Bloomberg News

Petrobras Books World’s Second Biggest Oil-Tanker

March 09, 2012

Petroleo Brasileiro SA (PETR4), Brazil’s state-controlled oil company, booked the world’s second-biggest oil tanker owned by Euronav NV (EURN) as increased crude production in the region boosts demand to store it.

The ultra large crude carrier TI Europe, able to store about 3 million barrels of oil, has been booked for a six month- period initially, Alex Staring, Euronav’s chief offshore officer, said today. The ULCC is the second-largest in the global oil tanker fleet, according to Clarkson Research Services, a unit of the world’s biggest shipbroker.

Petrobras’ oil and natural gas output rose 2.6 percent in January from a year earlier to 2.73 million barrels a day, the company said in February. In Brazilian oil-fields, production rose 2.8 percent to 2.49 million barrels a day, it said. Increasing oil production from Latin America is spurring demand for more ships to store crude while the infrastructure in the region is being developed, Staring said.

“Increasing Latin American oil exports is a signal of demand for more ships to be used as storage,” Staring said by phone from Antwerp, Belgium. “More storage will be required off the Latin American coast because it’s a logistical enhancement of the ongoing oil exploration.”

Petrobras wasn’t immediately available to comment in response to a phone call and an e-mail.

The ship was hired at a daily rate of $19,000, Staring said. The ULCC is currently on subjects, meaning the charter has yet to be confirmed.

To contact the reporter on this story: Rob Sheridan in London at rsheridan6@bloomberg.net

To contact the editor responsible for this story: Alaric Nightingale at anightingal1@bloomberg.net


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