Oct. 19 (Bloomberg) -- Kuwait Petroleum Corp. offered to sell naphtha cargoes to Asia from December to November at almost double the premium of supplies for the same period this year, according to two people involved in the negotiations.
The Kuwait City-based company, the largest Middle East exporter of refined oil products to Asia, is offering Full-Range naphtha for December 2011 to November 2012 at $23.50 a metric ton above benchmark prices, according to the people, who asked not to be identified because the discussions are confidential. The state-owned company has been selling cargoes at $12 a ton over quotes for December 2010 to November 2011 and most recently agreed to receive an $18.50 premium for shipments from August 2011 to July 2012.
Two telephone calls to Kuwait Petroleum’s international marketing department were not answered. The company supplies naphtha, used to make petrochemicals or gasoline, under one-year contracts that begin in April, August and December.
Potential buyers, including traders and petrochemical companies from Japan and South Korea, will make bids today at premiums of about $14 to $15 a ton, the two people said.
Kuwait is among 12 members of the Organization of Petroleum Exporting Countries, which pumps about 40 percent of the world’s crude.
--With assistance from Anthony DiPaola in Dubai. Editors: Alexander Kwiatkowski, Aaron Sheldrick
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