London/Algiers — Algerian state oil firm Sonatrach has decided not to extend its crude-for-oil-products deal with trading house Vitol that ends this month, two sources with direct knowledge of the matter said.
The move comes as Sonatrach’s 175,000 barrels per day (bpd) Italian oil refinery, which it acquired from U.S. major Exxon Mobil last year, returns from 45 days of maintenance, the sources said.
The refinery will cut OPEC member Algeria’s fuel import bill, giving it more access to petroleum products such as gasoline and gasoil.
The Vitol deal, which started in February last year 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.
Vitol declined to comment.
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