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Feb 08 2012

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* Recent Jump In Saudi Oil Exports To China Unrelated to Iran-Sources

* Chinese Oil Imports From Saudi Arabia +150,000 B/D In 4Q 2011 - Data

Increase In Saudi Oil Exports To China Unrelated To Iran-Sources

BEIJING (Dow Jones)--Chinese oil imports from Saudi Arabia have risen somewhat in recent months, but the jump is related to stronger seasonal demand rather than a shift from Iranian oil purchases, two people familiar with Saudi oil sales said Wednesday.

China's imports from Saudi Arabia are up about 100,000 in recent months, a person familiar with the Gulf state's oil sales said. A senior Saudi oil official described a somewhat bigger increase, placing the jump in Saudi exports at 100,000-200,000 barrels a day.

Both sources said the shift was unrelated to China's move in January to trim oil imports from Iran amid a pricing dispute.

"(China) isn't receiving anything over and above its term agreements," the person said, adding that any higher volumes are still within the 10% operational tolerance set forth in annual term contracts.

China's imports of Iranian crude were halved in January and February due to a deadlock between China Petroleum & Chemical Corp.'s (SNP) trading unit Unipec and National Iranian Oil Co. over commercial issues. If an agreement still can't be reached by mid-February, Unipec could skip March orders as well, a person familiar with Iran's oil sales said.

China has resisted international pressure from the U.S. and others to curtail Iranian oil imports as part of an international campaign to pressure the country's nuclear policy.

China imported about 560,000 barrels a day of crude from Iran in 2011, with Unipec's term contract representing half that amount. In contrast, China imported about 1 million barrels a day from Saudi Arabia last year, up 12.6% from year-earlier levels, and mostly via long-term supply contracts with PetroChina Co.'s (PTR) Chinaoil, Unipec and Sinochem Group.

In the fourth quarter of 2011, China's imports from Saudi Arabia were already up by about 150,000 barrels a day compared with the first three quarters of the year. The higher volumes corresponded with higher output from the Gulf state.

Saudi Arabia's crude output rose in November to 10.047 million barrels a day, the highest level in three decades, from 9.362 million barrels a day a month earlier. Saudi officials have said the Gulf state produced 9.81 million barrels a day in December.

Although Saudi crude output has risen dramatically in the past few months, the additional oil is also being delivered to Europe and India, the person said.

-By Wayne Ma, Dow Jones Newswires; +86 10 8400 7714; wayne.ma@dowjones.com

(Summer Said in Riyadh contributed to this story.)

(END) Dow Jones Newswires

08-02-12 1307GMT