Kuwait seals higher 2006 gasoil premiums with Pertamina

Kuwait Petroleum Corp. has finalized higher term 2006 premiums for gasoil supply to Indonesia's state-owned oil and gas company Pertamina, the Dow Jones Newswires reported from Singapore on Wednesday.

Under the term contract, KPC will supply gasoil to Pertamina at a 90 cents a barrel premium to Pertamina's gasoil formula for cargoes delivered into Teluk Semangka and a $1.10/bbl premium for delivery to Situbondo in the first half of 2006, traders said.

Its existing term premiums were lower, at a 65 cent/bbl premium and 85 cent/bbl premium respectively.

Traders said the higher premiums were within expectations, in the wake of high freight costs, and in line with recent conclusions of other Middle East gasoil term contracts at higher premiums.

Earlier this month, Saudi Aramco set its term gasoil and jet fuel supplies for 2006 at least 90 cents to $1.20/bbl higher than its existing 2005 term prices.(*)