Petrobras confirms that it will ship oil for storage in China

5/30/2019

Petrobras has confirmed it will ship oil to China during June and July to respond more quickly to demand from local refineries.

The company rented storage tanks in the port city of Qingdao, which will allow the oil company to sell smaller quantities of oil to the local market for immediate delivery, the company said in an e-mail.

According to Petrobras, shipments from the Lula and Búzios fields are expected to reach China between late June and early July.

The company said it is working intensively to gain market share among independent Chinese refineries, known as teapots.

On Tuesday, Petrobras had chartered the very large crude carrier Maran Cleo (VLCC), which is scheduled to arrive in Qingdao on June 24. The ship contains 2 million barrels of Lula’s oil, part of which was sold, while the rest will be stocked.

The producer has another VLCC, which will arrive in Qingdao between July 10 and July 15, containing about 1 million barrels of oil from Buzios for storage.

Source: Folha SP

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