07 Mar Statoil offers oil to China’s teapot refiners
Statoil (NYSE:STO) a Norwegian petroleum company has offered various cargos of its West African crude oil to possibly win trade from China’s ‘teapot refineries’.
According to other oil traders, the firm is proposing to deliver up to 2 million barrels of West African crude oil in three supertankers to the Chinese port of Qingdao in May.
The region’s oil is normally sold on a ‘free-on-board’ basis, where after the buyer acquires its own vessel, it takes ownership of the oil near the production area.
Traders are trying to gain business from independent refineries which are nicknamed ‘teapots’. These refineries only gained permission last year to directly import crude oil.
Based in China’s Shangdong province, Qingdao is home to the majority of the country’s teapot refineries and is one of the biggest ports in the area that can deal with supertankers.
Michal Meidan, an analyst with oil consultancy Energy Aspects said, “Chinese crude buying remains strong, and I think people are starting to come to terms with the fact that teapot demand will be lasting.”
Traders said the Norwegian company is proposing crude oils such as Mandji from Gabon, Congolese Djeno, and Angola’s Hungo, Pazflor, Mondo, and Saturno.