Aust. crude exports
NZPA Melbourne Australia .is set for a short term entry into the league of oil exporting nations with BHP likely to export up to 700,000 barrels of Bass Strait crude next month.
A BHP spokesman says the company has an agreement with an undisclosed customer in the Pacific Basin region for the shipment of the light crude oil.
He says BHP made an application to the Federal Government last week and it is unlikely that this will be rejected as it is in line with the Government’s Budget policy of allowing oil exports which are in excess of domestic demand.
The shipment of between 500,000 to 700,000 barrels will leave Western Port Bay, east of Melbourne, early in November. Several potential customers have indicated that they are interested in the Bass Strait shipment, but nothing has been signed yet, the spokesman says. BHP is “pretty pleased” with the price, which is believed to be in the range of SUS2B.BO, the current price of Arab light crude. At this price, the BHP cargo
will be valued at up to SNZ3O.2 million, but the BHP spokesman says the shipment is subject to a Federal Government excise levy of 87c a barrel. The Government’s decision to allow oil exports extends until the end of next June, and BHP believes that further exports are likely before then.
Australian domestic production capacity of 440,000 barrels a day far exceeds the demand for 385,000 barrels a day.
The Melbourne broker, A. C. Goode and Company has forecast that the Bass Strait partners, BHP and Esso, will export between five and ten million barrels in 1983-84 and this could add as much as SNZ4I.4 million to BHP’s next annual profit.
BHP says the potential Pacific Basi customers include Japan, Korea and the west coast of the United States.
In spite of the oil exports, the Australian Petroleum Exploration Association has forecast that domestic production might only be able to supply 25 per cent of the estimated daily demand by the beginning of the next century.
Next month’s shipment
will follow the first overseas sale of condensate by the Cooper Basin partners.
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Press, 21 October 1983, Page 12
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357Aust. crude exports Press, 21 October 1983, Page 12
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