By John Lee.
Iraq’s State Oil Marketing Organisation (SOMO) has finalised a deal to buy up to 1.097 million tonnes of gasoil for delivery next year from BP and Swiss trader Vitol, according to Reuters.
The company has agreed to pay a premium of $7.99 a barrel above Middle East quotes on a delivered basis, traders said on Wednesday.
The cargoes are to be delivered into the Khor al-Zubair terminal, which can only accept smaller vessels, because of draft restrictions.
Vitol is a regular supplier of the fuel to Iraq, while BP last supplied jet fuel to Iraq in 2011.
The companies are likely to be shipping from either Bahrain or Kuwait, with which they have term contracts, a trader said.