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UPDATE 1-Pioneer says owned most of condensate exported by Enterprise
August 5, 2014 / 5:01 PM / 3 years ago

UPDATE 1-Pioneer says owned most of condensate exported by Enterprise

(Updates with background on cargo, quote from CEO, export ban details)

NEW YORK, Aug 5 (Reuters) - Pioneer Natural Resources Co said on Tuesday that it owned most of the 400,000 barrels of condensate exported last week by Enterprise Product Partners LP.

The company had said on Monday that its condensate from the Eagle Ford shale oil play had received interest from petrochemical buyers in Asia.

“There is tremendous international interest, primarily in Asia, to pick up this condensate,” Chief Executive Officer Scott Sheffield said on Tuesday’s conference call with investors.

Last month, South Korea and Japan purchased condensate from the United States since what appeared to be the easing of a decades-old ban on the export of U.S. crude oil. Sources said that South Korean oil refiner GS Caltex bought the first condensate cargo to be loaded in late July. That cargo was marketed by Japanese trading house Mitsui & Co. Ltd., which had bought it from Enterprise.

Pioneer and Enterprise had been told separately by the U.S. Commerce Department in March that putting condensate through a stabilizer was sufficient processing to export it without a license.

A company executive also said during the conference call that he expects a full lift of the 40-year-old ban no later than 2017.

Concerning oil transportation, Pioneer said it was “in discussion” with other companies over projects that would increase transport from the Permian Basin to the Gulf Coast because of growing oil production from the shale play. Pioneer added that those projects would likely be announced by year end. (Reporting by Catherine Ngai; Editing by Lisa Von Ahn and Gunna Dickson)

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