W. Africa Crude-India’s IOC issues fresh tender, arbitrage east opens

Spot trading was quiet as new tender demand emerged from India. Solid Chinese demand had kept Angolan differentials from sliding further, but competition from other sellers remained.

* The benchmark oil prices on which West African crudes are priced were again volatile on Friday, but the spread between those and Dubai crude remained narrow, making arbitrage east possible.

Nigeria has resumed payments of cash stipends to former militants agreed under a 2009 amnesty in the country’s Niger Delta oil hub, a government official said. Authorities had originally cut the budget for cash payments to militants to end corruption.

* A court in London will decide in coming weeks whether Royal Dutch Shell can face trial in the UK over oil spill allegations in Nigeria, a decision some legal experts predict could attract more cases against multinationals in Britain.

* A Nigerian oil labour union has suspended an “indefinite” strike at Total fuel truck depots in Nigeria. The group had been protesting against layoffs.

NIGERIA

* India’s IOC took at least two cargoes of Nigerian oil as part of its tender awarded on Thursday, a trader said.

* The firm’s award included Bonga and Bonny Light.

* A fire at SPDC’s Trans Niger Pipeline was still smoking as of Thursday evening, locals said. The company was forced to shut the line, one of two that exports Bonny Light, on Jan. 3.

* Traders expected further loading delays as a result of the problems, though Shell said it had not declared force majeure.

* Bonga loadings are also expected to be lower in February as a result of field maintenance. Operator Shell declined to comment on whether there was work planned.

ANGOLA

* No fresh deals were reported on Friday, but state oil company Sonangol had four cargoes over the course of the week after cutting its offer prices.

* It was still offering Girassol and Palanca at prices close to a 10 cent premium and a 90 cent premium, respectively.

TENDERS

* India’s IOC had issued two new tenders to buy oil, one for sweet crude and another for sour.

* Nigerian grades Bonny light and Bonga were part of the most recent tender awards to Shell and Total.

* The award from India’s BPCL tender was expected on Friday, but results were not immediately clear.