Bloomberg News

Surgut Issues Second Tender to Sell Urals Crude From Ust Luga

March 26, 2012

OAO Surgutneftegas (SGTPY), Russia’s fourth-largest oil producer, issued a tender to sell Urals crude from the Baltic Sea terminal at Ust Luga for loading from April 4 to April 5, said three traders who participate in the market.

The tender for 100,000 metric tons will be awarded later today, according to the people, who declined to be identified because they aren’t authorized to speak on the matter.

Surgutneftegas awarded a tender for 100,000 tons loading on March 21 to March 22 from the same terminal to Gunvor Group Ltd., the first shipment from the port, they said.

Oil loadings from Ust Luga, the receiving point of Transneft’s 100 billion-ruble ($3.3 billion) Baltic Pipeline System-2, started on March 23 after a delay since November because of engineering difficulties, the government said in a statement.

The port will work on a “test mode,” the government said. The first tanker loaded with crude from the pipeline will head for Rotterdam and loading of the next vessel is scheduled for March 26, according to the statement.

The BPS-2 link will have a capacity of 30 million tons a year, or 600,000 barrels a day, and is expected to pump 10 million to 15 million tons of crude this year, Igor Dyomin, a spokesman for Russia’s pipeline operator OAO Transneft in Moscow, said Feb. 13.

To contact the reporter on this story: Sherry Su in London at lsu23@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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