KPC and Vitol Sign LNG Supply Deal to Meet Summer Demand

Today Vitol S.A. (Vitol) signed an agreement with Kuwait Petroleum Corporation (KPC) to supply liquefied natural gas (LNG) to the state of Kuwait to help the state meet peak electricity demand during the summer months of April through October 2010 to 2013.

The four year agreement helps KPC meet the state of Kuwait's growing energy demand as the state implements its ambitious development plans, which will require more clean energy supplies, including natural gas.

While KPC is following through on its plans for increasing local natural gas production and providing clean supplies of feedstock for the state's power generation facilities, this supply agreement will help meet demand for gas during the interim period.

KPC believes that importing LNG to meet peak summer demand is a sustainable solution to help reduce emissions and improve local air quality.

KPC is delighted to have secured supplies from a reliable global partner like Vitol, and looks forward to strengthening its long-term relationship with the company.

Vitol is very pleased to have been awarded this contract, which reinforces its commitment to partner with KPC, as it looks to meet its LNG supply requirements.

Trafigura, Vitol stopping Iran gasoline sales-sources

Oil trading firms Trafigura and Vitol are stopping gasoline sales to Iran, industry sources said on Monday, joining a growing list of suppliers that have halted sales under threat of U.S. sanctions.

Vitol decided to stop participating in new tenders to supply Iran at the start of the year, the company said in a statement e-mailed to Reuters. It was completing existing spot supply deals that were made before the start of the year, it added.

Check out the Reuters story for more information

Blueknight Energy Partners, L.P

In November 2009, Vitol, Inc. acquired a 100% interest in SemGroup Energy Partners G.P., LLC and 12.6 million subordinated units in SemGroup Energy Partners, L.P. (SGLP) from Manchester Securities Corp., a security brokerage firm. From December 1st 2009, the business was re-named Blueknight Energy Partners,L.P.

The assets of Blueknight Energy partners include a crude oil storage terminal in Cushing, Oklahoma and associated pipeline facilities, other pipeline and gathering systems in Texas, Oklahoma, and Kansas, along with 46 asphalt terminal facilities located across 23 states in the US.

http://www.vitol.com/news.php?id=53&o=0

Production at Galoc Oil Field Resumes

Business World reports that production at Galoc oil field in northwest Palawan has resumed after being suspended late last month due to a delay in the delivery of oil cargoes.

“Oil production has resumed following the temporary suspension necessary due to a delay in offloading crude oil from the FPSO (Floating, Production, Storage and Offloading) vessel,” Galoc Production said.

The Galoc oil field is estimated to contain 10 million barrels of oil, and produces between 12,000 and 14,000 barrels per day from two subsea wells.

Operator Galoc Production owns 59.84% of the Galoc service contract. Galoc Production is co-owned by European trader Vitol group, with a 68.6% stake, and Australian firm Otto Energy Ltd., with 31.4%.

Operations at Galoc were also suspended in June for bad weather.

Vitol President Mike Loya Highlighted in New Video

A new video highlights Vitol's President and CEO Mike Loya. The video showcases Vitol's capabilities and position as one of the world's largest oil traders.



http://www.youtube.com/watch?v=MhSPh6EjRag

Ian Taylor Expects Oil Market Surpluses

Ian Taylor, president and chief executive of independent commodities trader Vitol Group said Wednesday that Oil prices will remain capped by surpluses for several years to come.

"I cannot see oil prices significantly above where we are," Taylor told the Oil & Money conference in London.

"Oil fundamentals have got spare capacity right through the system," Taylor said. "Even with strong economic growth, Vitol does not expect oil demand growth to absorb spare capacity for a number of years."

Check out the WSJ article Vitol CEO: Expects Oil Market Surpluses In Next 5 Years

Vitol and Harvest Energy Improve Terms For Crude Oil

Vitol and Harvest Energy Trust announced that Harvest's North Atlantic Refining Limited (NARL) subsidiary has renewed and extended its existing crude oil supply and refined product offtake agreement with Vitol.

Vitol will provide to NARL comprehensive working capital financing of feedstocks and finished products as well as provide feedstock procurement and shipping, finished product marketing and shipping, price risk management, administrative and back office services.