Expansion of Business Relations:
Trading with Newfoundland
Activities of Marquard & Bahls in the USA and Canada lead to contacts with the Newfoundland government and the company Shaheen Natural Resources Co., New York. Shaheen's endeavours to build a new refinery in Come-by-Chance (name of Newfoundland's south coast) are supported in Canadian government circles. This creates an opportunity for Marquard & Bahls to sell crude oil to the new Canadian refiner, a subsidiary of Shaheen Natural Resources Co., New York. Marquard & Bahls signs a contract with Saudi Arabia (Petromin) to supply 10 million tons of Safania Crude at $1.08 a barrel with a credit period of 90 days over the space of ten years. This makes Marquard & Bahls the first company – with the exception of Aramco – to sign a crude-oil contract with Saudi Arabia. Marquard & Bahls intends to sell the crude oil to the Canadian refinery for $1.09 a barrel with a credit period of 15 days. In return, Shaheen Natural Resources Co. is to grant Marquard & Bahls the rights to 1.5 million tons of petroleum products a year from the yet-to-be-constructed refinery.