Saudi Arabia Oil Exports Slip in April
Saudi Arabia’s April crude exports fell by 161,000 barrels per day (bpd) as domestic refiners processed more crude, official data showed.
Exports fell to 7.737 million bpd from 7.898 million in March when they hit their highest levels in almost a decade.
Domestic refiners processed 2.224 million bpd, up 315,000 bpd from 1.909 million bpd in March, figures supplied by Riyadh to the Joint Organisations Data Initiative (JODI) showed.
JODI compiles data supplied from oil-producing members of global organisations including the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC).
Saudi Arabia has traditionally been the world's biggest exporter of crude and the kingdom's rapid transition into one of the largest oil refiners adds an extra dimension to global oil markets.
The growth puts its national oil company Saudi Aramco's owned or equity stakes in refining at 5.4 million bpd, at least 40 percent above a decade ago.
Aramco itself markets more than 3 million bpd of that, tying it with Shell as the world's fourth-largest oil refiner.
In April, the kingdom's oil output inched up to its highest rate on record at 10.308 million bpd from 10.294 million bpd in March, according to JODI.
An executive from Saudi Aramco said last week his country is ready to increase output in the coming months to a new record to meet a rise in global demand, despite increased domestic use.
Russia, Japan to Build LNG Plant in Sakhalin
Russia views Japan as a strategic partner in its bid to ramp up the production of liquefied natural gas on its Far Eastern Sakhalin Island, Japanese media reported.
During his meeting with foreign news agency executives in St. Petersburg President Vladimir Putin mentioned the joint development of natural resources and the production of LNG on Sakhalin Island as the bedrock of this country’s cooperation with Japan.
“Our production capacities proved bigger than expected,” Kyodo news agency quoted the Russian leader as saying.
Vladimir Putin also said that the government planned an increase in LNG production in Russia.
Asia Butadiene-Naphtha Spread Hits 2-Year High
The Asia butadiene-naphtha spread rose $7.25/mt day on day to $824.88/mt, driven by a bullish butadiene market, Platts data showed.
The spread is the highest since March 14, 2013, when it was calculated at $918/mt.
Asian butadiene prices have generally been on an uptrend since mid-May as end-users were actively seeking spot cargoes in South Korea and Taiwan amid the butadiene plant turnaround season.
In South Korea, Yeochun NCC had shut its 220,000 mt/year butadiene plant in Yeosu over May 13 to mid-June for annual maintenance.
In Taiwan, Formosa shut its No. 1 steam cracker in Mailiao June 9 for 40 days of annual maintenance.
The cracker is able to produce 109,000 mt/year of butadiene.
A market source said some of South Korea's end-users were willing to pay $1,400-1,450/mt on a CFR basis, much higher than the current price for the export market. But this could not be confirmed with the market.
"South Korean butadiene producers are reluctant to export butadiene now, as they are able to achieve higher prices in the domestic market," said a trading source.
Rosneft to Buy 30% of ChemChina Subsidiary
Russia's top oil producer Rosneft has signed a memorandum that paves the way for purchasing 30 percent of China National Chemical Corp's, a subsidiary of ChemChina Petrochemical (CCPC), the oil major said.
Rosneft will also supply 200,000 tonnes of crude oil a month (48,000 barrels per day) to the company within a year, in a deal that would strengthen Rosneft's position in the world's top energy consumer.
It's not clear, when Rosneft will start supplying oil to CCPC.
"Together with the project of construction of a refinery in China the cooperation with ChemChina will allow Rosneft to obtain a new potential for the production and marketing of products along the whole value-chain to the end-customer," Rosneft said in a statement.
It also said that the signed memorandum envisages Rosneft’s analysis of CCPC assets.
Angola Oil Reserves at 12b Barrels
Proven and probable oil reserves in Angola are estimated at 12.667 billion barrels, following recent discoveries in shallow, deep and ultra deep waters, the country’s Oil minister said in Hamburg.
Speaking at the 7th German-African Energy Forum, Botelho de Vasconcelos said one of the priorities for the 2013/2017 period was to maintain a balance between reserves and production by auctioning blocks and making use of new exploration and production technologies.
Priorities also include the completion of ongoing development projects, including the Kizomba satellites in Block 15, among others.
Botelho de Vasconcelos, before an audience of over 150 people, recalled that Angola, when it become independent on 11 November 1975 produced only about 175,000 barrels of oil per day.
Petrobras Mulls Sale of Ethanol Plants
Brazilian state-run oil company Petrobras is looking to sell some of its biofuel assets as it tries to raise cash to cover investment for new offshore oilfields and service its debt, two sources told Reuters.
The company, whose $125 billion of debt is the biggest of any oil company and the third-largest of any non-financial enterprise, plans to sell as much as $13.7 billion of assets by the end of 2016.
The first source, who has direct knowledge of Petrobras' plans, said the company's ethanol plants, which transform sugarcane into fuel, were the most likely area of the business to be sold. Petrobras has nine ethanol plants and five biodiesel plants.
The plants are less profitable than its businesses that distribute or sell ethanol and other biofuels, the source added. The company, formally known as Petroleo Brasileiro SA, does not plan to exit the biofuels sector entirely, according to the source.
"There are various ways for you to take part in the biofuels market. One way is business the other is owning assets," the source said. "To be in the business you don't need to have assets."
Petrobras has already shown assets to potential buyers, a second source told Reuters after being briefed on the company's plans.
Both sources asked not to be named as final decisions on the future of its biofuel businesses have not been made.