Adnoc seals naphtha deal with four buyers

Abu Dhabi National Oil Co (Adnoc) has sealed deals with at least four Asian buyers for 2010 supplies of three naphtha grades at $14.50-$16.50 a tonne above its own price formula, traders said yesterday.

The price, on a free-on-board (FOB) basis, was agreed at the initial levels offered by Adnoc, despite some resistance, traders said. The splitter grade, priced at $14.50 a tonne premium to its formula, FOB, was accepted by a customer as early as November 4, less than a week after Adnoc announced the offer on October 29.

Others continued to resist the January-December 2010 premiums, countering with bids limited to a $12.50 premium. But on Monday, accept the offer for the three grades, including pentane plus at $16.50 a tonne premium and low-sulphur naphtha at a $15.50 premium.

Adnoc had cut the supply volumes for its low-sulphur grade. "They gave the the low-sulphur grade only to some buyers," said a trader.

Term customers involved in the talks include India's Haldia Petrochemicals, Japan's Marubeni, Mitsubishi, Sanyo, Taiwan's CPC and Formosa, as well as South Korea's Hanwha, Daelim and Honam.

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