Kuwait Petroleum Corp., the biggest Middle East exporter of oil products to Asia, reached a price agreement with some buyers for its one-year naphtha supply contract, two traders said today.
The state-owned company may sell its Full-Range naphtha at $12 a metric ton over Middle East quotes and the Light grade at a $13 premium, according to the bidders, who were involved in the negotiations that started this week in Singapore. Not all bidders for the December 2010 to November 2011 contract have agreed on prices, they said.
Kuwait Petroleum officials in Singapore and Tokyo couldn’t be reached for comment. The company, which made an opening offer at a premium of $15 a ton, supplies naphtha under one-year contracts that begin in April, August and December.
Potential buyers, including traders and petrochemical companies from Japan and South Korea, placed opening bids at premiums near $9 a ton, the traders said.
Full-Range naphtha is sold under the current contract for August 2010 to July 2011 at a $21 premium. Kuwait Petroleum is offering Light grade under term sales for the first time, the traders said.
Naphtha is used as feedstock to make petrochemicals or gasoline. Kuwait is among 12 members of the Organization of Petroleum Exporting Countries, which pumps about 40 percent of the world’s crude.