CONFIDENTIAL
機密
XCCI(80)23
4
spot market price of US$210 per metric ton) and partly because serious doubts arose as to whether the potential seller genuinely had the claimed quantity of oil and whether it would meet the specifications for long- term storage. At the same time, a group of major oil companies is consi→ dering whether one or more of them will be able to make an offer to sell the required quantity of crude oil and the results of this consideration should be known by about 22nd October. This could then be tied in with other possibilities for a package deal covering charter of the ships and the refining of the crude oil at a refinery in the Philippines (subject to the political considerations referred to in paragraph 5).
Costings
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The Iran-Iraq conflict has had substantial repercussions on the costs of the components of the tanker storage scheme. Compared with the beginning of September, the price of crude oil has gone up by about 17%, the price of fuel oil by about 23% and freighting charges have increased by about 15%.
Conclusion
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The Board of Owensbord Enterprises Ltd intends to continue along the lines indicated. While fully recognising the desirability of taking delivery of a cargo of oil as soon as possible, the Board does not wish to have to buy at the top of the market or from sellers whose prices are unrealistically high. It is also essential that the Board is satisfied in respect of the specifications of any oil purchased, so as to avoid the risk of the company acquiring oil which proves to be unusable by the power companies after it has been stored in tankers and then on land for a period of possibly several years.
20th October 1980
(CR 3/5211/80 II)
COUNCIL CHAMBER
CONFIDENTIAL #
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