INTRODUCTION: The French state-owned oil company CFP - Compagnie Francaise des Petroles - agreed on Thursday (16 July) to resume purchases of oil from Mexico which it had previously refused.
PARIS, FRANCE (16 JULY, 1981) (REUTERS - ERIC BOURBOTTE)
GV EXT Total Oil building CU sign on doorway. (2 SHOTS) 0.06
SV Mexican delegate shaking hands with French officials. 0.32
SCU Mexican delegate ready to enter car, questioned by newsman. 0.45
SV PAN Car driving out of gateway. 0.53
InitialsJS Script is copyright Reuters Limited. All rights reserved
Background: PARIS, FRANCE
INTRODUCTION: The French state-owned oil company CFP - Compagnie Francaise des Petroles - agreed on Thursday (16 July) to resume purchases of oil from Mexico which it had previously refused. CFP, which trades under the Total name, had refused to buy the Mexican oil because the price was too high - and also because of reported worries about irregular deliveries and low quality of Mexican crude.
SYNOPSIS: CFP and the Mexican State Company Pemex agreed in their talks in Paris on Thursday (16 July) that deliveries would resume from next month. However, the joint statement did not say what price had been agreed. A point of contention had been the French company's refusal to pay an extra two dollars per barrel. The current benchmark price is 30-dollars-60-cents a barrel, although Mexico had charged more than this.
Following the French refusal, Mexico withdrew valuable development contracts from French companies earlier this month. These included an underground railway in Mexico City, nuclear reactors and car factories.
Despite the Paris accord, the disagreement over the quality of Pemex oil is still to be resolved.
Source: ERIC BOURBOTTE