Adnoc plans new Das crude blend
Dubai, June 27, 2013
Abu Dhabi National Oil Company is planning to blend its Lower Zakum and Umm Shaif oils into a new export crude called Das from early 2014, oil market trade sources said on Thursday.
"From April, Lower Zakum and Umm Shaif will be combined into one grade. The API will be about 39 and the grade will be called Das," a trade source familiar with the plan said.
"It makes sense to consolidate as they are of relatively small volumes and of similar quality."
A source at state-run Adnoc said the plan was still being finalised but said that "everyone will benefit" from blending the two similar crude streams which are already exported from the same terminal on Das Island.
Oil output from Lower Zakum, which has an API gravity of 40.5 degrees and a sulphur content of 1.04 percent, is around 350,000 barrels per day (bpd), while around 280,000 bpd of Umm Shaif crude has a similar weight of 36.9 degrees and 1.44 percent sulphur.
A buyer of Adnoc crude said there has been a lot of market talk about the two United Arab Emirates crudes being blended, but that Adnoc had not informed traders of the plans.
"We haven't received anything officially from Adnoc. They also haven't shared any plans about merging the grades so far with us," the north Asian buyer said.
It is not clear how the Das Island blend crude would be priced. The UAE typically sells Lower Zakum at a premium to Umm Shaif, while the benchmark Murban crude is usually sold at a premium to both. - Reuters
Tags: Adnoc |
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