 16.55
Oct. 12.45 19.25 36.30 22.80 20.90 17.15
Nov. 13.05 19.05 33.00 21.90 19.80 15.80
Dec. 15.35 20.35 28.10 18.85 18.30 14.10
QUA IBOE Nigeria
Gravity: 35.9 Sulfur: 0.12 Loading Port: Qua Iboe

Other Names: Nigerian Light Mobil, BBQ (an acronym for similar-quality Nigerian crude
oils: Bonny Light, Brass River, and Qua Iboe)
Production
About 340,000 barrels a day, from offshore fields near the Cameroon border in south-
eastern Nigeria. The 18-field network pumps crude oil to the onshore storage terminal at
Qua Iboe.
Quality
A high-quality, gasoline-rich Nigerian export grade similar to or slightly better than
benchmark Bonny Light.
Producers
Equity ownership shared by state NNPC (60%) and Mobil (40%). Both companies sell
most of their equity crude oil to third-party buyers.

Almost all of the production is exported to US and European refiners. Prices are set by
NNPC at a differential to dated Brent, and they are adjusted on a monthly basis.
Deferred pricing is available at a premium. Qua Iboe is also actively traded in the spot
market. As a gasoline-oriented grade, Qua Iboe is coveted when Atlantic Basin gasoline
demand peaks during the summer. Sweet crude oil refiners in the US and Europe are
the main customers.
Sellers
Mobil: 3225 Gallows Road, Fairfax, VA 22037. Tel.: (703) 846-3000, Fax: (703) 846-
4669.
Loading Port
Qua Iboe. 04.20 N. 07.59 E. The Qua Iboe terminal, located on the eastern side of the
estuary of the Qua Iboe River, contains seven crude oil-storage tanks, each with 700,000-
barrel capacity. Tanker-loading facilities consist of two single-point mooring berths about
20 miles offshore. Maximum draft at both berths is 72 feet.
QUA IBOE ASSAY

Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG 2.2
Naphthenes % Wt. 58
Aromatics % Wt. 9
Naphthenes % Wt. 54
Aromatics % Wt. 14
Cetane Index 48
DRAUGEN Norway
Gravity: 39.8 Sulfur: 0.15 Loading Port: Draugen
Production
Output of about 130,000 barrels a day from a single platform in the Norwegian Seas
Haltenbanken off central Norway, north of the North Sea. Draugen was the first field to
be developed in the Haltenbanken area.
Quality
Similar to light, sweet North Sea crude oils.
Producers
Operator Shell (21%) with BP (14%) and Statoil (20%), which also holds a 45% stake on
behalf of the government..

Prices are linked to North Sea Brent grade, usually selling at a premium. Since the crude
oil is loaded at the production facility into specially dedicated tankers, sales are mainly
restricted to Northwest European destinations, with less scope for spot trading.
Sellers
Statoil: P.O. Box 300, N-4001 Stavanger, Norway. Tel.: (47-4) 808-080, Fax: (47-4)
807-042.
Loading Ports
Draugen. About 64 N. 8 E. Draugen crude oil is loaded from the production platform
by offshore buoys into dedicated tankers.
DRAUGEN ASSAY
Crude Oil Crude Oil
Viscosity cts 2.53 Reid Vapor Press. kpa 49
(Kinematic) at 40 C
Cut Points Yield
LPG 3.3 2.25 LPG
Aromatics % Wt. 9.8
Gas Oil 250-370 35.5 36.4 Gas Oil
Cetane Index 46
Viscosity (Kin) At 100 C 14.6
EKOFISK Norway
Gravity: 39.4 Sulfur: 0.19 Loading Port: Tees River (UK)
Production
Output of about 530,000 barrels a day in the central North Sea from the Ekofisk field itself
(240,000 b/d) the first in the North Sea and several other nearby fields. These are
Cod, Edda, Eldfisk, Embla, West Ekofisk, Hod, Valhall, Tommeliten, Ula, Gyda, Albuskjell,
and Tor. The phasing in of satellite fields has helped to maintain flows from this mature
area, which began output in 1971. With production of the reservoir, the seabed has sunk,
requiring extensive retrofitting of the facilities and plans for a new Ekofisk platform. The
crude oil is combined into a single stream at the Ekofisk hub and transported by the
700,000 b/d Norpipe pipeline to Teesside, UK, for tanker loading and export.
Quality
A high-quality, light, low-sulfur North Sea crude oil.
Producers
Phillips is the operator with a 36.96% share of the main Ekofisk fields. Other significant
partners include Petrofina (30%), Agip (13.04%), Elf (7.594%), Norsk Hydro (6.7%), and
Total (3.54%), with several smaller shares divided among other firms. BP is the operator
of Ula (60,000 b/d) and Gyda (65,000 b/d), and Amoco is the operator of Valhall and
Hod (75,000 b/d).

Producing companies keep some of the grade for their internal refining systems, but most
of the rest is sold on a spot basis with few formal term contracts. Ekofisk usually sells at
a slight premium to North Sea benchmark grade Brent due to its higher gasoline yield.
Sellers
Phillips Petroleum Co. E-A: Phillips Quadrant, 35 Guildford Road, Woking Surrey
GU22 7QT, UK. Tel.: (44-483) 756-666, Fax: (44-483) 752-309.
Petrofina S.A.: Rue de lIndustrie 52 B-1040, Brussels, Belgium. Tel.: (32-2) 288-9111,
Fax: (32-2) 288-3250.
Agip (UK) Ltd.: Southside, 105 Victoria St., London SW1E 6QU, UK. Tel.: (44-171)
630-1400, Fax: (44-171) 630-6544.
Main Customers
Most of the grade is refined in Northwest Europe, but cargoes do sometimes move to
North America. Ekofisks onshore loading allows greater flexibility for shipping than that
of Norways platform-loaded crude oils.
Loading Port
Tees River, Teesside, UK. 54.39 N. 01.08 W. The Tees River terminal, located on
Britains east coast, is the loading point for crude oil pumped by pipeline from the
Ekofisk fields in the Norwegian sector of the North Sea. Approximately 25 berths are
available for vessels from 1,000-150,000 deadweight tons.
EKOFISK ASSAY
Crude Oil Crude Oil
Viscosity SUS 37.5 Reid Vapor Press. Lbs/Sq. In. 6.4
at 40 C Hydrogen Sulfide % Weight <0.0001
Cut Points Yield
175-302 Paraffins % Wt. 48.1
Aromatics % Wt. 17
Diesel Index 60.7
Diesel Index 55.1
Viscosity (SUS) At 40 C 62.9
Viscosity (SUS) At 50 C 85.6
EKOFISK SPOT PRICES, 1985-93
Month 1985 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $26.80 $25.00 $18.40 $16.75 $17.20 $21.40 $23.80 $18.50 $17.55
Feb. 27.35 19.60 17.35 15.65 16.90 19.95 19.65 18.30 18.80
March 28.05 13.60 17.90 14.70 18.80 18.50 19.15 17.80 19.00
April 28.10 12.30 18.10 16.55 20.40 16.65 19.30 19.25 18.75
May 27.35 14.25 18.65 16.40 18.85 16.55 19.45 20.25 18.55
June 26.40 11.85 18.75 15.55 17.80 15.25 18.45 21.40 17.80
July 26.60 9.45 19.75 15.05 17.80 17.40 19.80 20.45 17.10
Aug. 27.10 13.60 18.85 14.85 16.80 27.30 20.15 19.90 17.05
Sept. 27.70 14.20 18.30 13.30 17.85 35.25 20.95 20.30 16.20
Oct. 27.90 13.80 18.65 12.45 19.00 36.30 22.60 20.45 16.65
Nov. 28.80 14.55 17.75 13.00 18.65 32.95 21.55 19.35 15.20
Dec. 28.60 15.75 17.05 15.35 19.70 28.05 18.55 18.40 13.65
EKOFISK NORM PRICES, 1985-93
Month 1985 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $26.80 $25.60 $17.50 $16.75 $16.25 $21.25 $26.20 $18.40 $19.05
Feb. 27.35 19.05 18.25 16.20 17.05 20.55 21.30 18.65 18.30
March 28.05 15.90 17.15 14.65 17.65 19.10 19.30 17.75 17.75
April 27.40 12.95 18.45 15.60 19.75 17.55 19.05 18.75 18.75
May 27.40 13.35 18.45 16.55 19.90 16.50 19.80 19.95 18.75
June 27.40 13.25 18.45 16.55 18.20 15.85 18.85 21.10 18.05
July 27.05 10.90 19.25 14.95 17.80 16.10 19.10 20.70 17.20
Aug. 27.05 11.25 19.80 15.35 16.95 23.30 20.15 20.20 17.05
Sept. 27.05 14.45 18.25 14.35 17.50 31.10 20.65 20.20 16.50
Oct. 28.55 13.90 18.50 12.70 18.45 38.40 22.10 20.45 16.70
Nov. 28.55 13.90 18.40 12.70 18.95 33.95 22.15 19.70 15.65
Dec. 28.55 14.80 17.60 14.00 19.00 30.75 19.65 18.80 14.15
Norm prices are tax-reference prices based on assessment of the average of all sales. Tax-reference prices for crude lifted during the month.
GULLFAKS Norway
Gravity: 29.9 Sulfur: 0.41 Loading Ports: Gullfaks, Mongstad

Other Names: Gullfaks A-B, Gullfaks C
Production
Output of about 460,000 barrels a day from three offshore production platforms A, B,
and C in the northern part of the North Sea. Production began in 1986 from platforms
A and B. Platform C came on stream in 1990, and smaller adjacent fields are being tied
into the system.
Quality
Heavier-than-typical North Sea crude oil, but still low in sulfur and high in naphthenes,
which gives it good gasoline-manufacturing characteristics despite its density. The crude
oil from the C platform is lighter, at 35.5 degrees API gravity, and more paraffinic than
the crude oil produced from platforms A and B, and has been sold as a higher value sep-
arate stream since late 1993. The test below is from platforms A & B.
Producers
Operator Statoil (12%) with Norsk Hydro (9%) and Saga (6%), with the 73% state share
held on behalf of the government by Statoil.

Prices are linked to North Sea Brent grade, usually selling at a discount. Since the crude
oil is loaded at the production facility into specially dedicated tankers, sales are mainly
restricted to Northwest European destinations, with less scope for spot trading. However,
Gullfaks crude oil can be transshipped to Statoils onshore Mongstad terminal for sales
to more distant markets in larger ships.
Sellers
807-042.
Statoil UK Ltd.: 10 Piccadilly, Swan Gardens, London W1V 9LA, UK. Tel.: (44-171)
491-1555, Fax: (44-171) 491-1589.
Statoil North America: 225 High Ridge Road, Stamford, CT 06905, USA. Tel.: (203)
978-6900.
Loading Ports
Gullfaks. 61.12 N. 2.12 E. Gullfaks crude oil is loaded from the main production plat-
forms by offshore buoys into dedicated tankers with cargo sizes between 110,000-
Mongstad. 69.49 N. 05.02 E. Located on the west coast of Norway, the terminal accom-
modates tankers up to 300,000 dwt tons. The draft limitation at Berth No. 1, the crude
oil-loading berth, is 72 feet.
GULLFAKS ASSAY
Crude Oil Crude Oil
Viscosity Centistokes 15 Reid Vapor Press. kPa 25.6
(Kinematic) at 20 C Hydrogen Sulfide Parts/mill. nil
Cut Points Yield
LPG 1.27
Sulfur Content % Wt. <0.03
Cetane Index 43.1
Cetane Index 45.2
GULLFAKS NORM PRICES, 1988-93
Month 1988 1989 1990 1991 1992 1993
Jan. $16.55 $16.00 $21.25 $26.20 $18.00 $17.50
Feb. 16.00 16.80 20.40 21.15 18.30 17.95
March 14.35 17.35 18.85 18.80 17.25 18.75
April 15.30 19.45 17.25 18.25 18.20 18.55
May 16.15 19.50 16.10 18.95 19.45 18.45
June 16.15 17.80 15.40 18.00 20.70 17.80
July 14.50 17.35 15.75 18.35 20.40 16.90
Aug. 14.90 16.65 22.85 19.45 19.95 16.70
Sept. 13.95 17.30 31.10 20.25 20.05 16.15
Oct. 12.35 18.20 38.05 21.75 20.30 16.50
Nov. 12.35 18.80 33.65 21.85 19.55 15.55
Dec. 13.65 18.95 30.55 19.30 18.60 14.10
Norm prices are tax-reference prices for crude lifted during the month. Prices for July
1993 onward are for Gullfaks A & B. Gullfaks C prices were 5¢-10¢ a barrel higher. Note:
More recent prices can be found in Chapter I.
HEIDRUN Norway
Gravity: 28.6 Sulfur: 0.46 Loading Port: Heidrun
Production
Output of about 230,000 barrels a day from a single platform in the Norwegian Seas
Haltenbanken off central Norway, north of the North Sea.
Quality
Heavier and higher in sulfur than most Norwegian crude oils, Heidrun also has high acid
content, which makes it hard to handle for most refiners. This tends to restrict its poten-
tial customers, and has resulted in a large share of output moving to sophisticated refin-
ers in North America.
Producers
The field was developed by Conoco (18%) and is operated by Statoil (10%), which also
holds the governments dominant 65% interest. Other partners are Neste (5%) and Norsk
Hydro.

Prices are linked to North Sea Brent grade and to US West Texas Intermediate. Although
unusual for Norway, the WTI pricing helps sell the crude oil to North America.
Term-contract customers include Ultramars Quebec refinery and Amoco in the US.
Conoco plans to take its full 40,000 b/d equity stake into its UK refinery.
Sellers
807-042.
491-1555, Fax: (44-171) 491-1589.
978-6900.
Loading Ports
Heidrun. About 65 N. 8 E. Heidrun crude oil is loaded at the platform into dedicated
tankers.
HEIDRUN ASSAY
Crude Oil Crude Oil
Viscosity Centistokes 15.6 Reid Vapor Press. kPa 39.9
(Kinematic) at 20 C Total Acid mg KOH/g 2.71
Cut Points Yield
LPG 1.93
Paraffins % Wt. 26
Naphthenes % Wt. 51
Aromatics % Wt. 13
Paraffins % Wt. 34
Naphthenes % Wt. 45
Aromatics % Wt. 21
Cetane Index 40
Cetane Index 40.9
OSEBERG Norway
Gravity: 36.3 Sulfur: 0.29 Loading Port: Sture

Other Names: Oseberg Blend
Production
Offshore output of about 700,000 barrels a day is a blend of around 495,000 b/d from
the Oseberg field, 130,000 b/d from Brage and the 75,000 b/d Veslefrikk field in the
North Sea. Production began in 1988. The crude oil is transported by a 700,000 b/d
pipeline to the Norwegian coast for loading.
Quality
A light, low-sulfur North Sea crude oil similar in quality to Brent.
Producers
Oseberg itself is produced by operator Norsk Hydro (13.75%) and Statoil (14.04%), Saga
(8.61%), Elf (5.6%), Mobil (4.2%), and Total (2.8%), with the 51% state share held on
behalf of the government by Statoil. Veslefrikk is produced by operator Statoil (18%),
Total (18%), Deminex (13.5%), Norsk Hydro (9%), and Svenska (4.5%), with the 37% state
share held on behalf of the government by Statoil. Brage is operated by Norsk Hydro
(13.2%) with other partners including Neste (13.2%), Exxon (17.6%), and Statoil (56%).

The grade is sold on both a spot and term-contract basis. Prices are linked to North Sea
Brent grade, usually selling at a slight premium. Since the grade is piped to the deep-
water terminal at Sture on the Norwegian coast, it can be shipped relatively easily out-
side of its natural market in Northwest Europe, with the US and Mediterranean often pro-
viding outlets.
Sellers
807-042.
491-1555, Fax: (44-171) 491-1589.
978-6900.
Norsk Hydro: P.O. Box 220, N-1321 Stabekk, Norway. Tel.: (47) 22-73-8100, Fax:
(47) 22-73-9040.
Loading Port
Sture. 60.37 N. 4.51 E. The terminal lies north of Bergen on the west coast of Norway,
and it has 5-million barrels of crude oil storage with loading capacity of 700,000 b/d and
a maximum vessel size of 300,000 deadweight tons.
OSEBERG ASSAY
Crude Oil Crude Oil
Cut Points Yield
LPG 2.77
Cetane Index 49.1
Cetane Index 48.7
OSEBERG NORM PRICES, 1989-93
Month 1989 1990 1991 1992 1993
Jan. $16.20 $21.45 $26.40 $18.25 $17.75
Feb. 17.00 20.55 21.35 18.55 18.20
March 17.55 19.05 19.15 17.50 18.90
April 19.65 17.40 18.55 18.40 18.60
May 19.75 16.30 19.30 19.60 18.60
June 18.00 15.60 18.40 20.80 17.95
July 17.60 15.85 18.70 20.55 17.05
Aug. 16.85 23.15 19.75 20.15 16.85
Sept. 17.45 31.25 20.35 20.10 16.30
Oct. 18.40 38.20 21.90 20.45 16.60
Nov. 19.00 33.85 22.05 19.75 15.60
Dec. 19.15 30.75 19.60 18.75 14.15
Norm prices are tax-reference prices for all crude lifted during the month.
SLEIPNER CONDENSATE Norway
Gravity: 59 Sulfur: 0.016 Loading Port: Karsto
Production
Some 110,000 barrels a day were being produced from the Sleipner East field in 1996,
with volumes expected to rise in 1997 with the start-up of Sleipner West. The conden-
sate is transported by a 200,000 b/d pipeline to Karsto, where LPG is removed and it is
stabilized for export. Production began in late 1993.
Quality
An extremely light condensate produced in association with natural gas. The stream is
particularly good for making gasoline.
Producers
Operator Statoil (20%) with Exxon (30%), Norsk Hydro (10%), Elf (9%), and Total (1%),
with the 26.9% state share held on behalf of the government by Statoil.

Prices are linked to North Sea Brent grade, but growing volumes of condensate produc-
tion in the Atlantic Basin have made it harder for the stream to obtain much of a pre-
mium. Most sales are to refiners in Europe.
Sellers
807-042.
491-1555, Fax: (44-171) 491-1589.
978-6900.
Loading Port
Karsto. 59.17 N. 5.33 E. The port, which also handles gas liquids from other North Sea
fields, was expanded to handle Sleipner condensate. Typical cargoes are 40,000 dead-
weight tons.
SLEIPNER CONDENSATE ASSAY

Crude Oil Crude Oil
Cut Points Yield
LPG 4.12
Aromatics % Wt. 23
Cetane Index 50.5
Year Of Crude Oil Sample: 1993 Pour Point Temp. C 27
STATFJORD Norway
Gravity: 38.7 Sulfur: 0.24 Loading Ports: Statfjord, Mongstad
Production
About 550,000 barrels a day comes from the Statfjord field, which came on stream in
1979 and is on the UK-Norway border in the North Sea. Output is divided between the
two countries on an 85.24%-14.76% split in Norways favor. Statfjord is the largest pro-
ducing field in the North Sea, and it is supplemented by about 200,000 b/d from
Norways Snorre field, which came on stream in 1992. Total flows are thus around
750,000 b/d, of which about 660,000 b/d is Norwegian and the remainder British.
Quality
Similar to North Sea benchmark Brent Blend. A light, low-sulfur, paraffinic crude oil.
Refiners consider Statfjord an excellent grade for making premium unleaded gasoline
and sweet vacuum gas oil for cracking. The addition of the Snorre production to the
stream did not affect the quality of the grade.
Producers
A large group of companies have ownership stakes in the Statfjord field, although
Norways Statoil is the operator and largest holder with 42.6%. Other equity stakes
belong to Conoco (14%), Mobil (13.5%), Shell and Exxon (8.5% each), Chevron and
British Petroleum (4.9% each), Saga (1.9%), and others. The Snorre field is operated by
Saga (11%) with Exxon, Deminex, Statoil, and Idemitsu all at about 10%, in addition to
several other smaller equity holders. The states 31.4% share of Snorre is held by Statoil
on behalf of the government.

Statfjord is marketed mainly in Northwest Europe because the crude oil is loaded off-
shore from dedicated tankers. The grade also occasionally makes its way to the US East
and Gulf coasts. It can be transshipped to the Mongstad terminal and loaded onto other
tankers for longer voyages outside of Europe. It is actively traded at a premium to dated
Brent. Term contracts make up most of Statfjord sales, with relatively little spot trading.
Key Sellers
807-042.
491-1555, Fax: (44-171) 491-1589.
978-6900.
Conoco Ltd.: Conoco House, Black Friars Road, London, UK. Tel.: (44-171) 408-
6000, Fax: (44-171) 408-6969.
Loading Ports
Statfjord. 61.15 N. 1.51 E. Crude oil from the Statfjord system is loaded from offshore
buoys to dedicated tankers between 110,000-130,000 deadweight tons.
modates tankers up to 300,000 dwt. The draft limitation at Berth No. 1, the crude oil-
loading berth, is 72 feet.
STATFJORD ASSAY
Crude Oil Crude Oil
Cut Points Yield
LPG 4.27
Cetane Index 51
Cetane Index 51.8
Conradson Carbon R % Wt. <0.01
Vanadium Parts/mill. <0.1
Year Of Crude Oil Sample: 1994 Nickel Parts/mill. <0.1
STATFJORD TERM-CONTRACT AND SPOT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $13.75 $15.85 $32.50 $39.80 $36.70 $33.60 $29.60 $26.60
Feb. 13.75 15.85 34.50 39.80 35.20 30.15 29.60 27.15
March 13.75 15.85 34.50 39.80 31.10 29.40 29.60 27.85
April 13.75 18.75 35.00 39.80 31.10 29.40 30.10 27.60
May 13.75 21.00 36.80 39.80 31.10 29.40 30.10 26.85
June 13.75 21.00 36.80 35.55 33.60 29.40 30.10 26.90
July 13.20 23.50 36.80 35.55 33.60 29.40 30.10 27.10
Aug. 13.20 23.50 36.80 35.55 33.60 29.40 30.10 27.10
Sept. 13.20 23.50 36.80 35.55 33.60 29.40 30.10 27.70
Oct. 13.20 23.50 36.80 35.55 33.60 29.80 28.25 27.80
Nov. 13.20 26.27 36.80 36.90 33.60 29.80 28.95 28.60
Dec. 13.20 26.27 36.80 36.90 33.60 29.80 28.00 28.00
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $24.75 $18.25 $16.65 $17.15 $21.50 $24.05 $18.50 $17.55
Feb. 19.35 17.05 15.60 16.95 19.95 20.00 18.35 18.70
March 13.45 17.75 14.70 18.80 18.50 19.30 17.80 18.75
April 12.20 18.00 16.50 20.35 16.50 19.20 19.15 18.55
May 14.05 18.55 16.35 18.65 16.35 19.30 20.05 18.60
June 11.70 18.60 15.55 17.70 15.15 18.35 21.15 17.30
July 9.35 19.60 14.95 17.65 17.40 19.75 20.35 17.10
Aug. 13.50 18.75 14.90 16.85 27.40 20.15 19.80 17.00
Sept. 14.00 18.20 13.20 17.90 35.65 20.95 20.25 16.15
Oct. 13.55 18.60 12.45 19.00 36.05 22.60 20.50 16.60
Nov. 14.30 17.65 13.00 18.80 33.00 21.50 19.35 15.20
Dec. 15.55 16.95 15.40 20.00 28.00 18.70 18.35 13.80
Term-contract basis from 1978-84, spot prices from 1984-93. Note: More recent prices can be found in Chapter I.
TROLL Norway
Gravity: 28.6 Sulfur: 0.29 Loading Port: Mongstad
Production
After starting up in September 1995, the field rapidly reached plateau output of over
200,000 barrels a day in mid-1996. The oil is produced from a thin layer of oil that lies
on top of the giant Troll gas field. Output is from the Troll West field, where the oil layer
is thick enough to allow extraction via horizontal wells. The crude oil is transported by
pipeline to Mongstad for export.
Quality
A relatively heavy crude oil for the North Sea that is sweet and has wide middle distil-
late cuts.
Producers
Operator Norsk Hydro (7.7%), with Statoil (11.9%), Shell (8.3%), Saga (4%), Elf (2.3%),
Conoco (2%) and Total (1%), with the 62.7% state share held on behalf of the govern-
ment by Statoil.

Prices are linked to North Sea Brent grade, selling at a slight premium particularly in the
winter months. The grade is sold primarily by Statoil, which controls over 70% of sales,
and it moves mainly to refiners in Europe.
Sellers
807-042.
491-1555, Fax: (44-171) 491-1589.
978-6900.
Loading Port
modates tankers up to 300,000 deadweight tons. The draft limitation at Berth No. 1, the
crude oil-loading berth, is 72 feet.
TROLL ASSAY
Crude Oil Crude Oil
Viscosity Centistokes 16 Reid Vapor Press. kPa 27
Cut Points Yield
LPG 1.52
Naphthenes % Wt. 69
Aromatics % Wt. 28
Cetane Index 41.5
Cetane Index 43.1
OMAN Oman
Gravity: 35.2 Sulfur: 0.89 Loading Port: Mina Al Fahal
Production
Omans 880,000 barrels a day of production comes from several onshore fields and is
merged into a single export blend. Yibal, Rima, and Fahud are the countrys largest pro-
ducing fields. Smaller production also comes from fields operated by Elf and Occidental.
Oman exports just over 800,000 b/d.
Quality
A bit lighter and lower in sulfur than typical Mideast crude oils such as Arabian Light or
Dubai.
Producers
Most of the production is handled by Petroleum Development Oman, which is owned
60% by the state, with the remainder divided among Royal/Dutch Shell (34%), Total (4%),
and Partex (2%). Other smaller producers are Occidental, Elf, and Japex.

Next to Dubai, Oman is the most actively traded spot crude oil in the Mideast. The states
Ministry of Petroleum and Minerals sets a monthly price retroactively for its term-contract
sales, using a 30-day average of Oman spot market trades from the previous month. Spot
Oman grade is bought and sold at a differential to the established MPM price. Term sales
by other equity producers are priced the same way. Most Oman crude oil goes to Asian
markets, with Japan alone taking 290,000 b/d or 37% of total exports in 1995. South
Korea, China, and Thailand are also important outlets, with occasional cargoes moving
to the Atlantic Basin and the US West Coast. Roughly one-half of Oman production is
sold on a term-contract basis.
Sellers
While the state has a 60% stake in oil production, about 25% of its term crude oil vol-
umes are resold by traders. Transworld Oil, which was once among the most prominent,
was displaced in 1996, leaving others such as Japanese Itochu in more dominant posi-
tions.
Petroleum Development Oman: P.O. Box 81, Muscat, Oman. Tel.: (968) 678-111,
Fax: (968) 677-106.
Loading Port
Mina Al Fahal. 23.39 N. 58.32 E. The terminal is located on the Gulf of Oman coast,
about 10 miles north of Muscat, the capital of Oman. Facilities include three single-buoy
mooring berths with floating hose strings. SBM 1 and SBM 2 supply export crude oil by
means of submarine lines. Tankers up to 600,000 deadweight tons and 96 feet draft are
accommodated.
OMAN ASSAY
Crude Oil Crude Oil
(Kinematic) at 10 C
Cut Points Yield
LPG 1.9 1.3 LPG
Naphthenes % Wt. 29
Aromatics % Wt. 12
Cetane Index 57.5
Cetane Index 61.1
OMAN TERM CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $13.06 $14.00 $30.26 $37.56 $35.06 $34.06 $28.60 $27.66
Feb. 13.06 14.53 30.26 37.56 35.06 30.06 28.55 27.51
March 13.06 14.53 30.26 37.56 34.36 29.06 28.55 27.50
April 13.06 17.56 32.26 37.56 34.36 29.06 28.55 27.35
May 13.06 18.36 30.00 37.56 34.36 29.06 28.55 26.15
June 13.06 19.54 30.00 37.56 34.36 29.06 28.55 25.90
July 13.06 22.06 32.00 37.56 34.06 28.60 28.55 26.10
Aug. 13.06 22.06 33.46 37.56 34.06 28.60 28.55 26.92
Sept. 13.06 22.06 33.46 37.56 34.06 28.60 28.55 27.37
Oct 13.06 24.26 33.46 36.06 34.06 28.60 28.55 27.20
Nov. 13.06 26.00 33.46 34.01 34.06 28.60 28.55 27.35
Dec. 13.06 28.26 33.46 34.01 34.06 28.60 28.55 26.87
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $23.83 $17.57 $15.95 $14.82 $18.15 $20.30 $16.20 $15.84
Feb. 15.80 17.63 15.57 15.10 17.50 15.56 16.70 16.80
March 11.85 17.63 13.81 16.77 16.35 15.85 16.65 16.95
April 10.90 17.63 15.25 17.69 14.90 16.20 17.50 17.05
May 11.85 17.63 15.22 16.20 15.05 16.90 18.50 16.70
June 10.70 17.63 14.09 15.93 13.55 16.28 20.00 16.46
July 8.20 17.63 13.34 15.95 15.85 17.05 19.43 15.21
Aug. 12.05 17.63 13.50 15.45 26.10 17.45 18.70 15.46
Sept. 13.43 17.25 11.75 16.12 31.55 18.72 19.10 14.60
Oct. 13.55 17.38 10.78 16.63 32.85 19.70 18.69 15.26
Nov. 14.10 17.07 10.65 16.65 29.30 19.20 17.64 14.64
Dec. 15.25 16.00 12.82 17.70 24.12 16.12 16.90 12.68
KUTUBU Papua New Guinea
Gravity: 44 Sulfur: .04 Loading Port: Kumul

Other Names: Iagifu
Production
About 100,000 barrels a day was produced in 1995, with volumes expected to rebound
in late 1997 as the nearby Gobe fields are added to the stream, bringing an additional
45,000 b/d of output to offset mature flows from the Iagifu-Hedina fields. The fields are
located in a remote inland area and oil is taken to the export terminal via a 265 km,
150,000 b/d pipeline.
Quality
One of the few light, sweet crude oils in the Asia-Pacific region that is low in wax, mak-
ing it similar to top West African grades and an excellent source for gasoline.
Producers
Chevron is the operator of the main Iagifu-Hedina fields with 19.37%, the State Resource
Development Agency holds 22.5%, and other partners include British Petroleum
(19.37%), Ampolex, BHP, and Mitsubishi. Partners in the Gobe and Hedina fields include
Chevron, two state firms, and a number of regional independents.

The government and the two main equity producers market their output independently
with a mix of term and spot sales. The smaller producers have formed a marketing con-
sortium to handle their barrels. Australia and China are the main buyers, taking about
30% each, with South Korea, Taiwan, and the US also providing outlets. Pricing is based
on spot quotes for Malaysian Tapis from Asian Petroleum Price Index.
Sellers
Petroleum Resources Kutubu: Invesmen Haus, Douglas St., P.O. Box 1076, Port
Moresby, Papua New Guinea. Tel.: (675) 21-7133, Fax: (675) 21-7603.
Chevron International Oil Co.: 1 Scotts Road #20-13, Shaw Centre, 0922 Singapore.
Tel.: (65) 734-5521.
British Petroleum: BP Tower, 396 Alexandra Road, 0511 Singapore. Tel.: (65) 475-
6633, Fax: (65) 371-8795.
Loading Port
Kumul. 8.06 S. 144.33 E. Located on the coast of the Gulf of Papua, the marine termi-
nal consists of one single-point mooring designed to accommodate ships up to 150,000
deadweight tons and 17 meters draft.
KUTUBU ASSAY
Crude Oil Crude Oil
Gravity API 44 Sulfur Content % Weight 0.04
(Kinematic) at 40 C
Cut Points Yield
LPG 3 LPG
Naphthenes % Wt. 48
Aromatics % Wt. 14
Naphthenes % Wt. 40
Aromatics % Wt. 17
Atm. Gas Oil 500-650 15.3 Atmospheric Gas Oil
Cetane Index 48
Gravity API 22.9
DUKHAN Qatar
Gravity: 41.1 Sulfur: 1.22 Loading Port: Umm Said

Other Names: Qatar Land
Production
Some 240,000 barrels a day is produced exclusively from the large onshore Dukhan field,
which was discovered in 1939. The field is mature, but output rates are expected to rise
through enhanced-recovery investments, reaching capacity of 340,000 b/d by 2000.
Quality
A top-quality light Mideast crude oil, but its higher sulfur content and paraffinic naphtha
make it less valuable than equally light African or North Sea crude oils. Although the
assay below is 11 years old, recent tests show little change in quality, with a gravity of
40.7 degrees API and sulfur content of 1.25%.
Producers
All production is owned by state QGPC, but the field is operated by Occidental
Petroleum under a contract awarded in 1994. The possibility of bringing in foreign firms
as production sharing partners has been considered, but as of 1996 QGPC seemed like-
ly to expand the fields independently.

Dukhan, like Qatar Marine crude oil, is sold on the basis of a retroactive monthly price
that is linked to the Oman monthly official posting plus a premium. Most of the oil is
sold under term contracts by QGPC. The main customers are Asian refiners, with the
Japanese alone taking 160,000 b/d. The grade rarely sells on the spot market or moves
to the Atlantic Basin, and it has become increasingly sought after in Asia due to its light
products yield.
Seller
Qatar General Petroleum Corp.: QGPC Marketing Group, P.O. Box 3212, Doha,
Qatar. Tel.: (974) 491-491, Fax: (974) 831-138, Telex: 4343 PETCOR DH.
Loading Port
Umm Said. 24.54 N. 51.34 E. Located approximately 30 miles south of Doha, the Umm
Said terminal contains two loading berths. The North Berth is a single-point mooring
connected to a shore installation via a 36-inch submarine pipeline. Maximum tonnage is
320,000 deadweight tons. The South Berth is a conventional-buoy mooring connected to
shore by a 24-inch submarine pipeline. Maximum tonnage is 320,000 dwt.
DUKHAN ASSAY
Crude Oil Crude Oil
Gravity (60 F) API 41.1 Sulfur Content % Wt. 1.22
(Kinematic) at 40 C
Cut Points Yield
LPG 5.1 3.5 LPG
Naphthenes % Wt. 18
Aromatics % Wt. 13
Cetane Index 56.7
Cetane Index 56.7
DUKHAN TERM-CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $13.19 $14.03 $29.42 $37.42 $35.45 $34.49 $29.49 $29.24
Feb. 13.19 15.05 29.42 37.42 35.45 30.49 29.49 28.10
March 13.19 15.05 29.42 37.42 34.49 29.49 29.49 28.10
April 13.19 17.04 29.42 37.42 34.49 29.49 29.49 28.10
May 13.19 17.84 31.42 37.42 34.49 29.49 29.49 28.10
June 13.19 17.84 31.42 37.42 34.49 29.49 29.49 28.10
July 13.19 21.42 33.42 37.42 34.49 29.49 29.49 28.10
Aug. 13.19 21.42 33.42 37.42 34.49 29.49 29.49 28.10
Sept. 13.19 21.42 33.42 37.42 34.49 29.49 29.49 28.10
Oct. 13.19 21.42 33.42 37.42 34.49 29.49 29.49 28.10
Nov. 13.19 27.42 33.42 35.65 34.49 29.49 29.49 28.10
Dec. 13.19 27.42 33.42 35.65 34.49 29.49 29.49 28.10
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $28.10 $17.57 $16.05 $14.92 $18.45 $21.10 $17.05 $16.69
Feb. 28.10 17.82 15.67 15.20 17.80 16.36 17.55 17.30
March 12.20 17.82 13.91 16.87 16.65 16.65 17.50 17.45
April 10.85 17.82 15.40 17.79 15.15 16.85 18.35 17.55
May 11.75 17.82 15.37 16.30 15.35 17.45 19.30 17.23
June 10.70 17.82 14.19 16.03 13.85 16.83 20.75 16.96
July 8.10 17.82 13.44 16.05 16.15 17.65 20.08 15.71
Aug. 12.15 17.82 13.60 15.60 26.60 18.15 19.20 15.96
Sept. 13.48 17.82 11.80 16.27 32.05 19.57 19.60 15.25
Oct. 13.60 17.82 10.83 16.83 33.35 20.55 19.19 15.98
Nov. 14.20 17.82 10.70 16.85 29.80 20.05 18.14 15.40
Dec. 15.35 17.82 12.87 17.95 24.82 16.97 17.40 13.43
QATAR MARINE Qatar
Gravity: 36.2 Sulfur: 1.60 Loading Port: Halul Island
Production
Output has increased from about 160,000 barrels a day in 1995 to some 200,000 b/d in
1996 thanks to work by Occidental on the Idd El Shargi field and new output by Maersk
from the Al-Shaheen field. Volumes also come from the Maydan Mahzam and Bul Hanine
fields as well as some smaller offshore fields. Production capacity is likely to grow fur-
ther with these investments, reaching some 300,000 b/d by 2000.
Quality
A light, high-sulfur Mideast crude oil of somewhat higher quality than Arabian Light.
Although the assay below is old, it is still representative of the crude oils characteristics.
Producers
Occidental is the producer of the Idd El Shargi field and Maersk is the producer of the
Al-Shaheen field, both under production-sharing contracts. State Qatar General
Petroleum Corp. is the sole producer of the other Qatar Marine fields, which are oper-
ated by Occidental.

Qatar Marine grade is traded on the spot market and sold on term contracts. An esti-
mated 10%-20% of Qatari production trades on the spot market, and most of that is Qatar
Marine. The grade rarely heads to any market but the Far East, and term contracts are
firmly in the grasp of Japanese refiners, which take about 120,000 b/d. Volumes also go
to refiners in Taiwan and South Korea. Prices are established every month on a retroac-
tive basis. They are set at a premium to the official Oman monthly price or MPM. It is
extremely rare for spot Qatari grade to trade at a discount to its official monthly price.
Sellers
Qatar General Petroleum Corp.: QGPC Marketing Group, P.O. Box 3212, Doha,
Qatar. Tel.: (974) 491-491, Fax: (974) 831-138, Telex: 4343 PETCOR DH.
Loading Port
Halul Island. 25.40 N. 52.25 E. Halul Island, located 52 miles northeast of Doha, the cap-
ital of Qatar, serves as the export terminal for Qatar Marine. Halul terminal has two load-
ing points. Both are single-buoy moorings capable of accommodating vessels up to
550,000 deadweight tons. Maximum drafts are 22 meters (72 feet) for SBM 1 and 29 m
(95 ft) for SBM 2.
QATAR MARINE ASSAY

Crude Oil Crude Oil
Cut Points Yield
LPG 2.9 1.9 LPG
Naphthenes % Wt. 23
Aromatics % Wt. 20
Cetane Index 52.6
Cetane Index 53.2
QATAR MARINE TERM CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $13.06 $13.77 $29.23 $37.23 $35.30 $34.06 $28.60 $29.05
Feb. 13.06 14.53 29.23 37.23 35.30 30.30 28.55 28.05
March 13.06 14.53 29.23 37.23 34.30 29.30 28.55 27.50
April 13.06 16.85 32.26 37.23 34.30 29.30 28.55 27.35
May 13.06 18.36 31.23 37.23 34.30 29.30 28.55 26.15
June 13.06 19.54 31.23 37.23 34.30 29.30 28.55 25.90
July 13.06 21.23 33.23 37.23 34.06 28.60 28.55 26.10
Aug. 13.06 21.23 33.46 37.23 34.06 28.60 28.55 26.92
Sept. 13.06 21.23 33.46 37.23 34.06 28.60 28.55 27.37
Oct. 13.06 24.26 33.46 36.06 34.06 28.60 28.55 27.20
Nov. 13.06 27.23 33.46 35.50 34.06 28.60 28.55 27.35
Dec. 13.06 28.26 33.46 35.50 34.06 28.60 28.55 26.87
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $23.83 $17.67 $16.00 $14.87 $18.40 $21.05 $17.00 $16.54
Feb. 15.80 17.67 15.62 15.15 17.75 16.31 17.50 17.15
March 12.10 17.67 13.86 16.82 16.60 16.60 17.45 17.30
April 10.75 17.67 15.35 17.74 15.10 16.85 18.30 17.40
May 11.65 17.67 15.32 16.25 15.30 17.45 19.25 17.08
June 10.60 17.67 14.14 15.98 13.80 16.83 20.65 16.81
July 8.05 17.67 13.39 16.00 16.10 17.60 19.98 15.56
Aug. 12.10 17.67 13.55 15.55 26.55 18.10 19.10 15.81
Sept. 13.43 17.67 11.75 16.22 32.00 19.52 19.45 14.95
Oct. 13.55 17.67 10.78 16.78 33.30 20.50 19.04 15.70
Nov. 14.10 17.67 10.65 16.80 29.75 20.00 17.99 15.16
Dec. 15.25 17.67 12.82 17.90 24.77 16.92 17.25 13.18
SIBERIAN LIGHT Russia
Gravity: 35-38 Sulfur: 0.45-0.55 Loading Port: Tuapse
Production/Exports
Actual production volumes are not available but exports range from 60,000-110,000 bar-
rels a day per month, with an average of about 90,000 b/d in 1995. Volumes are restrict-
ed by the capacity of the segregated pipeline from West Siberia to the Black Sea port of
Tuapse as well as by the port facilities. Siberian Light accounts for only about 5% of
exports outside the former Soviet Union, but volumes could rise if there were greater
scope for segregating crude oils by quality.
Quality
Quality fluctuates more than most internationally traded grades. It is is a relatively light,
sweet stream that is considered to be comparable to Syrian Light. In 1996, gravity
reached as much as 38-degrees at times versus the usual 35.
Producers
Siberian Light comes mainly from Lukoils Urayneftegaz and Sidankos Kondpetroleum
production associations in the province of Tyumen in West Siberia.

Siberian Light is sold into the Mediterranean spot market at prices that are set at a vari-
able premium to North Sea Brent. The premium tends to fluctuate with movements in
the prices of Urals and Syrian Light. The grade has established a solid niche for itself with
a handful of refiners that are sometimes willing to pay relatively high prices for the crude
oil compared to alternative grades. In addition to various Mediterranean refiners, regular
customers include Exxon and Austrias OMV as well as the Skopje refinery in Macedonia.
Sellers
Lukoil: Stroenie 2, Pereulok Zvonarsky 2, 103031 Moscow, Russia. Tel.: (7-095) 236-
9841. Fax: (7-095) 236-4317. Telex: (7-095) 612-553.
Conex International Trading: Prospekt Vernadskogo 84/2, 117606 Moscow, Russia.
Tel.: (7-095) 436-0644. Fax: (7-095) 436-0693. (Conex is owned partly by producer
Kondpetroleum).
General Petroleum Services: Suite 13, Weinberg Strasse, 10th District Wien, Austria.
Tel: (43-1) 79772. Fax. (43-1) 797-7255. Telex: 111193 GPSA.
Taurus Petroleum Services: 5 Princes Gate, London SW7 1QJ, England. Tel.: (44-
171) 838-0088. Fax: (44-171) 838-0099.
Loading Port
Tuapse. 44.05 N. 39.10 E. The port is located on the northeast shore of the Black Sea to
the east of the main port of Novorossiysk. Siberian Light is received by a dedicated
pipeline at of the Zareche oil terminal, which handles mainly Siberian Light. The termi-
nal has two berths: No.1 can handle tankers up to 250 meters in length with a draft of
up to 11.5-meters; No.2 handles vessels of up 170 meters in length and 11.2 meters draft.
The terminal has 375,000 barrels of usable storage capacity.
SIBERIAN LIGHT ASSAY

Crude Oil Crude Oil
Gravity (60 F) API 35.6 Sulfur Content % Weight .0.46
Barrels /Metric Ton 7.44 Paraffins % Weight 2.4

Cut Points Yield
Product Temp. C % Wt.
Naphtha <200 29
Light Mid-Distillate 200-300 20
Heavy Mid-Distillate 300-350 11
Residue >350 40

URALS Russia
Gravity: 31-33 Sulfur: 1.20-1.80 Loading Ports: Novorossiysk, Ventspils

Production/Exports
All but about 100,000 barrels a day of Russias crude oil exports are from a blend of
grades known as Urals, which comes from all regions due to the limited ability of the
pipeline system to segregate oil of different qualities. Total Russian crude oil exports
have risen gradually due to falling domestic demand, and stood at about 2.5-million b/d
in 1996. With declining sales to other former Soviet republics, exports outside the ex-
USSR have risen steadily, reaching 1.9-million b/d in 1995 and likely to exceed 2-million
b/d in 1996. But with ports operating at 90%-100% of capacity, further growth depends
on greater use of the Druzhba (Friendship) Pipeline.
Quality
Urals quality fluctuates significantly due to the many crude oils in the blend and output
changes. Variations have been sharpest at the Baltic port of Ventspils, where gravity has
fallen as low as 27-degrees API and sulfur content has climbed to as high as 3%. The
best and most consistent quality has been available from pipeline exports through the
Druzhba system that supplies Eastern Europe. The assay below is from the Soviet era and
reflects somewhat higher quality.
Producers
Russias integrated oil companies produce and export crude oil through production asso-
ciations. Foreign oil companies also have export rights through joint ventures and pro-
duction sharing deals.
A dominant grade in the Mediterranean market and Eastern Europe that is widely trad-
ed in the spot market, Urals is also available through term arrangements and barter. Urals
is almost always priced in relation to dated Brent. It is sold on a delivered basis in both
Northwest Europe and the Mediterranean, and free-on-pipe into Eastern Europe. About
55% of exports were by sea and 45% by pipeline in 1995.
Sellers
In addition to the over 35 production associations that export crude oil there are many
foreign joint ventures, traders and other intermediaries involved. Some exporters also
rely on the services of the state exporter Nafta Moskva, formerly Soyuznefteexport.
Several traders with special connections also specialize in acting as intermediaries in trad-
ing Russian crude oil.
Nafta Moskva: Smolenskaya-Sennaya Plochad 32/34, Moscow 121200, Russian
Federation. Tel.: (7-095) 244-4527, Fax: (7-095) 244-4054.
Lukoil: Stroenie 2, Pereulok Zvonarsky 2, 103031 Moscow, Russia. Tel.: (7-095) 236-
9841. Fax: (7-095) 236-4317. Telex: (7-095) 612-553.
Conex International Trading: Prospekt Vernadskogo 84/2, 117606 Moscow, Russia.
Tel.: (7-095) 436-0644. Fax: (7-095) 436-0693.
Loading Ports
Novorossiysk. 44.43 N. 37.47 E. The Sheskharis oil terminal, in the port of Novorossiysk
on the north shore of the Black Sea, accommodates tankers up to 250,000 deadweight
tons and 19 meters maximum draft. It consists of one deep- water berth for vessels from
80,000-250,000 dwt, but due to the restrictions of the Bosporus Straits, only tankers up
to 150,000 dwt can be fully loaded. Strong winter winds often close the port for extend-
ed periods.
Ventspils. 57.24 N. 21.33 E. Located in the former Soviet republic of Latvia, the ports
depth is restricted to 12.5 m, and only tankers of a maximum 45,000 dwt can load there.
There are six berths for crude oil and refined products.
URALS ASSAY
Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG 3.1 2 LPG
Naphthenes % Wt. 41
Aromatics % Wt. 9
Cetane Index 50
Cetane Index 53.6
URALS MEDITERRANEAN SPOT PRICES, 1986-93
Prices For Delivered Cargoes In Dollars Per Barrel
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. ... $18.05 $16.00 $15.85 $20.30 $22.70 $17.05 $15.60
Feb. ... 16.75 15.15 16.00 19.00 18.75 17.05 16.85
March $13.50 17.30 14.10 17.75 17.25 18.45 16.45 17.15
April 12.00 17.80 15.75 19.40 15.10 18.45 17.95 16.85
May 12.60 18.10 15.50 17.75 14.65 18.15 18.65 16.60
June 10.75 18.35 14.70 16.65 13.35 16.75 19.75 16.40
July 8.55 19.20 14.10 16.90 15.60 18.25 18.90 15.10
Aug. 12.75 18.55 14.05 16.10 26.70 18.65 18.35 15.05
Sept. 13.25 17.65 12.40 17.05 34.70 19.50 18.70 14.30
Oct. 12.80 17.95 11.55 18.15 35.35 21.20 19.10 15.20
Nov. 13.55 16.95 11.95 18.05 31.95 19.95 18.20 13.95
Dec. 15.15 15.90 14.15 19.05 26.95 17.05 16.70 12.65
ARABIAN EXTRA LIGHT Saudi Arabia
Gravity: 36.4 Sulfur: 1.19 Loading Port: Ras Tanura

Other Names: Berri
Production
Output reached 700,000 barrels a day during the Gulf war, and capacity has since been
expanded to 950,000 b/d. Production comes from the Berri field, which lies mainly off-
shore near the Gulf port of Jubail and the onshore Abqaiq field. Development of the
Shaybah field is expected to eventually add 500,000 b/d or more in 1998.
Quality
A light, medium-sulfur Mideast crude oil similar to top-quality Abu Dhabi grades. Good
for making kerosine and petrochemical naphtha, but, unlike West African and North Sea
crude oils, it is not especially good for gasoline manufacturing.
Producers
Produced entirely by Saudi Arabian Oil Co. (Saudi Aramco), the 100% state-owned
descendant of the Aramco consortium of Chevron, Texaco, Exxon, and Mobil.

Sales are to all main geographic regions on a term-contract basis. But the Asia-Pacific
region retains its role as a primary outlet despite recent increases in output. Japanese
refiners alone take about 200,000 b/d. Term-contract sales are priced under geographi-
cally specific formulas that are tied to the spot prices of US West Texas Intermediate for
US deliveries, North Sea Brent Blend for European deliveries, and an average of Oman
and Dubai spot prices for deliveries East of Suez. Sales are made on both a delivered
and an f.o.b. or at-source basis. There are few spot sales.
Sellers
Saudi Aramco and its affiliate, Saudi Petroleum International, are exclusive term- contract
sellers. SPI handles all sales in the Atlantic Basin and also has offices in London,
Singapore, and Tokyo.
Saudi Aramco: Saudi Arabian Oil Co., Box 5000, Dhahran, 31311, Saudi Arabia. Tel.:
(966-3) 875-6110, Telex: (928) 801220 ARAMCO SJ.
Saudi Petroleum International: 527 Madison Ave., New York, NY 10022. Tel.: (212)
832-4044, Fax (212) 832-4688, Telex: 420819.
Loading Port
Ras Tanura. 26.38 N. 50.10 E. The primary export outlet is on the west side of the
Mideast Gulf, with a total of 15 berths. It can accommodate tankers up to 550,000 dead-
weight tons, and it is supported by a 33-million-barrel storage terminal.
ARABIAN EXTRA LIGHT ASSAY

Crude Oil Crude Oil
(Kinematic) at 100F Hydrogen Sulfide Parts/mill. nil
Cut Points Yield
LPG 1.5 1 LPG
Paraffins % Wt. 76
Naphthenes % Wt. 10
Aromatics % Wt. 14
Cetane Index 53
Cetane Index 56.5
Pour Point Temp.F 50
Viscosity (Kin) cts 100F 158.1
ARABIAN HEAVY Saudi Arabia
Gravity: 27.5 Sulfur: 2.92 Loading Ports: Ras Tanura, Juaymah

Other Names: Safaniyah
Production
Output in 1996 was about 400,000 barrels a day out of a total capacity of 1.2-million
b/d from the Safaniyah field and other offshore fields in the northern Gulf. Over 300,000
b/d of capacity was mothballed in 1994 to cut costs, leaving another 400,000-500,000
b/d to spare.
Quality
A heavy, high-sulfur Mideast crude oil that is especially attractive to refiners with exten-
sive upgrading capacity such as cokers.
Producers

Almost all production is sold on a term-contract basis, but sales volumes were cut back
in 1993-94 in favor of higher-revenue lighter grades. Sales are priced under geographi-
cally specific formulas that are tied to the spot prices of US West Texas Intermediate for
US deliveries, North Sea Brent Blend for European deliveries, and an average of Oman
and Dubai spot prices for deliveries East of Suez. Sales are made on both a delivered
and an f.o.b. or at-source basis. The grade is often sold in combination with other Saudi
grades. The few spot sales are usually directed to existing term-contract customers. Japan
imported 90,000 b/d in 1995.
Sellers
Saudi Aramco and its affiliate, Saudi Petroleum International, are exclusive term-contract
sellers. SPI handles all sales in the Atlantic Basin and has additional offices in London,
Tokyo, and Singapore.
(966-3) 875-6110, Telex: (928) 801220 ARAMCO SJ.
832-4044, Fax (212) 832-4688, Telex: 420819.
Main Customers
Arabian Heavy sales are made mainly to refiners with more sophisticated upgrading
hardware, and thus the US absorbs a disproportionately large share.
Loading Ports
Juaymah. 26.56 N. 50.03 W. A secondary terminal located approximately 18 miles north-
northwest of the Ras Tanura Terminal and 7 miles offshore, with six single-point moor-
ing berths for deep-water loading of tankers up to 700,000 dwt and a storage terminal
with capacity of 17.5-million barrels.
ARABIAN HEAVY ASSAY

Crude Oil Crude Oil
(Kinematic) at 100 F Hydrogen Sulfide Parts/mill. nil
Cut Points Yield
LPG 2.8 1.7 LPG
Light Naphtha <200 6.7 5 Light Naphtha
Paraffins % Wt. 63
Naphthenes % Wt. 21
Aromatics % Wt. 16
Cetane Index 46.5
Cetane Index 50
Viscosity (Kin) cts 100 F 6289
ARABIAN HEAVY TERM CONTRACT PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $12.02 $12.51 $25.00 $31.00 $31.00 $31.00 $26.00 $26.50
Feb. 12.02 12.71 25.00 31.00 31.00 27.00 26.00 26.50
March 12.02 12.71 25.00 31.00 31.00 26.00 26.00 26.50
April 12.02 13.64 27.00 31.00 31.00 26.00 26.00 26.50
May 12.02 13.64 27.00 31.00 31.00 26.00 26.00 26.50
June 12.02 17.17 27.00 31.00 31.00 26.00 26.00 26.50
July 12.02 17.17 27.00 31.00 31.00 26.00 26.00 24.00*
Aug. 12.02 17.17 29.00 31.00 31.00 26.00 26.00 22.35*
Sept. 12.02 17.17 29.00 31.00 31.00 26.00 26.00 23.55*
Oct. 12.02 17.17 29.00 31.50 31.00 26.00 26.00 24.60*
Nov. 12.02 23.17 31.00 31.50 31.00 26.00 26.00 25.05*
Dec. 12.02 23.17 31.00 31.50 31.00 26.00 26.00 22.25*
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $18.60 $14.95* $13.21 $13.82 $16.22 $11.89 $12.13 $14.50
Feb. 13.60 16.27 13.70 15.85 14.75 12.57 13.19 14.30
March 15.50 16.27 14.15 16.23 12.56 13.53 14.24 14.22
April 12.35 16.27 13.13 15.52 11.57 13.82 16.15 13.84
May 12.65 16.27 12.65 14.94 11.51 12.90 16.31 12.78
June 9.80 16.27 12.13 14.47 16.20 13.20 16.28 12.52
July 7.60 16.27 11.33 14.37 22.53 14.23 15.98 11.85
Aug. 9.90 16.27 10.24 14.97 30.33 15.16 16.11 12.08
Sept. 11.25 16.27 9.34 15.38 30.49 15.75 15.60 11.38
Oct. 10.60 15.45 9.76 15.87 27.65 13.83 14.73 10.06
Nov. 10.45 14.20 11.46 16.95 22.89 12.23 14.10 9.74
Dec. 10.90 12.40 13.09 17.00 13.80 12.20 13.93 10.32
Official government-set prices in 1978-85 and in 1987, except where indicated. Netback prices in 1986 and volume-weighted
averages of the various regional spot crude-linked formula prices from October 1987 onward. *Indicates netback prices.
ARABIAN LIGHT Saudi Arabia
Gravity: 32.7 Sulfur: 1.8 Loading Ports: Ras Tanura, Juaymah, Yanbu
Production
In 1996, output was in the 5- to 5.3-million barrels a day range, making it the worlds
largest crude oil stream. Production is drawn from several onshore fields in the eastern
part of the country, with the massive Ghawar field, the worlds largest, being the main
source. Capacity is about 5.3-million b/d.
Quality
A Mideast and global benchmark grade because of its wide acceptance. It is typical of
light, high-sulfur, Mideast-type crude oils.
Producers
The grade is sold worldwide to virtually all Saudi customers. Term-contract sales make
up the bulk of exports, and these are priced under geographically specific formulas that
are tied to the spot prices of US West Texas Intermediate for US deliveries, North Sea
Brent Blend for European deliveries, and an average of Oman and Dubai spot prices for
deliveries East of Suez. Sales are made on both a delivered and an f.o.b. or at-source
basis. Prices for f.o.b. sales to the Atlantic Basin are triggered 40-50 days after loading in
order to reduce price risk for buyers. There are few spot sales, and these are directed to
term-contract customers. Restricted volumes can be resold by term-contract customers
with approval. Arabian Light is also the primary feedstock for Saudi Arabias 1.8-million
b/d domestic refining capacity, leaving about 3.5-million b/d for export. Japan imported
365,000 b/d in 1995.
Sellers
Saudi Aramco and its affiliate Saudi Petroleum International are exclusive term-contract
sellers. SPI handles all sales in the Atlantic Basin and also has offices in London, Tokyo,
and Singapore.
(966-3) 875-6110, Telex: (928) 801220 ARAMCO SJ.
832-4044, Fax (212) 832-4688, Telex: 420819.
Loading Ports
Mideast Gulf with a total of 15 berths. It can accommodate tankers up to 550,000 dead-
Yanbu. 23.57 N. 38.13 E. King Fahd Port at Madinat Yanbu Al Sinaiyah is the main indus-
trial port on the Red Sea. The crude oil terminal serves as a loading facility for the 48-
inch Petroline crude oil pipeline from Abqaiq in the Eastern Province. Total crude oil
storage is 11-million barrels, with three loading berths able to handle vessels up to
500,000 deadweight tons. Customers loading at Yanbu are charged an extra 25¢ a barrel
over Mideast Gulf prices.
ARABIAN LIGHT ASSAY

Crude Oil Crude Oil
Cut Points Yield
LPG 1.7 1.1 LPG
Paraffins % Wt. 62
Naphthenes % Wt. 18
Aromatics % Wt. 20
Cetane Index 49.5
Cetane Index 51.2
ARABIAN LIGHT TERM-CONTRACT PRICES, 1985-93
At Gulf Ports In Dollars Per Barrel
Month 1985 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $29.00 $20.50 $16.85* $15.04 $15.14 $17.53 $16.87 $15.51 $16.59
Feb. 28.00 15.50 17.52 15.43 16.67 16.23 15.60 16.27 16.88
March 28.00 17.42 17.52 15.80 17.25 14.50 16.49 17.16 16.67
April 28.00 14.27 17.52 14.58 16.89 13.43 16.76 18.65 16.41
May 28.00 14.53 17.52 14.17 16.20 13.64 16.21 18.82 15.45
June 28.00 11.68 17.52 13.54 15.76 17.16 16.25 18.95 15.14
July 24.90* 9.48 17.52 12.74 15.70 22.74 17.24 18.60 14.38
Aug. 24.25* 11.78 17.52 11.87 16.09 32.29 18.01 18.51 14.68
Sept. 25.45* 13.15 17.52 10.83 16.56 30.47 18.84 18.22 13.92
Oct. 26.50* 12.52 17.45 11.05 17.05 28.29 17.72 17.34 12.91
Nov. 26.95* 12.35 16.20 12.55 17.90 25.26 16.38 16.65 12.49
Dec. 24.15* 12.80 14.40 14.08 18.14 19.32 15.74 16.32 12.69
Official government-set prices in 1985 and 1987, except where indicated. Netback prices in 1986 and volume-weighted aver-
ages of the various regional formula prices from October 1987 onward. *Netback prices.
ARABIAN LIGHT SPOT PRICES, 1987-93
Month 1987 1988 1989 1990 1991 1992 1993
Jan. ... $15.80 $14.70 $18.55 $20.85 $15.85 $15.80
Feb. ... 15.60 15.00 17.60 16.10 16.05 16.05
March $17.30 13.75 16.40 16.50 15.95 16.15 16.95
April 17.35 15.05 17.95 14.70 16.70 17.25 16.90
May 17.30 15.00 16.90 14.45 16.50 18.10 16.60
June 17.50 14.00 16.05 12.80 15.30 19.55 15.80
July 17.75 13.35 15.90 14.60 16.90 18.95 14.75
Aug. 17.75 13.25 15.30 24.85 17.25 18.25 14.70
Sept. 17.45 11.80 16.10 31.40 18.15 18.65 14.15
Oct. 17.40 10.60 17.00 33.00 19.75 18.50 14.95
Nov. 17.15 10.85 17.00 30.05 19.05 17.40 13.75
Dec. 16.50 12.75 17.80 24.85 16.05 16.50 12.05
ARABIAN MEDIUM Saudi Arabia
Gravity: 31.8 Sulfur: 2.45 Loading Ports: Ras Tanura, Juaymah
Production
Output in 1996 was about 1.3-million barrels a day, or well-below capacity of around
1.9-million b/d, of which some 500,000 b/d is mothballed.
Quality
Similar to Kuwait crude oil and Iran Heavy: a typical Mideast medium-gravity, high-sul-
fur crude oil.
Producers

Term contracts account for most sales and are priced under geographically specific for-
mulas that are tied to the spot prices of US West Texas Intermediate for US deliveries,
North Sea Brent Blend for European deliveries, and an average of Oman and Dubai spot
prices for deliveries East of Suez. Sales are made on both a delivered and an f.o.b. or at-
source basis. There are few spot sales, and these are usually directed to existing term-
contract customers. Restricted volumes can be resold on the local regional spot market
by term-contract customers with approval.
Sellers
sellers. SPI handles all sales in the Atlantic Basin and also has offices in London,
Singapore and Tokyo.
966-3-875-6110, Telex: (928) 801220 ARAMCO SJ.
832-4044, Fax (212) 832-4688, Telex: 420819.
Main Customers
Sold worldwide in combination with other Saudi crude oils, but most popular among
more sophisticated refiners such as those in the US. Japan takes only about 170,000 b/d.
Loading Ports
ARABIAN MEDIUM ASSAY

Crude Oil Crude Oil
Cut Points Yield
LPG 2.7 1.7 LPG
Paraffins % Wt. 77
Naphthenes % Wt. 22
Aromatics % Wt. 18
Cetane Index 49.1
Cetane Index 49.8
ARABIAN MEDIUM TERM-CONTRACT PRICES, 1988-93
Month 1988 1989 1990 1991 1992 1993
Jan. $14.40 $14.34 $16.74 $14.55 $13.78 $15.31
Feb. 14.79 15.97 15.38 14.00 14.61 15.40
March 15.17 16.56 13.36 14.91 15.54 15.24
April 13.93 16.09 12.29 15.19 17.21 14.90
May 13.52 15.43 12.27 14.60 17.41 13.94
June 12.89 14.98 16.18 14.66 17.49 13.65
July 12.09 14.90 21.90 15.66 17.16 12.92
Aug. 11.16 15.36 28.29 16.41 17.05 13.19
Sept. 10.07 15.81 29.94 17.21 16.68 12.48
Oct. 10.24 16.29 28.68 15.84 15.90 11.38
Nov. 11.72 17.23 23.93 14.43 15.26 10.97
Dec. 13.27 17.40 16.01 13.97 14.97 11.27
Volume-weighted average of prices for all major markets.
ARABIAN SUPER LIGHT Saudi Arabia
Gravity: 50.6 Sulfur: 0.04 Loading Port: Yanbu

Other Names: Arabian Ultra Light
Production
Commercial output began in late 1994 from the Hawtah, Ghinah, Hazmiyah, and other
fields in central Arabia south of Riyadh. Production of about 200,000 barrels a day is fed
into the Petroline pipeline system for export from Yanbu.
Quality
An unusually light, sweet crude oil for the Mideast. Similar to top gasoline crude oils such
as US West Texas Intermediate and Algerian Saharan. The grade typically competes with
Yemen Marib and condensates in the Asia-Pacific market.
Producers

Sales are mainly to Asia-Pacific customers on a term-contract basis, with pricing set
according to a formula tied to the average of Oman and Dubai spot prices. The grade
has been difficult to market at times, and has few regular buyers in the Atlantic Basin.
Japanese refiners import about 40,000 b/d.
Sellers
sellers. SPI is responsible for Atlantic Basin crude oil sales, and it also has offices in
London, Singapore, and Tokyo.
(966-3) 875-6110, Telex: (928) 801220 ARAMCO SJ.
832-4044, Fax (212) 832-4688, Telex: 420819.
Loading Port
Yanbu. 23.57 N. 38.13 E. King Fahd Port at Madinat Yanbu Al Sinaiyah is the main indus-
trial port on the Red Sea. The crude oil terminal serves as a loading facility for the 48-
inch Petroline crude oil pipeline from Abqaiq in the Eastern Province. Total crude oil
storage is 11-million barrels, with three loading berths able to handle vessels up to
ARABIAN SUPER LIGHT ASSAY

Crude Oil Crude Oil
Cut Points Yield
LPG 5.1 3.7 LPG
Aromatics % Wt. 3.5
Cetane Index 54.5
Cetane Index 60.5
Pour Point Temp F 75
Viscosity (Kin) cts 100 F 31.2
MUBARAK Sharjah
Gravity: 38.2 Sulfur: 0.57 Loading Port: Mubarak

Other Names: Mubarek
Production
About 17,000 barrels a day from a mature offshore field discovered in 1972, with peak
production of 60,000 b/d in the 1970s. Liquids output has been enhanced by increased
gas production since 1992, which has boosted the recovery of condensates, which make
up about two-thirds of the liquids output.
Quality
The initial crude oil and condensate stream was quite light and low in sulfur for the
Mideast, making it similar to high-quality Abu Dhabi and Qatar grades. The assay below
precedes the increase in gas output and processing in the early 1990s, and thus it is heav-
ier than the actual liquids exports, which contain a much larger share of condensate.
Producers
Sharjah-based Crescent Petroleum is the exclusive producer. The firm was originally
owned by a group of US independent oil firms.

Sold mainly to the Asia-Pacific region under term contracts. Crescent Petroleum also has
downstream refining interests in Pakistan.
Sellers
Crescent Petroleum: P.O. Box 211, Sharjah, UAE. Tel. (971-6) 284-004. Fax: (971-6)
284-007.
Crescent UK: 15 Grosvenor Crescent, London SW1X 7EE, UK. Tel.: (44-171) 235-
5500, Fax: (44-171) 245-6666.
Loading Port
Mubarak. 25.49 N. 55.11 E. Located off the island of Abu Musa, the Mubarak terminal
has a single-buoy mooring berth that is designed for tankers of up to 350,000 deadweight
tons.
MUBARAK ASSAY
Crude Oil Crude Oil
(Kinematic) at 20 C
Cut Points Yield
LPG 1.9 1.2 LPG
Naphthenes % Wt. 30
Aromatics % Wt. 22
Cetane Index 49.7
Cetane Index 51.3
SHARJAH CONDENSATE Sharjah
Gravity: 50.0 Sulfur: 0.08 Loading Port: Hamriyah Terminal
Production
About 40,000 barrels a day of condensate from the onshore Saaja, Moveyeid, and Kahaif
fields, which produce natural gas for use in the United Arab Emirates and condensate for
export.
Quality
An extremely light condensate with a wide naphtha yield that is good for making petro-
chemicals.
Producers
Amoco is the operator and sole equity holder in the fields.

The condensate is sold primarily to the Far East, especially to Japan and South Korea.
Small volumes have also been exported to the Atlantic Basin.
Sellers
Amoco Shipping & Trading Ltd.: 140 Park Lane, Suite 23, London W1Y 3AA, UK.
Tel.: (44-171) 408-1750, Fax: (44-171) 409-0785.
Loading Port
Hamriyah. 25.34 N. 55.24 E. The terminal consists of a single-point mooring loading sys-
tem located offshore in the Mideast Gulf that is fed by a 500,000-barrel storage facility.
SHARJAH CONDENSATE ASSAY

Crude Oil Crude Oil
(Kinematic) at 20 C
Cut Points Yield
LPG 6.8 4.9 LPG
Naphthenes % Wt. 24
Aromatics % Wt. 37
Light Gas Oil 235-300 12 13 Light Gas Oil
Cetane Index 48.2
Cetane Index 49.9
Year Of Crude Oil Sample: 1985 Viscosity (Kin) 60 C 8.34
SOUEDIEH Syria
Gravity: 24.0 Sulfur: 4.05 Loading Ports: Tartous, Baniyas

Other Names: Suwaidiyah
Production
The seven fields in northeastern Syria that make up Souedieh total 150,000 barrels a day
of production. On average, roughly one-third of this volume is exported, with the rest
used in domestic refineries.
Quality
The heavier of Syrias two export crude oil streams is extremely high in sulfur, which
limits its market outlets. It is similar to the heaviest Egyptian and Venezuelan oils and to
Mexican Maya grade. Quality sometimes varies.
Producer
State Syrian Petroleum Co. is the exclusive producer and marketer.

Souedieh is sold into the Mediterranean market on a term-contract basis. Prices are set
on a monthly basis versus a dated Brent marker. One interesting twist with Syrian mar-
keting is that customers have the option to not lift on a particular month if the price is
not to their liking. But they are responsible for lifting a given quantity over a 12-month
period. Sales are sensitive to high-sulfur fuel oil markets, and customers are mainly
Mediterranean and southern European refiners including Total, Isab, Agip, OMV, Repsol,
Chevron, Conoco, and traders Glencore Rich and Bayoil.
Seller
Syrian Petroleum Co.: Sytrol, Al-Mutanabi St., P.O. Box 2849, Damascus, Syria. Tel.:
(963) 227-007.
Loading Ports
Tartous. 34.53 N. 35.45 E. The Tartous terminal, located on the Mediterranean coast
about 90 miles north of Beirut, has two crude oil-loading berths for tankers of up to
100,000 deadweight tons and maximum draft of 68 feet.
Baniyas. 35.14 N. 35.56 E. The port lies north of Tartous on the Mediterranean and
includes three crude oil-loading berths with maximum draft of 40-52 ft, depending on
the season, and maximum vessel length of 800-950 ft.
SOUEDIEH ASSAY
Crude Oil Crude Oil
Cut Points Yield
LPG 1.6 1 LPG
Naphthenes % Wt. 24
Aromatics % Wt. 11
Cetane Index 47.7
Cetane Index 47
SOUEDIEH TERM-CONTRACT PRICES, 1988-93
Month 1988 1989 1990 1991 1992 1993
Jan. $13.08 $13.96 $17.80 $10.60 $12.11 $12.79
Feb. 12.66 13.82 16.30 6.50 11.77 12.83
March 12.24 14.90 14.85 6.05 11.69 13.36
April 13.83 16.37 12.50 13.15 13.45 13.32
May 13.42 15.77 12.35 13.15 15.24 13.19
June 12.63 14.82 11.10 12.15 16.10 12.28
July 12.17 14.81 13.75 13.30 15.44 11.78
Aug. 12.27 14.45 23.70 13.55 15.12 11.84
Sept. 11.42 15.39 29.85 14.40 15.65 11.19
Oct. 10.38 16.80 22.15 16.39 15.22 11.43
Nov. 11.43 17.40 19.45 14.56 14.03 9.86
Dec. 12.92 18.27 15.00 12.23 13.08 8.51
SYRIAN LIGHT Syria
Gravity: 36.5 Sulfur: 0.66 Loading Ports: Tartous, Baniyas

Other Names: Syrian Export Blend
Production
Output of about 450,000 barrels a day comes from the Deir ez-Zor fields, which lie in
the east of the country near the Euphrates River. About 300,000 b/d is exported. The
original Thayyem field discovery in the mid-1980s has since been supplemented by sev-
eral more fields including Omar, Al-Izba, Tayani, Tanak, Al-Isba, Qahar, Jafra, and oth-
ers.
Quality
A light crude oil that is higher in sulfur than most North African grades, and thus tends
to compete with Russian and lighter Saudi and Iranian crude oils in the Mediterranean
market. The test below is based on the Thayyem field, and the blend is now somewhat
lighter.
Producers
Production of the various fields is in the hands of several foreign companies as well as
state Syrian Petroleum Co. Among the international production-sharing partners are
Royal Dutch/Shell, Deminex, and Elf.

Syrian Light is regularly traded in the Mediterranean spot market, but it is sold mainly
under term contracts by SPCs Sytrol unit to both traders and refiners before being resold
in the spot market. SPCs efforts to reduce spot trading have been largely unsuccessful,
but it no longer relies on spot sales tenders. SPCs monthly price formula is linked to
dated Brent prices. The grade rarely leaves the Mediterranean. All exports are handled
by Sytrol, with equity producers forced to sell their output to SPC, which uses about
150,000 b/d for its domestic refineries. Key customers include: BP, Elf, Total, Agip, OMV,
Repsol, Tupras, Glencore, Exxon, Mobil, Chevron, Texaco, Veba, and Conoco.
Seller
Syrian Petroleum Co.: Sytrol, Al-Mutanabi St., P.O. Box 2849, Damascus, Syria. Tel.:
(963) 227-007.
Loading Ports
Tartous. 34.53 N. 35.45 E. The Tartous terminal, located on the Mediterranean coast
about 90 miles north of Beirut, has two crude oil-loading berths for tankers of up to
100,000 deadweight tons and maximum draft of 68 feet.
Baniyas. 35.14 N. 35.56 E. The port lies north of Tartous on the Mediterranean and
includes three crude oil-loading berths with maximum draft of 40-52 ft, depending on
the season, and maximum vessel length of 800-950 ft.
SYRIAN LIGHT ASSAY

Crude Oil Crude Oil
(Kinematic) at 20 C
Cut Points Yield
LPG 1.3 0.9 LPG
Naphthenes % Wt. 42
Aromatics % Wt. 11
329-455 Freezing Point Temp. C -53
Cetane Index 53.3
Cetane Index 57.1
SYRIAN LIGHT TERM-CONTRACT PRICES, 1990-93
Month 1990 1991 1992 1993
Jan. $20.87 $23.65 $17.82 $16.93
Feb. 19.27 19.55 17.37 17.92
March 17.88 19.10 17.18 17.99
April 15.71 18.75 18.59 17.97
May 15.80 18.65 19.60 17.62
June 14.73 17.45 20.31 16.58
July 17.58 18.80 19.41 15.77
Aug. 27.84 19.05 19.04 15.76
Sept. 37.76 19.90 19.67 15.21
Oct. 36.30 21.89 19.72 15.37
Nov. 33.01 20.06 18.60 13.95
Dec. 27.80 17.73 17.58 13.81
BRENT BLEND United Kingdom
Gravity: 38.3 Sulfur: 0.37 Loading Port: Sullom Voe

Other Names: Ninian (included in Brent system from August 1990)
Production
Output of about 775,000 barrels a day in 1995-96 makes it the second largest UK crude
oil stream after Forties. Output comes from the commingling of the Brent (475,000 b/d)
and Ninian (300,000 b/d) systems. Output from most fields in the system is stable or
declining, and flows are projected to drop to 500,000 b/d by 2000. The main fields of
the Brent system are Brent, Cormorant, Hutton, Thistle, Murchison (22% Norwegian), and
Dunlin. The main fields of the Ninian system are Ninian, Alwyn North, and Magnus.
Quality
Typical high-quality, light, low-sulfur North Sea crude oil.
Producers
Production is divided among several international oil companies, with Shell and Exxon
holding the largest stakes in the Brent fields, while Chevron and British Petroleum retain
large shares in Ninian and Magnus. Other companies with sizable interests include
Conoco, Amoco, and Enterprise, with many other smaller partners.

Brent is a key international spot market benchmark grade, and it is also traded exten-
sively on a forward basis. The International Petroleum Exchange trades Brent crude oil
futures as well. Although producing companies often keep some of the crude oil for their
internal refining systems, almost all of the rest is traded on a spot basis, with virtually no
formal term contracts (for more on Brent, see pB9-B15).
Sellers
Esso UK PLC: Esso House, Victoria St., London SW1 E5JW, UK. Tel.: (44-171) 834-
6677, Fax: (44-171) 245-2556.
Chevron UK Ltd.: 2 Portman St., London W1H 0AN, UK. Tel.: (44-171) 487-8100,
Fax: (44-171) 487-8142.
Main Customers
The crude oil is primarily refined in Northwest Europe, but depending on arbitrage
opportunities, significant volumes often move to the US Gulf and East coasts, as well as
to the Mediterranean.
Loading Port
Sullom Voe. 60.27 N. 01.17 W. Sullom Voe, a major deep-water harbor, is the loading
terminal for oil flowing through the Brent and Ninian pipelines from a group of oil fields
in the East Shetland Basin. Four crude oil-loading berths are available for tankers rang-
ing in size from 18,000-350,000 deadweight tons. The maximum allowed draft ranges
from 15.9 meters at Jetty No. 1 to 22.6 m at Jetties 3 and 4.
BRENT BLEND ASSAY

Crude Oil Crude Oil
Cut Points Yield
LPG 4.71
Cetane Index 42.9
Cetane Index 51.4
BRENT PRICES, 1979-93
Month 1979 1980 1981 1982 1983 1984 1985 1986
Jan. $15.70 $29.75 $39.25 $35.25 $33.50 $29.60 $27.25 $25.75
Feb. 15.70 33.75 39.25 35.10 30.50 29.60 26.75 19.70
March 15.70 33.75 39.25 31.10 30.00 29.60 27.00 13.85
April 18.25 34.25 39.25 31.10 30.00 29.60 28.25 12.50
May 18.25 36.25 39.25 31.10 30.00 29.60 27.40 14.20
June 20.70 36.25 35.00 33.50 30.00 29.60 26.10 11.85
July 23.25 36.25 35.00 33.50 30.00 29.60 26.50 9.45
Aug. 23.25 36.25 35.00 33.50 30.00 29.60 27.00 13.65
Sept. 23.25 36.25 35.00 33.50 30.00 29.60 27.60 14.20
Oct. 23.25 36.25 35.00 33.50 29.60 28.65 27.90 13.80
Nov. 26.02 36.25 36.60 33.50 29.60 28.65 28.60 14.55
Dec. 26.02 36.25 36.60 33.50 29.60 28.65 29.25 15.90
Month 1987 1988 1989 1990 1991 1992 1993
Jan. $18.40 $16.85 $17.00 $21.30 $23.60 $18.15 $17.40
Feb. 17.30 15.75 16.65 19.80 19.50 18.10 18.45 Official term-contract
March 17.90 14.75 18.70 18.35 19.05 17.60 18.75 prices through 1984,
April 18.10 16.60 19.75 16.50 19.15 18.95 18.65
spot prices thereafter.
May 18.75 16.40 18.35 16.35 19.15 19.90 18.50
June 18.85 15.55 17.50 15.10 18.15 21.15 17.65 Note: More recent
July 19.80 14.90 17.50 17.25 19.40 20.25 16.80 prices can be found
Aug. 18.95 14.95 16.75 27.20 19.75 19.75 16.70 in Chapter I.
Sept. 18.35 13.30 17.75 34.85 20.50 20.25 16.00
Oct. 18.80 12.45 18.90 36.00 22.20 20.30 16.60
Nov. 17.80 13.00 18.70 33.15 21.25 19.20 15.15
Dec. 17.10 15.15 19.90 28.25 18.40 18.15 13.60
CAPTAIN United Kingdom
Gravity: 19-21 Sulfur: 0.5 Loading Port: Captain FPSO
Production
A 60,000 barrel a day first phase of production is due to start in late 1996, and work is
expected to begin soon thereafter on developing the second phase if flow rates are sat-
isfactory. The offshore field produces to a floating production, storage, and off-loading
vessel (FPSO).
Quality
An unusually heavy crude oil for the North Sea, but relatively low in sulfur for such a
heavy crude oil.
Producers
Texaco is the operator, with the 85% remaining held by a South Korean consortium com-
prised of Pedco and Hanwha Energy.

The grade is expected to be priced at a discount to benchmark Brent grade but some
linkage to fuel oil markets is also possible. Texaco is considering selling at least some of
the grade directly into the fuel oil market because it requires little or no processing to
be used directly as fuel oil. Sales to refiners in Europe and the US are also likely.
Main Sellers
171) 584-5000, Fax: (44-171) 589-2877.
Loading Port
Captain FPSO. Located 90 miles northeast of Aberdeen in the North Sea, the crude oil
is produced to the FPSOs 550,000 barrel storage tanks. It is then loaded onto dedicated
shuttle tankers.
CAPTAIN ASSAY
No assay available.
FLOTTA United Kingdom
Gravity: 35.4 Sulfur: 1.22 Loading Port: Flotta
Production
A blend from the Piper, Claymore, Scapa, Tartan, Highlander, Petronella, Rob Roy,
Ivanhoe, Saltire, Chanter, and Hamish fields in the central North Sea. Production was
seriously disrupted in mid-1988 by an explosion at the Piper field that shut flows from
the Piper cluster of fields for several years and forced other output to be rerouted
through the Claymore field. Production, which was fully restored in 1992 and has been
declining gradually since 1993, averages about 250,000 barrels a day in early 1996.
Quality
Heavier and higher in sulfur than most North Sea oils, Flotta is closer to a Mideast light
crude oil or Russian Urals grade. Loss of Piper output lowered the gravity of the blend
slightly. The assay below is based on full Piper production prior to the accident, and thus
it is fairly representative of current output.
Producers
Elf and Enterprise along with Texaco, Lasmo, Deminex, and Amerada Hess have the
largest shares of production. The Amerada Hess and Deminex shares have grown in
recent years with new fields, while the restarting of Piper production significantly boost-
ed the Elf, Enterprise, and Lasmo shares.

The grade is either kept in the refining systems of producing companies or sold on the
spot market. It is priced at a discount to benchmark Brent grade in line with delivered
prices of Mideast grades or Russian Urals crude oil. Most of the production is used in
Europe.
Main Sellers
Elf Trading S.A. Geneva: P.O. Box 532, 1215 Geneva 15 Airport, Switzerland. Tel.:
(41-22) 798-1211, Fax: (41-22) 798-3812.
Enterprise Oil PLC: 5 Strand, London WC2N 5HU, UK. Tel.: (44-171) 930-1212.
171) 584-5000, Fax: (44-171) 589-2877.
Amerada Hess Ltd.: 2 Stephen St., Tottenham Court Road, London W1P 1PL, UK.
Tel.: (44-171) 636-7766, Fax: (44-171) 927-9799.
Lasmo PLC: 100 Liverpool St., London EC2M 2BB, UK. Tel.: (44-171) 945-4500.
Loading Port
Flotta. 58.53 N. 03.05 W. Flotta terminal, located in the Orkney Islands, has crude oil-
loading facilities at both single-buoy mooring and jetty berths. Crude oil-storage capaci-
ty at the terminal is 7-million barrels. Two pillar-type SBMs are available for loading
tankers between 35,000-200,000 deadweight tons. The liquefied petroleum gas/crude oil
jetty accommodates tankers from 4,000-150,000 dwt.
FLOTTA ASSAY
Crude Oil Crude Oil
Cut Points Yield
LPG 3.8 2.5 LPG
Naphthenes % Wt. 32
Aromatics % Wt. 19
Cetane Index 48.9
Cetane Index 52.2
Year Of Crude Oil Sample: 1980 Asphaltenes % Wt. 1.1
FORTIES United Kingdom
Gravity: 40.1 Sulfur: 0.34 Loading Port: Hound Point
Production
Output has risen rapidly with the addition of eight new fields since 1992, which have
doubled total production to 975,000 b/d, making Forties the largest crude oil stream in
the UK. New fields include Scott, Nelson, Everest/Lomond, Brae East, Bruce, Tiffany, and
Toni. Prior to the new fields, production came mainly from the Forties, Brae, Miller,
Arbroath, and Balmoral fields. Output is piped onshore at Cruden Bay, Scotland, and
then transported by pipeline to Hound Point for loading.
Quality
Typical high-quality, light, low-sulfur North Sea crude oil comparable to benchmark
Brent Blend. The grade has improved significantly in quality as new fields and conden-
sate flows have come on stream.
Producers
Production has been dominated by British Petroleum, but the total number of equity pro-
ducers has expanded to over 40 due in part to rising production. After BP, which has
about 22% of production, the next biggest producers are Enterprise with 10%, Marathon
with 8%, Amerada Hess with 7%, and Agip with 4%.

Forties is usually priced at a slight premium to benchmark Brent Blend, reflecting both
its slightly higher refined value to most refiners and its relative scarcity in the market
compared to Brent. While the spot market has become more liquid with rising produc-
tion, Forties has yet to take on any marker role despite its larger output than Brent. BP
keeps significant volumes within its own refining system, including almost 200,000 b/d
for its Grangemouth, UK, refinery. This limited the volumes available for spot sales in
the past.
Sellers
BP Oil International Ltd.: Britannic House, 1 Finsbury Circus, London EC2M 7BA,
UK. Tel.: (44-171) 496-4000, Fax: (44-171) 496-2854.
Enterprise Oil PLC: Grand Buildings, Trafalgar Square, London WC2N 5EJ, UK. Tel.:
(44-171) 925-4000. Fax: (44-171) 925-4321.
Marathon International Petroleum: Marathon House, 174 Marylebone Road,
London NW1 5AT, UK. Tel. (44-171) 486-0222. Fax: (44-171) 486-5570.
Amerada Hess Ltd.: 2 Stephen St., Tottenham Court Road, London W1P 1PL, UK.
Tel.: (44-171) 636-7766, Fax: (44-171) 927-9799.
Agip (UK) Ltd.: Southside 105 Victoria Street SW1E 6QU, UK. Tel.: (44-171) 344-6000.
Fax: (44-171) 344-6175.
Loading Port
Hound Point. 56.00 N. 03.22 W. The Hound Point terminal is a sea island in the Firth
of Forth situated about 13 miles from Fairway Buoy. Size restrictions allow for up to
300,000 deadweight tons at jetty one and 150,000 dwt at jetty two, depending on sea-
sonal tides. Storage is available for 4-million barrels of crude oil.
FORTIES ASSAY
Crude Oil Crude Oil
Barrels /Metric Ton 7.64 Pour Point Temp. C <0
Total Acid mg KOH/g <0.2

Cut Points Yield
Product Temp. C % Wt. Properties Unit Value
LPG 3.15 LPG
Naphtha <165 28.61 Naphtha
Carbon Residue % Wt. 4.3
Year Of Crude Oil Sample: 1994 Vanadium + Nickel Parts/mill. 7
FORTIES PRICES, 1978-93
Month 1978 1979 1980 1981 1982 1983 1984 1985
Jan. $13.70 $15.50 $29.75 $39.25 $36.70 $33.50 $29.90 $27.75
Feb. 13.70 15.50 33.75 39.25 35.00 30.50 29.90 28.50
March 13.70 15.50 33.75 39.25 31.10 29.75 29.90 28.05
April 13.64 18.30 34.25 39.25 31.10 29.75 29.90 27.75
May 13.64 21.00 36.25 39.25 31.10 29.75 29.90 27.40
June 13.64 20.70 36.25 35.55 33.50 29.75 29.90 26.00
July 13.74 23.20 36.25 35.55 33.50 29.75 29.90 26.35
Aug. 13.74 23.20 36.25 35.55 33.50 29.75 29.90 26.80
Sept. 13.74 23.20 36.25 35.55 33.50 29.75 29.90 27.50
Oct. 14.00 23.20 36.25 35.55 33.50 29.90 28.55 27.80
Nov. 14.00 26.02 36.25 36.90 33.50 29.90 28.55 28.50
Dec. 14.00 26.02 36.25 36.90 33.50 29.90 28.55 29.10
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $25.55 $18.30 $16.65 $17.00 $21.20 $23.65 $18.35 $17.40
Feb. 19.50 17.20 15.60 16.08 19.65 19.60 18.30 18.60
March 13.50 17.80 14.60 18.65 18.20 19.10 17.75 18.85
April 12.20 18.00 16.35 20.20 16.35 19.10 19.15 18.70
May 14.10 18.55 16.15 18.60 16.25 19.20 20.10 18.30
June 11.70 18.75 15.45 17.55 15.00 18.25 21.30 17.55
July 9.35 19.70 14.80 17.55 17.15 19.55 20.30 16.85
Aug. 13.50 18.85 14.75 16.70 27.30 19.95 19.75 16.80
Sept. 14.10 18.20 13.10 17.70 35.30 20.70 20.20 15.85
Oct. 13.65 18.60 12.30 18.80 35.85 22.45 20.35 16.40
Nov. 14.40 17.60 12.85 18.60 32.95 21.45 19.25 15.05
Dec. 15.75 16.90 15.20 19.80 28.10 18.55 18.20 13.55
Term-contract prices through 1984, spot prices thereafter. Note: More recent prices can be found in Chapter I.
LIVERPOOL BAY United Kingdom
Gravity: 43.3 Sulfur: 0.24 Loading Port: Liverpool Bay Platform
Production
A blend from the Lennox and Douglas fields in the Irish Sea off the west coast of
England, which began production in early 1996. The fields have a total capacity of 70,000
barrels a day, but problems with the gas injection system at the Lennox field have limit-
ed flows to the 40,000 b/d Douglas field pending repairs expected in late 1996.
Quality
A light, sweet crude oil but higher in mercaptans than most North Sea crude oils, which
has made for some handling problems that tend to restrict sales outlets.
Producers
BHP Petroleum is the operator with 46%. Its partners are Lasmo (25%), Monument (20%),
and Powergen (9%).

The crude oil is priced at a differential to benchmark Brent grade, and a significant
amount has been committed in term contracts, due to quality constraints.
Main Sellers
London: (44-171) 408-7116; Singapore: (65) 539-8410; Houston: (713) 961-8668; Tokyo:
(813) 5251-1371.
Lasmo PLC: 100 Liverpool St., London EC2M 2BB, UK. Tel.: (44-171) 945-4500.
Loading Port
Liverpool Bay. 53.41 N. 03.32 W. Liverpool Bay crude oil is produced into an 850,000
barrel storage barge located adjacent to the platform. It can accommodate tankers up to
LIVERPOOL BAY ASSAY

Crude Oil Crude Oil
Cut Points Yield
<158 Octane RON 68
Paraffins % Wt. 94
Naphthenes % Wt. 6
Aromatics % Wt. <0
158-284 Paraffins % Wt. 51.2
Aromatics % Wt. 1.4
Gas Oil 250-360 21.1 21.8 Gas Oil
Cetane Index 65
ALASKAN NORTH SLOPE United States
Gravity: 27.5 Sulfur: 1.16 Loading Port: Valdez

Other Names: ANS
Production
The stream amounted to about 1.45-million barrels a day, or about 22% of US output in
1996, as compared to a peak of almost 2-million b/d or 25% of national output in 1988.
It is a blend from all fields on the northern coast of Alaska. The largest field is Prudhoe
Bay, which began production in 1977, and is operated jointly by British Petroleum and
Arco. It is a mature field with an expanded gas-reinjection program designed to slow the
natural output slide. Arco-operated Kuparuk River produced about 270,000 b/d, and BP-
operated Endicott produced 70,000 b/d in 1996. Both are heavier crude oils than
Prudhoe Bay. Other fields are Arco-operated Lisburne (200,000 b/d) and BP-operated
Milne Point. The large fields are mature and declining.
Quality
Although heavy, ANS is relatively low in sulfur and has good upgrading properties. The
grade is considered similar to Arabian Light and Mexican Isthmus.
Producers
Prudhoe Bay: BP 50.684%, Arco 21.779%, Exxon 21.777%, Mobil 1.891%, Phillips
1.88%, and less than 1% each to Chevron, Texaco, Amerada Hess, Shell, Marathon, and
Louisiana Land & Exploration.
Kuparuk River: Arco 56.167%, BP 39.192%, Unocal 4.951%, and others.
Endicott: BP 56.782%, Exxon 21.020%, Unocal 10.517%, and others.
Lisburne: Arco 40%, Exxon 40%, BP 20%.
Milne Point: BP 72.149%, Chevron 17.373%, Occidental 10.477%.

Moved via the 2-million b/d Trans-Alaska Pipeline from the North Slope to the port of
Valdez on the southern coast of Alaska. From there it goes to US refiners on the West
Coast and to Asian refiners. The lifting of the US ban on exports in 1996 brought an end
to shipments to the US Gulf Coast, where ANS was once a market crude oil. Exports to
Asia amounted to about 100,000 b/d in late 1996. Most producers aside from BP use most
of their supplies in their own downstream refining systems. BPs term-contract prices in
the US are based on an average of spot prices for the previous month. Export sales are
tied to Mideast market grades
Sellers
BP Oil Co.: 200 Public Square, Cleveland, Ohio 44114-2375, USA. Tel.: (216) 586-
6923, Fax: (216) 586-6742. Other offices; Long Beach, Calif.: Tel.: (310) 436-4868; and
Houston, Texas: Tel. (713) 560-5515.
Loading Port
Valdez. 61.05 N. 146.24 W. Located on the Valdez arm of Prince William Sound, Alaska.
Four tanker berths, two with maximum capacity of 265,000 deadweight tons.
ALASKAN NORTH SLOPE ASSAY

Crude Oil Crude Oil
Cut Points Yield
LPG 0-82 1.62 1.03 LPG
Light Naphtha 82-200 6.5 5 Light Naphtha
Aromatics % Wt. 16
Sulfur Content % Wt. >0.02
Cloud Point Temp. F -45
Cetane Index 40.02
Cetane Index 45
ANS TERM-CONTRACT PRICES AT THE US GULF COAST, 1986-93
On A Delivered Basis In Dollars Per Barrel
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $25.00 $15.25 $15.50 $14.35 $19.52 $21.20 $16.47 $17.19
Feb. 21.00 16.25 15.50 16.32 20.20 16.08 15.74 16.59
March 16.00 16.25 14.75 16.38 19.77 17.71 16.17 17.90
April 14.00 17.75 15.50 17.72 18.34 18.16 16.29 18.34
May 12.50 17.75 16.25 19.97 15.11 18.16 17.77 18.30
June 12.50 18.75 15.50 18.00 14.86 18.01 18.62 17.99
July 10.00 18.75 14.81 17.30 13.08 17.58 20.56 17.00
Aug. 10.00 19.75 14.34 17.21 16.03 18.30 19.65 15.89
Sept. 13.00 19.00 14.15 16.50 32.54 18.49 18.82 16.22
Oct. 13.00 18.25 12.92 17.07 32.06 19.05 19.31 15.57
Nov. 13.00 18.25 11.85 17.80 29.64 20.05 19.42 16.02
Dec. 13.00 16.75 11.70 18.05 25.01 19.16 18.26 14.32
ANS TERM-CONTRACT PRICES AT THE US WEST COAST, 1986-93
Month 1986 1987 1988 1989 1990 1991 1992 1993
Jan. $24.00 $14.25 $14.50 $13.35 $19.07 $20.62 $14.84 $16.33
Feb. 20.35 15.25 14.50 15.32 20.00 17.53 14.92 15.61
March 15.00 15.25 13.75 15.38 19.21 16.90 15.26 16.78
April 13.00 16.75 14.50 17.13 17.85 17.55 15.49 17.37
May 11.50 16.75 15.25 19.33 14.71 17.55 16.95 18.21
June 11.50 17.75 14.50 17.55 14.44 16.73 18.06 17.45
July 9.00 17.75 13.81 16.94 13.68 16.33 20.20 16.05
Aug. 9.00 18.75 13.34 16.70 15.58 17.32 19.38 14.89
Sept. 12.00 18.00 13.15 16.00 32.24 17.18 18.00 15.45
Oct. 12.00 17.25 11.92 16.59 31.52 17.31 18.50 15.00
Nov. 12.00 17.25 10.85 17.24 28.74 18.52 18.78 15.44
Dec. 12.00 15.75 10.70 17.52 23.77 17.56 17.44 13.10
LIGHT LOUISIANA SWEET United States
Gravity: 38.7 Sulfur: 0.13 Pipeline Terminal: St. James

Other Names: LLS
Production
Reflecting the overall declines in US output, production had dropped to about 600,000
barrels a day in 1996. About 60% of this oil is produced from relatively mature offshore
fields. Volumes are expected to continue to drop.
Quality
A light, sweet crude oil similar in quality to West texas Intermediate.
Producers
Output comes from a broad range of large integrated oil companies and independent
firms of all sizes, with no one dominant supplier.

The primary outlets are Gulf Coast refiners that rely on the grade as their primary domes-
tic feedstock along with Heavy Louisiana Sour (HLS). LLS supplies usually move through
the pipeline hub of St. James, Louisiana. Some volumes also move north to Midwest
refineries. St. James is a key pricing point because it is the pipeline junction at which
much of the production must either move to inland refiners or to plants along the Gulf
Coast. LLS is traded on a spot basis as ratable daily volumes for delivery over the com-
ing month. Term-contract sales occur at prices set by refiners, known as wellhead post-
ings. LLS is sometimes used as an alternative market price because it competes more
directly with imported grades than do WTI or WTS.
Buyers And Sellers

Most Gulf Coast refiners are buyers, and a myriad of producers provide supplies, mak-
ing it difficult to single out a few of them.
Pipeline Terminal
St. James. The junction point for pipelines that bring in crude oil from many of the Gulf
Coast fields and the Louisiana Offshore Oil Port. From St. James, the Capline extends
north to Illinois and several other lines serve refineries along the Gulf Coast.
LIGHT LOUISIANA SWEET ASSAY

Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG 1.7 LPG
Paraffins % Wt. 51
Naphthenes % Wt. 36
Aromatics % Wt. 13
Paraffins % Wt. 51
Naphthenes % Wt. 33
Aromatics % Wt. 16
Cetane Index 48
MARS BLEND United States
Gravity: 31 Sulfur: 2.0 Pipeline Terminal: Clovelly, LOOP
Production
Output began at about 70,000 barrels a day in mid-1996 from the deep-water Mars field
in the Gulf of Mexico and flows are due to reach 100,000 b/d in 1997 when the field is
fully on stream. Output should hit 200,000 b/d or more later in the decade with the addi-
tion of Amberjack and possibly other similar sour crude oil streams.
Quality
A medium-gravity sour crude oil that is typical of many of the new fields coming on
stream in the deep-water Gulf of Mexico. The assay below comes from just before the
start of commercial production and may not fully reflect actual quality, especially as other
crude oil streams are added in.
Producers
Mars itself is produced by Shell Oil (71.5%) and BP (28.5%). Shell is also the dominant
producer in the Amberjack system.

The grade is expected to trade regularly on a spot basis into the US domestic pipeline
system. BP is selling all of its output to third parties, and Shell is likely to sell about half
of its share. The grade is considered a potential candidate for a role as a Gulf Coast sour
crude oil benchmark grade if spot trading becomes well established. Initial cargoes have
been priced at a discount to West Texas Intermediate.
Sellers
Shell Oil Products: One Shell Plaza, 910 Louisiana, Houston, Texas 77002, USA. Tel.:
(713) 241-6161. Fax: (713) 241-0004.
BP Oil: 200 Public Square, Cleveland, Ohio 44114-2375, USA. Tel.: (216) 586-5658.
Fax: (216) 586-6742.
Pipeline Terminals
Clovelly, LOOP. The Mars field, which lies 130 miles southwest of New Orleans, is con-
nected by pipeline to the Clovelly salt dome storage facility that is part of the Louisiana
Offshore Oil Port (LOOP). The 3-million barrel facility is dedicated to Mars crude oil and
provides ready access to St. James, Louisiana, and the Capline system to the Midwest, as
well as to other pipeline systems along the Gulf Coast.
MARS BLEND ASSAY

Crude Oil Crude Oil
Gravity (60 F) API 31 Sulfur Content % Weight 2
Viscosity SSU 82.8 Reid Vapor Pressure psi 8
at 80 F Hydrogen Sulfide g/100ml 0.0011
Cut Points Yield
LPG <68 2.8 LPG
Aromatics % Wt. 5.1
Heavy Naphtha 265-350 8 Heavy Naphtha
Paraffins % Wt. 59
Freezing Point Temp. F. -49.6
Cetane Index 48.1
Pour Point Temp F 0
Con. Carbon % Wt. 9.3
Viscosity (SSU) At 210F 316.1
Vanadium ppm 84
Year Of Crude Oil Sample: 1996 Nickel ppm 34
WEST TEXAS INTERMEDIATE United States
Gravity: 39.6 Sulfur: 0.24 Pipeline Terminals: Cushing, Midland

Other Names: WTI
Production
Due to ongoing declines, only 450,000 barrels a day of light, sweet crude oil production
comes from districts of West Texas and New Mexico that are specifically designated by
the Texas Railroad Commission and oil companies as West Texas Intermediate. But a
broader WTI classification also applies to a range of similar light, sweet crude oils from
other areas of Oklahoma, Texas, and Kansas that are commingled at key pipeline inter-
changes. These flows are deliverable at Cushing, Oklahoma, against New York crude oil
futures contracts, and they amounted to about 750,000 b/d in 1996, which is down sub-
stantially from 1.36-million b/d in 1985. Most of these fields are mature, and volumes are
declining with overall output in the lower 48 states.
Quality
A light, sweet crude oil that is excellent for manufacturing gasoline.
Producers
firms of all sizes, with no one dominant supplier.

The primary outlets are US Midcontinent and Great Lakes refineries that are supplied
mainly from Cushing, Oklahoma. Volumes also go to the Gulf Coast, but these are main-
ly the equity production of integrated refiners, rather than freely traded barrels. Midland
is a key pricing point because it is the pipeline junction at which much of the produc-
tion must either move to Cushing and the inland refiners or to the Gulf Coast. WTI is
traded on a spot basis as ratable daily volumes for delivery over the coming month, and
these cash prices track closely with the light, sweet futures contract in New York. Term-
contract sales occur at prices set by refiners, known as wellhead postings. These prices
track New York Mercantile Exchange levels closely, but exclude the cost of moving the
grade from the field to Cushing.
Buyers And Sellers

Most refiners in the Midcontinent and Great Lakes regions of the US are regular buyers,
and myriad producers provide supplies, making it difficult to single out a few of them.
Pipeline Terminals
Cushing, Oklahoma. The junction point for pipelines that feed crude oil in from both
West Texas and the Gulf Coast for transport onward by pipeline to Kansas, Missouri,
Iowa, Illinois, and the Great Lakes region.
Midland, Texas. The junction point for pipelines that bring in crude oil from West Texas
and New Mexico for transport onward by pipeline to either Cushing, Oklahoma, or the
Gulf Coast.
WEST TEXAS INTERMEDIATE ASSAY

Crude Oil Crude Oil
Cut Points Yield
LPG 2.4 1.6 LPG
Naphthenes % Wt. 49
Aromatics % Wt. 8
Cetane Index 52.5
Cetane Index 60.3
WTI WELLHEAD POSTINGS, 1979-93
Average Prices Set By Refiners In Dollars Per Barrel
Month 1979 1980 1981 1982 1983 1984 1985 1986
Jan. $14.85 $32.50 $38.00 $35.00 $32.00 $30.00 $26.85 $27.00
Feb. 15.85 37.00 38.00 34.00 30.00 30.00 26.70 20.00
March 15.85 38.00 38.00 33.00 30.00 30.00 26.85 15.35
April 15.85 39.50 38.00 33.00 30.00 30.00 27.15 13.25
May 18.10 39.50 38.00 33.00 30.00 30.00 27.30 13.65
June 19.10 39.50 36.00 32.00 30.00 30.00 27.20 13.90
July 21.75 39.50 36.00 32.00 30.00 30.00 27.05 11.85
Aug. 26.50 38.00 36.00 32.00 30.00 29.75 27.15 13.35
Sept. 28.50 36.00 36.00 32.00 30.00 29.55 27.35 14.20
Oct. 29.00 36.00 35.00 32.00 30.00 29.55 27.50 13.95
Nov. 31.00 36.00 36.00 33.00 30.00 28.55 27.65 13.95
Dec. 32.50 37.00 35.00 32.00 30.00 28.00 27.80 14.80
Month 1987 1988 1989 1990 1991 1992 1993
Jan. $17.30 $16.55 $16.95 $21.38 $23.48 $17.61 $17.77
Feb. 17.35 16.40 16.75 21.04 19.39 17.75 18.75
March 17.45 15.50 18.30 19.57 18.68 17.80 18.96
April 17.50 16.80 19.65 17.65 19.56 19.36 18.87
May 18.25 16.95 19.15 17.42 20.12 20.15 18.49
June 18.70 16.20 19.05 15.80 18.85 21.50 17.56
July 19.80 15.10 19.30 17.22 20.18 20.87 16.19
Aug. 19.80 14.75 17.65 26.25 20.43 20.27 17.10
Sept. 19.00 14.25 18.50 29.75 20.75 20.57 15.83
Oct. 18.85 13.47 19.22 34.77 21.98 20.35 16.56
Nov. 18.50 13.05 19.03 30.95 21.18 19.00 15.07
Dec. 17.40 14.80 19.87 25.80 18.28 18.08 12.86
WEST TEXAS SOUR United States
Gravity: 34.2 Sulfur: 1.3 Pipeline Terminal: Midland

Other Names: WTS
Production
Due to ongoing declines, only about 750,000-800,000 barrels a day of West Texas Sour
production is available at the main Midland, Texas, terminal from West Texas and New
Mexico. Volumes are expected to continue to drop from these mature fields.
Quality
A medium to light, sour crude oil similar in quality to Arabian Light or Mexican Isthmus.
Producers
firms of all sizes with no one dominant supplier.

The primary outlets are inland US refineries in the Midwest and Midcontinent regions.
These supplies usually move through Cushing, Oklahoma, but most spot trading of WTS
occurs in Midland, Texas. Some volumes still move to the Gulf Coast, but these have
been backed out by imports as domestic output has declined. Midland is a key pricing
point because it is the pipeline junction at which much of the production must either
move to Cushing and the inland refiners or to the Gulf Coast. WTS is traded on a spot
basis as ratable daily volumes for delivery over the coming month. Term-contract sales
occur at prices set by refiners, known as wellhead postings. These values exclude the
cost of moving the crude oil from the field to Midland.
Buyers And Sellers

Many refiners in the Midcontinent and Great Lakes regions of the US are regular buyers,
and myriad producers provide supplies, making it difficult to single out a few of them.
Pipeline Terminal
Midland, Texas. The junction point for pipelines that bring in crude oil from West Texas
and New Mexico for transport onward by pipeline to either Cushing, Oklahoma, or the
Gulf Coast.
WEST TEXAS SOUR ASSAY

Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG 1.4 LPG
Light Naphtha 55-175 7 Light Naphtha
Paraffins % Wt. 42
Naphthenes % Wt. 43
Aromatics % Wt. 15
Paraffins % Wt. 40
Naphthenes % Wt. 43
Aromatics % Wt. 17
Cetane Index 46
BACHAQUERO Venezuela
Gravity: 13.0 Sulfur: 2.68 Loading Port: Punta Cardon
Production
Volumes come from the Lake Maracaibo region in western Venezuela, the countrys main
producing area, with the Bachaquero field itself supplying about 250,000 barrels a day
in 1994. It comprises a large share of the countrys 725,000 b/d of heavy crude oil
exports.
Quality
An extra-heavy, high-sulfur crude oil with high metals content. The assay below is dated,
but it conforms fairly closely to the typical characteristics of the grade as specified by
state PDV.
Producer
Maraven, a 100% government-owned and vertically-integrated affiliate of PDV.

Most of the grade is sold to sophisticated refineries in the US, asphalt plants, or used in
PDVs extensive downstream refining system, which includes 1.17-million b/d of domes-
tic refining capacity and over 1.8-million b/d abroad. While PDV still posts prices, sales
are usually under term contracts that allow significant variation in both volume and pric-
ing for individual customers.
Sellers
All three PDV operating affiliates Corpoven, Lagoven, and Maraven are involved
in selling a wide range of export crude oil grades, including their own production and
that of other affiliates.
Corpoven: P.O. Box 61373, Caracas 1060-A, Venezuela. Tel.: (58-2) 708-1411, Fax:
(58-2) 708-1646.
Lagoven: P.O. Box 889, Caracas 1010-A, Venezuela. Tel.: (58-2) 661-1011, Fax: (58-
2) 606-3637.
Maraven: P.O. Box 829, Caracas 1010-A, Venezuela. Tel.: (58-2) 908-2111, Fax: (58-
2) 908-2747.
Loading Port
Punta Cardon. 10.37 N. 70.13 W. The Punta Cardon terminal is the main export point
for Maraven grades, and it is located on the Paraguana Peninsula in western Venezuela.
It has four or more berths capable of loading vessels with a maximum draft of 45 feet
and maximum tonnage of 130,000 deadweight tons.
BACHAQUERO ASSAY
Crude Oil Crude Oil
Viscosity Centistokes 1,139 Reid Vapor Press. Lbs/Sq. In. 0.4
Cut Points Yield
LPG 0.2 0.1
Naphthenes % Wt. 63
Aromatics % Wt. 8
Cetane Index 33.2
Cetane Index 37.2
TYPICAL SPECIFICATIONS FROM PDV, 1992
Viscosity Centistokes 48.6 Pour Point Temp. C -18
(Kinematic) at 100 C Vanadium Parts/mill. 442
BCF-17 Venezuela
Gravity: 16.2 Sulfur: 2.47 Loading Port: La Salina
Production
Volumes come from the Lake Maracaibo region in western Venezuela, the countrys main
producing area. BCF-17 is one of the main grades in the nations 725,000 barrels a day
of heavy crude oil exports.
Quality
An extra-heavy, high-sulfur crude oil with high metals content.
Producer
Lagoven, a 100% government-owned and vertically-integrated affiliate of state PDV.

Most of the grade is sold to sophisticated refineries in the US or used in PDVs extensive
downstream refining system, which includes 1.17-million b/d of domestic refining capac-
ity and over 1.8-million b/d abroad. While PDV still posts prices, sales are usually under
term contracts that allow significant variation in both volume and pricing for individual
customers.
Sellers
(58-2) 708-1646.
2) 606-3637.
2) 908-2747.
Loading Port
La Salina. 10.22 N. 71.27 W. The La Salina terminal is located in Lake Maracaibo in west-
ern Venezuela. It has four crude oil-loading berths, all with a maximum draft of 41 feet
BCF-17 ASSAY
Crude Oil Crude Oil
Viscosity Centistokes 509 Pour Point Temp. C 0
Typical Specifications From PDV, 1992

BOSCAN Venezuela
Gravity: 10.1 Sulfur: 5.40 Loading Port: Bajo Grande
Production
The Boscan field is located onshore on the west side of Lake Maracaibo in western
Venezuela. It produced about 60,000 barrels a day in 1994.
Quality
An extremely heavy crude oil that is used primarily to manufacture asphalt. The assay
below is quite old, but it conforms with state PDVs more recent specifications.
Producer
Maraven, a 100% government-owned and vertically-integrated affiliate of PDV.

Most of the grade is sold to special asphalt refineries in the US or used in PDVs exten-
sive downstream refining system, which absorbs about 100,000 b/d of asphalt crude oil
exports, mainly through its Citgo and Nynas affiliates in the US and Europe. PDVs down-
stream system includes 1.17-million b/d of domestic refining capacity and over 1.8-mil-
lion b/d abroad, which take about 900,000 b/d of Venezuelan crude oil. The country
exported 925,000 b/d to third-party customers in 1995. While PDV still posts prices, sales
are usually under term contracts that allow significant variation in both volume and pric-
ing terms for individual customers.
Sellers
(58-2) 708-1646.
2) 606-3637.
2) 908-2747.
Loading Port
Bajo Grande. 10.29 N. 71.38 W. The Bajo Grande terminal, situated about eight miles
south of Maracaibo on the northwestern shore of Lake Maracaibo, is equipped with two
loading jetties. Two crude oil-loading berths are available at the loading pier. Maximum
size and draft for Berths 1 and 2 are 55,000 deadweight tons and 39 feet, and 36,000 dwt
and 32 ft, respectively.
BOSCAN ASSAY
Crude Oil Crude Oil
Cut Points Yield
Naphthenes % Wt. 60
Aromatics % Wt. 11
Cetane Index 35.3
Cetane Index 39.8
Pour Point Temp. C/F >39/
>102.2
Viscosity (Kin) Cen at 210 F 2,150
Vanadium Parts/mill. 1,330
Viscosity Centistokes 11,233 Pour Point Temp. C 7
(Kinematic) at 100 C Vanadium Parts/mill. 1,122
FURRIAL Venezuela
Gravity: 30 Sulfur: 1.10 Loading Port: Puerto La Cruz

Other Names: Amana, Mesa
Production
Some 275,000-300,000 barrels a day are produced from the Furrial field itself in eastern
Venezuela, which is blended with similar-quality oils from the region. The crude oil has
contributed significantly to the countrys rising output, with total capacity for light crude
oils and condensates of this type standing at 1.3-million b/d in 1995 and expected to
expand further.
Quality
A light crude oil by Venezuelan standards that is relatively low in sulfur, making it sim-
ilar in quality to US Alaskan North Slope or Mexican Isthmus.
Producer
Lagoven, a 100% government-owned and vertically-integrated affiliate of state PDV, pro-
duces Furrial. Corpoven, a 100% government-owned and vertically-integrated affiliate of
PDV, produces Mesa, which is virtually identical to Furrial.

The grade is popular with a wide range of customers, mainly in the US market, and has
been a key source of growing crude oil exports, which have come mainly from light and
medium gravity crude oils in 1994-96. Exports of these grades rose to almost 1.1-million
b/d in 1995, a rise of 172,000 b/d from 1994. Venezuela crude oil exports are expected
to average 2.1-million b/d in 1996. While PDV still posts prices, sales are usually under
term contracts that allow significant variation in both volume and pricing terms for indi-
vidual customers.
Sellers
(58-2) 708-1646.
2) 606-3637.
2) 908-2747.
Loading Port
Puerto La Cruz. 10.14 N. 64.37 W. The Puerto La Cruz terminal is located east of Caracas
on the Caribbean coast of Venezuela. It is operated by PDV affiliate Corpoven, and has
six tanker-loading berths. The two largest can take a maximum draft of 55 feet and max-
imum tonnage of 130,000 deadweight tons.
FURRIAL ASSAY
Crude Oil Crude Oil
Typical Specifications From PDV, 1992

TIA JUANA HEAVY Venezuela
Gravity: 12.3 Sulfur: 2.82 Loading Port: Punta Cardon

Other Names: Tia Juana Pesado
Production
Although the Tia Juana Heavy field produces about 80,000 barrels a day from the Lake
Maracaibo region in the western part of the country, about half of that volume is mixed
into lighter streams, and only 40,000 b/d is sold as is.
Quality
Although the crude oil is extremely heavy and high in metals, it contains less sulfur than
most grades of this type, and it is known for its ability to yield lubricants and other spe-
cialty products such as asphalt.
Producer
Maraven, a 100% government-owned and vertically-integrated affiliate of state PDV.

Most Venezuelan crude oil is sold on a term-contract basis by PDV subsidiaries Lagoven,
Maraven, and Corpoven. Of the 40,000 b/d that is not blended with other grades, half of
that goes into PDVs Curacao refinery. Along with Pilon, TJ Heavy is particularly popu-
lar in the spring and summer, during the height of asphalt-paving season. While PDV still
posts prices, sales are usually under term contracts that allow significant variation in both
volume and pricing terms for individual buyers.
Sellers
in selling a wide range of export crude grades, including their own production and that
of other affiliates.
(58-2) 708-1646.
2) 606-3637.
2) 908-2747.
Loading Port
Punta Cardon. 10.37 N. 70.13 W. The Punta Cardon terminal is the main export point
for Maraven grades, and is located on the Paraguana Peninsula in western Venezuela. It
has four or more berths capable of loading vessels with maximum draft of 45 feet and
maximum tonnage of 130,000 deadweight tons.
TIA JUANA HEAVY ASSAY

Crude Oil Crude Oil
Cut Points Yield
Naphthenes % Wt. 57
Aromatics % Wt. 7
Cetane Index 34.2
Cetane Index 37.5
TIA JUANA LIGHT Venezuela
Gravity: 32 Sulfur: 1.2 Loading Port: La Salina

Other Names: Tia Juana Livano
Production
The Tia Juana Light field was producing about 240,000 barrels a day from the Lake
Maracaibo region in the western part of the country in 1994. It is representative of the
lighter grades that have increased production significantly in the mid-1990s.
Quality
Although the crude oil is light by Venezuelan standards, it is still fairly sour and corre-
sponds to grades such as Mexican Isthmus or Saudi Arabian Light. It is relatively low in
metals and attractive to a wide range of refiners.
Producer
Lagoven, a 100% government-owned and vertically integrated affiliate of state PDV.

Most Venezuelan crude oil is sold on a term-contract basis by PDV subsidiaries Lagoven,
Maraven, and Corpoven. While PDV still posts prices, sales are usually under term con-
tracts that allow significant variation in both volume and pricing for individual buyers.
Tia Juana Light is an important contributor to the countrys 1.1-million b/d of exports
of light- and medium-grade crude oils, which have accounted for most of the recent
expansion in international sales. Both rising output and increased refinery sophistication
have allowed more of these higher value crude oils to be exported. Total Venezuelan
crude oil exports are expected to reach 2.1-million b/d in 1996.
Sellers
(58-2) 708-1646.
2) 606-3637.
2) 908-2747.
Loading Port
La Salina. 10.22 N. 71.27 W. The La Salina terminal is located in Lake Maracaibo in west-
ern Venezuela. It has four crude oil-loading berths, all with a maximum draft of 41 feet
TIA JUANA LIGHT ASSAY

Typical Specifications from PDV, 1992

BACH HO Vietnam
Gravity: 33.8 Sulfur: 0.08 Loading Port: Bach Ho

Other Names: White Tiger
Production
Output rose to about 140,000 barrels a day in 1995 as the satellite Rong field came on
stream, and volumes were expected to climb further in 1996. Bach Ho was originally dis-
covered by Mobil in the 1960s, and production began in 1986, but at a low level due to
technical difficulties.
Quality
Typical low-sulfur, waxy Asian crude oil, similar to Indonesian Minas grade.
Producers
Vietsovpetro, a joint venture between state Petrovietnam and a Russian group with a
shareholding of 15.9%.

Virtually all production is sold for export due to limited refining capacity in Vietnam.
Most oil is sold on a term-contract basis, mainly to Japan at prices linked to spot quotes
for Minas plus a premium. In mid-1996, the formula was Minas plus 63¢ a barrel. Spot
sales usually go to Singapore refiners such as Mobil. In 1995, Japan imported about
100,000 b/d.
Sellers
Sales are handled by producer Petrovietnam.
Petrovietnam: 7 Mac Dinh Chi Street, 1st District, Ho Chi Minh City, Vietnam. Telex
811488.
Loading Port
Bach Ho. Located at the production platform in the South China Sea off the Mekong
River delta. A new loading facility was installed in 1991, but still subject to delays dur-
ing mid-year typhoon season.
BACH HO ASSAY
Crude Oil Crude Oil
Cut Points Yield
LPG 0.8 0.5 LPG
Naphthenes % Wt. 46
Aromatics % Wt. 7
Freezing Point C -46
Cetane Index 58.3
Cetane Index 66.8
Pour Point Temp. C/F >45/>113
MARIB Yemen
Gravity: 48 Sulfur: 0.10 Loading Port: Ras Isa

Other Names: Alif
Production
Output has declined from peak levels of over 200,000 barrels a day, but flows recovered
to about 170,000 b/d in 1996 with the inclusion of about 15,000 b/d of new output from
the Janna block. This new stream and the addition of condensates stripped from associ-
ated gas have altered the quality of the stream but have managed to maintain total flows.
The main source of crude oil is still the Alif field and others east of Sanaa in former North
Yemen.
Quality
A high-quality, light, sweet crude oil with an excellent gasoline yield, making it similar
to top-quality North African crude oils. The crude oil is significantly lighter than indicat-
ed by the assay below due to the addition of condensates to the export stream, but this
has also forced it to compete with the growing influx of condensates in Asia-Pacific mar-
kets.
Producers
The Alif fields are operated jointly by US independent Hunt and Exxon, and they are
held by state Yominco (47%), Hunt (21%), Exxon (19%), and a South Korean group led
by refiner Yukong (13%).

Most of the grade has been sold under term contracts to both Asia and the Atlantic Basin
at prices tied to UK Brent. However, in late 1996, the governments tough Brent-linked
pricing system resulted in the loss of most of its term sales contracts, forcing it to resort
to spot sales. Traditional customers include Japanese and Chinese refiners. About 50,000
b/d are used for domestic needs. Exxon markets the Hunt/Exxon volumes, and the South
Korean group imports its share.
Sellers
Sales are handled both by the equity producers and state Yominco.
Yominco: Zubairy St., Sanaa, Yemen. Tel.: (967-2) 71-432.
Exxon Trading Co. International: 200 Park Ave., Florham Park, NJ 07932-1002,
USA. Tel.: (201) 765-4922, Fax: (201) 765-4983.
Loading Port
Ras Isa. 15.07 N. 42.36 E. Located off the port of Salif on the Red Sea, the offshore load-
ing terminal consists of a dedicated 400,000-deadweight ton storage vessel and loading
facilities for ships up to 200,000 dwt.
MARIB ASSAY
Crude Oil Crude Oil
(Kinematic) at 40 C
Cut Points Yield
LPG 2.5 LPG
Naphthenes % Wt. 34
Aromatics % Wt. 13
Naphthenes % Wt. 36
Aromatics % Wt. 18
Cetane Index 50
MARIB TERM-CONTRACT PRICES, 1988-93
Month 1988 1989 1990 1991 1992 1993
Jan. $16.62 $16.64 $20.87 $23.93 $18.53 $17.79
Feb. 15.90 16.44 19.87 19.74 18.42 18.90
March 14.57 18.16 18.47 19.18 17.94 19.14
April 16.42 19.67 16.52 19.20 19.33 19.04
May 16.30 18.57 16.46 19.17 20.27 18.86
June 15.33 18.15 15.23 18.19 21.49 17.98
July 14.73 17.57 17.35 19.45 20.61 17.08
Aug. 14.80 17.13 27.49 19.84 20.10 17.01
Sept. 13.18 18.28 37.60 20.60 20.60 16.31
Oct. 12.13 18.95 36.55 22.36 20.65 16.84
Nov. 12.55 18.70 33.66 21.08 19.58 15.39
Dec. 14.58 19.85 28.70 18.42 18.55 13.84
MASILA Yemen
Gravity: 30.5 Sulfur: 0.62 Loading Port: Ash Shihr
Production
About 175,000 barrels a day was produced in 1996 from a cluster of onshore fields that
lie in former South Yemen, southeast of the Marib producing area, which is in former
North Yemen. Masila began producing in the summer of 1993. The grade is transported
by a 200,000 b/d pipeline to the coast for export.
Quality
A medium-gravity, medium-sulfur crude oil, similar in quality to Oman.
Producers
The fields are operated by Canadian Occidental, which holds 52%, along with US Shells
Pecten unit (20%), Occidental (18%), and Consolidated Contractors (10%).

Most of the grade has traditionally been sold under term contracts, mainly to Asia, at
prices tied to dated Brent. The governments 100,000 b/d share of output is marketed by
state Yominco. As with Marib, Yominco has encountered growing difficulty in marketing
the grade to Asia at prices linked to Brent, and was forced to rely much more heavily on
spot sales in late 1996. Remaining term customers included refiner Japan Energy and
traders Phibro and Glencore after Exxon and Unocal dropped out. Canadian Oxy, the
main equity producer, is also a source of spot barrels. The grade is also sometimes
refined domestically at the Aden refinery. In 1995, Japan imported 30,000 b/d of Masila.
Sellers
Yominco: Zubairy St., Sanaa, Yemen. Tel.: (967-2) 71-432.
Canadian Occidental: Canadian Oxy Crude Sales, 1980 Post Oak Blvd., Houston, TX
77056, USA. Tel.: (713) 840-2870, Fax: (713) 840-2834.
Loading Port
Ash Shihr. 14.45 N. 49.34 E. The Masila crude oil export terminal is located on the Gulf
of Aden along the Indian Ocean coast of southern Yemen.
MASILA ASSAY
Crude Oil Crude Oil
Barrels /Metric Ton 7.2172 Pour Point Temp. C/F -0.11
Cut Points Yield
LPG 0.19 0.12 LPG
Aromatics % Wt. 1.4
Naphthenes % Wt. 42
Aromatics % Wt. 4.2
Aromatics % Wt. 9.6
Freezing Point Temp. C/F 0.90
Gas Oil 500-700 21.48 21.15 Gas Oil
Cloud Point Temp. C/F -0.07
Cetane Index 55.2
Year Of Crude Oil Sample: 1993 Pour Point Temp. C/F 60/140
ZAIRE Zaire
Gravity: 31.2 Sulfur: 0.11 Loading Port: Moanda
Production
The crude oil comprises all of the countrys 30,000 barrels a day of production from both
onshore and offshore fields. Output has edged higher in the mid-1990s and is expected
to increase marginally. The producing area lies between Angola and the Angola-Cabinda
enclave.
Quality
A somewhat heavy, but low-sulfur, waxy West African crude oil.
Producers
The offshore fields are owned and operated by Chevron and the onshore fields are
owned and operated by Petrofina. Output is divided roughly evenly between onshore
and offshore fields.

The grade is marketed by the equity producers or kept within their own internal refin-
ing systems. It is usually priced at a differential to dated Brent less a discount of about
$2 a barrel.
Sellers
Chevron International: c/o Mail Centre, 2 Portman St., London W1H 0AN, UK. Tel.:
(44-171) 487-8100, Fax: (44-171) 487-8142.
Petrofina: 52 Rue de lIndustrie, B-1040 Brussels, Belgium. Tel.: (32-2) 288-9111. Fax:
(32-2) 288-3250.
Loading Port
Moanda. 5.58 S. 12.08 E. The Moanda terminal is a single buoy mooring system that can
accommodate tankers up to 100,000 deadweight tons. The terminal also has a dedicated
storage tanker. It lies 16 miles offshore, to the west of the main offshore producing area.
ZAIRE ASSAY
Crude Oil Crude Oil
Viscosity Centistokes 19.4 Total Acid mg KOH/g 0.21
(Kinematic) at 40 C
Cut Points Yield
LPG 1 LPG
Naphthenes % Wt. 42
Aromatics % Wt. 6
Naphthenes % Wt. 32
Aromatics % Wt. 17
Cetane Index 54
Prices
Table of Contents
Prices Spot And Term Contract Prices For Key Grades . . . . . . . . . . . . . . . .I1
Key Crude Oil Benchmarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .I3
Spot Assessments For Various Crude Oil Grades . . . . . . . . . . . . . . . . . . . . . .I5
PIW Scorecard Costs To Refiners Of Key Formula Priced Crude Oils
In Primary World Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .I11
PIW Scorecard Term Contract Prices At Port Of Loading . . . . . . . . . . . . .I17
CRUDE OIL HANDBOOK PIW © I1
PRICES
Spot And Term Contract Prices For Key Grades

The following tables provide a complete picture of crude oil price trends since
1993, covering both spot prices and term contract prices for all the main grades.
These prices come directly from Petroleum Intelligence Weekly and Oil Market
Intelligence. The first set of tables covers spot crude prices, with the first section
covering the Opec Basket price and nine other major international benchmark
grades. These are followed by spot prices for 46 other grades broken down regionally.
All of these spot prices are based on PIW and OMI assessments, which are drawn from
various crude oil price reporting services and assessments by PIW reporters. The Opec
Basket price is published by Opec and is based on its spot prices or assessments for the
following crudes: Algerian Saharan Blend, Indonesian Minas, Nigerian Bonny Light,
Saudi Arabia Light, Dubai crude, Venezuelan Tia Juana Light, and Mexican Isthmus.
Further spot price history prior to 1993 is provided in many of the individual crude pro-
files (see Chapter H).
The coverage of term contract prices is drawn directly from PIWs regular
quarterly price scorecards, which calculate the final prices and costs of the
crudes based on prevailing formula price terms as well as the prices based on
postings and retroactive pricing mechanisms. The term contract prices are bro-
ken into two sections. The first section looks at the formula prices from the perspec-
tive of the buyers, calculating the average cost or price of the crude on a delivered basis
to refiners for the month of arrival in each of the main refining centers: Rotterdam, the
US Gulf Coast, and Singapore. The second set of tables looks at the price formulas from
the perspective of the exporting country and provides prices on an f.o.b. basis for the
month of loading. These tables combine the results of the formula price calculations with
the retroactive pricing, postings, and other pricing mechanisms to provide a compre-
hensive view of term contract prices. Further term contract price history prior to 1993 is
provided in many of the individual crude profiles (see Chapter H).
KEY CRUDE OIL BENCHMARKS (In $/barrel)
SPOT BENCHMARKS
Opec UK US Nigeria Dubai US Russia Indonesia Malaysia
Basket Brent WTI Bonny Fateh ANS Urals Oman Minas Tapis
1996 (Cushing) Light (Gulf Coast) (NWE)
Sept. 19.78 22.55 23.90 22.90 20.30 ... 22.05 20.80 20.40 22.70
Aug. 18.55 20.55 21.90 20.90 18.55 ... 20.00 19.10 19.35 21.10
July 18.50 19.60 21.25 20.05 17.75 ... 18.95 18.45 20.00 20.80
June 18.50 18.40 20.45 18.80 17.20 ... 17.90 17.60 19.60 20.50
May 18.94 19.10 21.05 19.40 16.85 20.95 18.80 17.65 19.05 20.10
April 20.35 20.90 23.25 21.40 17.60 22.30 20.75 18.35 19.30 20.60
March 19.46 20.30 21.75 21.00 17.20 20.80 20.55 17.75 19.50 21.20
Feb. 17.68 17.90 18.80 18.50 15.95 17.95 18.10 16.60 19.45 20.40
Jan. 18.41 17.90 18.75 18.50 16.55 17.70 17.90 17.15 20.25 20.60
1995
Dec. 17.75 17.95 19.05 18.45 17.00 17.60 18.05 17.30 18.70 19.55
Nov. 17.75 16.85 18.00 17.20 15.65 16.55 16.65 15.85 17.25 18.10
Oct. 15.75 16.05 17.35 16.45 14.80 15.90 15.95 15.05 16.70 17.20
Sept. 16.25 16.65 18.20 17.10 15.55 16.80 16.60 15.75 16.70 17.50
Aug. 15.97 16.00 17.80 16.25 15.40 16.85 15.70 15.50 16.45 17.50
July 15.65 15.85 17.25 15.95 15.05 16.25 15.20 15.30 16.10 17.25
June 17.07 17.40 18.40 17.60 16.25 17.40 17.05 16.45 17.30 18.35
May 18.32 18.35 19.75 18.75 17.30 18.70 17.95 17.50 18.45 19.35
April 18.39 18.65 19.95 18.95 17.45 18.80 18.55 17.75 18.55 19.05
March 17.13 17.00 18.55 17.30 16.30 17.40 17.10 16.75 18.90 18.50
Feb. 17.26 17.10 18.55 17.50 16.55 17.45 17.10 17.00 18.85 18.80
Jan. 15.78 16.55 17.95 16.85 15.95 16.80 16.60 16.55 17.25 18.40
1994
Dec. 15.81 15.90 17.15 16.05 15.45 16.00 15.75 16.10 16.20 17.05
Nov. 16.72 17.20 18.10 17.55 15.95 16.80 17.15 16.45 16.30 17.35
Oct. 16.12 16.40 17.65 16.85 15.35 15.85 16.05 15.80 16.55 17.55
Sept. 15.70 15.90 17.45 16.10 15.25 16.05 15.25 15.65 16.80 17.45
Aug. 16.87 16.80 18.35 17.00 15.85 16.90 16.05 16.40 19.70 18.55
July 17.37 17.60 19.65 17.90 16.40 17.55 16.60 16.80 18.90 18.60
June 16.50 16.75 19.05 17.15 15.70 17.00 16.10 15.90 16.45 17.65
May 15.72 16.20 17.85 16.75 14.80 16.90 15.50 15.10 15.50 16.80
April 14.57 15.15 16.30 15.60 13.80 15.50 14.65 13.90 14.10 16.10
March 13.27 13.95 14.65 14.45 12.25 13.70 13.55 12.80 14.10 15.95
Feb. 13.70 13.80 14.75 14.40 12.80 13.65 13.20 13.10 15.25 16.50
Jan. 13.67 14.25 15.00 14.90 13.15 13.30 13.70 13.55 14.50 16.05
1993
Dec. 12.88 13.60 14.55 14.05 12.15 12.25 12.70 12.70 14.00 15.55
Nov. 14.47 15.15 16.75 15.75 13.70 14.35 14.00 14.40 15.25 17.00
Oct. 15.75 16.60 18.15 17.05 14.80 16.05 15.25 15.40 16.25 18.25
Sept. 15.24 16.00 17.50 16.50 14.20 15.60 14.45 14.85 16.40 18.40
Aug. 15.89 16.70 18.00 17.20 14.75 16.20 15.10 15.60 17.40 19.00
July 15.96 16.80 17.90 17.50 14.25 15.85 15.20 15.35 17.80 18.80
June 17.11 17.65 19.15 18.10 15.60 17.00 15.85 16.45 19.40 19.20
May 17.89 18.50 20.00 19.05 16.00 18.05 16.70 17.00 20.65 20.30
April 18.12 18.65 20.30 19.25 16.35 18.40 16.90 17.25 20.40 20.80
March 18.15 18.75 20.35 19.40 16.30 18.35 17.15 17.20 20.00 20.80
Feb. 17.66 18.45 20.05 19.10 16.00 17.90 17.05 16.80 18.65 19.65
Jan. 16.71 17.35 19.05 17.80 15.20 16.55 15.75 15.95 18.45 19.00
SPOT ASSESSMENTS FOR VARIOUS CRUDE OIL GRADES (In $/barrel)
MIDEAST
Saudi Arabia Iran Kuwait Yemen Abu Dhabi

1996 Light Light Heavy Kuwait Masila Marib Murban U. Shaif
Sept. 20.95 21.05 19.95 19.85 22.11 22.63 21.90 21.80
Aug. 19.05 19.20 18.20 18.25 20.11 22.63 20.05 20.00
July 18.25 18.60 17.50 17.95 19.46 19.98 19.45 19.30
June 17.40 17.75 17.15 16.25 19.30 19.85 18.60 19.00
May 18.30 18.25 17.05 17.00 19.50 20.10 18.40 18.05
April 20.20 19.15 17.55 17.60 18.05 21.32 19.20 18.70
March 19.25 18.95 17.50 17.00 18.20 19.79 18.75 18.30
Feb. 17.00 16.95 15.95 15.90 18.20 17.82 17.70 17.10
Jan. 17.15 17.25 16.75 16.55 18.05 17.97 18.30 17.65
1995
Dec. 17.10 17.10 17.00 16.80 17.61 18.01 18.35 16.75
Nov. 15.85 15.85 15.75 15.45 17.61 17.88 17.05 16.40
Oct. 15.10 15.05 14.95 14.60 16.42 16.85 16.00 15.35
Sept. 15.70 15.85 15.85 15.45 15.70 16.06 16.65 16.10
Aug. 15.30 15.10 15.40 15.30 16.29 16.79 16.20 15.80
July 15.15 14.85 15.30 15.00 15.66 16.16 15.85 15.45
June 16.50 16.35 16.50 15.80 15.46 15.96 17.10 16.80
May 17.60 17.45 17.70 17.35 17.82 18.72 18.30 18.05
April 17.80 17.85 17.65 17.35 17.86 18.76 18.40 18.05
March 16.55 16.80 16.35 16.20 16.26 17.03 17.45 17.25
Feb. 16.90 16.75 16.60 16.20 ... ... 18.00 17.50
Jan. 16.25 16.40 15.95 15.70 ... ... 17.50 16.90
1994
Dec. 15.50 15.65 15.40 15.15 ... ... 17.05 16.45
Nov. 16.30 16.40 15.90 15.55 ... ... 17.60 16.95
Oct. 15.70 15.70 15.70 14.90 ... ... 17.00 16.25
Sept. 15.20 15.25 15.55 14.65 ... ... 16.70 15.95
Aug. 16.05 16.20 16.05 15.65 ... ... 17.20 16.70
July 16.60 16.50 16.50 16.05 ... ... 17.65 17.15
June 15.85 15.90 15.65 15.05 ... ... 17.00 16.60
May 15.05 15.45 15.10 14.10 ... ... 16.35 16.65
April 14.00 14.60 14.35 13.05 ... ... 15.20 15.80
March 12.60 13.35 12.95 11.70 ... ... 14.15 14.60
Feb. 12.85 13.20 12.55 11.75 ... ... 14.80 15.10
Jan. 13.15 13.70 13.00 11.90 ... ... 15.05 15.20
1993
Dec. 12.10 12.75 11.95 11.25 ... ... 14.25 14.60
Nov. 13.75 14.00 13.05 12.75 ... ... 15.85 16.20
Oct. 14.95 15.30 14.40 13.85 ... ... 16.70 17.20
Sept. 14.15 14.50 13.70 13.15 ... ... 16.05 15.95
Aug. 14.70 15.10 14.00 13.65 ... ... 16.70 17.20
July 14.75 14.90 14.00 13.50 ... ... 16.50 16.35
June 15.80 15.60 14.70 14.70 ... ... 17.55 17.50
May 16.60 16.50 15.70 15.15 ... ... 17.80 17.80
April 16.90 16.65 15.85 15.70 ... ... 18.25 18.20
March 16.95 16.85 15.85 15.70 ... ... 18.45 18.25
Feb. 16.05 16.65 15.60 15.35 ... ... 18.05 17.75
Jan. 15.80 15.60 14.70 14.40 ... ... 17.20 16.90
I6 PIW © CRUDE OIL HANDBOOK
MIDEAST AFRICA
Nigeria
Qatar Syria Bonny Angola Cameroon
1996 Marine Dukhan Light Souedieh Medium Forcados Cabinda Kole
Sept. 21.05 21.05 22.47 20.02 22.65 22.90 21.70 22.20
Aug. 19.25 19.35 20.47 17.67 20.55 20.75 20.00 20.15
July 18.65 18.75 19.56 17.31 19.75 19.90 19.10 19.35
June 17.80 17.85 19.95 17.10 18.50 18.50 17.85 18.05
May 17.70 17.80 19.90 17.00 19.40 19.45 18.55 18.90
April 18.45 18.55 21.22 18.30 21.00 21.40 20.40 20.65
March 18.00 18.10 20.09 17.33 20.80 20.95 19.75 19.95
Feb. 16.90 17.00 18.18 15.42 18.10 18.55 17.45 17.35
Jan. 17.45 17.55 17.57 14.81 18.30 18.55 17.40 17.50
1995
Dec. 17.50 17.60 18.02 15.32 18.25 18.50 17.40 17.45
Nov. 16.15 16.25 18.02 15.32 17.00 17.15 16.15 16.25
Oct. 15.15 15.35 16.64 14.06 16.25 16.35 15.35 15.50
Sept. 15.95 16.10 15.65 13.01 16.60 17.05 16.05 16.50
Aug. 15.50 15.65 16.14 13.80 16.05 16.20 15.25 15.45
July 15.25 15.65 15.39 14.54 15.85 16.00 14.85 15.35
June 16.40 16.60 15.44 14.29 17.25 17.55 16.55 16.85
May 17.75 17.85 17.97 16.94 18.50 18.70 17.85 18.00
April 17.90 18.05 18.19 16.77 18.65 18.80 18.20 18.05
March 17.20 17.40 16.46 15.10 17.00 17.10 16.60 16.55
Feb. 17.40 17.55 ... ... 17.20 17.40 16.65 16.55
Jan. 16.90 17.10 ... ... 16.50 16.80 15.85 16.00
1994
Dec. 16.50 16.70 ... ... 15.85 15.95 14.90 15.35
Nov. 16.95 17.10 ... ... 17.35 17.50 16.40 16.75
Oct. 16.30 16.55 ... ... 16.75 16.90 15.50 16.00
Sept. 16.10 16.35 ... ... 16.00 16.20 15.05 15.35
Aug. 16.65 16.85 ... ... 16.90 17.15 15.90 16.30
July 17.15 17.30 ... ... 17.75 18.05 16.65 17.05
June 16.50 16.70 ... ... 17.10 17.25 15.90 16.20
May 15.75 15.95 ... ... 16.50 16.70 15.45 15.65
April 14.60 14.80 ... ... 15.35 15.35 14.55 14.55
March 13.35 13.60 ... ... 14.25 14.45 13.30 13.35
Feb. 13.90 14.15 ... ... 14.25 14.40 13.00 13.30
Jan. 14.15 14.45 ... ... 14.65 14.85 13.15 13.50
1993
Dec. 13.30 13.55 ... ... 13.90 14.10 12.05 12.75
Nov. 14.70 15.00 ... ... 15.50 15.80 13.65 14.30
Oct. 15.65 16.00 ... ... 16.80 17.15 15.35 15.75
Sept. 15.05 15.30 ... ... 16.25 16.55 14.75 15.20
Aug. 15.90 16.10 ... ... 16.85 17.20 15.40 15.80
July 15.60 15.80 ... ... 17.10 17.30 15.55 15.90
June 16.60 16.70 ... ... 17.85 18.00 16.50 16.70
May 16.80 17.05 ... ... 18.70 19.00 17.60 17.55
April 17.30 17.45 ... ... 18.85 19.05 17.65 17.90
March 17.35 17.55 ... ... 18.95 19.15 17.45 18.10
Feb. 17.00 17.15 ... ... 18.55 18.70 17.15 17.55
Jan. 16.25 16.45 ... ... 17.35 17.45 15.80 16.70
AFRICA MEDITERRANEAN
Gabon Algeria Libya

1996 Mandji Saharan Condensate Es Sider Brega Zueitina Amna Sarir
Sept. 20.90 23.05 24.96 22.34 22.75 22.80 22.02 22.07
Aug. 18.75 20.90 22.14 20.30 20.70 20.75 21.12 20.07
July 17.95 20.15 21.55 19.50 19.95 19.95 19.34 19.39
June 16.70 18.90 20.50 18.20 18.40 18.50 18.60 18.10
May 18.10 19.75 21.16 19.25 19.55 19.60 19.75 19.20
April 20.05 21.65 22.65 21.05 21.35 21.40 20.60 20.65
March 19.30 21.10 21.02 20.50 20.70 20.65 19.20 18.05
Feb. 16.85 18.60 20.24 18.20 18.30 18.10 19.17 17.97
Jan. 16.75 18.65 19.47 18.10 18.35 18.45 16.93 17.41
1995
Dec. 16.45 18.60 18.91 18.00 18.30 18.25 17.36 16.25
Nov. 15.20 17.30 17.68 16.75 17.10 17.00 17.36 16.25
Oct. 14.45 16.60 17.21 16.05 16.40 16.35 16.20 16.25
Sept. 15.50 17.40 18.52 16.65 17.10 17.25 15.43 15.48
Aug. 14.35 16.25 17.91 15.80 16.05 16.10 16.05 16.10
July 14.30 16.15 17.47 15.75 16.00 16.00 15.43 15.50
June 17.65 19.64 17.40 19.64 17.55 17.60 15.26 15.31
May 17.20 18.80 20.12 18.50 18.65 18.75 17.85 17.90
April 17.95 18.95 19.14 18.70 18.75 18.75 18.55 18.60
March 15.75 17.30 19.12 17.05 17.20 17.20 17.25 17.30
Feb. 15.65 17.25 18.11 17.25 17.35 17.30 ... ...
Jan. 15.30 16.90 17.88 16.65 16.85 16.75 ... ...
1994
Dec. 14.55 16.30 18.35 15.95 16.15 16.10 ... ...
Nov. 16.00 17.65 19.29 17.15 17.40 17.45 ... ...
Oct. 15.05 16.85 18.96 16.25 16.60 16.55 ... ...
Sept. 14.25 16.00 17.99 15.50 15.90 15.90 ... ...
Aug. 15.10 16.80 18.20 16.35 16.75 16.80 ... ...
July 15.75 17.70 18.15 17.15 17.55 17.55 ... ...
June 14.95 16.90 18.00 16.45 16.75 16.75 ... ...
May 14.55 16.55 17.53 16.10 16.30 16.25 ... ...
April 13.50 15.60 16.16 15.10 15.30 15.25 ... ...
March 12.25 14.45 15.92 13.80 14.10 14.15 ... ...
Feb. 12.10 14.50 15.80 13.55 14.00 14.10 ... ...
Jan. 12.40 15.00 15.12 13.90 14.35 14.35 ... ...
1993
Dec. 11.65 14.20 14.81 13.00 13.55 13.65 ... ...
Nov. 13.10 15.80 15.32 14.55 15.20 15.20 ... ...
Oct. 14.50 17.10 18.04 15.95 16.55 16.60 ... ...
Sept. 13.70 16.60 17.58 15.45 16.10 16.15 ... ...
Aug. 14.30 17.35 18.61 16.10 16.75 16.85 ... ...
July 14.65 17.30 18.71 16.20 16.85 16.95 ... ...
June 15.40 17.70 19.36 17.05 17.45 17.75 ... ...
May 16.20 18.85 19.33 17.95 18.60 18.60 ... ...
April 16.15 19.05 20.45 18.15 18.70 18.70 ... ...
March 16.10 19.10 18.97 18.30 18.80 18.85 ... ...
Feb. 15.65 18.90 18.83 17.90 18.55 18.55 ... ...
Jan. 14.60 17.80 18.85 16.90 17.45 17.45 ... ...
MEDITERRANEAN EUROPE
Egypt Russia
Libya Suez Zeit (c.i.f.) UK Norway
1996 Sirtica Blend Bay Urals Forties Flotta Ekofisk Oseberg
Sept. 22.47 20.20 ... 21.65 22.70 22.80 22.65 23.65
Aug. 20.47 18.20 ... 19.70 20.75 21.37 20.75 22.05
July 19.94 17.30 ... 18.55 19.90 18.30 20.00 19.40
June 18.00 18.95 ... 17.25 18.70 18.10 19.10 19.20
May 20.00 17.33 19.30 18.35 19.55 18.88 19.50 19.62
April 21.35 19.18 19.90 20.15 21.50 20.74 21.45 21.50
March 18.75 18.51 18.60 20.15 20.85 19.65 20.95 20.47
Feb. 18.70 16.43 16.90 17.80 18.30 17.48 18.45 18.43
Jan. 18.01 15.77 15.87 18.05 18.25 16.69 18.30 17.55
1995
Dec. 16.85 16.22 16.77 17.90 18.20 17.55 18.20 18.11
Nov. 16.85 15.10 16.77 16.30 17.05 17.55 17.00 18.11
Oct. 16.85 14.30 15.66 15.50 16.25 16.84 16.25 17.73
Sept. 16.08 14.95 14.92 16.25 17.00 16.00 17.00 16.70
Aug. 16.65 13.90 15.37 15.30 16.10 16.55 16.10 16.45
July 15.98 13.95 14.57 14.80 15.95 15.25 16.00 15.95
June 15.81 16.05 14.30 16.80 17.60 15.20 17.55 15.90
May 18.40 17.20 17.90 17.90 18.50 17.70 18.60 18.38
April 19.10 17.70 18.01 18.25 18.80 18.43 18.85 19.01
March 17.90 16.15 16.51 16.75 17.05 17.60 17.10 17.80
Feb. ... 16.10 ... 16.75 17.15 ... 17.15 ...
Jan. ... 15.35 ... 16.70 16.60 ... 16.65 ...
1994
Dec. ... 14.50 ... 15.80 15.95 ... 15.90 ...
Nov. ... 15.70 ... 17.05 17.25 ... 17.35 ...
Oct. ... 14.75 ... 16.00 16.50 ... 16.50 ...
Sept. ... 14.10 ... 15.25 15.75 ... 15.85 ...
Aug. ... 14.95 ... 15.95 16.60 ... 16.75 ...
July ... 15.60 ... 16.50 17.45 ... 17.55 ...
June ... 14.85 ... 16.00 16.65 ... 16.80 ...
May ... 14.25 ... 15.25 16.15 ... 16.35 ...
April ... 13.40 ... 14.55 15.30 ... 15.30 ...
March ... 12.05 ... 13.50 14.05 ... 14.10 ...
Feb. ... 11.60 ... 13.20 13.85 ... 14.00 ...
Jan. ... 11.90 ... 13.70 14.40 ... 14.45 ...
1993
Dec. ... 10.90 ... 12.65 13.55 ... 13.65 ...
Nov. ... 12.40 ... 13.95 15.05 ... 15.20 ...
Oct. ... 13.65 ... 15.20 16.40 ... 16.65 ...
Sept. ... 13.00 ... 14.30 15.85 ... 16.20 ...
Aug. ... 13.55 ... 15.05 16.80 ... 17.05 ...
July ... 13.45 ... 15.10 16.85 ... 17.10 ...
June ... 14.75 ... 16.40 17.55 ... 17.80 ...
May ... 15.10 ... 16.60 18.30 ... 18.55 ...
April ... 15.30 ... 16.85 18.70 ... 18.75 ...
March ... 15.55 ... 17.20 18.85 ... 19.00 ...
Feb. ... 15.10 ... 16.85 18.60 ... 18.80 ...
Jan. ... 14.15 ... 15.60 17.40 ... 17.55 ...
EUROPE ASIA
Norway Indonesia PNG China

1996 Statfjord Ardjuna Attaka Arun Cond. Walio Kutubu Daqing
Sept. 22.60 20.10 21.60 20.50 20.40 21.20 20.45
Aug. 20.70 19.85 20.15 19.50 19.50 20.90 19.50
July 19.95 19.80 20.35 19.35 18.90 19.84 19.95
June 19.12 19.55 20.10 19.00 18.80 19.60 19.55
May 19.55 19.55 20.05 18.90 18.67 19.48 19.00
April 21.45 19.60 20.25 19.20 18.67 19.48 19.25
March 21.15 19.50 20.45 19.35 18.99 19.93 19.45
Feb. 18.70 19.10 19.85 18.80 18.67 19.54 19.45
Jan. 18.35 19.55 20.20 19.20 19.15 19.67 20.10
1995
Dec. 18.35 18.45 19.00 18.20 18.14 18.65 18.60
Nov. 17.10 17.05 17.40 16.90 18.14 18.65 17.10
Oct. 16.30 16.35 16.80 16.35 16.76 17.38 16.55
Sept. 16.95 16.65 16.95 16.55 16.18 16.64 16.55
Aug. 16.15 16.55 16.90 16.55 16.38 16.99 16.35
July 16.10 16.60 16.55 16.40 16.28 17.04 16.10
June 17.60 17.80 17.85 17.75 16.25 16.87 17.40
May 18.55 18.35 18.65 18.45 18.30 18.89 18.35
April 18.90 18.25 18.40 18.30 18.21 18.70 18.40
March 17.15 18.45 18.65 18.15 18.00 17.83 18.65
Feb. 17.20 18.00 18.25 18.15 ... ... 18.45
Jan. 16.70 16.85 17.15 17.05 ... ... 16.90
1994
Dec. 15.95 16.25 16.30 16.35 ... ... 15.95
Nov. 17.30 16.45 16.35 16.55 ... ... 16.15
Oct. 16.55 16.55 16.95 16.70 ... ... 16.15
Sept. 15.80 17.30 17.10 16.90 ... ... 16.60
Aug. 16.65 19.65 18.40 18.25 ... ... 18.70
July 17.55 18.40 18.25 18.15 ... ... 17.85
June 16.75 16.75 16.85 16.85 ... ... 15.50
May 16.30 15.80 16.05 16.00 ... ... 14.60
April 15.25 14.60 14.90 14.90 ... ... 13.45
March 14.20 14.80 15.10 14.80 ... ... 13.65
Feb. 13.90 15.40 16.00 15.50 ... ... 14.50
Jan. 14.55 14.60 15.35 14.95 ... ... 13.85
1993
Dec. 13.80 14.40 14.95 14.65 ... ... 13.40
Nov. 15.20 16.15 16.50 16.30 ... ... 14.95
Oct. 16.60 17.05 17.35 17.35 ... ... 15.85
Sept. 16.15 16.80 17.05 17.15 ... ... 16.20
Aug. 17.00 17.40 17.60 17.50 ... ... 17.10
July 17.10 17.85 18.05 17.90 ... ... 17.40
June 17.30 19.15 19.05 19.00 ... ... 19.10
May 18.60 20.05 20.20 19.90 ... ... 20.10
April 18.55 20.25 20.20 20.00 ... ... 19.85
March 18.75 19.60 19.85 19.65 ... ... 19.50
Feb. 18.70 18.75 18.90 18.70 ... ... 18.20
Jan. 17.55 18.50 19.20 18.75 ... ... 18.15
AMERICAS
US Colombia Ecuador
Louisiana Louisiana California Cano Limon Oriente
1996 WTS Light Sweet Heavy Swt. Kern River Line (US Gulf) (US Gulf)
Sept. 22.70 24.10 24.05 20.45 21.11 23.10 22.00
Aug. 20.60 22.00 21.96 19.00 19.45 20.75 19.85
July 19.95 21.10 20.87 13.75 18.86 20.30 19.55
June 19.10 20.05 20.15 14.10 20.05 19.55 19.20
May 20.05 20.95 20.75 14.40 18.66 21.85 19.70
April 22.40 22.95 22.83 14.20 21.25 23.35 22.40
March 21.05 21.80 21.23 ... 19.63 21.25 20.55
Feb. 18.15 19.50 19.34 14.20 17.02 18.80 17.75
Jan. 17.95 19.55 19.14 13.20 16.67 18.55 17.45
1995
Dec. 17.90 19.60 19.15 12.80 16.03 18.35 17.30
Nov. 16.65 18.30 19.15 12.80 16.03 17.20 16.90
Oct. 16.15 17.65 17.93 12.25 15.39 16.45 15.35
Sept. 16.90 18.15 17.38 12.75 15.32 17.30 16.35
Aug. 16.90 18.00 18.08 13.70 15.85 17.05 16.40
July 16.50 17.40 18.00 14.10 15.35 16.30 15.95
June 17.80 18.70 17.40 15.05 15.30 17.55 17.15
May 19.00 19.95 19.70 15.04 17.48 19.00 18.55
April 19.15 20.15 19.91 15.16 17.34 19.10 18.20
March 17.60 18.45 18.19 13.09 15.98 17.75 17.05
Feb. 17.45 18.60 ... ... ... 17.55 17.10
Jan. 17.15 18.30 ... ... ... 17.45 16.60
1994
Dec. 16.50 17.45 ... ... ... 16.40 15.85
Nov. 17.35 18.30 ... ... ... 17.15 16.50
Oct. 16.70 17.75 ... ... ... 16.35 14.95
Sept. 16.35 17.35 ... ... ... 15.90 15.60
Aug. 17.35 18.35 ... ... ... 17.20 16.60
July 17.90 19.10 ... ... ... 17.70 16.85
June 17.85 18.40 ... ... ... 17.05 16.30
May 17.05 18.00 ... ... ... 17.15 16.40
April 15.65 16.80 ... ... ... 15.75 15.10
March 13.90 15.05 ... ... ... 14.05 13.45
Feb. 14.00 15.00 ... ... ... 14.05 13.60
Jan. 14.00 15.30 ... ... ... 13.75 13.15
1993
Dec. 13.15 14.70 ... ... ... 12.70 11.75
Nov. 15.00 16.85 ... ... ... 14.70 13.55
Oct. 16.45 18.30 ... ... ... 16.45 15.55
Sept. 16.00 17.75 ... ... ... 15.70 15.15
Aug. 16.15 18.25 ... ... ... 16.35 15.60
July 16.35 18.05 ... ... ... 16.10 15.30
June 17.60 18.85 ... ... ... 17.35 16.60
May 18.60 20.10 ... ... ... 18.05 17.55
April 18.55 20.15 ... ... ... 18.40 18.05
March 18.65 20.10 ... ... ... 18.40 18.15
Feb. 18.70 20.15 ... ... ... 18.25 18.30
Jan. 17.30 19.10 ... ... ... 16.50 16.55
f Formula. r Retrospective. s Spot.
PIW SCORECARD COSTS TO REFINERS

OF KEY FORMULA PRICED CRUDE OILS IN PRIMARY WORLD MARKETS (In $/barrel)
DELIVERED TO ROTTERDAM
1996 Arab Arab Arab Arab Arab Arab Arab Arab
Point Extra Light Light Medium Heavy Extra Light* Light* Medium* Heavy*
of Sale: (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (Sidi Kerir) (Sidi Kerir) (Sidi Kerir) (Sidi Kerir)
Sept. 22.24 21.47 20.54 20.20 22.25 21.45 20.55 20.15
Aug. 20.49 19.76 18.90 18.58 20.26 19.46 18.56 18.16
July 19.89 19.29 18.57 18.27 19.50 18.70 17.80 17.40
June 18.79 18.24 17.52 17.24 18.49 17.85 17.10 16.80
May 19.80 19.34 18.69 18.43 19.34 18.74 17.99 17.69
April 21.44 21.01 20.43 20.20 21.02 20.57 19.87 19.57
March 19.64 19.21 18.61 18.35 19.74 19.27 18.69 18.44
Feb. 17.67 17.15 16.51 16.16 17.87 17.41 16.82 16.57
Jan. 18.26 17.84 17.20 16.82 17.72 17.27 16.62 16.27
1995
Dec. 17.91 17.49 16.82 16.43 17.71 17.26 16.61 16.21
Nov. 16.76 16.28 15.54 15.11 16.67 15.97 15.57 15.17
Oct. 16.02 15.60 14.86 14.43 15.95 15.39 14.75 14.30
Sept. 16.53 16.13 15.46 15.05 16.34 15.89 15.14 14.69
Aug. 15.98 15.66 15.12 14.79 15.61 15.16 14.41 13.96
July 16.02 15.71 15.17 14.84 15.56 15.21 14.66 14.31
June 17.64 17.37 16.88 16.58 17.05 16.74 16.19 15.84
May 18.66 18.34 17.89 17.61 18.16 17.86 17.31 16.96
April 18.57 18.22 17.71 17.40 18.38 18.08 17.68 17.43
March 17.04 16.73 16.26 15.99 16.92 16.52 15.97 15.62
Feb. 17.24 16.81 16.28 15.86 16.98 16.67 16.23 15.98
Jan. 16.54 16.01 15.42 14.87 16.53 16.13 15.58 15.23
1994
Dec. 16.19 15.51 14.84 14.31 15.60 15.10 14.55 14.00
Nov. 17.25 16.66 16.12 15.69 17.19 16.47 15.74 15.14
Oct. 16.26 15.79 15.21 14.76 16.29 15.59 15.04 14.59
Sept. ... 15.18 14.51 14.05 ... 14.93 14.38 13.93
Aug. ... 16.48 15.82 15.37 ... 15.78 15.08 14.58
July ... 16.99 16.24 15.74 ... 16.78 16.13 15.68
June ... 16.08 15.28 14.73 ... 15.85 15.05 14.60
May ... 15.54 14.65 14.01 ... 15.26 14.41 13.91
April ... 14.17 13.08 12.26 ... 14.13 13.23 12.68
March ... 13.02 11.76 10.81 ... 12.91 11.81 11.06
Feb. ... 13.00 11.71 10.68 ... 12.48 11.18 10.28
Jan. ... 12.99 11.70 10.66 ... 13.02 11.62 10.64
1993
Dec. ... 12.47 11.19 10.13 ... 12.14 10.79 9.79
Nov. ... 13.92 12.62 11.59 ... 13.49 12.14 11.09
Oct. ... 15.14 13.81 12.77 ... 14.79 13.49 12.44
Sept. ... 14.42 13.09 12.05 ... 14.16 12.81 11.76
Aug. ... 15.08 13.74 12.71 ... 14.66 ... ...
July ... 15.22 13.93 12.90 ... 14.73 ... ...
June ... 16.32 15.05 14.02 ... 15.53 ... ...
May ... 17.17 15.84 14.81 ... 16.56 ... ...
April ... 17.23 15.97 14.90 ... 16.94 ... ...
March ... 17.78 16.43 15.39 ... 16.95 ... ...
Feb. ... 17.53 16.29 15.36 ... 16.95 ... ...
Jan. ... 16.49 15.23 14.28 ... 16.14 ... ...
*Point of sale: Sidi Kerir.

1996 Kuwait Iran Iran Nigeria Nigeria Libya Market Link:
Point Kuwait Light Heavy Bonny Lt. Forcados Es Sider Brent (f.o.b.)
of Sale: (f.o.b.) (c.i.f.) (c.i.f.) (f.o.b.) (f.o.b.) (f.o.b.) (Sullom Voe)
Sept. 20.58 21.85 21.05 23.05 22.82 22.96 22.55
Aug. 18.93 19.86 19.06 21.19 20.94 20.97 20.55
July 18.58 18.95 18.15 20.69 20.43 20.19 19.60
June 17.52 18.10 17.25 20.02 19.88 19.18 18.40
May 18.69 18.95 18.15 20.69 20.43 20.19 19.60
April 20.43 20.52 20.07 22.73 22.68 21.80 20.90
March 18.61 19.26 19.02 20.26 20.22 20.45 20.30
Feb. 16.51 17.39 17.10 18.49 18.41 17.93 17.90
Jan. 17.20 17.75 17.44 19.65 19.58 18.37 17.90
1995
Dec. 16.82 17.86 17.66 18.65 18.56 18.41 17.95
Nov. 15.54 16.42 16.27 17.62 17.53 17.23 16.75
Oct. 14.86 15.83 15.80 17.23 17.15 16.50 16.05
Sept. 15.46 16.54 16.34 17.48 17.43 17.02 16.65
Aug. 15.12 15.91 15.36 16.83 16.75 16.40 16.00
July 15.17 15.31 14.96 17.26 17.12 16.31 15.85
June 16.88 16.55 16.15 18.85 18.68 17.88 17.40
May 17.89 17.71 17.36 19.72 19.51 18.76 18.35
April 17.71 18.08 17.78 19.23 18.90 18.98 18.65
March 16.26 16.67 16.37 17.97 17.69 17.49 17.00
Feb. 16.28 16.43 16.13 18.05 17.91 17.74 17.10
Jan. 15.42 16.63 16.28 17.15 17.05 17.13 16.55
1994
Dec. 14.84 15.20 14.55 17.35 17.27 16.32 15.90
Nov. 16.12 16.74 16.09 18.52 18.49 17.51 17.20
Oct. 15.21 15.94 15.49 17.26 17.29 16.57 16.40
Sept. 14.51 15.28 14.83 16.79 16.86 15.78 15.90
Aug. 15.82 15.93 15.43 18.39 18.45 16.68 16.80
July 16.23 16.73 16.23 18.57 18.54 17.61 17.60
June 15.28 16.06 15.85 17.60 17.48 16.98 16.75
May 14.65 15.57 15.21 17.36 17.17 16.46 16.20
April 13.08 14.67 14.38 15.87 15.74 15.35 15.15
March 11.66 13.46 13.06 14.97 14.82 14.02 13.95
Feb. 11.61 13.28 12.78 15.53 15.42 13.66 13.80
Jan. 11.60 13.77 13.12 14.94 14.92 14.50 14.25
1993
Dec. 11.09 12.94 12.05 15.35 15.36 14.02 13.60
Nov. 12.52 14.24 13.25 16.82 16.81 15.44 15.15
Oct. 13.70 15.69 14.74 17.75 17.74 16.81 16.60
Sept. 12.98 14.91 14.01 17.34 17.23 16.27 16.00
Aug. 13.64 15.36 14.41 18.16 17.88 17.10 16.70
July 13.83 15.33 14.41 18.15 17.94 17.28 16.80
June 14.95 15.93 15.18 19.22 19.09 18.14 17.65
May 15.74 16.96 16.18 19.91 19.60 18.99 18.50
April 15.86 17.24 16.36 19.99 19.64 19.27 18.65
March 16.33 17.28 16.27 20.13 19.75 19.37 18.75
Feb. 16.19 17.35 16.35 19.39 18.94 19.19 18.45
Jan. 15.13 16.19 15.14 18.76 18.24 17.82 17.40

DELIVERED TO US GULF COAST

1996 Arab Arab Arab Arab Arab Arab Arab Arab Kuwait
Point Extra Light Light Medium Heavy Extra Light Light Medium Heavy Kuwait
of Sale: (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (c.i.f.) (c.i.f.) (c.i.f.) (c.i.f.) (c.i.f.)
Sept. 22.99 22.37 21.70 21.28 22.53 21.78 20.98 20.48 20.98
Aug. 21.11 20.47 19.70 19.18 20.75 20.10 19.45 19.05 19.45
July 20.56 19.92 19.09 18.52 20.26 19.61 18.86 18.36 18.86
June 19.64 19.02 18.23 17.68 19.44 18.74 17.89 17.29 17.74
May 20.56 19.92 19.11 18.60 20.47 19.82 19.07 18.37 19.07
April 22.66 22.11 21.41 20.96 22.50 21.85 21.10 20.55 20.86
March 20.65 20.13 19.45 19.05 20.69 20.09 19.34 18.84 18.96
Feb. 18.01 17.45 16.72 16.32 18.19 17.64 16.94 16.49 16.81
Jan. 18.09 17.49 16.78 16.40 17.90 17.35 16.65 16.25 16.58
1995
Dec. 18.11 17.49 16.80 16.42 18.12 17.47 16.67 16.22 16.54
Nov. 17.00 16.35 15.64 15.24 17.27 16.67 16.02 15.67 15.94
Oct. 16.73 16.13 15.52 15.21 16.47 15.77 15.02 14.57 14.99
Sept. 17.39 16.82 16.29 16.09 17.30 16.65 15.95 15.55 15.95
Aug. 17.09 16.44 15.83 15.55 16.98 16.38 15.83 15.58 15.76
July 16.29 15.62 14.98 14.60 16.40 15.80 15.25 15.05 15.16
June 17.15 16.69 16.12 15.83 17.56 16.85 16.15 15.75 16.15
May 18.62 18.04 17.48 17.20 18.83 18.18 17.58 17.18 17.58
April 19.06 18.44 17.80 17.40 19.09 18.64 18.09 17.84 18.09
March 17.79 17.26 16.66 16.28 17.78 17.13 16.53 16.13 16.53
Feb. 17.46 16.94 16.33 15.90 17.83 17.20 16.49 16.04 16.49
Jan. 17.02 16.34 15.61 15.19 17.27 16.86 16.26 15.91 16.26
1994
Dec. 16.10 15.36 14.50 14.00 16.09 15.47 14.75 14.30 14.75
Nov. 16.76 15.92 15.09 14.59 17.28 16.45 15.67 15.22 15.67
Oct. 16.55 15.85 15.06 14.58 16.65 15.86 14.89 14.31 14.89
Sept. ... 15.50 14.64 14.09 ... 15.75 15.00 14.55 15.00
Aug. ... 16.10 15.20 14.60 ... 16.26 15.41 14.86 15.41
July ... 17.85 16.86 16.18 ... 18.01 17.11 16.51 17.11
June ... 17.25 16.19 15.44 ... 17.40 16.45 15.80 16.45
May ... 15.97 14.89 14.11 ... 15.89 14.84 14.09 14.84
April ... 14.45 13.34 12.56 ... 14.32 13.22 12.42 13.22
March ... 12.41 11.11 10.24 ... 12.77 11.67 10.87 11.57
Feb. ... 12.72 11.31 10.41 ... 12.62 11.48 10.67 11.38
Jan. ... 13.44 12.06 11.18 ... 12.56 11.10 10.16 11.00
1993
Dec. ... 12.14 10.81 9.92 ... 12.22 10.82 9.92 10.79
Nov. ... 13.48 12.20 11.32 ... 14.11 12.71 11.81 12.85
Oct. ... 15.32 13.98 13.05 ... 15.82 14.52 13.62 14.29
Sept. ... 15.24 13.90 12.97 ... 15.35 14.05 13.15 13.61
Aug. ... 15.77 14.49 13.61 ... 15.80 14.39 13.39 13.89
July ... 15.59 14.26 13.38 ... 15.60 14.30 13.40 14.77
June ... 16.57 15.18 14.30 ... 16.68 15.38 14.48 15.03
May ... 17.75 16.43 15.58 ... 17.89 16.48 15.48 16.28
April ... 18.23 16.84 15.96 ... 18.41 17.01 16.01 16.74
March ... 18.35 17.05 16.08 ... 18.36 17.05 16.05 16.95
Feb. ... 18.08 16.82 15.89 ... 18.01 16.61 15.41 16.72
Jan. ... 16.82 15.53 14.55 ... 16.69 15.44 14.44 15.43


1996 Nigeria Nigeria Mexico Mexico Mexico Col. Cano Ecuador Market Links:
Point Bonny Lt. Forcados Isthmus Maya Olmeca Limon Oriente ANS WTI
of Sale: (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (Gulf) (Cushing)
Sept. 23.01 22.84 22.48 19.19 23.47 22.41 21.10 ... 23.90
Aug. 21.19 21.00 20.58 17.22 21.40 20.48 19.40 ... 21.90
July 20.64 20.43 19.90 16.43 20.75 20.11 19.20 ... 21.25
June 19.90 19.83 18.68 16.48 19.61 19.42 18.29 ... 20.45
May 21.17 21.13 19.64 15.91 20.86 21.12 20.40 ... 21.05
April 22.72 22.70 20.64 16.61 22.41 23.02 20.83 ... 23.25
March 20.27 20.27 19.92 16.63 20.56 20.62 18.88 ... 21.75
Feb. 18.56 18.52 17.81 15.13 18.45 18.24 16.56 ... 18.80
Jan. 19.64 19.59 18.09 15.37 18.99 18.50 16.89 ... 18.75
1995
Dec. 18.53 18.48 17.51 15.28 18.30 17.90 15.87 ... 19.05
Nov. 17.49 17.42 16.33 13.73 17.19 16.88 15.53 ... 17.95
Oct. 17.13 17.08 15.86 13.48 16.71 16.40 15.66 ... 17.35
Sept. 17.53 17.49 16.51 13.77 17.20 17.20 16.54 ... 18.20
Aug. 16.81 16.75 16.39 13.26 16.85 16.93 16.05 ... 17.80
July 17.17 17.07 16.11 14.70 16.65 16.32 16.12 ... 17.25
June 18.81 18.67 17.43 15.56 17.99 18.27 17.67 ... 18.40
May 19.64 19.45 18.76 16.64 19.22 19.13 18.54 ... 19.75
April 19.23 18.93 18.93 16.49 18.92 18.13 17.53 ... 19.95
March 17.91 17.66 16.99 15.11 17.44 17.55 16.87 17.40 18.55
Feb. 18.05 17.93 17.05 14.87 17.52 17.35 16.90 17.45 18.55
Jan. 17.08 17.00 17.31 14.43 17.87 16.35 15.88 16.80 17.95
1994
Dec. 17.24 17.17 16.04 13.93 16.58 16.13 15.61 16.00 17.15
Nov. 18.30 18.30 17.03 14.58 17.53 16.74 16.14 16.80 18.10
Oct. 17.07 17.12 16.11 13.46 16.54 16.25 15.57 15.85 17.65
Sept. 16.48 16.57 16.31 12.97 16.87 15.93 15.79 16.05 17.45
Aug. 18.24 18.32 16.41 13.47 17.53 17.66 16.10 16.90 18.35
July 18.32 18.31 17.79 15.24 18.62 17.69 16.65 17.55 19.65
June 17.38 17.28 17.08 14.16 17.86 16.86 16.57 17.00 19.05
May 17.11 16.93 16.55 12.95 17.13 16.24 16.03 16.90 17.85
April 15.55 15.45 15.14 11.98 15.78 14.07 13.98 15.50 16.30
March 14.73 14.59 13.41 10.42 14.30 12.88 13.05 13.70 14.65
Feb. 15.40 15.30 13.20 10.35 14.27 13.53 13.49 13.65 14.75
Jan. 14.75 14.75 13.63 10.84 14.94 12.70 12.21 13.30 15.00
1993
Dec. 15.18 15.20 12.61 9.62 13.97 13.42 12.13 12.25 14.55
Nov. 16.67 16.67 14.00 10.45 15.45 15.45 14.01 14.35 16.75
Oct. 17.67 17.67 15.72 12.06 17.19 16.02 14.89 16.05 18.15
Sept. 17.25 17.15 15.62 12.33 16.72 15.58 14.62 15.60 17.50
Aug. 18.01 17.74 15.61 12.21 17.18 15.52 14.70 16.20 18.00
July 18.09 17.89 15.86 12.08 17.11 16.22 15.21 15.85 17.90
June 19.02 18.89 17.02 12.41 18.43 17.96 16.89 17.00 19.15
May 19.85 19.55 18.20 13.60 19.53 18.38 17.38 18.05 20.00
April 19.88 19.54 18.37 14.18 19.67 18.40 17.53 18.40 20.30
March 20.01 19.57 18.36 13.90 19.65 18.41 17.54 18.35 20.35
Feb. 19.34 18.90 18.13 13.43 19.62 18.98 16.92 17.90 20.05
Jan. 18.79 18.28 17.12 12.96 18.54 17.57 16.74 16.55 19.05

DELIVERED TO SINGAPORE
1996 Arab Arab Arab Arab Arab Iran Iran Market Links (f.o.b.):
Point Super Lt. Extra Light Light Medium Heavy Light Heavy Dubai Oman
of Sale: (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) Fateh Spot
Sept. 22.15 21.34 20.50 19.46 18.88 20.25 19.38 20.30 20.80
Aug. 21.19 20.53 19.69 18.60 18.04 19.44 18.52 18.55 19.10
July 20.42 19.76 18.93 17.90 17.39 18.67 17.82 17.75 18.45
June 19.93 19.26 18.42 17.53 17.14 18.17 17.45 17.20 17.60
May 20.03 19.36 18.51 17.62 17.23 18.25 17.52 16.85 17.65
April 20.08 19.41 18.57 17.72 17.36 18.33 17.67 17.60 18.35
March 19.24 18.58 17.77 16.97 16.64 17.54 16.92 17.20 17.75
Feb. 18.95 18.28 17.60 16.81 16.47 17.34 16.72 15.95 16.60
Jan. 19.17 18.48 17.97 17.22 16.91 17.72 17.15 16.55 17.15
1995
Dec. 18.51 17.74 17.35 16.66 16.17 17.17 16.65 17.00 17.30
Nov. 17.41 16.64 16.25 15.55 15.06 16.00 15.48 15.65 15.85
Oct. 17.33 16.53 16.19 15.57 15.03 15.97 15.53 14.80 15.05
Sept. 17.67 16.88 16.54 15.95 15.31 16.34 15.94 15.55 15.75
Aug. 17.42 16.71 16.32 15.73 15.13 16.12 15.72 15.40 15.50
July 17.84 17.12 16.73 16.19 15.70 16.53 16.18 15.05 15.30
June ... ... ... ... ... ... ... ... ...
May ... ... ... ... ... ... ... ... ...
April ... ... ... ... ... ... ... ... ...
March ... ... ... ... ... ... ... ... ...
Feb. ... ... ... ... ... ... ... ... ...
Jan. ... ... ... ... ... ... ... ... ...
1994
Dec. ... ... ... ... ... ... ... ... ...
Nov. ... ... ... ... ... ... ... ... ...
Oct. ... ... ... ... ... ... ... ... ...
Sept. ... ... ... ... ... ... ... ... ...
Aug. ... ... ... ... ... ... ... ... ...
July ... ... ... ... ... ... ... ... ...
June ... ... ... ... ... ... ... ... ...
May ... ... ... ... ... ... ... ... ...
April ... ... ... ... ... ... ... ... ...
March ... ... ... ... ... ... ... ... ...
Feb. ... ... ... ... ... ... ... ... ...
Jan. ... ... ... ... ... ... ... ... ...
1993
Dec. ... ... ... ... ... ... ... ... ...
Nov. ... ... ... ... ... ... ... ... ...
Oct. ... ... ... ... ... ... ... ... ...
Sept. ... ... ... ... ... ... ... ... ...
Aug. ... ... ... ... ... ... ... ... ...
July ... ... ... ... ... ... ... ... ...
June ... ... ... ... ... ... ... ... ...
May ... ... ... ... ... ... ... ... ...
April ... ... ... ... ... ... ... ... ...
March ... ... ... ... ... ... ... ... ...
Feb. ... ... ... ... ... ... ... ... ...
Jan. ... ... ... ... ... ... ... ... ...
PIW SCORECARD TERM CONTRACT PRICES AT PORT OF LOADING (In $/barrel)
MIDEAST
Saudi Arabia f
Super Light Extra Light Extra Light Extra Light Extra Light Light Light Light
1996 (Far East) (Europe) (US) (Far East) (Average)* (Europe) (US) (Far East)
Sept. 22.38 ... ... 21.38 ... ... ... 20.53
Aug. 21.06 21.60 21.62 20.36 20.76 20.79 20.96 19.51
July 20.23 19.92 20.48 19.53 19.74 19.11 19.82 18.68
June 19.55 18.42 18.85 18.85 17.99 17.76 18.08 18.08
May 19.40 17.66 19.10 18.70 18.49 17.10 18.45 17.85
April 20.08 18.13 18.69 19.38 18.73 17.62 18.04 18.53
March 19.25 19.32 19.51 18.55 19.13 18.86 18.90 17.70
Feb. 18.29 19.76 20.92 17.59 19.42 19.30 20.36 16.79
Jan. 18.69 17.11 18.14 17.99 17.75 16.66 17.58 17.39
1995
Dec. 18.81 15.96 15.71 18.06 16.58 15.50 15.05 17.61
Nov. 17.44 17.21 17.03 16.64 16.96 16.75 16.42 16.24
Oct. 16.67 16.20 16.47 15.87 16.18 15.74 15.76 15.47
Sept. 17.25 14.95 15.43 16.40 15.59 14.49 14.77 16.10
Aug. 17.12 15.04 15.10 16.37 15.50 14.58 14.49 15.97
July 16.80 14.89 15.79 16.05 15.58 14.53 15.18 15.65
June 17.95 14.68 15.44 17.20 16.27 14.33 14.69 16.80
May 19.02 16.01 15.49 18.12 17.23 15.71 14.84 17.77
April 19.14 17.26 17.06 18.34 17.89 16.96 16.61 17.99
March 18.25 17.83 18.04 17.40 17.60 17.43 17.39 16.95
Feb. 18.63 16.67 17.45 17.88 17.47 16.37 16.80 17.28
Jan. ... 16.07 16.39 17.41 16.90 15.65 15.89 16.71
1994
Dec. ... 15.91 16.08 16.90 16.52 15.40 15.40 16.20
Nov. ... 15.10 15.51 17.40 16.52 14.40 14.84 16.70
Oct. ... 15.81 15.35 16.77 16.34 15.27 14.43 16.07
Sept. ... ... ... ... ... 15.99 15.14 15.91
Aug. ... ... ... ... ... 14.56 14.67 16.63
July ... ... ... ... ... 14.66 14.66 17.10
June ... ... ... ... ... 16.42 16.44 16.49
May ... ... ... ... ... 15.80 16.72 15.29
April ... ... ... ... ... 14.78 15.72 14.33
March ... ... ... ... ... 14.26 14.56 12.90
Feb. ... ... ... ... ... 12.60 12.45 13.35
Jan. ... ... ... ... ... 11.54 11.16 13.75
1993
Dec. ... ... ... ... ... 12.61 12.67 12.77
Nov. ... ... ... ... ... 11.38 11.55 14.34
Oct. ... ... ... ... ... 12.15 11.36 15.33
Sept. ... ... ... ... ... 13.57 13.44 14.73
Aug. ... ... ... ... ... 13.63 14.60 15.38
July ... ... ... ... ... 13.64 14.11 15.14
June ... ... ... ... ... 14.07 14.65 16.37
May ... ... ... ... ... 14.62 14.82 16.74
April ... ... ... ... ... 15.76 16.18 17.08
March ... ... ... ... ... 16.04 16.72 16.98
Feb. ... ... ... ... ... 16.31 17.18 16.82
Jan. ... ... ... ... ... 16.69 17.10 15.89
f Formula. r Retrospective. s Spot. *Estimate based on volume weighted average.
MIDEAST
Saudi Arabia f
Light Medium Medium Medium Medium Heavy Heavy Heavy
1996 (Average)* (Europe) (US) (Far East) (Average)* (Europe) (US) (Far East)
Sept. ... ... ... 19.48 ... ... ... 18.78
Aug. 20.35 19.88 20.31 18.46 19.60 19.47 19.90 17.97
July 19.28 18.20 19.06 17.53 18.43 17.79 18.56 16.88
June 18.00 17.99 17.01 17.10 17.14 16.70 16.61 16.70
May 18.03 16.26 17.60 16.95 16.94 16.05 17.00 16.55
April 18.06 16.92 17.29 17.63 17.28 16.62 16.74 17.23
March 18.49 18.26 18.15 17.40 17.94 18.00 17.64 16.55
Feb. 18.82 18.70 19.65 16.00 18.12 18.44 19.20 15.64
Jan. 17.21 16.00 16.88 16.59 16.49 15.64 16.47 16.24
1995
Dec. 16.05 14.84 14.24 16.91 15.33 14.44 13.79 16.61
Nov. 16.47 16.10 15.77 15.54 15.80 15.70 15.41 15.04
Oct. 15.66 14.99 15.01 14.77 14.92 14.54 14.56 14.27
Sept. 15.12 13.74 14.07 15.55 14.45 13.28 13.66 14.95
Aug. 15.01 13.83 13.93 15.32 14.36 13.37 13.68 14.62
July 15.12 13.97 14.63 15.10 14.57 13.62 14.42 14.60
June 15.36 13.78 13.99 16.25 14.63 13.42 13.58 15.75
May 16.04 15.16 14.24 17.32 15.35 14.81 13.84 16.92
April 17.16 16.56 16.06 17.44 16.57 16.31 15.81 17.04
March 17.24 16.88 16.78 16.30 16.66 16.53 16.38 15.85
Feb. 16.88 15.92 16.10 16.34 16.13 15.67 15.65 15.70
Jan. 16.13 15.10 15.34 15.81 15.43 14.75 14.98 15.21
1994
Dec. 15.68 14.85 14.70 15.25 14.89 14.30 14.25 14.60
Nov. 15.41 13.65 14.04 15.65 14.45 13.05 13.59 15.00
Oct. 15.17 14.72 13.48 15.02 14.19 14.27 12.88 14.37
Sept. 15.61 14.97 14.40 15.41 14.94 15.00 13.95 15.01
Aug. 15.29 13.86 13.83 15.83 14.39 13.36 13.28 15.23
July 15.52 14.01 13.76 16.30 14.57 13.58 13.16 15.70
June 16.45 15.67 15.49 15.44 15.51 15.18 14.85 14.74
May 16.04 15.00 15.67 14.09 15.06 14.46 14.92 13.29
April 15.05 13.94 14.63 13.13 14.04 13.34 13.83 12.33
March 13.92 13.22 13.46 11.75 12.90 12.42 12.67 10.95
Feb. 12.79 11.35 11.30 11.95 11.50 10.41 10.50 10.90
Jan. 12.14 10.25 9.71 12.10 10.54 9.22 8.76 10.90
1993
Dec. 12.69 11.31 11.22 11.32 11.27 10.25 10.37 10.22
Nov. 12.49 10.08 10.14 12.94 10.97 8.98 9.27 11.89
Oct. 12.91 10.85 10.07 13.93 11.38 9.80 9.20 12.88
Sept. 13.92 12.22 12.14 13.23 12.48 11.16 11.20 12.13
Aug. 14.68 12.28 13.20 13.78 13.19 11.23 12.20 12.58
July 14.38 12.29 12.80 13.54 12.92 11.24 11.90 12.34
June 15.14 12.72 13.35 14.77 13.65 11.67 12.45 13.57
May 15.45 13.42 13.42 15.14 13.94 12.37 12.52 13.94
April 16.41 14.36 14.78 15.48 14.90 13.31 13.87 14.28
March 16.67 14.82 15.32 15.38 15.24 13.77 14.41 14.08
Feb. 16.88 14.86 15.78 15.12 15.40 13.70 14.68 13.77
Jan. 16.59 15.44 15.84 14.34 15.31 14.48 14.94 13.19
MIDEAST
Saudi Arabia f Iran f Kuwait f
Heavy Light Light Light Heavy Heavy Heavy Kuwait
1996 (Average)* (Europe) (Far East) (Average)* (Europe) (Far East) (Average)* (Europe)
Sept. ... 21.49 20.24 20.93 20.96 19.36 20.24 ...
Aug. 19.43 19.68 19.23 19.48 19.01 18.35 18.71 19.88
July 18.07 18.13 18.40 18.25 17.28 17.42 17.34 18.20
June 16.92 16.81 17.72 17.22 15.86 16.99 16.42 17.01
May 16.53 17.62 17.56 17.60 16.77 16.83 16.80 16.26
April 16.86 19.79 18.25 19.10 19.39 17.52 18.55 16.92
March 17.40 18.89 17.47 18.32 18.50 16.84 17.96 18.26
Feb. 17.76 16.87 16.51 16.75 16.53 15.88 16.30 18.70
Jan. 16.12 16.65 17.10 16.98 16.40 16.47 16.50 16.00
1995
Dec. 14.95 17.03 17.32 17.16 16.53 16.79 16.65 14.84
Nov. 15.38 15.53 15.95 15.72 14.98 15.42 15.18 16.10
Oct. 14.46 14.72 15.18 14.93 14.17 14.65 14.39 14.99
Sept. 13.96 15.44 15.86 15.63 15.04 15.50 15.25 13.74
Aug. 13.89 14.53 15.73 15.07 14.03 15.27 14.59 13.83
July 14.21 13.92 15.42 14.59 13.62 15.06 14.27 13.97
June 13.99 15.40 16.57 15.93 15.10 16.21 15.60 13.78
May 14.67 16.69 17.64 17.11 16.39 16.70 16.54 15.16
April 16.21 17.11 17.76 17.40 16.81 17.40 17.10 16.56
March 16.38 15.68 16.72 16.15 15.38 16.29 15.84 16.88
Feb. 15.35 15.39 17.04 16.39 15.09 16.36 15.73 15.92
Jan. 14.98 15.53 16.47 15.96 14.98 15.79 15.39 15.10
1994
Dec. 14.30 14.66 15.92 15.21 14.15 15.22 14.69 14.85
Nov. 13.76 15.73 16.42 16.04 15.09 15.64 15.37 13.66
Oct. 13.46 15.09 15.78 15.46 14.64 15.00 14.82 14.72
Sept. 14.46 14.43 15.62 15.01 13.98 15.44 14.71 15.45
Aug. 13.63 14.81 16.30 15.39 14.36 15.82 15.09 13.86
July 13.75 15.88 16.82 16.31 15.58 16.34 15.96 14.01
June 14.89 15.35 16.19 15.73 15.09 15.05 15.07 15.67
May 14.50 15.06 15.00 15.03 14.74 14.10 14.42 15.00
April 13.43 14.01 14.04 14.14 13.76 13.14 13.45 13.94
March 12.26 12.85 12.63 12.75 12.45 11.73 12.09 13.22
Feb. 10.56 12.65 13.09 12.85 11.95 11.94 11.94 11.25
Jan. 9.28 13.28 13.49 13.35 12.63 12.09 12.36 10.15
1993
Dec. 10.32 12.17 12.55 12.30 11.14 11.30 11.22 11.21
Nov. 9.74 13.21 14.12 13.53 12.25 12.87 12.56 9.98
Oct. 10.06 14.38 15.12 14.64 13.38 13.87 13.63 10.75
Sept. 11.38 13.81 14.51 14.05 12.81 13.16 12.99 12.12
Aug. 12.08 14.31 15.18 14.62 13.20 13.73 13.47 12.18
July 11.85 14.10 14.92 14.39 13.15 13.47 13.31 12.19
June 12.52 14.70 16.26 15.25 13.80 14.71 14.26 12.62
May 12.78 15.58 16.62 15.94 14.75 15.07 14.91 13.32
April 13.84 15.80 16.96 16.21 14.98 15.41 15.19 14.26
March 14.22 16.04 16.86 16.33 15.10 15.31 15.21 ...
Feb. 14.30 15.92 16.85 16.24 15.02 14.95 14.98 ...
Jan. 14.50 15.12 15.84 15.37 14.22 14.29 14.26 ...
MIDEAST
Kuwait f Neutral Zone f Abu Dhabi r Dubai s
Kuwait Kuwait Khafji Umm Upper
1996 (US) (Far East) (Far East) Murban Shaif Zakum Zakum Fateh
Sept. ... 19.38 18.78 22.30 22.00 22.35 20.55 20.30
Aug. ... 18.36 17.97 20.45 20.15 20.50 18.75 18.55
July ... 17.43 16.88 19.55 19.25 19.65 17.85 17.75
June ... 17.00 16.70 19.00 18.70 19.10 17.30 17.20
May ... 16.85 16.55 18.60 18.25 18.65 16.95 16.85
April ... 17.53 17.23 19.25 19.30 18.88 17.70 17.60
March ... 17.30 16.55 18.45 18.05 18.45 16.95 17.20
Feb. ... 15.89 15.64 17.45 17.05 17.45 15.90 15.95
Jan. ... 16.49 16.24 18.20 17.80 18.20 16.65 16.55
1995
Dec. ... 16.81 16.61 18.40 18.00 18.40 16.95 17.05
Nov. ... 15.44 15.04 16.95 16.55 16.95 15.65 15.75
Oct. ... 15.05 14.27 16.00 15.60 16.00 14.80 14.87
Sept. ... 15.45 14.95 16.50 16.50 16.10 15.45 15.55
Aug. ... 15.22 14.62 16.30 15.90 16.30 15.35 15.40
July ... 15.00 14.60 15.80 15.40 15.75 15.00 15.05
June ... 16.15 15.75 17.00 16.60 16.95 16.20 16.25
May ... 17.22 16.92 18.20 17.80 18.15 17.35 17.30
April ... 17.34 17.04 18.45 18.05 18.40 17.50 17.45
March ... 16.20 15.85 17.40 17.00 17.30 16.35 16.30
Feb. ... 16.24 15.70 17.90 17.50 17.80 16.75 16.55
Jan. ... 15.71 15.21 17.35 16.90 17.25 16.05 15.95
1994
Dec. ... 15.15 14.60 16.85 16.35 16.75 15.50 15.45
Nov. ... 15.55 15.00 17.55 17.05 17.45 16.05 15.95
Oct. ... 14.92 14.37 16.90 16.40 16.80 15.40 15.35
Sept. ... 15.31 15.01 16.70 16.20 16.60 15.30 15.25
Aug. ... 15.73 15.23 17.00 16.50 16.90 15.75 15.85
July ... 16.20 15.70 17.60 17.10 17.50 16.40 16.40
June ... 15.34 14.74 17.00 16.50 16.90 15.65 15.70
May ... 13.99 13.29 16.10 15.60 16.00 14.65 14.80
April ... 13.03 12.33 15.45 15.00 15.35 13.90 13.80
March ... 11.65 10.95 13.75 13.30 13.65 12.08 12.25
Feb. ... 11.85 10.90 14.60 14.15 14.50 12.80 12.80
Jan. ... 12.00 10.90 15.10 14.65 15.00 13.30 13.15
1993
Dec. ... 11.22 10.22 14.00 13.55 13.90 12.10 12.15
Nov. ... 12.84 11.89 15.40 15.00 15.30 13.55 13.70
Oct. ... 13.83 12.88 16.65 16.25 16.55 14.80 14.80
Sept. ... 13.13 12.13 15.90 15.50 15.80 14.10 14.20
Aug. 12.27 13.68 12.58 16.50 16.10 16.40 14.70 14.75
July 12.57 13.42 12.34 16.00 15.60 15.90 14.15 14.25
June 13.28 14.67 13.57 17.25 16.85 17.15 15.55 15.60
May 13.50 15.04 13.94 17.55 17.15 17.45 15.95 16.00
April 14.68 15.38 14.28 17.85 17.45 17.75 16.30 16.35
March 15.22 15.28 14.08 17.95 17.55 17.85 16.40 16.30
Feb. 15.68 15.02 13.77 17.90 17.55 17.80 16.40 16.00
Jan. 15.74 14.24 13.19 16.90 16.55 16.80 15.40 15.20
MIDEAST WEST AFRICA

Qatar f Oman r Yemen f Nigeria a
Marine Dukhan Oman Marib Masila Light-36 Bonny Medium Forcados
1996 (Far East) (Far East)
Sept. 21.66 21.75 21.20 22.45 22.10 23.29 22.96 23.09
Aug. 19.84 19.93 19.60 20.46 20.11 21.27 20.88 21.10
July 18.96 19.05 18.77 19.55 19.20 19.89 19.47 19.59
June 18.37 18.45 18.24 18.69 18.35 18.74 18.53 18.66
May 18.04 18.15 17.89 19.49 19.14 19.72 19.49 19.62
April 18.69 18.79 18.63 21.22 20.87 21.44 21.32 21.44
March 17.83 17.93 17.77 19.79 19.39 20.68 20.54 20.70
Feb. 16.80 16.90 16.50 17.89 17.49 18.64 18.54 18.64
Jan. 17.53 17.63 17.26 17.97 17.57 17.93 17.77 17.90
1995
Dec. 17.68 17.80 17.48 18.01 17.61 18.39 18.29 18.39
Nov. 15.30 15.42 15.00 16.82 16.42 17.25 17.11 17.21
Oct. 15.32 15.44 15.00 16.10 15.70 16.43 16.28 16.39
Sept. 15.81 15.98 15.60 16.79 16.29 16.76 16.62 16.76
Aug. 15.73 15.87 15.56 16.16 15.66 16.19 16.04 16.17
July 15.30 15.44 15.18 15.96 15.46 15.96 15.82 15.91
June 16.52 16.66 16.43 17.60 17.10 17.39 17.12 17.26
May 17.05 17.19 17.49 18.56 18.06 18.48 18.26 18.38
April 17.00 17.15 17.70 18.78 18.28 19.04 18.77 18.94
March 16.64 16.78 16.60 17.09 16.32 17.58 17.20 17.30
Feb. 17.54 17.69 17.10 17.25 16.48 17.38 17.16 17.26
Jan. 16.98 17.16 16.55 16.70 15.93 16.85 16.63 16.80
1994
Dec. 16.44 16.62 16.04 15.95 15.00 15.81 15.64 15.81
Nov. 17.02 17.22 16.64 17.34 16.39 17.41 17.29 17.47
Oct. 16.40 16.58 15.84 16.59 15.64 16.90 16.83 17.01
Sept. 16.20 16.40 15.71 15.93 14.68 16.11 16.03 16.26
Aug. 16.59 16.79 16.21 16.78 15.53 16.49 16.44 16.69
July 17.18 17.38 16.90 17.68 16.43 18.11 18.03 18.18
June 16.51 16.68 16.08 16.98 15.60 17.28 17.13 17.31
May 15.62 15.80 15.05 16.36 15.01 16.66 16.35 16.53
April 14.84 15.02 14.20 15.33 13.98 15.87 15.66 15.84
March 13.12 13.32 12.35 14.11 12.26 14.52 14.36 14.43
Feb. 13.94 14.14 13.78 13.88 12.03 14.06 13.80 13.98
Jan. 13.38 13.58 13.78 14.49 12.64 14.87 14.67 14.92
1993
Dec. 13.25 13.48 12.68 13.84 11.59 14.03 13.86 14.11
Nov. 14.70 14.95 14.64 15.39 13.14 15.23 15.03 15.29
Oct. 15.70 15.98 15.26 16.84 14.59 16.69 16.49 16.74
Sept. 14.95 15.25 14.60 16.31 ... 16.51 16.31 16.56
Aug. 15.81 15.96 15.46 17.01 ... 17.28 16.86 17.06
July 15.56 15.71 15.21 17.08 ... 17.24 16.82 17.02
June 16.81 16.96 16.46 17.98 ... 17.75 17.60 17.75
May 17.08 17.23 16.70 18.86 ... 18.85 18.55 18.65
April 17.40 17.55 17.05 19.04 ... 19.24 18.77 18.92
March 17.30 17.45 16.95 19.14 ... 19.22 18.82 18.94
Feb. 17.15 17.30 16.80 18.90 ... 19.00 18.45 18.66
Jan. 16.54 16.69 15.84 17.79 ... 17.94 17.19 17.34
WEST AFRICA MEDITERRANEAN

Nigeria a Angola s Gabon s Algeria s Libya f
Brass Qua
1996 River Escravos Iboe Cabinda Mandji Saharan Es Sider Sarir
Sept. 23.33 23.26 23.29 21.70 20.90 23.05 22.42 22.07
Aug. 21.30 21.23 21.27 20.00 18.75 20.90 20.41 20.06
July 19.93 19.85 19.89 19.10 17.95 20.15 19.50 19.15
June 18.77 18.68 18.74 17.85 16.70 18.90 18.59 18.09
May 19.74 19.69 19.72 18.55 18.10 19.75 19.36 18.89
April 21.46 21.41 21.44 20.40 20.05 21.65 21.30 20.70
March 20.66 20.63 20.68 19.75 19.30 21.10 19.97 19.32
Feb. 18.64 18.61 18.64 17.45 16.85 18.60 18.12 17.37
Jan. 17.99 17.90 17.93 17.40 16.75 18.65 18.12 17.42
1995
Dec. 18.47 18.37 18.39 17.27 16.42 18.55 17.96 17.41
Nov. 17.33 17.21 17.25 16.16 15.31 17.30 16.72 16.22
Oct. 16.49 16.39 16.43 15.36 14.53 16.60 16.05 15.55
Sept. 16.82 16.72 16.76 16.00 15.10 17.40 16.55 16.10
Aug. 16.22 16.14 16.19 15.25 14.35 16.25 15.80 15.50
July 16.00 15.91 15.96 14.85 14.30 16.15 15.75 15.30
June 17.46 17.36 17.39 16.55 15.90 17.65 17.36 16.91
May 18.58 18.46 18.48 17.85 17.20 18.80 18.35 17.85
April 19.14 18.99 19.04 18.20 17.95 18.95 18.59 18.04
March 17.68 17.53 17.58 16.59 16.07 17.30 16.90 16.35
Feb. 17.48 17.33 17.38 16.64 15.62 17.25 17.30 16.55
Jan. 16.91 16.80 16.85 15.95 15.51 16.90 16.58 15.88
1994
Dec. 15.86 15.76 15.81 14.90 14.55 16.30 15.80 15.11
Nov. 17.48 17.36 17.41 16.40 16.00 17.65 16.97 16.33
Oct. 16.92 16.85 16.90 15.55 15.10 16.90 16.29 15.79
Sept. 16.11 16.06 16.11 15.05 14.25 16.00 15.41 15.01
Aug. 16.57 16.44 16.49 15.90 15.10 16.80 15.96 15.56
July 18.18 18.06 18.11 16.65 15.75 17.70 17.23 16.78
June 17.41 17.23 17.28 15.90 14.95 16.90 16.50 16.00
May 16.79 16.61 16.66 15.45 14.55 16.55 16.04 15.39
April 16.02 15.82 15.87 14.55 13.50 15.60 15.11 14.41
March 14.67 14.41 ... 13.30 12.25 14.45 13.66 12.90
Feb. 14.22 14.01 ... 13.00 12.10 14.50 13.20 12.35
Jan. 15.07 14.82 ... 13.15 12.40 15.00 13.95 13.30
1993
Dec. 14.21 13.98 ... 12.05 11.65 14.20 12.93 12.33
Nov. 15.40 15.18 ... 13.65 13.10 15.80 14.44 13.83
Oct. 16.79 16.64 ... 15.35 14.50 17.10 15.88 15.28
Sept. 16.61 16.46 ... 14.75 13.70 16.60 15.50 14.90
Aug. 17.38 17.23 ... 15.40 14.30 17.35 16.15 15.55
July 17.34 17.19 ... 15.55 14.65 17.30 16.19 15.59
June 17.92 17.70 ... 16.52 15.40 17.70 16.95 16.30
May 18.95 18.80 ... 17.60 16.20 18.85 17.95 17.20
April 19.34 19.19 ... 17.71 16.15 19.05 18.20 17.40
March 19.28 19.17 ... 17.44 16.10 19.10 18.27 17.42
Feb. 19.00 18.95 ... 17.16 15.65 18.90 18.10 17.25
Jan. 17.94 17.89 ... 15.81 14.60 17.80 17.12 16.27
MEDITERRANEAN
Libya f Egypt p
Suez Belayim Gharib Ras
1996 Amna Brega Siritca Zueitina Blend Blend Blend Budran
Sept. 22.02 22.87 22.47 22.87 20.30 19.55 18.55 19.35
Aug. 20.01 20.86 20.46 20.86 18.16 17.51 16.51 17.31
July 19.10 19.95 19.55 19.95 17.15 16.45 15.35 16.25
June 18.04 18.94 18.64 18.94 16.75 16.02 14.90 15.80
May 18.84 19.77 19.51 19.77 17.69 16.96 15.90 16.81
April 20.65 21.55 21.35 21.55 19.62 18.89 17.83 18.74
March 19.27 20.22 20.02 20.22 18.44 17.74 16.69 17.59
Feb. 17.32 18.27 18.15 18.27 16.62 15.97 14.92 15.82
Jan. 17.37 18.27 18.15 18.27 16.52 15.77 14.87 15.62
1995
Dec. 17.36 18.26 18.01 18.26 16.52 15.82 14.97 15.67
Nov. 16.17 17.07 16.82 17.07 15.26 14.56 13.71 14.41
Oct. 15.50 16.40 16.15 16.40 14.52 13.82 12.97 13.67
Sept. 16.05 16.90 16.65 16.90 14.97 14.27 13.42 14.12
Aug. 15.45 16.15 15.95 16.15 14.17 13.27 12.57 13.27
July 15.25 15.95 15.80 15.95 14.35 13.65 12.80 13.50
June 16.86 17.56 17.36 17.56 16.60 15.95 15.05 15.75
May 17.80 18.50 18.35 18.50 17.39 16.69 15.84 16.44
April 17.99 18.69 18.59 18.69 17.66 16.96 16.11 16.71
March 16.30 17.10 16.95 17.10 16.16 15.46 14.56 15.16
Feb. 16.50 17.35 17.30 17.35 17.03 16.33 15.43 16.03
Jan. 15.83 16.78 16.58 16.78 15.53 14.73 13.83 14.43
1994
Dec. 15.06 16.01 15.81 16.01 14.59 13.69 12.79 13.34
Nov. 16.28 17.32 17.02 17.32 15.80 14.80 13.80 14.50
Oct. 15.74 16.69 16.34 16.69 14.89 13.99 12.89 13.69
Sept. 14.96 15.91 15.56 15.91 14.20 13.30 12.25 12.90
Aug. 15.51 16.46 16.11 16.46 14.92 14.02 12.87 13.62
July 16.73 17.68 17.33 17.68 15.91 14.96 13.81 14.56
June 15.94 16.89 16.59 16.90 15.12 14.17 12.92 13.62
May 15.34 16.34 16.09 16.34 14.48 13.53 12.28 12.98
April 14.36 15.46 15.26 15.51 13.53 12.53 11.18 11.88
March 12.85 14.15 13.85 14.21 12.01 10.75 9.41 10.11
Feb. 12.30 13.70 13.40 13.75 11.65 10.35 9.05 9.75
Jan. 13.24 14.50 14.14 14.55 11.89 10.59 9.29 9.99
1993
Dec. 12.28 13.53 13.18 13.58 11.01 9.66 8.06 8.86
Nov. 13.78 15.03 14.68 15.08 12.43 11.08 9.53 10.33
Oct. 15.23 16.48 16.13 16.53 13.72 12.37 10.77 11.57
Sept. 14.85 16.10 15.75 16.15 13.08 11.68 10.08 10.88
Aug. 15.50 16.75 16.40 16.80 13.55 12.15 10.55 11.35
July 15.54 16.79 16.44 16.84 13.47 12.07 10.42 11.22
June 16.20 17.55 17.20 17.55 14.25 12.85 11.10 11.90
May 17.10 18.50 18.25 18.50 15.19 13.74 11.94 12.74
April 17.30 18.75 18.50 18.75 15.34 13.89 12.04 12.84
March 17.32 18.82 18.57 18.82 15.44 13.96 12.10 12.90
Feb. 17.15 18.65 18.40 18.65 15.22 13.72 11.82 12.47
Jan. 16.17 17.72 17.42 17.72 14.41 13.01 11.11 11.66
f Formula. r Retrospective. s Spot. p Posting based on a formula.
MEDITERRANEAN NORTH EUROPE

Syria USSR s UK s Norway s USSR s
Urals Brent Urals
1996 Souedieh Light f (c.i.f.) Blend Forties Ekofisk Statfjord (c.i.f.)
Sept. 20.01 22.46 21.65 22.55 22.70 22.65 22.60 22.05
Aug. 17.90 20.25 19.70 20.55 20.75 20.75 20.70 20.00
July 16.57 18.84 18.55 19.60 19.90 20.00 19.95 18.95
June 15.91 18.16 17.25 18.40 18.70 19.10 19.12 17.90
May 16.51 18.63 18.35 19.10 19.55 19.50 19.55 18.80
April 18.24 20.86 20.15 20.90 21.50 21.45 21.45 20.75
March 17.65 20.20 20.15 20.30 20.85 20.95 18.35 20.55
Feb. 15.56 18.31 17.80 17.90 18.30 18.45 18.70 18.10
Jan. 14.81 17.57 18.05 17.90 18.25 18.30 21.15 17.90
1995
Dec. 15.31 18.01 17.78 17.95 18.15 18.20 18.30 17.85
Nov. 13.88 16.50 16.33 16.75 17.05 17.00 17.10 16.30
Oct. 13.25 15.84 15.57 16.05 16.25 16.25 16.30 15.50
Sept. 13.80 16.14 16.31 16.65 17.00 17.00 16.95 16.60
Aug. 14.05 15.39 15.30 16.00 16.10 16.10 16.15 15.70
July 14.35 15.45 14.80 15.85 15.95 16.00 16.10 15.20
June 15.56 16.71 16.80 17.40 17.60 17.55 17.60 17.05
May 16.71 17.75 17.90 18.35 18.50 18.60 18.55 17.95
April 16.80 18.19 18.25 18.65 18.80 18.85 18.90 18.55
March 15.36 16.73 16.75 17.00 17.05 17.10 17.15 17.10
Feb. 15.31 17.11 16.75 17.10 17.15 17.15 17.20 17.10
Jan. 14.66 16.66 16.70 16.55 16.60 16.65 16.70 16.60
1994
Dec. 13.44 15.71 15.80 15.90 15.95 15.90 15.95 15.75
Nov. 14.38 16.65 17.05 17.20 17.25 17.35 17.30 17.15
Oct. 13.74 16.05 16.05 16.40 16.55 16.55 16.60 16.05
Sept. 13.38 15.16 15.25 15.90 15.75 15.85 15.80 15.25
Aug. 13.35 15.34 15.95 16.80 16.60 16.75 16.65 16.05
July 15.01 16.98 16.50 17.60 17.45 17.55 17.55 16.60
June 13.97 16.31 16.00 16.75 16.65 16.80 16.75 16.05
May 13.27 15.99 15.25 16.20 16.15 16.35 16.30 15.50
April 12.08 15.12 14.55 14.55 15.30 15.30 15.25 14.65
March 10.09 13.61 13.50 13.50 14.05 14.10 14.20 13.55
Feb. 8.90 12.90 13.20 13.20 13.85 14.00 13.90 13.20
Jan. 9.81 13.77 13.70 14.25 14.40 14.45 14.55 13.70
1993
Dec. 8.51 13.81 12.65 13.60 13.55 13.65 13.80 12.70
Nov. 9.86 13.95 13.95 15.15 15.05 15.20 15.20 14.00
Oct. 11.43 15.37 15.20 16.60 16.40 16.65 16.60 15.25
Sept. 11.19 15.21 14.30 16.00 15.85 16.20 16.15 14.45
Aug. 11.84 15.76 15.05 16.70 16.80 17.05 17.00 15.10
July 11.78 15.77 15.10 16.80 16.85 17.10 17.10 15.20
June 12.28 16.58 16.40 17.65 17.55 17.80 17.30 15.85
May 13.19 17.62 16.60 18.50 18.30 18.55 18.60 16.70
April 13.32 17.97 16.85 18.65 18.70 18.75 18.55 16.90
March 13.36 17.99 17.15 18.75 18.85 19.00 18.75 17.15
Feb. 12.83 17.92 16.85 18.45 18.60 18.80 18.70 17.05
Jan. 12.79 16.93 15.60 17.40 17.40 17.55 17.55 15.75
FAR EAST
Indonesia p
Arun
1996 Minas Duri Cinta Handil Widuri Ardjuna Attaka Cond.
Sept. 21.02 19.46 20.43 20.90 20.35 21.21 22.07 21.04
Aug. 19.49 17.97 19.01 19.43 18.93 19.68 20.21 19.41
July 19.71 18.18 19.11 19.45 19.05 19.68 20.21 19.36
June 19.28 18.12 18.64 19.01 18.57 19.24 19.79 18.96
May 18.94 18.16 18.34 18.82 18.27 19.16 19.73 18.87
April 19.19 17.60 18.59 18.92 18.53 19.17 19.85 19.12
March 19.19 17.60 18.59 18.92 18.53 19.17 19.85 19.12
Feb. 18.87 17.17 18.23 18.44 18.19 18.73 19.31 18.57
Jan. 19.35 17.72 18.70 18.81 18.67 19.07 19.59 18.92
1995
Dec. 18.34 16.72 17.74 17.98 17.70 18.19 18.63 18.11
Nov. 16.96 15.25 16.41 16.66 16.36 16.88 17.24 16.83
Oct. 16.38 14.71 15.82 16.02 15.76 16.26 16.62 16.24
Sept. 16.58 15.12 16.03 16.33 16.00 16.55 16.89 16.55
Aug. 16.48 15.15 15.93 16.27 15.92 16.47 16.77 16.43
July 16.21 15.28 15.67 16.09 15.63 16.28 16.50 16.24
June 17.42 16.38 16.95 17.27 16.92 17.49 17.74 17.50
May 18.50 16.96 17.98 18.20 17.94 18.48 18.78 18.47
April 18.41 16.46 17.79 18.03 17.71 18.32 18.60 18.33
March 18.20 15.94 17.53 17.67 17.42 18.04 18.22 17.89
Feb. 18.16 16.27 17.41 17.69 16.36 18.12 18.37 17.96
Jan. 17.17 15.57 16.45 16.69 16.36 17.32 17.61 17.21
1994
Dec. 16.27 14.82 15.63 16.07 15.48 16.49 16.76 16.47
Nov. 16.42 15.01 15.85 16.29 15.66 16.86 16.69 16.73
Oct. 16.35 14.73 15.73 16.18 15.51 17.57 16.89 16.63
Sept. 16.38 14.93 15.72 16.21 15.98 17.98 17.19 16.78
Aug. 17.63 16.22 16.95 17.48 18.03 17.98 18.56 17.14
July 17.56 15.64 16.88 17.43 17.31 17.92 18.52 18.11
June 16.58 13.88 15.90 16.45 15.54 16.81 17.44 17.02
May 15.76 12.97 15.06 15.60 14.64 15.99 16.53 16.08
April 15.04 11.99 14.33 14.85 13.73 15.22 15.74 15.26
March 14.46 11.45 13.73 14.25 13.23 14.59 15.09 14.58
Feb. 15.20 12.17 14.49 15.01 14.09 15.32 15.81 15.31
Jan. 15.04 11.69 14.35 14.86 13.70 15.14 15.60 15.11
1993
Dec. 14.50 11.18 13.84 14.29 12.93 14.58 14.98 14.50
Nov. 16.07 12.87 15.40 15.82 14.55 16.12 16.49 16.00
Oct. 17.13 13.92 16.47 16.87 15.59 17.17 17.54 17.06
Sept. 17.01 13.70 16.35 16.74 15.74 17.07 17.46 16.97
Aug. 17.56 14.34 16.92 17.31 16.61 17.65 18.09 17.60
July 17.44 14.68 16.78 17.19 16.79 17.57 18.09 17.56
June 18.41 16.07 17.75 18.21 18.10 18.62 19.24 18.69
May 18.67 16.70 18.03 18.54 18.54 18.99 19.67 19.13
April 18.84 16.61 18.23 18.76 18.48 19.23 19.96 19.44
March 18.42 15.92 17.82 18.38 17.59 18.84 19.58 19.07
Feb. 17.51 14.96 16.91 17.48 16.79 17.96 18.73 18.21
Jan. 17.89 15.32 17.29 17.88 17.22 18.40 19.22 18.68
f Formula. r Retrospective. s Spot. p Posting.
FAR EAST N. AMERICA

China r Malaysia r Brunei r Papua US p
Tapis Miri New Guinea s West Texas
1996 Daqing Blend Labuan Light Seria Champion Kutubu Int.
Sept. 20.70 23.01 21.19 22.91 22.20 22.00 21.20 23.13
Aug. 19.13 21.19 21.29 21.09 21.05 20.85 20.90 21.05
July 19.23 20.86 20.96 20.76 21.10 20.90 19.84 20.95
June 18.88 20.66 20.76 20.56 20.55 20.35 19.60 19.75
May 18.59 20.58 20.68 20.48 20.60 20.40 19.48 18.50
April 19.00 21.25 21.35 21.15 21.75 21.55 19.48 20.00
March 18.89 21.61 21.71 20.95 21.65 21.45 19.93 19.70
Feb. 18.53 21.05 21.15 21.51 21.20 21.00 19.54 17.45
Jan. 19.01 20.89 20.99 20.79 20.85 20.65 19.67 17.83
1995
Dec. 18.07 19.72 19.82 19.62 19.10 18.90 18.65 17.81
Nov. 16.70 18.13 18.23 18.03 17.75 17.55 17.38 16.77
Oct. 16.11 17.35 17.46 17.26 17.35 17.15 16.63 16.15
Sept. 16.31 17.60 17.70 17.50 17.60 17.40 16.99 16.93
Aug. 16.21 17.51 17.61 17.41 17.55 17.35 17.04 16.25
July 15.96 17.51 17.61 17.41 17.90 17.70 16.89 16.02
June 17.12 18.91 19.01 18.81 19.40 19.20 17.90 17.23
May 18.21 19.80 19.90 19.70 19.90 19.70 18.89 18.44
April 18.11 19.57 19.67 19.47 18.85 18.65 18.70 18.63
March 17.85 19.09 19.19 18.99 19.35 19.15 17.83 17.27
Feb. 17.84 19.13 19.23 19.03 19.00 18.80 18.07 17.40
Jan. 16.85 18.46 18.56 18.36 18.05 17.85 17.30 16.80
1994
Dec. 15.94 17.60 17.70 17.50 17.55 17.35 17.30 15.90
Nov. 16.14 17.60 17.70 17.50 17.55 17.35 16.25 16.88
Oct. 16.03 18.05 18.15 17.95 18.00 17.80 16.30 16.56
Sept. 16.22 18.10 18.20 18.00 18.05 17.85 16.75 16.22
Aug. 18.16 19.35 19.45 19.20 19.35 19.15 17.70 17.06
July 17.84 18.65 18.75 18.55 18.50 18.30 17.95 18.49
June 16.15 17.30 17.40 17.20 17.20 17.00 16.85 17.88
May 15.22 16.70 16.80 16.60 16.65 16.55 15.80 16.67
April 14.26 15.85 15.95 15.75 15.75 15.65 15.15 15.03
March 13.81 16.10 16.20 16.00 15.70 15.60 15.70 13.37
Feb. 14.75 16.55 16.65 15.65 16.45 16.35 15.25 13.30
Jan. 14.44 15.70 15.80 15.60 15.60 15.50 14.78 13.35
1993
Dec. 13.75 16.05 16.15 15.95 15.95 15.85 14.47 12.86
Nov. 15.27 17.70 17.80 17.60 17.60 17.50 15.74 15.07
Oct. 16.31 18.30 18.40 18.20 18.20 18.10 16.90 16.56
Sept. 16.36 18.95 19.05 18.85 18.80 18.70 17.02 15.83
Aug. 17.12 18.95 19.05 18.85 18.85 18.75 17.64 17.10
July 17.27 18.95 19.05 18.85 18.85 18.75 17.76 16.19
June 18.53 19.70 19.60 19.40 19.60 19.50 18.19 17.56
May 19.14 20.55 20.45 20.25 20.35 20.25 19.18 18.49
April 19.17 21.00 20.90 20.70 20.90 20.80 20.04 18.87
March 18.77 20.35 20.25 20.05 20.25 20.15 20.08 18.96
Feb. 17.77 19.30 19.20 19.00 19.10 19.00 19.19 18.75
Jan. 17.82 19.50 19.40 19.20 19.40 19.30 18.86 17.77
NORTH AMERICA
US p Canada p Mexico f
West Texas ANS ANS Louisiana Light Alberta Isthmus
1996 Sour (Gulf) (Calif.) Sweet Wilmington Lloydminster Light (W. Hemis.)
Sept. 21.94 ... 21.20 23.23 22.00 19.00 24.34 22.56
Aug. 19.80 ... 19.10 21.10 20.00 17.40 22.62 20.50
July 19.95 ... 19.20 21.10 19.15 15.56 19.70 19.63
June 17.75 ... 19.05 19.00 19.30 16.00 19.00 18.68
May 16.50 ... 22.16 18.00 19.30 16.00 19.00 19.64
April 18.00 ... 20.35 19.25 19.30 15.30 19.75 21.58
March 17.70 17.98 17.80 18.35 15.30 14.30 19.25 19.94
Feb. 15.45 17.60 17.29 18.07 15.30 13.72 18.95 17.87
Jan. 15.83 17.59 17.01 17.83 14.15 13.35 17.78 17.51
1995
Dec. 15.81 16.50 15.88 17.81 14.15 13.52 18.58 17.42
Nov. 14.77 15.91 15.94 16.77 13.65 13.74 17.32 16.27
Oct. 14.15 16.66 16.66 16.15 14.95 12.26 17.01 15.57
Sept. 14.93 16.83 16.68 16.93 14.95 13.75 18.91 16.19
Aug. 15.00 16.26 16.26 16.25 14.95 14.15 18.50 16.07
July 14.30 17.34 17.44 16.02 14.95 13.52 17.95 15.69
June 15.23 18.66 18.36 17.23 14.95 14.70 17.59 16.73
May 16.44 18.81 18.37 18.44 15.30 16.70 18.63 18.33
April 16.63 17.40 17.28 18.63 15.30 17.70 19.15 18.53
March 15.27 17.42 17.15 17.27 14.30 16.00 17.70 16.84
Feb. 15.40 16.86 16.20 17.70 14.30 15.75 17.69 16.80
Jan. 14.80 15.94 15.46 17.26 13.30 15.18 18.09 16.36
1994
Dec. 13.90 16.81 16.65 16.40 13.30 14.15 17.26 16.18
Nov. 14.88 15.90 16.00 17.32 13.65 14.73 18.23 16.87
Oct. 14.56 15.99 16.12 16.56 13.85 14.32 17.80 15.86
Sept. 14.22 16.88 16.70 16.15 13.65 13.59 17.57 15.77
Aug. 15.07 17.47 16.54 16.74 13.85 14.77 18.53 15.94
July 16.49 16.88 16.45 17.85 13.20 16.09 19.76 17.34
June 15.88 16.82 16.41 17.67 13.35 15.60 19.18 16.75
May 14.67 15.54 14.90 16.92 13.20 14.38 17.95 16.19
April 13.03 13.70 12.88 15.28 11.10 12.64 16.34 14.92
March 11.37 13.68 12.59 13.45 10.50 10.45 14.40 13.10
Feb. 11.08 13.31 11.65 13.33 9.65 10.02 14.50 12.35
Jan. 11.14 12.28 10.38 13.35 10.15 10.24 14.54 12.73
1993
Dec. 10.61 14.32 13.10 12.86 9.10 9.78 14.24 12.11
Nov. 12.82 16.02 15.44 15.07 9.75 12.08 16.49 13.58
Oct. 14.31 15.57 15.00 16.56 11.90 13.62 17.94 15.25
Sept. 13.58 16.22 15.45 15.83 11.90 12.47 17.20 15.19
Aug. 14.95 15.89 14.89 17.10 12.40 12.68 17.73 15.18
July 13.94 17.00 16.05 16.19 11.90 12.48 17.62 15.41
June 15.31 17.99 17.45 17.56 12.40 13.94 19.00 16.38
May 16.24 18.30 18.21 18.49 14.50 14.52 19.66 17.59
April 16.62 18.34 17.37 18.87 14.50 14.67 19.93 17.81
March 16.71 17.90 16.78 18.96 13.47 ... 19.91 17.87
Feb. 16.50 16.59 15.61 18.75 12.89 ... 19.82 17.53
Jan. 15.51 17.19 16.33 17.88 12.60 ... 18.67 16.57
NORTH AMERICA
Mexico f
Isthmus Isthmus Isthmus Maya Maya Maya Maya Olmeca
1996 (Europe) (Far East) (Average)* (W. Hemis.) (Europe) (Far East) (Average)*
Sept. 21.53 21.10 ... 19.21 19.03 17.85 ... 23.52
Aug. 19.92 19.38 19.69 17.11 16.55 16.38 17.15 21.31
July 18.60 18.65 19.11 16.08 14.77 15.35 15.98 20.41
June 17.58 18.00 18.09 15.77 13.70 15.20 14.89 19.44
May 18.48 17.85 18.66 15.98 14.90 15.20 15.36 20.29
April 19.17 18.52 19.76 18.00 16.19 15.87 16.69 22.07
March 20.09 17.71 19.96 16.53 16.58 15.21 16.54 20.58
Feb. 18.42 16.82 17.94 15.07 15.44 14.47 15.12 18.47
Jan. 16.47 17.37 17.37 14.67 13.88 15.12 14.57 18.35
1995
Dec. 17.91 17.61 17.48 15.18 15.56 15.56 15.23 18.38
Nov. 15.76 16.24 16.20 13.53 12.95 13.99 13.45 17.31
Oct. 15.03 15.47 15.46 13.01 12.47 13.12 12.90 16.60
Sept. 15.09 16.19 16.04 13.54 13.48 13.80 13.54 16.92
Aug. 15.50 16.12 16.00 13.44 13.28 13.52 13.41 16.69
July 14.96 15.84 15.60 13.28 12.91 13.49 13.22 16.36
June 15.71 16.10 16.49 14.86 12.99 12.99 14.39 17.44
May 17.68 18.09 18.19 16.26 15.61 16.04 15.83 18.97
April 18.16 18.38 18.45 16.08 15.88 ... ... 19.10
March 16.82 17.31 16.86 14.84 15.17 14.91 14.91 17.46
Feb. 17.13 17.59 16.91 14.78 15.50 ... ... 17.37
Jan. 17.05 17.04 16.53 14.02 15.32 ... ... 17.10
1994
Dec. 16.44 16.98 16.27 13.84 15.53 14.08 14.19 16.83
Nov. 15.78 17.03 16.66 14.08 14.41 13.93 14.14 17.15
Oct. 15.86 16.37 15.89 13.63 14.60 ... ... 16.83
Sept. 15.41 16.20 15.72 12.37 12.78 16.34
Aug. 14.82 16.93 15.77 12.95 12.05 17.07
July 17.27 17.40 17.33 14.74 14.72 14.50 14.61 18.18
June 17.22 16.77 16.85 13.85 14.28 13.32 13.80 17.57
May 15.98 15.57 16.12 12.56 13.01 16.95
April 15.07 14.67 14.94 11.76 12.32 10.72 11.52 15.78
March 14.54 13.20 13.42 10.19 10.97 9.20 9.98 13.97
Feb. 12.79 13.67 12.95 9.57 10.33 9.15 9.92 13.25
Jan. 13.67 14.04 13.33 9.83 9.71 9.14 10.22 13.85
1993
Dec. 12.50 13.16 12.37 9.07 8.88 9.31 9.04 13.49
Nov. 13.80 14.73 13.81 9.99 9.09 10.03 9.81 15.04
Oct. 14.53 15.73 15.14 11.54 10.12 11.13 11.24 16.73
Sept. 15.01 15.12 15.13 11.86 10.10 10.32 11.43 16.30
Aug. 14.37 15.78 15.07 11.74 9.75 10.68 11.29 16.76
July 14.81 15.55 15.28 11.59 9.71 ... 11.03 16.68
June 14.65 16.77 16.01 11.71 9.26 11.62 11.22 17.81
May 16.29 17.15 17.20 12.93 10.21 12.00 12.34 18.94
April 17.85 17.45 17.77 13.66 11.61 12.34 13.05 19.14
March 16.91 17.44 17.57 13.36 11.80 12.09 12.98 19.18
Feb. 16.98 17.26 17.35 12.90 11.57 11.76 12.58 19.04
Jan. 16.07 16.37 16.42 12.33 10.71 11.27 11.95 17.92
SOUTH AMERICA
Venezuela Colombia f Ecuador f
Bachaquero p BCF-17 p BCF-21.9 p Furrial f Cano Limon Cusiana Oriente
1996 (US) (US) (US) (US)
Sept. ... 17.80 18.43 21.69 22.19 23.74 20.63
Aug. ... 17.19 17.00 19.70 20.00 21.60 18.62
July ... 14.56 14.47 19.12 19.37 20.87 18.05
June ... 16.25 16.88 18.56 18.71 20.16 16.55
May ... 17.19 17.82 19.69 20.09 21.09 19.36
April ... 18.58 19.25 22.12 22.52 23.67 19.54
March ... 16.58 17.21 20.17 20.32 19.90 17.63
Feb. ... 14.24 14.87 17.88 17.93 18.05 15.30
Jan. ... 15.25 15.88 17.57 17.67 18.05 14.81
1995
Dec. ... 14.00 14.73 16.60 17.55 18.63 14.73
Nov. ... 13.34 13.93 15.79 16.39 17.49 13.64
Oct. ... 13.16 13.79 15.24 15.74 16.78 13.68
Sept. 12.30 13.56 14.19 15.80 16.50 17.45 14.43
Aug. 12.84 13.44 14.08 15.58 16.37 17.45 14.59
July 13.15 13.93 14.46 14.52 15.72 16.62 14.03
June 14.29 15.73 16.26 15.71 16.84 ... 15.12
May 15.22 16.88 17.49 16.92 18.14 ... 16.38
April 14.86 16.09 16.95 ... 18.24 ... 16.47
March 13.77 15.04 16.07 ... 16.97 ... 15.14
Feb. 13.13 14.63 15.66 ... 16.81 ... 15.21
Jan. 12.57 14.01 15.04 ... 16.31 ... 14.73
1994
Dec. 12.58 13.90 14.84 ... 15.17 ... 13.68
Nov. 12.78 14.75 15.78 ... 16.09 ... 14.42
Oct. 12.09 13.16 14.19 ... 15.76 ... 13.58
Sept. 10.92 12.17 13.20 ... 15.45 ... 13.64
Aug. 11.21 12.40 13.38 ... 16.41 ... 14.73
July 12.93 14.23 15.39 ... 17.16 ... 15.31
June 12.25 13.67 14.98 ... 16.70 ... 14.77
May 11.87 12.88 14.19 ... 16.54 ... 14.68
April 10.53 11.61 12.85 ... 14.97 ... 13.31
March 9.21 9.97 11.27 ... 12.67 ... 11.58
Feb. 9.46 10.29 11.60 ... 12.35 ... 11.49
Jan. 9.03 9.74 11.01 ... 12.68 ... 11.23
1993
Dec. 8.93 9.63 10.78 ... 12.11 ... 10.18
Nov. 10.31 11.02 12.33 ... 14.07 ... 12.07
Oct. 11.63 12.58 13.89 ... 15.73 ... 13.88
Sept. 11.30 12.08 13.30 ... 14.88 ... 13.41
Aug. 11.30 12.25 13.64 ... 15.28 ... 14.16
July 10.68 11.48 12.87 ... 14.99 ... 13.66
June 11.63 12.63 14.02 ... 16.64 ... 14.84
May 12.46 13.46 14.85 ... 17.55 ... 15.77
April 12.29 13.29 14.89 ... 17.79 ... 16.42
March 12.29 13.43 15.01 ... 17.87 ... 16.59
Feb. 11.85 12.75 14.14 ... 17.58 ... 16.52
Jan. 11.44 12.21 13.39 ... 16.43 ... 15.20
SCORECARD UPDATE 4TH QUARTER 1996

OF KEY FORMULA PRICED CRUDES IN PRIMARY WORLD MARKETS
Arab Arab Arab Arab Arab Arab Arab Arab
Point Extra Light Light Medium Heavy Extra Light Light Medium Heavy
Of Sale: (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (Sidi Kerir) (Sidi Kerir) (Sidi Kerir) (Sidi Kerir)
Dec. 24.08 23.17 22.08 21.55 23.58 22.73 21.53 20.98
Nov. 22.90 22.09 21.17 20.75 22.66 21.91 20.66 20.06
Oct. 24.07 23.29 22.41 22.03 23.99 23.14 22.19 21.74
Sept. 22.24 21.47 20.54 20.20 22.25 21.45 20.55 20.15
Aug. 20.49 19.76 18.90 18.58 20.26 19.46 18.56 18.16
July 19.89 19.29 18.57 18.27 19.50 18.70 17.80 17.40
Kuwait Iran Iran Nigeria Nigeria Libya Market Link:

Of Sale: (f.o.b.) (c.i.f.) (c.i.f.) (f.o.b.) (f.o.b.) (f.o.b.) (Sullom Voe)
Dec. 22.08 23.13 22.33 25.24 25.25 24.58 23.80
Nov. 21.17 22.21 21.41 24.45 24.46 23.35 22.75
Oct. 22.41 23.44 22.64 25.08 24.97 24.52 24.15
Sept. 20.58 21.85 21.05 23.05 22.82 22.96 22.55
Aug. 18.93 19.86 19.06 21.19 20.94 20.97 20.55
July 18.58 18.95 18.15 20.69 20.43 20.19 19.60

Arab Arab Arab Arab Arab Arab Arab Arab Kuwait
Of Sale: (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (c.i.f.) (c.i.f.) (c.i.f.) (c.i.f.) (c.i.f.)
Dec. 23.23 22.40 21.53 20.98 24.20 23.35 22.50 21.90 22.50
Nov. 22.50 21.76 20.95 20.46 22.65 22.00 21.10 20.45 21.10
Oct. 23.64 22.98 22.27 21.85 23.81 23.01 22.16 21.61 22.16
Sept. 22.99 22.37 21.70 21.28 22.53 21.78 20.98 20.48 20.98
Aug. 21.11 20.47 19.70 19.18 20.75 20.10 19.45 19.05 19.45
July 20.56 19.92 19.09 18.52 20.26 19.61 18.86 18.36 18.86
Nigeria Nigeria Mexico Mexico Mexico Col. Cano Ecuador Market Link:
Point Bonny Lt. Forcados Isthmus Maya Olmeca Limon Oriente WTI
Of Sale: (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (Cushing)
Dec. 25.06 25.13 23.89 19.84 25.28 24.49 21.64 25.10
Nov. 24.33 24.40 22.71 19.46 23.89 23.01 20.02 23.55
Oct. 25.01 24.96 24.04 21.34 25.18 24.02 21.05 24.90
Sept. 23.01 22.84 22.48 19.19 23.47 22.41 21.10 23.90
Aug. 21.19 21.00 20.58 17.22 21.40 20.48 19.40 21.90
July 20.64 20.43 19.90 16.43 20.75 20.11 19.20 21.25
TO SINGAPORE (Delivered)
Arab Arab Arab Arab Arab Iran Iran Market Links (f.o.b.):
Point Super Lt. Ex. Lt. Light Medium Heavy Light Heavy Dubai Oman
Of Sale: (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) Fateh Spot
Dec. 24.77 23.93 22.92 21.95 21.16 22.61 21.86 21.65 22.05
Nov. 24.47 23.50 22.69 21.77 21.05 22.40 21.68 20.95 21.30
Oct. 23.79 22.82 21.98 20.99 20.30 21.72 20.90 21.75 21.95
Sept. 22.15 21.34 20.50 19.46 18.88 20.25 19.38 20.30 20.80
Aug. 21.19 20.53 19.69 18.60 18.04 19.44 18.52 18.55 19.10
July 20.42 19.76 18.93 17.90 17.39 18.67 17.82 17.75 18.45

MIDEAST
Saudi Arabia f
(Far East) (Europe) (US) (Far East) (Average)* (Europe) (US) (Far East)
Dec. 24.82 ... ... 23.92 ... ... ... 22.82
Nov. 23.84 23.41 23.55 22.99 23.17 22.51 22.70 22.04
Oct. 24.33 22.27 22.12 23.33 22.89 21.41 21.32 22.48
Sept. 22.38 22.36 21.15 21.38 21.65 21.55 20.40 20.53
Aug. 21.06 21.60 21.62 20.36 20.76 20.79 20.96 19.51
July 20.23 19.92 20.48 19.53 19.74 19.11 19.82 18.68
Saudi Arabia f
(Average)* (Europe) (US) (Far East) (Average)* (Europe) (US) (Far East)
Dec. ... ... ... 21.77 ... ... ... 20.92
Nov. 22.32 21.26 21.80 21.14 21.34 20.66 21.15 20.39
Oct. 21.92 20.45 20.47 21.53 21.00 20.00 19.92 20.83
Sept. 20.67 20.65 19.59 19.48 19.77 20.24 19.09 18.78
Aug. 20.35 19.88 20.31 18.46 19.60 19.47 19.90 17.97
July 19.28 18.20 19.06 17.53 18.43 17.79 18.56 16.88
Saudi Arabia f Iran f Iraq

Heavy Light Light Light Heavy Heavy Heavy Kirkuk
(Average)* (Europe) (Far East) (Average)* (Europe) (Far East) (Average)* (US)
Dec. ... 22.59 22.48 22.54 22.09 21.65 21.89 22.42
Nov. 20.84 21.77 21.71 21.74 21.27 21.03 21.16 ...
Oct. 20.17 22.78 22.19 22.52 22.25 21.41 21.88 ...
Sept. 19.26 21.49 20.24 20.93 20.96 19.36 20.24 ...
Aug. 19.43 19.68 19.23 19.48 19.01 18.35 18.71 ...
July 18.07 18.13 18.40 18.25 17.28 17.42 17.34 ...
Iraq Kuwait f Neutral Zone f Abu Dhabi r

Kirkuk Basrah Kuwait Kuwait Kuwait Khafji Umm
(Europe) (Far East) (Europe) (US) (Far East) (Far East) Murban Shaif
Dec. 22.25 22.05 ... ... 21.67 20.92 24.20 23.95
Nov. ... ... 21.26 ... 21.04 20.39 23.10 22.85
Oct. ... ... 20.45 ... 21.43 20.83 23.80 23.55
Sept. ... ... 20.65 ... 19.38 18.78 22.30 22.00
Aug. ... ... 19.88 ... 18.36 17.97 20.45 20.15
July ... ... 18.20 ... 17.43 16.88 19.55 19.25
Abu Dhabi r Dubai s Qatar f Oman r Yemen f

Upper Marine Dukhan Marib
Zakum Zakum Fateh (Far East) (Far East) Oman (Average)* Masila
Dec. 24.25 22.10 21.65 22.41 22.48 22.82 23.68 23.33
Nov. 23.15 21.20 20.95 22.42 22.49 21.80 22.99 22.64
Oct. 23.85 21.95 21.75 21.73 21.81 22.50 23.94 23.59
Sept. 22.35 20.55 20.30 21.66 21.75 21.20 22.45 22.10
Aug. 20.50 18.75 18.55 19.84 19.93 19.60 20.46 20.11
July 19.65 17.85 17.75 18.96 19.05 18.77 19.55 19.20


WEST AFRICA
Nigeria Angola s Gabon s
Bonny Bonny Brass Qua
Light Forcados Medium River Escravos Iboe Cabinda Mandji
Dec. 24.54 24.61 24.49 24.50 24.49 24.52 23.00 22.15
Nov. 23.85 23.92 23.85 23.85 23.82 23.85 21.30 20.80
Oct. 24.24 24.24 24.16 24.26 24.20 24.24 22.85 22.25
Sept. 23.29 23.09 22.96 23.33 23.26 23.29 21.70 20.90
Aug. 21.27 21.10 20.88 21.30 21.23 21.27 20.00 18.75
July 19.89 19.59 19.47 19.93 19.85 19.89 19.10 17.95
MEDITERRANEAN
Algeria s Libya f Egypt p
Suez
Saharan Es Sider Sarir Amna Brega Siritca Zueitina Blend
Dec. 24.65 23.98 23.33 23.28 24.28 24.03 24.33 21.53
Nov. 23.45 22.89 22.29 22.24 23.24 22.94 23.24 20.71
Oct. 24.80 24.00 23.50 23.45 24.40 23.95 24.40 21.99
Sept. 23.05 22.42 22.07 22.02 22.87 22.47 22.87 20.30
Aug. 20.90 20.41 20.06 20.01 20.86 20.46 20.86 18.16
July 20.15 19.50 19.15 19.10 19.95 19.55 19.95 17.15

Egypt p Syria USSR s UK s
Belayim Gharib Ras Urals Brent
Blend Blend Budran Souedieh Light f (c.i.f.) Blend Forties
Dec. 20.68 19.88 20.38 19.16 23.86 23.25 23.80 24.20
Nov. 19.66 18.81 19.46 19.32 23.17 22.05 22.75 22.90
Oct. 21.14 20.14 20.94 21.18 24.18 23.35 24.15 24.45
Sept. 19.55 18.55 19.35 20.01 22.46 21.65 22.55 22.70
Aug. 17.51 16.51 17.31 17.90 20.25 19.70 20.55 20.75
July 16.45 15.35 16.25 16.57 18.84 18.55 19.60 19.90
NORTH EUROPE FAR EAST

Norway s USSR s Indonesia p
Urals
Ekofisk Statfjord (c.i.f.) Minas Duri Cinta Handil Widuri
Dec. 24.15 24.30 23.40 23.11 21.56 22.37 22.84 22.30
Nov. 22.85 22.90 22.15 22.60 21.07 21.87 22.34 21.80
Oct. 24.35 24.40 23.45 23.12 21.54 22.40 22.90 22.33
Sept. 22.65 22.60 22.05 21.02 19.46 20.43 20.90 20.35
Aug. 20.75 20.70 20.00 19.49 17.97 19.01 19.43 18.93
July 20.00 19.95 18.95 19.71 18.18 19.11 19.45 19.05
FAR EAST
Indonesia p China r Malaysia r Brunei r
Arun Tapis Miri
Ardjuna Attaka Cond. Daqing Blend Labuan Light Seria
Dec. 23.13 23.94 23.02 22.60 25.44 25.54 25.34 25.25
Nov. 22.73 23.58 22.64 22.05 25.06 25.16 24.96 26.20
Oct. 23.38 24.22 23.22 22.61 25.70 25.80 25.60 24.80
Sept. 21.21 22.07 21.04 20.70 23.01 23.11 22.91 22.20
Aug. 19.68 20.21 19.41 19.13 21.19 21.29 21.09 21.05
July 19.68 20.21 19.36 19.23 20.86 20.96 20.76 21.10


FAR EAST NORTH AMERICA

Brunei r Papua US p
New Guinea West Texas West Texas ANS ANS Louisiana Light
Champion Kutubu Int. Sour (Gulf) (Calif.) Sweet Wilmington
Dec. 25.05 22.55 23.84 21.84 ... 21.36 24.46 19.13
Nov. 26.00 22.19 22.38 20.38 ... 22.61 23.18 17.47
Oct. 24.60 24.10 23.71 21.71 ... 21.70 24.44 18.14
Sept. 22.00 21.20 23.13 21.94 ... 21.20 23.23 16.83
Aug. 20.85 20.90 21.05 19.80 ... 19.10 21.10 15.31
July 20.90 19.84 20.95 19.95 ... 19.20 21.10 15.15
NORTH AMERICA
Canada p Mexico (Formula, Retrospective) c
Alberta Isthmus Isthmus Isthmus Isthmus Maya Maya
Lloydminster Light (W. Hemis.) (Europe) (Far East) (Average)* (W. Hemis.) (Europe)
Dec. 19.88 24.41 23.75 22.77 22.60 23.32 19.45 18.95
Nov. 18.69 22.80 22.29 21.91 21.72 22.09 19.06 18.46
Oct. 20.80 24.62 23.53 23.39 22.40 23.28 20.93 20.35
Sept. 19.00 24.34 22.56 21.53 21.10 22.06 19.21 19.03
Aug. 17.40 22.62 20.50 19.92 19.38 19.93 17.11 16.55
July 15.56 19.70 19.63 18.60 18.65 19.11 16.08 14.77
NORTH AMERICA SOUTH AMERICA

Mexico (Formula, Retrospective) c Venezuela p
Maya Maya Furrial
(Far East) (Average)* Olmeca Bachaquero (US) BCF-17 BCF-21.9
Dec. 18.95 19.29 25.04 ... 23.36 21.15 22.08
Nov. 18.42 18.87 23.54 ... 21.82 21.15 22.08
Oct. 19.25 20.64 24.77 ... 22.98 20.87 21.80
Sept. 17.85 19.04 23.52 ... 21.69 17.80 18.43
Aug. 16.38 16.92 21.31 ... 19.70 17.19 17.00
July 15.35 15.98 20.41 ... 19.12 14.56 14.47
SOUTH AMERICA
Colombia f Ecuador f
Cano Limon Cusiana Oriente
(US) (US) (US)
Dec. 23.60 25.45 22.26
Nov. 22.42 24.12 20.54
Oct. 23.33 24.83 21.61
Sept. 22.19 23.74 20.63
Aug. 20.00 21.60 18.62
July 19.37 20.87 18.05

How Term-Contract Prices Are Calculated

Term-contract formulas generally have four basic components: the point of sale, a
market-related benchmark, an adjustment factor for differences related to crude oil
quality and point of sale, and a timing mechanism stipulating when the value of the
formula is to be calculated. The adjustment factor in the formula is applied to a spot-mar-
ket or other benchmark, say dated Brent, at a designated time relative to the loading of the
cargo. In many formulas, the snapshot of the benchmark grades value is taken on or
around the day of loading. In other cases, the trigger point is set to reflect the transit time
to the end-users market.
A PROFILE OF THE LATEST CRUDE OIL PRICE FORMULAS
TO EUROPE Current Price Timing
Point Market From Loading Adjustment Factors
Country/Crude Oil Of Sale Link a (In Days) b Jan. Dec. Nov.
Saudi Arabia Extra Light f.o.b. Brent 40 -1.00 -1.00 -0.70
Light f.o.b. Brent 40 -1.85 -1.60 -1.70
Medium f.o.b. Brent 40 -3.05 -3.05 -2.85
Heavy f.o.b. Brent 40 -3.60 -3.60 -3.45
Extra Light Sidi Kerir Brent 0 -0.30 -0.30 0.00
Light Sidi Kerir Brent 0 -1.15 -1.15 -0.90
Medium Sidi Kerir Brent 0 -2.35 -2.35 -2.15
Heavy Sidi Kerir Brent 0 -2.90 -2.90 -2.75
Kuwait f.o.b. Brent 40 -3.05 -3.05 -2.85
Iran Light Rotterdam Brent Delivery c -0.75 -0.75 -0.60
Heavy Rotterdam Brent Delivery c -1.55 -1.55 -1.40
Light f.o.b. Brent 0 -1.30 -1.30 -1.25
Heavy f.o.b. Brent 0 -1.80 -1.80 -1.75
Iraq Kirkuk Ceyhan Brent 5 -1.55 -1.55 ...
Yemen Marib f.o.b. Brent 0 -0.30 -0.20 -0.20
Masila f.o.b. Brent 0 -0.97 -0.55 -0.55
Nigeria Bonny Light f.o.b. Brent 5 +0.50 +0.45 +0.63
Bonny Medium f.o.b. Brent 5 +0.50 +0.40 +0.63
Forcados f.o.b. Brent 5 +0.60 +0.50 +0.70
Qua Iboe f.o.b. Brent 5 +0.50 +0.43 +0.63
Brass River f.o.b. Brent 5 +0.38 +0.41 +0.63
Escravos f.o.b. Brent 5 +0.38 +0.40 +0.60
Libya Es Sider f.o.b. Brent 0 +0.10 +0.10 +0.10
Sarir f.o.b. Brent 0 -0.55 -0.55 -0.50
Amna f.o.b. Brent 0 -0.60 -0.60 -0.55
Brega f.o.b. Brent 0 +0.40 +0.40 +0.45
Sirtica f.o.b. Brent 0 +0.15 +0.15 +0.15
Zueitina f.o.b. Brent 0 +0.40 +0.45 +0.45
Syria Light f.o.b. Brent 5 -0.35 -0.05 -0.05
Souedieh f.o.b. Brent 5 -4.75 -4.75 -3.90
Egypt Suez Blend f.o.b. Brent 0 -2.10 -2.35 -2.10
Belayim Blend f.o.b. Brent 0 -3.35 -3.20 -3.15
Gharib Blend f.o.b. Brent 0 -4.20 -4.00 -4.00
Ras Budran f.o.b. Brent 0 -3.65 -3.50 -3.35
Mexico Isthmus f.o.b. ((DBx0.887+ 0 -0.06 -0.06 0.06
(3.5%FOx0.113)-
(0.16x(1%FO-3.5%FO))
Maya f.o.b. ((DBx0.527)+ 0 -1.75 -1.60 -1.40
(3.5%FOx0.467)-
(0.25x(1%FO-3.5%FO)))
A PROFILE OF THE LATEST CRUDE OIL PRICE FORMULAS (cont.)

TO FAR EAST Current Price Timing
Saudi Arabia Super Light f.o.b. (O+D)/2 0 +2.75 +2.75 +2.40
Extra Light f.o.b. (O+D)/2 0 +2.00 +1.85 +1.55
Light f.o.b. (O+D)/2 0 +0.75 +0.75 +0.60
Medium f.o.b. (O+D)/2 0 -0.30 -0.30 -0.30
Heavy f.o.b. (O+D)/2 0 -1.15 -1.15 -1.05
Iran Light f.o.b. O+((77¢-(O-D))/2) 0 +0.08 +0.03 +0.12
Heavy f.o.b. D-((77¢-(O-D))/2) 0 -0.03 -0.03 -0.03
Kuwait f.o.b. (O+D)/2 0 -0.40 -0.40 -0.40
Neutral Zone Khafji f.o.b. (O+D)/2 0 -1.15 -1.15 -1.05
Qatar Dukhan f.o.b. Oman MPM 0 ... +0.68 +0.69
Marine f.o.b. Oman MPM 0 ... +0.61 +0.62
Iraq Basrah f.o.b. (O+D)/2 0 0.20 0.20 ...
Yemen Marib f.o.b. Brent 0 -0.30 -0.20 -0.20
Masila f.o.b. Brent 0 -0.97 -0.55 -0.55
Mexico Isthmus f.o.b. (O+D)/2 0 +0.75 +0.75 +0.60
Maya f.o.b. (O+D)/2 0 -3.20 -2.90 -2.70
TO UNITED STATES Current Price Timing

Saudi Arabia Extra Light f.o.b. WTI 50 -1.90 -2.10 -2.00
Light f.o.b. WTI 50 -2.80 -2.95 -2.85
Medium f.o.b. WTI 50 -3.65 -3.80 -3.75
Heavy f.o.b. WTI 50 -4.25 -4.40 -4.40
Extra Light US Gulf WTI Delivery c -0.70 -0.90 -0.80
Light US Gulf WTI Delivery c -1.60 -1.75 -1.65
Medium US Gulf WTI Delivery c -2.45 -2.60 -2.55
Heavy US Gulf WTI Delivery c -3.05 -3.20 -3.20
Kuwait US Gulf WTI Delivery c -2.45 -2.60 -2.55
Iraq Basrah f.o.b. ... 15 -3.60 -3.75 ...
Iraq Kirkuk Ceyhan ... 10 -2.85 -3.00 ...
Nigeria Bonny Light f.o.b. Brent 5 +0.50 +0.45 +0.63
Bonny Medium f.o.b. Brent 5 +0.50 +0.40 +0.63
Forcados f.o.b. Brent 5 +0.60 +0.50 +0.70
Qua Iboe f.o.b. Brent 5 +0.50 +0.43 +0.63
Brass River f.o.b. Brent 5 +0.38 +0.41 +0.63
Escravos f.o.b. Brent 5 +0.38 +0.40 +0.60
Mexico Isthmus f.o.b. (0.4x(WTS+LLS))+ 0 -1.00 -0.90 -1.00
(0.2xDB)
Maya f.o.b. (0.4x(WTS+3%FO)) + 0 -1.75 -1.75 -1.60
(0.1x(LLS+DB))
Olmeca f.o.b. (WTS+LLS+DB)/3 0 +0.45 +0.45 +0.30
Colombia Cano Limon f.o.b. WTI 0 -1.40 -1.50 -1.45
Cusiana f.o.b. WTI 0 +0.40 +0.35 +0.25
Ecuador Oriente d f.o.b. WTS 0 -3.41 -3.41 -3.41
Venezuela Furrial f.o.b. WTI 0 -2.00 -2.15 -2.05
a Abbreviations used in defining market linkage: Brent and DB: Dated Brent; FO: Residual fuel oil in market of crude oil sale with
percentage referring to sulfur content; O: Oman spot price; D: Dubai spot price; Oman MPM: Oman official posting; WTI: West
Texas Intermediate spot price at Cushing; WTS: West Texas Sour spot price; LLS: Light Louisiana Sweet spot price. b The mar-
ket linkage is calculated at the time indicated below based on an average over a period of days. For Europe, averages are usu-
ally a 5-day period, except for Saudi f.o.b. sales which are 10 days. For Far East sales, all averages are for the calendar month
of loading. For US sales, the averages are usually for 5 days. c Delivery: Price triggered on day that the crude oil is unloaded
in the buyers regional market. d Ecuador changed from WTI to WTS linkage in Nov. 1996.
SCORECARD UPDATE 1ST QUARTER 1997

OF KEY FORMULA PRICED CRUDES IN PRIMARY WORLD MARKETS
Arab Arab Arab Arab Arab Arab Arab Arab
Point Extra Light Light Medium Heavy Extra Light Light Medium Heavy
Of Sale: (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (Sidi Kerir) (Sidi Kerir) (Sidi Kerir) (Sidi Kerir)
March 19.24 18.40 17.12 16.54 18.77 17.87 16.57 15.92
Feb. 21.38 20.55 19.37 18.84 20.70 19.75 18.45 17.80
Jan. 23.67 22.82 21.63 21.08 23.17 22.32 21.12 20.57
Dec. 24.03 23.18 22.03 21.50 23.56 22.71 21.51 20.96
Nov. 22.90 22.09 21.17 20.75 22.66 21.91 20.66 20.06
Oct. 24.07 23.29 22.41 22.03 23.99 23.14 22.19 21.74
Kuwait Iran Iran Nigeria Nigeria Libya Market Link:

Of Sale: (f.o.b.) (c.i.f.) (c.i.f.) (f.o.b.) (f.o.b.) (f.o.b.) (Sullom Voe)
March 17.12 17.72 17.17 21.11 21.07 19.69 19.10
Feb. 19.37 19.90 19.45 23.53 23.63 21.59 20.90
Jan. 21.63 22.72 22.02 25.16 25.21 24.18 23.55
Dec. 22.03 23.11 22.31 25.16 25.17 24.58 23.80
Nov. 21.17 22.21 21.41 24.45 24.46 23.35 22.75
Oct. 22.41 23.44 22.64 25.08 24.97 24.52 24.15

Arab Arab Arab Arab Arab Arab Arab Arab Kuwait
Of Sale: (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (c.i.f.) (c.i.f.) (c.i.f.) (c.i.f.) (c.i.f.)
March 20.26 19.35 18.50 17.89 19.95 18.95 17.90 16.90 17.90
Feb. 21.40 20.56 19.73 19.15 21.28 20.28 19.38 18.68 19.38
Jan. 24.34 23.52 22.67 22.07 24.43 23.53 22.68 22.08 22.68
Dec. 24.18 23.46 22.60 22.02 24.20 23.35 22.50 21.90 22.50
Nov. 22.50 21.76 20.95 20.46 22.65 22.00 21.10 20.45 21.10
Oct. 23.64 22.98 22.27 21.85 23.81 23.01 22.16 21.61 22.16
Nigeria Nigeria Mexico Mexico Mexico Col. Cano Ecuador Market Link:
Point Bonny Lt. Forcados Isthmus Maya Olmeca Limon Oriente WTI
Of Sale: (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (Cushing)
March 20.97 20.95 18.90 15.31 20.31 20.23 19.31 20.95
Feb. 23.43 23.55 20.88 16.45 22.51 22.18 21.72 22.15
Jan. 25.10 25.18 23.67 19.39 25.04 24.97 24.25 25.20
Dec. 24.98 25.05 23.87 19.83 25.24 23.41 23.06 25.10
Nov. 24.33 24.40 22.71 19.46 23.89 23.01 20.02 23.55
Oct. 25.01 24.96 24.04 21.34 25.18 24.02 21.05 24.90
TO SINGAPORE (Delivered)
Arab Arab Arab Arab Arab Iran Iran Market Links (f.o.b.):
Point Super Lt. Ex. Lt. Light Medium Heavy Light Heavy Dubai Oman
Of Sale: (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) (f.o.b.) Fateh Spot
March 22.25 21.36 20.00 18.98 18.14 19.74 18.92 18.10 18.95
Feb. 24.07 23.13 21.82 20.78 19.94 21.56 20.75 18.75 19.55
Jan. 25.10 24.31 23.14 22.10 21.26 22.86 22.04 21.45 21.75
Dec. 24.62 23.78 22.77 21.80 21.01 22.46 21.71 21.65 22.05
Nov. 24.47 23.50 22.69 21.77 21.05 22.40 21.68 20.95 21.30
Oct. 23.79 22.82 21.98 20.99 20.30 21.72 20.90 21.75 21.95

MIDEAST
Saudi Arabia f
(Far East) (Europe) (US) (Far East) (Average)* (Europe) (US) (Far East)
March 21.98 ... ... 20.48 ... ... ... 19.13
Feb. 22.31 17.17 17.66 21.28 19.81 16.22 16.65 19.88
Jan. 24.51 18.69 18.82 23.76 21.75 17.83 17.91 22.51
Dec. 24.79 21.43 20.96 23.89 22.86 20.57 20.10 22.79
Nov. 23.84 23.41 23.55 22.99 23.17 22.51 22.70 22.04
Oct. 24.33 22.27 22.12 23.33 22.89 21.41 21.32 22.48
Saudi Arabia f
(Average)* (Europe) (US) (Far East) (Average)* (Europe) (US) (Far East)
March ... ... ... 18.13 ... ... ... 17.28
Feb. 17.78 14.92 15.74 18.83 16.46 14.26 15.04 17.98
Jan. 19.51 16.63 17.06 21.46 18.29 16.08 16.45 20.61
Dec. 21.14 19.37 19.25 21.74 20.02 18.81 18.64 20.89
Nov. 22.32 21.26 21.80 21.14 21.34 20.66 21.15 20.39
Oct. 21.92 20.45 20.47 21.53 21.00 20.00 19.92 20.83
Saudi Arabia f Iran f Iraq

Heavy Light Light Light Heavy Heavy Heavy Kirkuk
(Average)* (Europe) (Far East) (Average)* (Europe) (Far East) (Average)* (US)
March ... 17.05 18.84 17.86 16.55 18.01 17.21 17.75
Feb. 15.47 19.05 19.60 19.30 18.55 18.78 18.65 19.05
Jan. 17.21 22.04 22.23 22.13 21.54 21.40 21.74 22.35
Dec. 19.13 22.60 22.46 22.53 22.10 21.63 21.89 22.42
Nov. 20.84 21.77 21.71 21.74 21.27 21.03 21.16 ...
Oct. 20.17 22.78 22.19 22.52 22.25 21.41 21.88 ...
Iraq Kuwait f Neutral Zone f Abu Dhabi r

Kirkuk Basrah Kuwait Kuwait Kuwait Khafji Umm
(Europe) (Far East) (Europe) (US) (Far East) (Far East) Murban Shaif
March 17.38 18.57 ... ... 18.03 17.28 20.05 19.80
Feb. 19.35 19.35 14.92 ... 18.73 17.98 20.85 20.60
Jan. 22.00 21.80 16.63 ... 21.36 20.61 23.75 23.50
Dec. 22.25 22.05 19.37 ... 21.64 20.89 24.20 23.95
Nov. ... ... 21.26 ... 21.04 20.39 23.10 22.85
Oct. ... ... 20.45 ... 21.43 20.83 23.80 23.55
Abu Dhabi r Dubai s Qatar f Oman r Yemen f

Upper Marine Dukhan Marib
Zakum Zakum Fateh (Far East) (Far East) Oman (Average)* Masila
March 20.10 18.25 18.10 19.36 19.50 19.10 18.72 18.05
Feb. 20.90 18.90 18.75 20.25 20.33 19.72 20.60 19.93
Jan. 23.80 21.65 21.45 23.09 23.16 22.50 23.18 23.50
Dec. 24.25 22.10 21.65 23.43 23.50 22.82 23.68 23.33
Nov. 23.15 21.20 20.95 22.42 22.49 21.80 22.99 22.64
Oct. 23.85 21.95 21.75 21.73 21.81 22.50 23.94 23.59


WEST AFRICA
Nigeria Angola s Gabon s
Bonny Bonny Brass Qua
Light Forcados Medium River Escravos Iboe Cabinda Mandji
March 19.26 19.15 19.03 19.27 19.20 19.26 17.65 16.55
Feb. 20.84 20.99 20.84 20.76 20.75 20.84 20.10 18.85
Jan. 23.69 23.79 23.69 23.57 23.57 23.69 22.80 21.85
Dec. 24.38 24.52 24.31 24.32 24.31 24.36 23.00 22.15
Nov. 23.85 23.92 23.85 23.85 23.82 23.85 21.30 20.80
Oct. 24.24 24.24 24.16 24.26 24.20 24.24 22.85 22.25
MEDITERRANEAN
Algeria s Libya f Egypt p
Suez
Saharan Es Sider Sarir Amna Brega Siritca Zueitina Blend
March 19.60 18.99 18.49 18.44 19.44 19.09 19.44 16.52
Feb. 21.70 20.94 20.29 20.24 21.29 21.04 21.29 18.80
Jan. 24.30 23.59 22.94 22.89 23.89 23.64 23.89 21.37
Dec. 24.65 23.98 23.33 23.28 24.28 24.03 24.33 21.51
Nov. 23.45 22.89 22.29 22.24 23.24 22.94 23.24 20.71
Oct. 24.80 24.00 23.50 23.45 24.40 23.95 24.40 21.99

Egypt p Syria USSR s UK s
Belayim Gharib Ras Urals Brent
Blend Blend Budran Souedieh Light f (c.i.f.) Blend Forties
March 15.42 14.67 15.22 13.88 18.18 17.85 19.10 19.20
Feb. 17.55 16.80 16.85 15.56 20.58 19.95 20.90 21.35
Jan. 20.12 19.27 19.82 18.44 22.84 22.60 23.55 23.95
Dec. 20.66 19.86 20.36 19.16 23.86 23.25 23.80 24.20
Nov. 19.66 18.81 19.46 19.32 23.17 22.05 22.75 22.90
Oct. 21.14 20.14 20.94 21.18 24.18 23.35 24.15 24.45
NORTH EUROPE FAR EAST

Norway s USSR s Indonesia p
Urals
Ekofisk Statfjord (c.i.f.) Minas Duri Cinta Handil Widuri
March 19.15 19.15 18.10 19.24 17.63 18.52 19.32 18.39
Feb. 21.25 21.25 20.05 21.36 19.80 20.65 21.13 20.54
Jan. 23.80 23.95 22.85 24.13 22.47 23.35 23.76 23.28
Dec. 24.15 24.30 23.40 23.11 21.56 22.37 22.84 22.30
Nov. 22.85 22.90 22.15 22.60 21.07 21.87 22.34 21.80
Oct. 24.35 24.40 23.45 23.12 21.54 22.40 22.90 22.33
FAR EAST
Indonesia p China r Malaysia r Brunei r
Arun Tapis Miri
Ardjuna Attaka Cond. Daqing Blend Labuan Light Seria
March 19.91 20.77 ... 18.88 23.39 22.54 22.49 22.95
Feb. 21.50 22.25 21.25 21.01 23.79 23.94 23.89 25.35
Jan. 24.10 24.91 23.83 23.75 26.23 26.38 26.33 26.75
Dec. 23.13 23.94 23.02 22.13 25.11 25.21 25.01 25.25
Nov. 22.73 23.58 22.64 22.05 25.06 25.16 24.96 26.20
Oct. 23.38 24.22 23.22 22.61 25.70 25.80 25.60 24.80


FAR EAST NORTH AMERICA

Brunei r Papua US p
New Guinea West Texas West Texas ANS ANS Louisiana Light
Champion Kutubu Int. Sour (Gulf) (Calif.) Sweet Wilmington
March 22.75 19.46 19.76 17.50 ... 21.07 19.66 15.45
Feb. 25.15 21.01 21.08 18.92 ... 23.63 21.36 17.09
Jan. 26.55 23.10 24.02 22.02 ... 23.50 24.19 19.80
Dec. 25.05 22.55 23.84 21.84 ... 21.36 24.46 21.10
Nov. 26.00 22.19 22.38 20.38 ... 22.61 23.18 20.00
Oct. 24.60 24.10 23.71 21.71 ... 21.70 24.44 21.60
NORTH AMERICA
Canada p Mexico (Formula, Retrospective) c
Alberta Isthmus Isthmus Isthmus Isthmus Maya Maya
Lloydminster Light (W. Hemis.) (Europe) (Far East) (Average)* (W. Hemis.) (Europe)
March 15.81 20.33 18.37 17.62 19.12 18.36 14.94 13.59
Feb. 17.10 21.45 20.12 19.78 19.90 19.97 15.69 15.69
Jan. 19.97 24.45 23.23 22.40 22.35 22.80 18.69 18.25
Dec. 19.88 24.41 23.75 22.77 22.60 23.32 19.45 18.95
Nov. 18.69 22.80 22.29 21.91 21.72 22.09 19.06 18.46
Oct. 20.80 24.62 23.53 23.39 22.40 23.28 20.93 20.35
NORTH AMERICA SOUTH AMERICA

Mexico (Formula, Retrospective) c Venezuela p
Maya Maya Furrial
(Far East) (Average)* Olmeca Bachaquero (US) BCF-17 BCF-21.9
March 15.22 14.67 19.83 ... 17.96 15.85 16.71
Feb. 15.95 15.75 21.64 ... 18.81 17.35 18.28
Jan. 18.40 18.50 24.55 ... 23.65 19.31 20.24
Dec. 18.95 19.29 25.04 ... 23.36 21.15 22.08
Nov. 18.42 18.87 23.54 ... 21.82 21.15 22.08
Oct. 19.25 20.64 24.77 ... 22.98 20.87 21.80
SOUTH AMERICA
Colombia f Ecuador f
Cano Limon Cusiana Oriente
(US) (US) (US)
March 19.27 20.47 17.59
Feb. 21.02 21.72 19.80
Jan. 24.40 26.25 22.52
Dec. 24.12 25.45 22.26
Nov. 22.42 24.12 20.54
Oct. 23.33 24.83 21.61

How Term-Contract Prices Are Calculated

Term-contract formulas generally have four basic components: the point of sale, a
market-related benchmark, an adjustment factor for differences related to crude oil
quality and point of sale, and a timing mechanism stipulating when the value of the
formula is to be calculated. The adjustment factor in the formula is applied to a spot-mar-
ket or other benchmark, say dated Brent, at a designated time relative to the loading of the
cargo. In many formulas, the snapshot of the benchmark grades value is taken on or
around the day of loading. In other cases, the trigger point is set to reflect the transit time
to the end-users market.
A PROFILE OF THE LATEST CRUDE OIL PRICE FORMULAS
TO EUROPE Current Price Timing
Country/Crude Of Sale Link a (In Days) b April March Feb.
Saudi Arabia Ex. Lt.-37 f.o.b. Brent 40 -1.15 -0.95 -0.90
Light-33 f.o.b. Brent 40 -1.95 -1.85 -1.85
Medium-31 f.o.b. Brent 40 -3.15 -3.15 -3.15
Heavy-27 f.o.b. Brent 40 -3.80 -3.80 -3.80
Extra Light-37 Sidi Kerir Brent 0 -0.45 -0.25 -0.20
Light-34 Sidi Kerir Brent 0 -1.25 -1.15 -1.15
Medium-31 Sidi Kerir Brent 0 -2.45 -2.45 -2.45
Heavy-27 Sidi Kerir Brent 0 -3.10 -3.10 -3.10
Kuwait-31 f.o.b. Brent 40 -3.15 -3.15 -3.15
Iran Light-33 Rotterdam Brent Delivery c -1.45 -1.30 -1.00
Heavy-30 Rotterdam Brent Delivery c -2.00 -1.85 -1.45
Light-34 f.o.b. Brent 0 -1.95 -1.80 -1.50
Heavy-31 f.o.b. Brent 0 -2.45 -2.30 -2.00
Iraq Kirkuk-37 Ceyhan Brent 5 -1.90 -1.72 -1.55
Yemen Marib-48 f.o.b. Brent 0 -0.15 -0.30 -0.30
Masila-30.5 f.o.b. Brent 0 -0.50 -0.97 -0.97
Nigeria Bonny Lt.-36 f.o.b. Brent 5 +0.04 +0.58 +0.53
Bonny Medium-26 f.o.b. Brent 5 -0.50 +0.35 +0.53
Forcados-29 f.o.b. Brent 5 -0.40 +0.47 +0.68
Qua Iboe-36 f.o.b. Brent 5 +0.04 +0.58 +0.53
Brass River-42 f.o.b. Brent 5 +0.09 +0.59 +0.45
Escravos-36 f.o.b. Brent 5 -0.04 +0.52 +0.44
Libya Es Sider-37 f.o.b. Brent 0 -0.40 -0.05 +0.05
Sarir-37 f.o.b. Brent 0 -0.75 -0.55 -0.55
Amna-36 f.o.b. Brent 0 -0.80 -0.60 -0.60
Brega-40 f.o.b. Brent 0 +0.15 +0.40 +0.40
Sirtica-42 f.o.b. Brent 0 -0.25 +0.05 +0.15
Zueitina-42 f.o.b. Brent 0 +0.15 +0.40 +0.40
Syria Light-37 f.o.b. Brent 5 -0.95 -0.50 0.27
Souedieh-24 f.o.b. Brent 5 -4.70 -4.80 -4.75
Egypt Suez Bl.-32 f.o.b. Brent 0 -2.75 -2.50 -2.35
Belayim Bl.-26 f.o.b. Brent 0 -3.70 -3.60 -3.60
Gharib Bl.-24 f.o.b. Brent 0 -4.40 -4.35 -4.35
Ras Budran-24 f.o.b. Brent 0 -3.85 -3.80 -3.80
Mexico Isthmus-33 f.o.b. ((DBx0.887+ 0 -0.36 -0.26 -0.16
(3.5%FOx0.113)-
(0.16x(1%FO-3.5%FO))
Maya-22 f.o.b. ((DBx0.527)+ 0 -2.00 -1.85 -1.85
(3.5%FOx0.467)-
(0.25x(1%FO-3.5%FO)))
A PROFILE OF THE LATEST CRUDE OIL PRICE FORMULAS (cont.)

TO FAR EAST Current Price Timing
Saudi Arabia Sup. Lt.-50 f.o.b. (O+D)/2 0 +2.95 +3.45 +3.25
Extra Light-37 f.o.b. (O+D)/2 0 +1.70 +1.95 +2.15
Light-33 f.o.b. (O+D)/2 0 +0.60 +0.60 +0.75
Medium-31 f.o.b. (O+D)/2 0 -0.40 -0.40 -0.30
Heavy-27 f.o.b. (O+D)/2 0 -1.25 -1.25 -1.15
Iran Light-33 f.o.b. O+((77¢-(O-D))/2) 0 -0.07 -0.07 +0.08
Heavy-30 f.o.b. D-((77¢-(O-D))/2) 0 -0.13 -0.13 -0.03
Kuwait-31 f.o.b. (O+D)/2 0 -0.50 -0.50 -0.40
Neut. Zone Khafji-28 f.o.b. (O+D)/2 0 -1.25 -1.25 -1.15
Qatar Dukhan-41 f.o.b. Oman MPM 0 ... +0.40 +0.61
Marine-36 f.o.b. Oman MPM 0 ... +0.26 +0.53
Iraq Basrah-34 Red Sea (O+D)/2 0 +0.05 +0.05 +0.20
Yemen Marib-48 f.o.b. Brent 0 -0.15 -0.30 -0.30
Masila-30.5 f.o.b. Brent 0 -0.50 -0.97 -0.97
Mexico Isthmus-33 f.o.b. (O+D)/2 0 +0.60 +0.60 +0.75
Maya-22 f.o.b. (O+D)/2 0 -3.20 -3.30 -3.20
TO UNITED STATES Current Price Timing

Saudi Arabia Ex. Lt.-37 f.o.b. WTI 50 -2.35 -2.15 -2.05
Light-33 f.o.b. WTI 50 -3.45 -3.30 -3.05
Medium-31 f.o.b. WTI 50 -4.50 -4.35 -3.95
Heavy-27 f.o.b. WTI 50 -5.35 -5.20 -4.65
Extra Light-37 US Gulf WTI Delivery c -1.15 -0.95 -0.85
Light-33 US Gulf WTI Delivery c -2.25 -1.95 -1.85
Medium-31 US Gulf WTI Delivery c -3.30 -3.00 -2.75
Heavy-27 US Gulf WTI Delivery c -4.15 -4.00 -3.45
Kuwait-31 US Gulf WTI Delivery c -3.30 -3.00 -2.75
Iraq Basrah-34 f.o.b. WTI d 15 -4.45 -4.30 -4.30
Iraq Kirkuk-37 f.o.b. WTI d 10 -3.50 -3.15 -3.10
Nigeria Bonny Lt.-36 f.o.b. Brent 5 +0.04 +0.58 +0.53
Bonny Medium-26 f.o.b. Brent 5 -0.50 +0.35 +0.53
Forcados-29 f.o.b. Brent 5 -0.40 +0.47 +0.68
Qua Iboe-36 f.o.b. Brent 5 +0.04 +0.58 +0.53
Brass River-42 f.o.b. Brent 5 +0.09 +0.59 +0.45
Escravos-36 f.o.b. Brent 5 -0.04 +0.52 +0.44
Mexico Isthmus-33 f.o.b. (0.4x(WTS+LLS))+ 0 -1.35 -1.15 -1.00
(0.2xDB)
Maya-22 f.o.b. (0.4x(WTS+3%FO)) + 0 -1.75 -1.75 -1.75
(0.1x(LLS+DB))
Olmeca-39 f.o.b. (WTS+LLS+DB)/3 0 +0.15 +0.40 +0.55
Colom. Cano Limon-30 f.o.b. WTI 0 -3.00 -1.70 -1.20
Cusiana-36 f.o.b. WTI 0 -0.60 0.00 -0.50
Ecuador Oriente-29 f.o.b. WTI 0 -3.41 -3.41 -3.41
Venezuela Furrial-30 f.o.b. WTI 0 -3.38 -3.00 -2.40
a Abbreviations used in defining market linkage: Brent and DB: Dated Brent; FO: Residual fuel oil in market of crude oil sale with
percentage referring to sulfur content; O: Oman spot price; D: Dubai spot price; Oman MPM: Oman official posting; WTI: West
Texas Intermediate spot price at Cushing; WTS: West Texas Sour spot price; LLS: Light Louisiana Sweet spot price. b The mar-
ket linkage is calculated at the time indicated below based on an average over a period of days. For Europe, averages are usu-
ally a 5-day period, except for Saudi f.o.b. sales which are 10 days. For Far East sales, all averages are for the calendar month
of loading. For US sales, the averages are usually for 5 days. c Delivery: Price triggered on day that the crude oil is unloaded
in the buyers regional market. d Iraq uses second-month WTI.

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PIW PUBLICATIONS u The Oil Daily Co.

Production: Tim Nudd

Overview: The Inner Workings Of Crude Oil Markets

B. The Spot Market  The Revolutionary Impact Of Spot Trading . . . . . . .B1

D. Logistics  Tankers, Pipelines, And Stocks . . . . . . . . . . . . . . . . . . . . . . . . . .D1

E. Refining  Whats A Crude Oil Worth? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E1

Glossary Of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E15

Reference Section: Profiles, Trade, And Prices

G. Term Contracts And Trade Flows By Country And Company . . . . . . . .G1

A. Introduction  Understanding Crude Oil Markets . . . . . . . . . . . . . . . . . .A1

B. The Spot Market  The Revolutionary Impact Of Spot Trading . . . . . . . .B1

C. Term Sales  Constant Evolution Transforms Term Contracts . . . . . . . .C1

D. Logistics  Tankers, Pipelines, And Stocks . . . . . . . . . . . . . . . . . . . . . .D1

E. Refining  Whats A Crude Oil Worth? . . . . . . . . . . . . . . . . . . . . . . . . . .E1

Glossary Of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E15

Understanding Crude Oil Markets

Crude Oil: A Special Commodity

Upstream Meets Downstream

Spot Market Dominance

Two Different Perspectives

THE SPOT MARKET 

The Revolutionary Impact Of Spot Trading

The Spot Markets Key Role

BNOC Shell UK Idemitsu Tricentrol Sohio

Charter Pegasus Occidental Acorn Shell Intl

Phibro Transworld Acorn Chevron BP

BP Phibro Acorn Texaco Phibro

Acorn Phibro Transworld Phibro Transworld

Gatoil Pecten Itochu Bomar Phibro

Sun Tricentrol P&O Falco Neste Bomar

How Big Is The Spot Market?

physical transactions can result 1.5

contract supplies increas-

Growth Of The Spot Market

Spot Markets Take Hold

What Makes A Benchmark Crude Oil

Brent: The International Benchmark

Dated Brent: The Spot Market Arena

15-Day Brent: An Elite Club

THE CLUB: TOP 10 PARTICIPANTS IN 15-DAY BRENT

1986 1991 1993 1995

Brent Futures: The Price Barometer

CFDs: Brents Bridge Between Spot And Forward Trade

West Texas Intermediate: Improbable Price Leader

Ambivalence Toward WTI

capacity from the Gulf Coast to *Figures from Aug. 1996.

WTI: The Financial Benchmark

Different Personalities Of WTI And Brent

Dubai: A Benchmark In Limbo

Threats To Dubais Liquidity

ing suitability as a benchmark. Trade is almost exclusively limited to a handful of compa-

Dubais Divided Loyalties

Other Benchmarks And Their Limitations

The Heirs To Alaskan North Slope

The Dominance Of Spread Trading

The Structure Of Spot Markets

THE MAIN CRUDE OIL MARKETS

Swaps Options Swaps Options

IPE Brent Futures

Cash African Dated Dubai Tapis

Spot Forward Swaps & Relationships

Futures Spot Marker Other

B. The Spot Market The Revolutionary Impact Of Spot Trading . . . . . . .B1

D. Logistics Tankers, Pipelines, And Stocks . . . . . . . . . . . . . . . . . . . . . . . . . .D1

E. Refining Whats A Crude Oil Worth? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E1

A. Introduction Understanding Crude Oil Markets . . . . . . . . . . . . . . . . . .A1

B. The Spot Market The Revolutionary Impact Of Spot Trading . . . . . . . .B1

C. Term Sales Constant Evolution Transforms Term Contracts . . . . . . . .C1

D. Logistics Tankers, Pipelines, And Stocks . . . . . . . . . . . . . . . . . . . . . .D1

E. Refining Whats A Crude Oil Worth? . . . . . . . . . . . . . . . . . . . . . . . . . .E1

THE SPOT MARKET

The Spot Markets Key Role

Charter Pegasus Occidental Acorn Shell Intl

CFDs: Brents Bridge Between Spot And Forward Trade

Threats To Dubais Liquidity

Dubais Divided Loyalties

Whos Who Of Term Contracts

Whats A Crude Oil Worth?

US GULF COAST INCREMENTAL YIELDS AT TYPICAL REFINERIES

NORTHWEST EUROPE/MEDITERRANEAN INCREMENTAL YIELDS AT TYPICAL REFINERIES

SINGAPORE INCREMENTAL YIELDS AT TYPICAL REFINERIES

F. Country Profiles How Countries Market Their Crude Oil . . . . . . . . . . . .F1