Continental Focus, International Reach

Sonatrach to Vitol: No Extension on Crude-for-Product Deal

Sunday, April 28, 2019

Sonatrach’s crude-for-oil-product deal with oil trader Vitol will not be extended. There was talk of an extension however, according to a Reuters report citing two sources, the deal will come to a halt at the end of April.

The Algerian state-run firm’s decision to not extend the deal follows the return from maintenance of Sonatrach’s 175,000 bpd Italian oil refinery. The company acquired the refinery in Q4 2018 from ExxonMobil.

The Vitol deal, which started in February 2018 and was due to end in December, was extended until the end of April. Under the agreement, Vitol takes up to 2 million barrels of crude per month from Sonatrach and provides refined products to the Algerian firm.


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