South Sudan crude sails for China

Market: Crude oil, Freight
26/06/13

Singapore, 26 June (Argus) — The first Dar Blend crude oil cargo to be exported from South Sudan in more than a year has loaded at the Bashayer export terminal on neighbouring Sudan's Red Sea coast and is headed to China.

The aframax Hellespont Tatina was chartered to load the 600,000 bl cargo on 21-23 June by state-owned Petrochina's trading subsidiary Chinaoil's shipping arm Glasford, and is currently transporting the cargo. Vessel tracking data show the ship is underway in the Gulf of Aden area, having already left the Red Sea, and is travelling laden.

China's state-owned CNPC's affiliate Senning in late May sold via tender 1.2mn bl of Dar Blend in two 600,000 bl lots for loading on 21-23 June and 25-27 June. The cargoes were taken at discounts of between $10-12/bl against Dated.

The aframax Olympic Sponsor has been chartered by trading firm Vitol to load the second cargo, and is currently at anchorage at Bashayer, according to tracking data. The vessel is thought to be scheduled to discharge its cargo in Fujairah in the Mideast Gulf around 2 July. It is likely that Vitol will blend the heavy sweet crude with high-sulphur fuel oil at its Fujairah storage unit.

Exports of Dar Blend have been largely halted since early last year, when South Sudan shut down of its 350,000 b/d oil production because of a dispute over transit fees with Sudan. Land-locked South Sudan relies on pipelines and port infrastructure in its northern neighbour to export its crude.

The resolution of the dispute earlier this year saw South Sudan crude production restart in April since when it has been transported through Sudan and stored ready for export. A sustained resumption of exports would be a fillip to the economies of both countries but earlier this month the Khartoum government said it would stop South Sudan exports in 60 days, alleging that the Juba government is supporting rebels in the Abyei region.

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