PETRONAS plans crude price formula change in 2011


Isn’t it ironic that Tapis field is not operated by PETRONAS? It’s still in the hands of a foreign multi-national.

From the Malaysian Insider, dateline 2010-09-23:

Malaysian state oil firm PETRONAS is reviewing its crude price formula, paving way for a change for the first time in eight years, industry sources said today.

The move comes after two other Southeast Asian producers Vietnam and Indonesia said they planned to review their price formulae, abandoning volatile local benchmarks in favour of European bellwether Brent to price their crudes.

Local markers suffer from low liquidity due to production decline at mature fields, with prices frequently diverging from global benchmarks, traders and analysts had said.

PETRONAS has been using 100 percent Tapis prices from the Asian Petroleum Price Index (APPI) since 2002.

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