Vietnam’s PV Oil offers 400,000 barrels end-Mar Bunga Kekwa crude

18 January 2013 11:07  [Source: ICIS news]

SINGAPORE (ICIS)--PV Oil, Vietnam’s state-owned Vietnamese oil marketer, issued a tender offering a 400,000-barrel cargo of Bunga Kekwa crude oil for loading on 25-31 March, traders said on Friday.

The Bunga Kekwa tender will close on 24 January with validity until 25 January.

Previously, Malaysia’s state-owned PETRONAS of Malaysia awarded its tender offering 400,000 barrels of Bunga Kekwa for loading on 14-20 February to PTT, at around Dated Brent plus $5.10-5.50 (€3.83-4.13) FOB (free on board) Bunga Kekwa FPSO.

Bunga Kekwa is a light sweet crude with a API of 37.6 and a sulphur content of 0.045%. Only a small number of refineries in Asia can take Bunga Kekwa because of its high mercury content of 500-800 parts per billion, which limits the number of buyers of the grade.

The crude oil is produced from an offshore Bunga Kekwa field which lies in the Gulf of Thailand in an area subject to overlapping claims by Malaysia and Vietnam.

Bunga Kewa field has been developed by both countries as part the PM-3 Commercial Arrangement Area (CAA) project. PETRONAS has a 46.06% stake in block PM-3 CAA, while Canada's Talisman Energy has a 41.44% equity interest. PetroVietnam holds the remaining 12.5%.

($1 = €0.75)

By: James Dennis
+65 6780 4327

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