Vietnam's PV Oil awards term tender for Rang Dong crude

14 February 2014 09:04  [Source: ICIS news]

SINGAPORE (ICIS)--PV Oil, Vietnam’s state-owned oil marketer, has awarded a term tender offering Rang Dong crude for loading in April to September, to Unipec, sources said on Friday.

The crude tender was awarded at Dated (Dtd) BFOE (Brent/Forties/Oseberg/Ekofisk) plus $4.20/bbl FOB (free on board) Rang Dong, they said.

Unipec is expected to lift around 400,000-600,000 barrels per month of Rang Dong crude via the tender.

The Rang Dong tender closed on 21 January but had validity until 13 February.

Previously, PV Oil awarded a crude term tender for October 2013 to March 2014 to BP at Dtd plus $3.30-3.40/bbl FOB Rang Dong.

The rise in the term premium is attributed to the general strengthening in regional crude market in the six months since the last term tender award.

Rang Dong is light sweet crude with an API (American Petroleum Institute) specific gravity of 37.70 and a sulphur content of 0.50%.

The Rang Dong oil field is located offshore 135 kilometres southeast of Vung Tau in block 15-2 of the Cuu Long Basin in Vietnam.

Rang Dong has three production platforms. Oil produced from the field is stored in the floating storage and offloading vessel (FSO) Rang Dong MV-17. It is then offloaded to tankers for export.

The Rang Dong oilfield is operated by Japan Vietnam Petroleum Corp (JVPC), a subsidiary of JX Nippon Oil & Gas Exploration, which has a majority stake of 46.5%. The remaining stake is held by ConocoPhillips (36%) and PetroVietnam (17.5%).

Oil production from the Rang Dong field commenced in August 1998. The field's crude oil production rate is around 16,200 bbl/day.

By: James Dennis
+65 6780 4327

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