• 5 minutes Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Starvation, horror in Venezuela
  • 3 hours WTI @ 67.50, charts show $62.50 next
  • 1 hour Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 2 hours Mike Shellman's musings on "Cartoon of the Week"
  • 7 hours Venezuela set to raise gasoline prices to international levels.
  • 12 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 1 hour Batteries Could Be a Small Dotcom-Style Bubble
  • 7 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 14 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 24 mins Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 13 hours Corporations Are Buying More Renewables Than Ever
  • 2 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 18 hours Again Google: Brazil May Probe Google Over Its Cell Phone System
  • 4 hours France Will Close All Coal Fired Power Stations By 2021
Why China Will Continue To Buy Iranian Crude

Why China Will Continue To Buy Iranian Crude

While the United States sanctions…

Oil Prices Take A Breather As Supply Jumps

Oil Prices Take A Breather As Supply Jumps

Oil markets took a breather…

Trader Trafigura Raises Share Of Oil Purchases From State Firms

Oil

Commodity trader Trafigura raised the share of direct oil purchases from national oil companies in its total trade, while the value of its direct deals with state firms rose by nearly 60 percent last year, according to Trafigura’s annual responsibility report.

In its 2017 Responsibility Report published on Wednesday, Trafigura is giving further details of its dealings with national oil companies (NOCs), as part of the Extractive Industries Transparency Initiative (EITI)—a voluntary disclosure initiative for global standard for the good governance of oil, gas, and mineral resources. While Trafigura and Glencore have chosen to support the initiative, other oil traders like Vitol, Gunvor, or Mercuria have not yet.

Trafigura said in its report that its aggregate first purchases from NOCs in EITI countries was US$1.1 billion in 2016, compared to US$915 million in 2015. Aggregate first purchases from NOCs in non-EITI countries, on the other hand jumped to US$20.1 billion in 2016 from US$12.7 billion in 2015. Trafigura also made another US$783 million in oil purchases from EITI state firms, but loaded at ports in countries outside the initiative.  

In terms of volumes, Trafigura’s aggregate first purchases of crude oil, refined products, and natural gas from NOCs increased to a third of its traded volumes, up from about a quarter in 2015, according to Reuters estimates based on the responsibility report.

Trafigura bought 1.5 million bpd from NOCs last year, out of its total traded volume of 4.3 million bpd. In 2015, Trafigura’s aggregate first purchases of oil from NOCs were 767,000 bpd out of 3 million bpd of traded volumes.

Related: Europe’s Toxic Radiation Cloud Remains A Mystery

While Trafigura says that “The purpose in making very particular distinctions in our disclosures is to ensure that we continue to operate within the confines of the existing EITI framework – as such, payments made by companies such as Trafigura could be compared directly to receipts published by EITI country governments,” counties like Russia, Saudi Arabia, or Angola are not part of the EITI.

In today’s report Trafigura disclosed the total volume of oil purchases from NOCs from non-EITI counties saying that ‘We accept that there is considerable interest amongst our stakeholders for disclosures of payments outside of the EITI framework.” But it didn’t break it down to individual counties like for the oil deals with countries that are part of EITI.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News