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Wed 4 Jun 2008, 08:10 GMT

FAL sells 500,000mt of fuel oil


Sharjah-based firm wins tender to supply 170cst cargoes over next four months.

Oil cargo trader FAL Oil has been awarded a tender to supply 500,000 metric tonnes of low sulphur fuel oil to Pakistan, according to local sources.

The tender was awarded by leading oil marketer Pakistan State Oil (PSO), which will purchase 10 cargoes of 50,000 tonnes between the months of June and September for delivery in Karachi. The cargoes will be 170-centistoke with 0.95 percent sulphur and 0.92 to 0.96 density.

The first delivery is scheduled to be shipped to Karachi by June 14th-16th.

PSO issued the tender last month in order to help cover domestic power shortages in the country. The volume of the tender is higher than PSO's previous tender for 300,000 tonnes of fuel oil for April to June delivery. Bunker suppliers Bakri International Energy Co. Ltd. and Fal Oil were awarded the tender at premiums of $69 to $90 a tonne to Middle East spot quotes, on a cost-and-freight (C&F) basis.

Sharjah-based FAL Oil mainly deals in the sale of bulk oil cargoes of primary fuel oils, MDO, gasoil, naptha and jet kerosene. FAL Energy Co. ltd., a company within the FAL group, has been supplying marine fuels and lubricants to customers in the Arabian Gulf since 1991. It also operates two storage terminals located in the U.A.E with a total capacity of 600,000 cbm.

The group's shipping division, FAL Shipping, operates a fleet of 21 tanker vessels ranging from 1,000dwt up to 125,000dwt.

The latest PSO tender is still lower than the total amount of fuel oil imported into Pakistan during the same period in 2007. Last year, 750,000 tonnes of fuel oil entered the country between the months of July and September, a period of high power generation demand.

Market sources have revealed that PSO is expected to issue another purchase tender later this month for 325,000 tonnes of high sulphur fuel oil.

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