Malaysian oil company issues tender for Sudanese crude

April 20, 2009 (TOKYO) — The Malaysian state oil company PETRONAS has issued a new tender for 1 million barrels of Sudanese Dar Blend crude, a trade told Reuters today.

PETRONAS is marketing Sudanese Dar Blend crude on behalf of other equity partners and has already sold three cargoes for May through tenders at a discount of $11.40 a barrel to dated Brent, up from a $12.50 discount obtained in its second tender for the grade and a $14.00 discount fetched in its first tender for a May cargo.

Dar Blend crude is heavily discounted because of its high acidic content, which makes it unattractive to most Asian refiners. U.S. sanctions against the purchase of Sudanese goods also keep many companies away.

But the heavy sweet, acidic Dar Blend crude can be used for fuel oil blending.

Sudan is heavily dependent on oil exports which have declined sharply in terms of proceeds and volume in the wake of a financial crisis that swept developed nation and caused demand to plunge.

(ST)