Tullow Oil, producers of Ghana’s crude oil at the Jubilee field and Vitol, marketers of the product on Monday reacted to what they described as incorrect media coverage relating to the value of the crude.
A joint statement signed by Mr Gayheart Mensah, Communications Manager of Tullow said the price achieved was well in excess of $90/bbl, with a little differential linked to the Dated Brent crude price index.
“The first Jubilee cargo was shipped to Europe on MV Spike, a double hulled tanker built in 2010. Crude oil sales will normally remain private and confidential and it is not customary to disclose the details,” the statement said.
“It takes a while for the market, and refiners in particular, to assess the fair value of any new crude oil, since ultimately its value reflects the actual yield and quality of products that a refiner obtains as compared with its formal technical and paper yield.
“While we can’t disclose specific details of the actual price obtained for the first sale, as these details remain confidential, there was significant interest in buying the new Jubilee crude from at least four major international buyers.”
The statement said daily prices linked to an index can move both up and down, as was the case with all crude grades, worldwide.
The use of the word “discount” when applied to an index price at the time of a sale merely indicates its relative value at that actual moment in time and this is a complex but well understood relationship in oil markets.
The statement said the use of the word ‘discount’ was totally different and should not be confused as the product was sold at its true and fair market value.
“We continue to see strong interest from refiners and traders for the new Jubilee crude, which will contribute to meeting the growing global demand for energy,” it said.
Tullow (34.7 per cent operates the Jubilee Field and is partnered by Ghana National Petroleum Corporation (13.75 per cent, Anadarko Petroleum (23.49 per cent), Kosmos (23.49 per cent), Sabre Oil and Gas (2.81 per cent) and EO Group (1.75 per cent).