BP Offloads Last Two Stranded Oil Cargoes in China

Wednesday, August 15, 2018

Oil major BP on Tuesday offloaded about 1 million barrels of Angolan crude from supertanker Olympic Light to an independent Chinese refiner after holding the oil at sea for about three months, people with knowledge of the discharge said on Wednesday.

The oil had been aboard one of four supertankers held up or delayed off China's east coast near Shandong since as long ago as April, unable to discharge BP's oil due to slowing buying from private refiners in the world's second-biggest economy.

All four have delayed cargoes, totaling about 4 million barrels, have now been offloaded to Shandong Qingyuan Group, one of China's largest independently run lubricant producers, according to sources.

Shippers and oil traders said it was not unusual for producers like BP to ship cargoes before finding a buyer, but having cargoes orphaned for several months was uncommon. It wasn't immediately clear who will pay the bill for the months' demurrage - charges paid by a vessel's charter to its owners for delayed operations - which shipping agents have estimated costs roughly $30,000 a day for a supertanker.

The Olympic Light discharged its cargo at Qingdao port, the people said. Last Sunday, BP discharged a similar-sized cargo at Rizhao port from another supertanker, 'Olympic Luck', to the same refiner, the people said, after holding the oil at sea for about one and half months.

The people spoke on condition of anonymity because they were not authorized to speak to media.

BP did not respond to an emailed request for comment. An official at Qingyuan reached by Reuters said she was not in a position to comment.

Qingyuan, which operates a 104,000 barrels per day refinery, is a regular customer of BP, which has expanded its crude oil marketing to Chinese independent refiners since 2015 after China opened crude oil imports to nearly 40 local plants.

The refiner has received an annual crude import quota of 4.04 million tonnes from Beijing authorities for the last two years.


(Reporting by Chen Aizhu Editing by Kenneth Maxwell)

Categories: Tankers Energy Ports Government Update

Related Stories

Aesen, DOC JV Targets Subsea Cable Logistics

MDL Secures Cable Laying Job in Asia Pacific

Yinson Production Nets DNV Approval for New FPSO Hull Design

Hanwha Ocean Enlists ABB for Singapore’s First Floating LNG Terminal

Aquaterra Energy Nets Subsea Analysis Contracts with INPEX off Indonesia

DOF Secures Moorings Hook-Up Job in Asia Pacific

Synergy Marine Group Completes Conversion of LNG Vessel to FSRU

PTTEP Hires McDermott for Deepwater Subsea Job off Malaysia

CNOOC Brings Online Another Oil and Gas Project in South China Sea

SPE Offshore Europe 2025 set to drive transformational change for the energy sector

Current News

MODEC Ramps Up Hammerhead FPSO Work After ExxonMobil's Go-Ahead

Aesen, DOC JV Targets Subsea Cable Logistics

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Seatrium Secures ABS Backing for Deepwater FPSO Design

MDL Secures Cable Laying Job in Asia Pacific

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

Yinson Production Nets DNV Approval for New FPSO Hull Design

Hanwha Ocean's Tidal Action Drillship Starts Maiden Job with Petrobras

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com