platts

July 8, 2002 Volume 8, Number 128

Latin American Wire

been shown at about 70 cts off WTI, sources said. In addition, the stream of synthetic grades from the Sincor joint venture is growing.Thiscrudegoesheadto head against Cusiana, and Santa Barbara, and also against WAF and North Sea grades. In heavy sweet grades, there are two cargoes of Canadon Seco expected to be available around August10-15,althoughthereare no definite loading dates set, yet, seller sources said Monday. The cargoes will be Panamax size (up to 400,000 bbl each). In heavy sour grades, Oriente was confirmed sold into Peru last week at a price that is slightly weaker than the WTI-3.17 reported last week, although there was no precision on the numbers. On a FOB basis, Oriente has been confirmed sold late last week at about $4.20 off WTI. There are still a few July Oriente cargoes unsold, and other being resold, traders said. No information surfaced about the winner of the Loreto tender last week. Crude Canadon Seco Escalante Medanito Cusiana Santa Barbara Loreto Oriente Marlim Cano Limon Vasconia Mesa 30

Crude Oil Commentary

Spot Crude Oil ($/BblFOB)

Marker WTI (Sep) WTI (Sep) WTI (Sep) WTI (Sep) WTI (Sep) WTI (Sep) WTI (Sep) WTI (Sep) WTI (Sep) WTI (Sep) WTI (Sep) Differential -3.25 /-3.20 -3.65 /-3.60 -1.70 /-1.65 -0.40 /-0.35 -0.75 /-0.70 -4.10 /-4.05 -4.25 /-4.20 -3.75 /-3.70 -2.50 /-2.45 -2.75 /-2.70 -2.35 /-2.30

Buyers awaiting August crude barrels

With most of July Latin grades sold out, traders started looking at August programs for crude. There will be four cargoes of Vasconia crude in the August program, according to a preliminary schedule released. Vitol will havetwocargoes,Ecopetroland Petrobras will have one each. Sellers contend that the fate of Vasconia in August will depend largelyonavailabilityofMesa30. Sellers are expected to start showing target prices for Vasconia this week, sources said. Early Cusiana schedules show 8 cargoes for the month of August. One Cusiana cargo for 550,000 bbl loading in early August has not been offered yet by its seller, but indications are likely to come around Sep WTI flat. There is good interest for light sweet crude in the market with perceived shortages of WAF grades headed this way, but no deals have surfaced yet. One cargo of Santa Barbara was said to be available with end of July loading dates. The cargo has

Price -22.79-22.87-22.39-22.47-24.34-24.42-25.64-25.72-25.29 -25.37-21.94-22.02-21.79-21.87-22.29 -22.37-23.54-23.62-23.29-23.37-23.69 -23.77-

Note: WTI value used is Platt's cash assessment. Crude Maya Isthmus Olmeca

Mexico Crude Postings ($/Bbl)

Marker Several Several Several Differential Formula Formula Formula

Price -21.70 -24.55 -25.22

Argentina Mogas 84 Gasoil FO 0.6%S Brazil FO 0.4%S Colombia FO 1.5%S

Spot Refined Products ($/Bbl FOB)

Ecuador -25.70-25.90- FO 1.5%S -27.30-27.40+ FO 1.7%S -20.15-20.45Peru -20.55-20.95- Naphtha FO 0.9%S -19.25-19.30- FO 1.4%S -17.55-17.65-17.15-17.35-26.65-26.70-19.40-19.75-19.15-19.20-

Products Commentary

Companies looking to reactivate Venezuelas Caripito plant

Caracas (Platts)A group of companies is looking at reactivatinganoldVenezuelanrefinery in the eastern state of Monagas, said outgoing Venezuelan energy minister Alvaro Silva.Therearemanycompaniesthathaveexpressedaninterest in investing in new refineries. For example, we received a proposal for a refinery in Caripito. There was a plant there, which closed many years ago. There is a group that is interested in those faciliRecopes gasoline supply tender at a discount around 3.2 cts/gal under US Gulf unleaded 89. These levels can be attributed to Trafigura, the second ties and in the construction of others, Silva told Caracas daily El Universal. A ministry spokesman told Platts in March that a technical team had been set up to consider the turnkey project, which would be built with private investment and operated by a Venezuelan private consortium. Silva did not mention the interested parties although a US company was reportedly interested in building a refinery in Caripito. winner in the tender. Atlantic Trading, which will supply the majority of the cargoes, sold its product at least a cent above this level, sources said.

Addax wins diesel tender in Ecuador

Petroecuador awarded a contract to Swiss trading house Addax to supply 1.4-mil bbl of 0.7% S, 45 cetane diesel to the Ecuadorean state oil company, sources said Monday. Addax won the contract with a bid of 2.20 cts/bbl over US Gulf No 2 oil. Trafigura offered the second best bid at 2.22 cts/bbl over the Gulf Coast marker, sources said. The first 200,000 bbl cargo, to consist of Venezuelan material, is scheduled to arrive July 20-22. Additionally, Petroecuador has issued a tender to sell 1.2-mil bbl of naphtha. Bids are due July 17. Elsewhere,jetfuelwasbeingoffered from two Caribbean outlets. Petrotrin has a prompt cargo of DERD 2494 available. Buyers can choose the delivery dates. A South American refiner was said to have a cargo of jet available for Jul 12 loading, though this could not be confirmed. Thesellersweresaidtobehoping for premiums around 75 pts over the Gulf Coast marker. The offers were a surprise to the market, after several traders last week reported searching for jet and returning home empty-handed. Separately, last week the Wire mistakenly reported that Atlantic Trading was awarded a portion of

Page 2
Port Buenos Aires Paranagua Santos Rio de Jan. Salvador El Callao Valparaiso Guayaquil Libertad Balboa Cartagena Montevideo

Platt's Latin American Wire, July 8, 2002

IFO 380 CST 158.00-160.00 +145.00-146.60+ +146.00-147.00+ +146.00-147.00+ +148.00-149.00+ 159.00-161.00 +159.00-162.00+ 153.00-155.00 151.00-153.00 +148.00-149.00+ 168.00-171.00 159.00-160.00

Latin American Bunkers $/Mt

IFO 180 CST 160.00-161.00 +149.00-150.00+ +150.00-151.00+ +150.00-151.00+ +152.00-153.00+ 168.00-170.00 +169.00-172.00+ 162.00-164.00 160.00-162.00 +157.00-158.00+ 178.00-181.00 163.00-164.00

Marine Gasoil -240.00-255.00 -285.00-292.00-280.00-289.00-280.00-288.00+ -290.00-300.00246.00-250.00 +255.00-260.00+ 308.00-310.00 306.00-308.00 +231.00-240.00+ 220.00-224.00 265.00-266.00

Caribbean Cargoes, FOB

Naphtha Jet Kero Gasoil FO 2S FO 2.8S

Cts/Gal -62.15-62.65-68.20-68.55-64.70-64.85$/Bbl -19.25-19.55-19.20-19.30-

New York
FO 1%S FO 3%S

$/Bbl -21.05-21.35-20.00-20.25-

All prices are delivered except Balboa's. * IFO 380 not available

Bunkers Commentary

Waterborne Unl 87 No.2 Oil FO 3%S

US Gulf Coast

Brazilian bunker prices move up on tight avails

Brazilian bunker prices firmed Monday on reports of tightening fuel availability and barge congestion in some ports. Prices for 380cst rose in all Brazilian ports by about $2/mt from last week. In Santos and Paranagua, IFO availability is subject to barge avails, one supplier noted. In Rio de Janeiro, prices settled at $146-147/mt. Panama bunkers also climbed, to $148-149/mt ex-wharf, at BalboaandCristobal.Onesupplierisrunning low on marine gasoil at Balboa, while another is tight on IFO at Cristobal. Meanwhile, the Argentine market was quiet and steady at Buenos Aires ahead of tomorrowsnationalholiday.380cstsupplycontinues to be low in BA, sources said. Chilean IFO values firmed by a couple of dollars at Valparaiso following a lackluster few days.

Cts/Gal -72.15-72.65-63.95-64.10$/Bbl -20.60-21.00-

Ecuador receives offers to restore 90 oil wells

Quito (Platts) Ecuadors state oil company Petroecuador has received two offers from private companies to invest in restoring 90 wells in the Amazon region, a PetroecuadorpressreleasereportedMonday. Chinas Phyllis Petroleum and Colombias Erazo Valencia made the offers to restore the wells, which Petroecuador believes could produce 23,000 b/d. The bidding process began at the end of 2001, with a total of 11 firms qualified to make offers. The wells have been closed for several years,duetoPetroecuadorslackofinvestment funds and the project will require approximately $45-mil. Consumer Product Prices (February 99) Unl 80/84 U$/lt. ---Unl. 94/96 U$/lt. ---Leaded 80/84 U$/lt. 0.40 Leaded 94/96 U$/lt. 0.50 Jet Fuel U$/lt. 0.17 Kerosene U$/lt. 0.08 Gasoil U$/lt. 0.20 Diesel U$/lt. 0.30 F.O. Special U$/lt. ---Heavy Fuel oil U$/lt 0.13 Dom. Spr.Gas U$/Kg. 0.25 Source: ARPEL

US Market Commentary

NYMEX crude contract fails to regain lost ground

NYMEX crude oil settled 73 cts lower at $26.07/bbl Monday. August Brent settled 65 cts lower at $25.08/bbl. August heating oil settled 197 pts lower at 66.80 cts/gal, and August gasoline settled 246 pts lower at 76.14 cts/gal. The crude market failed to continue its rally Monday after a brief spurt of strength ahead of the holiday weekend. In the gasoline market, distributors that came out to buy last week were heard selling. Market sentiment may also be damaged by a failure to draw support from Fridays sharp stock market rally, said Tim Evans, energy analyst at IFR Pegasus.

Cuba

Sincor offers 7-8 cargoes of synthetic crude in August

Houston (Platts)Venezuelas Sincor is discussing the August loading program for its synthetic crude with spot customers in the US Gulf, as well as the East Coast, company sources said Monday. In addition to Zuata Sweet, the August program will includeZuataMedium.Sincorsproductionof synthetic crude has been ramping up since early this year and is expected to reach 142,000 b/d in August, totaling seven-eight cargoes distributed as follows: 2.26-mil bbl ofZuataSweet(32.0APIand0.07%S,with novacuumresid)and2.31-milofZuataMedium (28.6 API and 0.6%S, with 10% vacuum resid). Sincors production is expected to reach 180,000 b/d and would compete with Colombias Cusiana crude, which averages eight cargoes per month. Sincor is a joint venture of TotalFinaElf, PDVSA and Statoil.

2002TheMcGraw-HillCompanies,Inc.Noreproductionorredistribution.McGraw-Hillmakesnowarrantiesastothe accuracyof informationorresultsfromuse.Allrightsreserved.Editorial:Houston-G.Martin-LatinAmericaEditor(713) 658-3208. J. Kelemen (713) 6583222; S. Chang (212)904-3119--Subscriptions: Latin America: Arnoldo Sterinzon (5411)4804-1890HelpDesk:E-mailaddress:support@platts.com-London:tel:44-181-545-6111-Singapore:tel: 65-532-2800-NewYork:tel:212-904-3154. NoreproductionmaybemadewithoutpriorwrittenauthorizationfromThe McGraw-HillCompanies,Inc,norshallthisinformation,eitherinwholeorinpart,beredistributedorputintoaninformation retrieval system without prior written authorization from Mc Graw-Hill.

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