Saudi Arabia's Aramco Trading seeks gasoil for March-Oct 2013

Reuters Middle East

SINGAPORE, Dec 5 (Reuters) - Saudi Aramco Products Trading

Co, the top oil exporter's new trading arm, is seeking

unspecified volumes of gasoil for its term contract for March to

October delivery next year, industry sources said on Wednesday.

The company, which is a subsidiary of state-run Saudi

Aramco, is seeking 500 parts-per-million (ppm) sulphur gasoil to

be delivered in cargo sizes of either 300,000 barrels or 500,000

barrels or both, they said.

The cargoes are to be delivered into Jeddah, Jizan or Ras

Tanura and will be priced off the new Middle East benchmark

quotes of 500 ppm sulphur gasoil instead of the current 0.5

percent, or 5000 ppm, sulphur gasoil quotes.

Offers are to be submitted to the company by Dec. 7 and will

be valid until Dec. 21. A second round of negotiations will be

held in London over Dec. 17-19.

For the 2012 term, Saudi Aramco paid premiums of $5.95 a

barrel for 500 ppm sulphur gasoil to be delivered into Jizan,

$5.35 a barrel for delivery into Jeddah and $4.20 a barrel for

optional cargoes to be delivered into Ras Tanurah.

While Saudi Aramco is usually a net exporter of gasoil and

jet fuel from its refineries in the Persian Gulf, the company

imports gasoil into the Red Sea region. It avoids sending

cargoes from the Persian Gulf to Red Sea after one of its ships

was hijacked by pirates in 2008, traders said.

Aramco Trading, which started commercial operations in

January this year, is based at the state company's Dhahran


(Reporting by Jessica Jaganathan; Editing by Himani Sarkar)

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