Vietnam buys first cargo of Nigerian Bonny Light crude
Vietnam's state-owned PV Oil has bought light sweet crude through a spot tender, including its first ever cargo of Nigerian Bonny Light, to compensate for declining domestic output.
PVOil bought a 900,000 barrels cargo of Bonny Light for arrival in the first half of October, as well as 600,000 barrels of Brunei Champion crude for first-half November arrival. The identity of the sellers could not be confirmed. The crude will supply Vietnam's 145,000 b/d Dung Quat refinery.
This is the first time Bonny Light has been shipped to Vietnam, although a cargo of Nigerian light sweet Agbami crude was sent to the country in February 2018.
PVOil earlier this year bought two million barrels of US Permian-quality WTI crude for delivery in the fourth quarter. WTI is lighter than the crudes that Dung Quat typically refines, prompting PVOil to seek additional imports of slightly heavier grades in its latest spot tender to blend with the WTI cargo.
Dung Quat mainly runs 38-40°API crude. WTI has gravity of about 44°API. Bonny Light has 34.5°API and 0.14pc sulphur content while Champion has an API gravity of about 23.9° and a 0.12pc sulphur content.
PVOil is looking to increase its crude imports to compensate for falling domestic production of grades including Bach Ho, which is the main crude refined at the Dung Quat refinery.
PVOil and Dung Quat's operator Binh Son Refinery and Petrochemical (BSR) are both arms of state-owned oil firm PetroVietnam.