Surgutneftegaz Holds First Tender to Sell Fuel Oil
Russian energy company Surgutneftegaz has called its first ever export tender to sell up to 5.6 million tonnes of fuel oil, originating from its Kirishi refinery, for delivery in June-December 2016, trading sources said.
The company is offering from 150,000 to 800,000 tonnes of strait-run fuel oil per month with a sellers option.
Surgutneftegaz also offered to sell from zero to 150,000 tonnes of visbreaking fuel oil per month with a sellers option.
The company will sell the product on a FOB Ust-Luga basis via trading firm Surgutex with cargo lots varying from 30,000 to 100,000 tonnes.
"There are many limitations for this (fuel oil) tender. Surgut asks for prepayment, while two-three days may be not enough to finalise compliance procedures for Surgutex", a trading source said.
Surgutneftegaz offered a pricing formula based on the mean of quotations of 3.5 percent sulphur content fuel oil, CIF cargoes NWE and FOB barges Rotterdam, and this value should be calculated three consecutive days after the bill of lading date, Reuters sources said.
The minimum bid volume was set at 50 percent of the minimal volume offered for tender.
The tender closes on May 12 and will be awarded on May 13.
(Reporting by Gleb Gorodyankin)
