Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Shell, Mitsubishi, Trafigura present bids for Ecuador oil contract - minister

Published 03/12/2019, 20:42
Updated 03/12/2019, 20:45
Shell, Mitsubishi, Trafigura present bids for Ecuador oil contract - minister

Shell, Mitsubishi, Trafigura present bids for Ecuador oil contract - minister

QUITO (Reuters) - Royal Dutch Shell (L:RDSa), Mitsubishi Corp (T:8058) and Trafigura presented bids for a contract to lift some 20.2 million barrels of Ecuadorean crude between 2020 and 2023, the Andean country's energy minister told reporters on Tuesday.

The country expects to pick a winner for the contract, which is expected to generate $950 million (£740.45 million) in export income for Ecuador, in the coming days, said the minister, Jose Agusto.

Ecuador invited some 51 companies to participate in the auction, the first of its kind in more than a decade. The price of the oil will be determined by a formula taking into account the price of the country's oil sales on the spot market plus a premium.

Shell, through its Shell Western Supply and Trading Unit, proposed the highest premium, according to state oil company Petroecuador.

Under the contract, Ecuador will deliver the winner four shipments of 360,000 barrels each of Oriente-grade crude in 2020 and 2021. In 2022 and 2023, the country will deliver the winner 24 shipments of the same amount per year.

Ecuador produces some 545,000 barrels per day of crude.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.