Bapco has started negotiations for its 2013-2014 term fuel oil exports, asking for a $3 premium above Middle East quotes while buyers are indicating their interest at discounts, industry sources said yesterday.

The company has offered cargo sizes of 40,000 tonnes, 60,000 tonnes or 80,000 tonnes 380-centistoke fuel oil for loading over April 2013 to March 2014, they said. Bapco typically exports about one cargo of fuel oil a month.

The negotiations were expected to be finalised during the International Petroleum Week in London, which starts on Monday, one of the largest gatherings of the oil and gas industry.

Details on Bapco's 2012-2013 term contract for fuel oil are not known but it was likely done at a single-digit discount, an Asia-based source said.

Bapco will also likely try to re-negotiate premiums for its April to December gasoil term contracts at a higher level than what was negotiated for the first quarter, the sources said.

Bapco sold first-quarter term gasoil at a premium of $3 a barrel to Middle East quotes, which traders have said was unusually high. – TradeArabia News Service