Trafigura and IOC downplay arbitration

Vol 12, PW 8 (04 Sep 08) News in Brief

Two executives at two oil companies.

Both send emails to each other over a recent delivery of Nigerian Bonny Light crude to a refinery in India. The executive from Indian Oil says the contract should be dated at February prices.

But the Dutch-based company that brokered the cargo, Trafigura Beheeer B.V.

, says it is actually a March delivery because of a â€کforce majeure’ related to unrest in Nigeria and hence March prices. Indian Oil ignores the content of each such email and asks for a February-dated invoice.

Then exasperation sets in – and with it came arbitration in June in London. But an Indian Oil senior director says all is OK.

“The dispute does not stop us from dealing with the company,â€‌ he says. Trafigura also seems to want peace with India’s largest crude oil buyer.

“We are very happy with IOC and things are fine.â€‌ No details of the money at stake were in the emails seen by PETROWATCH.

But what’s a few dollars between friends