Thursday, February 5, 2009

Indian Oil offers March-August term

Indian Oil Corp is offering a total of 283,500 tonnes of naphtha for March-August loading from Dahej in a term tender that closes on Feb. 6, traders said on Thursday.

The state-run firm is offering two contracts in the tender, one of which is for a three-month period, and another for six months.

In the three-month agreement, IOC is offering one 30,500-31,500-tonne cargo to lifted from Dahej every month from March-May.

The six-month contract is for one 30,500-31,500-tonne parcel, to be lifted from Dahej each month from March-August.

''Both options are independent of each other,'' said a Singapore-based trader.

Bids received will stay valid until Feb. 10.

IOC usually exports a total of 180,000 tonnes of term and spot naphtha a month from Dahej and Kandla.

It last sold two spot cargoes loading from Dahej, each at 30,500-31,500 tonnes, at high premiums.

One parcel, for Feb. 19-21 loading, was sold to Itochu at $40.00 a tonne premium to its own price formula, on a free-on-board (FOB) basis.

The second cargo, for end-February lifting, went to Totsa at a premium of $37.00-$38.00 a tonne.

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