Nido inks deal for Galoc oil marketing
By Abigail L. Ho
Philippine Daily Inquirer
First Posted 19:03:00 03/27/2008
MANILA, Philippines--Ahead of the drawing of the first oil from the Galoc oil field in offshore northwest Palawan, Nido Petroleum Ltd. has tapped Trafigura Pte Ltd. to market its 22.28-percent share of crude oil from the Galoc field.
In a disclosure to the Australian Stock Exchange, Nido said Trafigura--the third largest independent oil trader in the world--would provide crude marketing services to the company initially for two years.
Under the deal, Trafigura will develop a marketing strategy for Nido's Galoc crude oil share; identify and develop sale opportunities for the oil; manage scheduling, operational and commercial aspects of the shipping, and provide market information and support to Nido.
Nido and Trafigura had started preparations for the marketing of Nido's initial shipment of crude.
"Nido is very pleased to complete this agreement with Trafigura. This now gives us access to the expertise of a world-class crude oil marketer who will help us to maximize the return on our Galoc investment," Nido president and chief executive JV Emmanuel De Dios said.
"It is Nido's preference to market its share of the crude oil to Philippine oil refineries, which will surely allow the country to reduce its dependence on imports. Of course, we would need to ascertain whether the country's refineries will be in a position to process the Galoc crude," he added.
The Galoc consortium, led by Galoc Production Co., expects to draw its first oil from Galoc field between March 28 and April 18.
Trafigura is a global trader of commodities such as crude, refined products, concentrates and refined metals. It trades 1.7 million barrels of crude and oil products daily.
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