Kuwait Petroleum Company (KPC) has agreed to sell gasoil and jet fuel under long-term contracts for 2017 at almost half its 2016 premiums, reported Reuters. A drop in purchases by Kuwait’s long-standing term customer in Indonesia had motivated the Arabic nation to lower its premiums for the fuel products.
The company has agreed to finalize its 2017 term contract to sell 500ppm of sulphur gasoil at a premium of $0.60 per barrel down from $1.15 for 2016. Buyers under these selling terms include Royal Dutch Shell, BP and Total. While, KPC has agreed to a premium of $0.90 to $0.95 per barrel down from 2016’s $1.60 for jet fuel. Buyers included Shell, BP, Total and Emirates National Oil Company (ENOC), according to Gulf News. Contracts for both oil products will be finalized on a free-on-board (FOB) basis. Volumes and term buyers are consistent with current contracts.
In a related news Egypt Oil&Gas earlier reported that Kuwait’s crude oil exports to Japan had increased by 33.7% during September, when compared to volumes from the same period during 2015. It had reached 6.83mb of oil, averaging 228,000b/d. That was the second straight month in which Kuwait’s exports to Japan have shown a growth.