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Abu Dhabi, UAEMonday 16 July 2018

Kuwait Petroleum Corporation said to issue first ever new crude tender

KPC offered 500,000 barrels of Kuwait Super Light Crude (KSLC) that will load on July 26 to 27, sources said

Workers are seen at Al Zour oil refinery in Kuwait. The Kuwait Petroleum Corporation is said to have issued a tender for a new grade of oil. Courtesy Amec Foster Wheeler
Workers are seen at Al Zour oil refinery in Kuwait. The Kuwait Petroleum Corporation is said to have issued a tender for a new grade of oil. Courtesy Amec Foster Wheeler

Kuwait Petroleum Corporation (KPC) issued its first ever tender to sell a new grade of crude oil in Asia, three industry sources said on Wednesday.

The tender offer follows last week's meeting of 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. 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 that closed at 12.00 GMT on Wednesday, the sources said.

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.

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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.