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Japan buys Saudi crude from Showa Shell

Tokyo, September 15, 2010

State-run Japan Oil, Gas and Metals National Corporation (Jogmec) bought Saudi Arab Extra Light crude for Japan's national reserves from Showa Shell Sekiyu via a tender, industry sources said on Wednesday.

Jogmec, which had sought 1.25 million barrels of Middle East light crude through the tender, bought the 1.25 million barrels of the Saudi grade, one of the sources said.

Jogmec, meanwhile, did not award a tender for another 1.9 million barrels of ME light crude and rent a tank for it at the same time, industry sources said. There was no offer for the 1.9 million barrels, one of them added.

Jogmec could not be immediately reached for comment. Showa Shell and the trade ministry, which instructs Jogmec on policy for the national reserves, did not immediately issue a comment.

Japan is trying to replace medium and heavy crude in its national reserves with lighter crudes to reflect the growing share of light crudes in Japan's recent imports.

Japan has sold 400,000 kilolitres of Khafji crude and 260,000 kl of Kuwaiti crude from its national reserves since April, and the trade ministry has said it was considering buying replacement crude.

Jogmec issued a tender on September 1, seeking 1.25 million barrels of Middle East light crude, with delivery to the Shibushi national oil reserves in Kagoshima, southwestern Japan, between December 1 and December 20.

It had also sought another 1.9 million barrels of crude, to be delivered between November 21 and December 20, and rent a tank for it until March 31, 2011.-Reuters




Tags: Japan | Saudi crude | Showa well |

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