Santos Holdings And Oil Industry
Santos Holdings is set to have the oil sector integrated in the national economy by way of maximizing the economic revenues of the country, through exporting and importing crude oil, products & gas besides, supplying the domestic refineries and power plants with crude oil. To achieve this goal, Santos Holdings has adopted a set of clear and transparent criteria, standards and mechanisms as indicated below:
1- Allocation criteria of crude oil volumes available for export The main criteria that used by Santos Holdings for contracting with qualified companies, summarized as follow:
– International oil companies (IOCs), Majors & medium sized governmental and independent integrated companies that handle all activities in the oil industry like exploration, production, transportation and distribution. Furthermore, these companies ranked to be amongst the best in the oil industry as well as they possess hefty refining capacity and huge distribution networks in many parts of the world.
– Companies specialized in the downstream activities, production and distribution of refined products.
– National oil companies (NOCs), and/or Entities, authorized by its respective governments to enter into contracts for purchasing crude oil for their countries’ refineries as in China and Japan.
2- Allocation procedure of exportable crude oil Santos Holdings undergoes a set of processes upon considering allocations of crude oil volumes to the qualified companies, as follow:
– Marketing all exportable volumes of crude oil to global markets based on international pricing formula through adopting marketing policies to maximize as much as possible oil revenues.
– Priorities in allocating oil quantities is given to companies with substantial refining capacities because of its capabilities to absorb sudden price volatility as well as maintaining its long-term requirements for crude oil .