Angola’s Sonangol allocates 12 crude oil cargoes for May

March 19, 2014 | Angola, Terminals & Storage

Sonangol Head Office in Luanda, Angola

Sonangol Head Office in Luanda, Angola

Luanda, Angola – Angola’s state run national oil company Sonangol has allocated 12 crude oil cargoes for May loading to seven regular term buyers, compared to 11 stems allocated the previous month, traders said Wednesday.

Traders said Unipec was allocated four cargoes on term, while India’s IOC and Taiwan’s CPC received two parcels each.

Shell, Portugal’s Petrogal, Phillips 66 and BP were also allocated a cargo each, traders added.

The allocated cargoes consisted of two cargoes each of Cabinda, Nemba, and Girassol, and a stem each of Dalia, Hungo, Mondo, Pazflor, Kissanje and Saxi.

Unipec was allocated a stem each of Hungo, Cabinda, Nemba and Mondo, while IOC got a Dalia and Nemba and CPC received a Cabinda and Girassol, according to sources.

Petrogal was allocated a Pazflor, Shell got a Kissanje stem, BP with a Saxi and Phillips 66 with a Girassol, sources said.

Loadings of Angolan crude oil in May were set to total 51.935 million barrels, compared with 46 million barrels in April, according to a copy of the country’s provisional loading program.

This will be the largest monthly Angolan crude oil loading program since December last year, according to Platts data.

A total of 54 cargoes will load in May, compared to 48 in April.

Sonangol typically allocates 10-12 cargoes a month to companies holding term-supply contracts, with the price determined at a later date.

Companies holding an Angolan term contract can nominate a contractually agreed number of cargoes to buy on term from Sonangol in any given month.

After negotiations with Sonangol, the term buyer will be allocated the number of cargoes specified in the contract, although these will not necessarily be the same cargoes as those nominated by the buyer.

For any given grade, the price will be settled based on the average traded spot price of the grade’s other cargoes on the primary market. The price will be agreed once primary buying has concluded.

In addition, some Angolan lifters other than Sonangol allocate cargoes on a term basis.

A source at Sonangol was not immediately available for comment.