The sale procedure has been conducted in the form of a two-stage bid requests using the online-auction. Under results of the tender three lots of Urals grade export oil, 100 thousand tons each, shall be delivered via Primorsk port in the IV Quarter of 2020.
Zarubezhneft has been using the services of the e-platform of the Mercantile Exchange since December 2014 selling oil under the results of one-stage tenders in the form of closed collection of bids from the participants. During the whole time 27 procedures for the sale of crude oil for export in the total amount over 8.8 million tons have been completed.
This time the tender has been improved by inclusion of the second open stage at which the anonymous participants were submitting their bids in real time to improve the final indicators of the first stage. The bidding between the nine allowed buyers has been actually conducted in the form of an online-auction: they had the opportunity not only to submit their bids but also to see the changes of the price influenced by their competitors’ bid. It allowed Zarubezhneft JSC to improve the premium to the pricing formula by 50%.
Major international traders and trading divisions of the international oil companies were among the participants of the tender, they have noted the maximum open and transparent nature of the bidding procedure.
“The first Russian experience of holding an auction for the Russian export oil at the e-platform of the mercantile exchange has shown its efficiency for the development of the fair market pricing – noted the Deputy General Director of Zarubezhneft JSC Denis Maximov, - We hope that it shall be a new step towards the development of independent national indicators for the main types of Russian fuel and energy goods.”
“The mercantile exchange continues to develop the mechanisms ensuring improvement of the Russian companies’ activities efficiency. We are glad that our proposals regarding the use of online-auctions tools for the purpose of selling Russian oil for export have been successfully implemented in our joint project with Zarubezhneft JSC. The formation of the price for the actual oil lots at the e-auction on the basis of information on the actually made transactions is an important step in the development of the pricing system in the global oil market where Russia is one of the most significant participants”, - underlines the President of SPIMEX Alexey Rybnikov.
For reference:
Zarubezhneft JSC is a Russian oil and gas company of strategic importance having rich history and unique 50-years long experience of external economic activities. Its projects include operations offshore Vietnam in the framework of the joint venture Vietsovpetro, development of fields in the Nenets Autonomous Area in the framework of the joint company RUSVIETPETRO and Kharyaga field PSA, application of technologies for the development of fields in Cuba and activities in the downstream segment in the Republic of Srpska (Bosnia and Herzegovina).
Saint-Petersburg International Mercantile Exchange (SPIMEX) is the largest mercantile exchange in Russia established in May 2008. SPIMEX arranges stock trading at the oil products, oil, gas, liquefied petroleum gas (LPG), timber and construction materials markets as well as at the futures and options market. The mercantile exchange implements the task for establishment of a transparent procedure for fair pricing of Russian goods. The exchange license and the clearing license are published on the web-site of SPIMEX.
E-platform of SPIMEX is design to hold the procedures of goods, works and services sale/purchase in electronic form. It allows holding a full range of legally valid, competitive sale and purchase procedures online. The use of new high-tech services of the platform when holding tender procedures gives the opportunity to optimize the labor costs and to ensure maximum transparency and fairness of pricing when selling oil and oil products for export.