Oil and natural gas exploration company Venoco Inc. said Tuesday it signed a one-year contract to sell crude oil from its South Ellwood field to oil refiner Tesoro Corp.
Under the contract, Venoco will deliver crude to a Los Angeles delivery point. The contract will also allow for access to Tesoro's San Francisco Bay facilities as well as a Long Beach pipeline system that Venoco recently bought into.
Venoco said the contract price represents a discount to Nymex that is slightly greater than the historical discount, but better than the recent spot market.
Venoco shares fell 9 cents to $19.61 in morning trading.
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