Monday, 5 July 2010

Trafigura: Post Coming Next Week - Introduction

I’m going off for a few days holiday – from Wednesday, back late Monday – and so there won’t be any more Trafigura posts until I return but I am working on a post which I hope to have ready for the end of next week – 16 July.

Below are the first few paragraphs in my first draft.

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TRAFIGURA:  CONFUSION AND QUESTIONS

This is the most important post I’ve made on the “Trafigura affair”.  Many will say that it’s easy to make that claim given my normal posts but be that as it may.

The post is in two parts: unsurprisingly Confusion as Part 1 and Questions being Part 2.

My Confusion surrounds the difficulty I have in reconciling the apparent difficulty Trafigura experienced in late 2005 to early 2006 in finding any port to accept the wastes they expected to produce from the PMI coker naphtha with the apparent ease and simplicity of off-loading in Amsterdam and Abidjan at a price much much less than was anticipated originally.

My Questions are those I would have asked Trafigura staff if I were the Trafigura Chief Executive and as confused as I am now.

I must say that I make no allegations of wrong-doing: I simply ask questions based on the information which is currently available.

CONFUSION

I am not alone in my confusion: many have already made the point I raised in the 3rd paragraph above.  The only difference is that, because this is my blog, I can articulate exactly MY confusions in as much or as little detail as I deem necessary.

I’m going to flag up evidence of the difficulties encountered by Trafigura as they anticipated the arrival of the coker naphtha, the treatment required to “sweeten” the product and the wastes likely to be produced.  This evidence comes from Trafigura emails made public sometime ago at various sites (insert links here) and I’m going to ignore comments like “PMI shit” and “toxic caustic”.  There is ample evidence elsewhere without arguing over what these 2 phrases actually mean.

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Due to be completed by 16 July.

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