Nile Blend crude seen traded at $2.90-3.80 discount
Aug 22, 2005 (Singapore) — Sudanese state oil firm Sudapet was likely to sell via its regular monthly tender October supplies of Nile Blend crude at stronger levels, a source close to the discussions said on Monday.
A Chinese company may take one million barrels of Nile Blend at around a $3.80-a-barrel discount to the Minas Indonesia Crude Price (ICP) while a European trader bid at a higher $2.90 discount, the source said.
It was unclear if other companies had bid in the tender, with volumes on offer much smaller than normal.
Sudapet had yet to confirm the awards to the bidders, the source added.
Sudapet offered only 2.2 million barrels for October loading, partly because it contracted some volumes under a term contract, and partly because the oil field was experiencing some production problems, and would go for planned maintenance in October, traders said last week.
The smaller than usual volume on offer prompted higher bids than last month when 5.6 million barrels of Nile Blend crude for September loading was sold through a similar tender at between a $3.80-to $4.35 discount to the Minas ICP .
Sudapet owns a five percent stake in the Greater Nile Oil Project (GNOP). Other stakeholders are India’s state-run Oil and Natural Gas Corp and China National Petroleum Corporation (CNPC), China’s biggest oil producer.
Reuters News / ST