Australian condensate for N.Z.
BP Oil New Zealand, Ltd, has signed a term contract to buy 540,000 barrels of oil condensate from be partners in the Cooper Basin oil and gas-field in South Australia for about sAustlBM. A spokesman for BP said yesterday that the parcel was not a big one, but it was at the right quality and the right price.
It was the first term contract for export of condensate from the field, previously the export of condensate from the Cooper Basin was done on a single shipment, spot price basis. The condensate will be shipped to the Marsden Point oil refinery.
The contract was first revealed at the annual meeting of Vamgas, one of the Cooper Basin partners.
Vamgas’s chairman, Mr J. G. Donaldson, said that the condensate deal would be spread over six months to December 31.
The contract was signed
“on most favourable commercial terms” but did not indicate the price or the buyer of the condensate.
The term contract allows the Cooper Basin partners to receive a price closer to $U554.6 — the condensate average price according to the 1983 Vamgas annual report — rather than the lower spot price at around SUS 29.
Condensate is regarded as a light crude oil but can be sold anywhere because of the limited local refining capacity for light crude in Australia which is currently dominated by Biden Hill Proprietary and Esso, the Bass Strait oilfield partners.
New Zealand received the first export condensate shipment from the Cooper Basin in August last year with a total of 990,000 barrels sold locally and overseas in 1983.
The term contract would represent about 20 per cent of total condensate production to the end of the year, said Mr Donaldson.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/CHP19840504.2.83.11
Bibliographic details
Press, 4 May 1984, Page 10
Word Count
288Australian condensate for N.Z. Press, 4 May 1984, Page 10
Using This Item
Stuff Ltd is the copyright owner for the Press. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Copyright in all Footrot Flats cartoons is owned by Diogenes Designs Ltd. The National Library has been granted permission to digitise these cartoons and make them available online as part of this digitised version of the Press. You can search, browse, and print Footrot Flats cartoons for research and personal study only. Permission must be obtained from Diogenes Designs Ltd for any other use.
Acknowledgements
This newspaper was digitised in partnership with Christchurch City Libraries.