Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: ldo79 who wrote (54365)	11/10/1999 12:39:00 PM
From: The Ox	Read Replies (1) of 95453

Here's the detail: Wednesday November 10, 12:09 pm Eastern Time PEMEX to take SPR oil as part of 1998 swap deal WASHINGTON, Nov 10 (Reuters) - Mexico's national oil company PEMEX will withdraw 6.4 million barrels of crude oil in November and December stored in the U.S. Strategic Petroleum Reserve, as part of an oil swap reached last year with the U.S. government, an Energy Department spokesman said on Wednesday. Under the oil swap entered into with the Energy Department, PEMEX agreed to exchange 8.524 million barrels of light oil for about 11 million barrels of Maya crude stored in the SPR. PEMEX took 4.22 million barrels of the Maya oil over September and October and has already delivered its lighter oil. The department wants to get rid of the Maya oil because it is heavier crude and more complicated to remove from the reserve than lighter oil. The Maya oil was acquired from Mexico in the 1980's as part of an effort to build the oil stockpile. The PEMEX withdrawals have been somewhat masked by royalty-in-kind oil that has been flowing into the reserve under a special department program to add 28 million barrels of royalty oil to the SPR. However, the effect of the PEMEX drawdowns could be seen on Wednesday, when the U.S. Energy Information Administration's weekly petroleum report showed that net SPR stocks decreased 2.7 million barrels over Oct. 29-Nov. 5 to 572.8 million barrels. Energy Department officials said they do not know what PEMEX is doing with the Maya oil, whether its being sold to U.S. oil companies or being sent back to PEMEX storage tanks in Mexico. The department does not track the oil once it leaves the reserve, officials said. (-Tom Doggett, Washington Energy Desk, 202-898-8320)

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