Fri 19 Feb 2010, 10:58 GMT

PSO rejects FAL fuel oil cargo - source


Ship carrying LSFO is reported to have been returned for exceeding contracted sulphur levels.



Pakistan State Oil (PSO) is reported to have rejected a 51,000-tonne fuel oil cargo for containing sulphur levels above those agreed in a contract with Sharjah-based FAL Oil.

According to Pakistan's The News, national oil marketer PSO told the local agent of fuel oil cargo supplier FAL Oil to return the ship carrying a cargo of light sulphur fuel oil (LSFO), said to be worth around $30 million.

PSO surveyors are understood to have taken samples from the vessel when it reached Karachi port on February 16th after having been loaded with product in the port of Fujairah on February 13th.

The level of sulphur was said to have exceeded the 0.95 percent levels required in the contract with a sulphur content of 1.1 percent.

Following a protest by FAL Oil's local agent PSO is then reported to have tested a sample on Thursday 18th February in the presence of the nominee of the supplier. However, the results of the second test were said to be even higher with a sulphur level of 1.17 percent.

It was after the second results were revealed that PSO reportedly decided to return the cargo. However, reports of political pressure to accept the cargo from its regular fuel oil supplier have also been circulating, according to local sources.


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