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Thu 4 Nov 2010 11:50 AM

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Adnoc offers Asia naphtha contracts at higher prices

Firm this year sold naphtha under a contract for supply starting from October for the first time

Adnoc offers Asia naphtha contracts at higher prices
Adnoc is seeking to sell Pentane-Plus naphtha at a premium of $19 a metric tonne to its benchmark Middle East prices. (Bloomberg Images)

Abu Dhabi National Oil Co offered to sell naphtha to buyers in Asia for delivery from January through December at a higher premium than its October price, according to two people with direct knowledge of the talks.

The UAE company is seeking to sell Pentane-Plus naphtha at a premium of $19 a metric tonne to its benchmark Middle East prices, the people said, declining to be identified as talks are confidential. Low-Sulfur grade was offered at a premium of $18 a tonne and Splitter grade at $17 a tonne, the people said. Discussions between Adnoc and buyers are ongoing, they said.

Adnoc in the past has offered term cargoes starting from January, April and July. The company this year sold naphtha under a contract for supply starting from October for the first time.

For the October contract, Adnoc set its premiums for Splitter grade naphtha at $11.50 a tonne and Pentane-Plus at $12.50 a tonne, traders with knowledge of the discussions said. The Low-Sulfur grade wasn’t offered.

Kuwait Petroleum Corp last month sold Full-Range naphtha at $12 a tonne over Middle East quotes and Light grade at a $13 premium, bidders involved in those negotiations said Oct 8.

Persian Gulf oil producers such as Abu Dhabi and Kuwait sell most of their crude and refined products under long-term contracts. Naphtha, used in making petrochemicals and gasoline, is mainly sold under annual contracts negotiated at several intervals a year.

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