Sunday, Jun 06, 2010

("Adnoc Signs Term Gasoil, Jet Fuel Deals With 6 Buyers -Traders," at 0431 GMT Friday, misstated the sulfur content of gasoil in the third and fifth paragraphs. The correct version follows:) 


 
 
    By Wayne Ma 
    Of DOW JONES NEWSWIRES

SINGAPORE (Dow Jones)--Abu Dhabi National Oil Co. has signed term contracts to supply six companies with jet fuel and gasoil over the next 12 months, several traders familiar with the matter said Friday.

Itochu Corp. (8001.TO), Vitol Holding B.V., Swiss Singapore Overseas Enterprises Pte., Petroliam Nasional Bhd., PTT PCL (PTT.TH) and Independent Petroleum Group (IPG.KW) have signed agreements to purchase middle distillates from Adnoc.

Adnoc, based in the United Arab Emirates, will export about 450,000 metric tons of 0.5%-sulfur gasoil and about 900,000 tons of jet fuel via term contracts between July 1, 2010 and June 30, 2011.

The gasoil and jet fuel will likely be sold in cargo sizes of 40,000-45,000 tons each, which translates into exports of 10 gasoil cargoes and 20 jet fuel cargoes for the entire year.

The 0.5% gasoil was sold at a premium of $1.60 a barrel to benchmark Middle East quotes, while the jet fuel was sold at a premium of $1.70 a barrel to quotes, the traders said.

Japan's Itochu and Thailand's PTT will each lift two gasoil cargoes.

The remaining six gasoil cargoes will be purchased by Kuwait's IPG and Swiss Singapore--both of which will take at least two cargoes each.

European trader Vitol and state-controlled PTT will each buy six jet fuel cargoes, while Malaysia's Petronas will lift four jet fuel cargoes.

Swiss Singapore, which often supplies Pakistan State Oil with jet fuel, will probably lift the remaining four cargoes, the traders said.

PTT's jet fuel cargoes won't be used for domestic consumption and will be resold to BP PLC (BP.LN) for shipment to Europe, a trader familiar with the matter said.

BP ships large quantities of jet fuel to Europe from the Middle East each month, according to a survey of shipping fixtures.

-By Wayne Ma, Dow Jones Newswires; +65 6415 4065; wayne.ma@dowjones.com

(END) Dow Jones Newswires

06-06-10 2357GMT