Pioneer in talks to sell condensate overseas

Reuters

By Catherine Ngai

NEW YORK, Sept 3 (Reuters) - Pioneer Natural Resources , benefited from improved pricing as a result of its ability to sell an ultra-light oil called condensate outside of the United States.

Pioneer said it is in negotiations with foreign buyers to sell condensate, which the company produces and has authority to export.

The oil was previously sold at around $15 a barrel below U.S. crude oil prices. Prices for the historically discounted grade have significantly improved due to Pioneer's license to export the oil.

"Pricing continues to improve," Pioneer Chief Executive Officer Scott Sheffield said during a webcast of his presentation at the Barclays CEO Energy-Power Conference. He did not offer specifics on how much the price has increased.

Pioneer, along with Enterprise Product Partners LP, received the green light from the Commerce Department in March to export condensate, a ruling that became public in June.

The company has exported two cargos already, he said. One was to South Korea and the other to Europe.

Sheffield added that he expects the Commerce Department to approve several more applications to export condensate, provided it goes through the proper distillation process.

He also said he is optimistic that the Obama administration or the next administration will remove the ban on exporting on crude oil, considering geopolitical issues in Russia and Europe.

(Reporting By Catherine Ngai; Editing by Jessica Resnick-Ault and Jonathan Oatis)

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