India's Oil & Natural Corp (ONGC) has offered 600,000 barrels of February Nile Blend Crude after being absent for about five months, coming at a time when firm diesel margins have supported crude oil prices, traders said on Wednesday.
The state owned firm has offered the cargo for February 1 to 25 loading from Sudan by tender. The tender closes on December 21, with bids to stay valid until December 22.
"As far as I know, ONGC usually supplies the Nile Blend crude to India first. If the demand is not there, they will likely have to export it," said a trader.
Other traders said high crude prices were also making exports more lucrative for ONGC than supplying it to the domestic market.
Nile Blend crude prices were at a nine-month high on November 4, after Sudanese state-owned company Sudapet sold a parcel for January loading to Vitol at a discount of around USD 2.00 a barrel to Minas Indonesia Crude Price (ICP).
While Sudapet has been regularly selling the heavy sweet crude, ONGC was last seen selling 600,000 barrels of the grade in July for Aug. 12-17 loading to Arcadia at minus USD 5.10 to USD 5.20 a barrel to Minas ICP.
ONGC has a 25% stake in the Greater Nile project, while China National Petroleum Corp (CNPC) owns 40% and Malaysia's state oil company Petronas holds 30%.
Sudan's national oil company Sudapet owns 5%.
The state owned firm has offered the cargo for February 1 to 25 loading from Sudan by tender. The tender closes on December 21, with bids to stay valid until December 22.
"As far as I know, ONGC usually supplies the Nile Blend crude to India first. If the demand is not there, they will likely have to export it," said a trader.
Other traders said high crude prices were also making exports more lucrative for ONGC than supplying it to the domestic market.
Nile Blend crude prices were at a nine-month high on November 4, after Sudanese state-owned company Sudapet sold a parcel for January loading to Vitol at a discount of around USD 2.00 a barrel to Minas Indonesia Crude Price (ICP).
While Sudapet has been regularly selling the heavy sweet crude, ONGC was last seen selling 600,000 barrels of the grade in July for Aug. 12-17 loading to Arcadia at minus USD 5.10 to USD 5.20 a barrel to Minas ICP.
ONGC has a 25% stake in the Greater Nile project, while China National Petroleum Corp (CNPC) owns 40% and Malaysia's state oil company Petronas holds 30%.
Sudan's national oil company Sudapet owns 5%.
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