Kuwait Petroleum Corporation (KPC) has issued its first ever tender to sell a new grade of crude oil in Asia, three industry sources with knowledge of the matter said on Wednesday.
The tender offer follows last week’s meeting of the Organization of the Petroleum Exporting Countries (OPEC) where the group, along with non-OPEC producers such as Russia, agreed to raise output from July by about 1 million barrels per day. The group’s de facto leader Saudi Arabia pledged a “measurable” supply boost but gave no specific numbers.
KPC offered 500,000 barrels of Kuwait Super Light Crude (KSLC) that will load on July 26 to 27 in a tender to close later on Wednesday, the sources said.
The tender will remain valid until 3 p.m. (1200 GMT).
KPC sought bids at a premium to the average of Platts Oman-Dubai quotes, they said.
The crude’s API gravity is expected to be at 48 degrees and there will be a price adjustment of $0.003 per barrel for every 0.1 degree change, either higher or lower, the sources said.
KPC could not be immediately reached for comment.
The crude was blended with Kuwait Export Blend and first exported this month to Japan, one of the sources said.
A crude buyer said his company was likely to compare KSLC’s pricing with Saudi’s Arab Super Light crude, but added that the timing of the KSLC cargo might be too prompt as Asian buyers have finished buying July-loading cargoes.
Production of KSLC could reach up to 120,000 bpd, a senior KPC official said last year.