SEATTLE (Oil Monster): Abu Dhabi National Oil Company (ADNOC) has offered to sell crude oil from the United Arab Emirates in a spot tender, according to a tender document seen by Reuters on Tuesday.
The company is offering cargoes of Upper Zakum, Umm Lulu and Das crude on a cost-and-freight (CFR) basis, with buyers allowed to nominate their preferred destination when submitting bids. Buyers can bid up to 2 million barrels of oil.
The cargoes are available for delivery between June and September.
The three crude grades are produced from fields within the Gulf and are exported through the Strait of Hormuz.
Since the U.S.-Iran war began, ADNOC has managed to export some oil out of the strait with tankers' location trackers shut off to avoid Iranian attacks. The shipments were either unloaded by ship-to-ship (STS) transfer to a vessel that later carried the oil to buyer or sailed directly to buyer.
The crude will be priced at a differential to either ADNOC's official selling prices or the Dubai benchmark, the tender document showed.
ADNOC's decision to offer spot cargoes on a CFR basis gives buyers flexibility in choosing their destination, which could attract a wider pool of international buyers amid ongoing regional supply disruptions. The availability of up to 2 million barrels represents a significant volume that could help offset supply concerns stemming from Strait of Hormuz tensions.
ADNOC is offering cargoes of Upper Zakum, Umm Lulu, and Das crude. All three grades are produced from Gulf fields and are exported through the Strait of Hormuz.
Buyers can bid up to 2 million barrels of oil across the three crude grades offered in the spot tender.
The cargoes are available for delivery between June and September, giving buyers a multi-month window to secure supply.
ADNOC has shipped oil with tankers' location trackers disabled to avoid detection. Shipments were either transferred via ship-to-ship (STS) operations or sailed directly to buyers.
According to the tender document, the crude will be priced at a differential to either ADNOC's official selling prices or the Dubai benchmark.
Courtesy: www.reuters.com
