Kutubu Light Crude Oil Exports to Resume in Spot Trade
Sales of Kutubu Light crude oil cargoes will resume in the Asia spot market in July after a major earthquake in Papua New Guinea shut production from late February to early April, three industry sources said on Monday.
While production at the facility resumed in early April, producers of the light crude oil have been trying to meet previously committed cargoes to buyers which had been delayed due to the earthquake, one of the people said.
The sources declined to be identified because they were not authorized to speak with media.
The July-loading program will be the first time since February that Kutubu Light crude will be fully available in the spot market, the source added.
ExxonMobil Corp will export one of two Kutubu Light cargoes for loading over July 1 to 5 and Australia's Oil Search Ltd will export a cargo to load over July 17 to 21, two of the sources said.
An ExxonMobil spokeswoman said the company does not typically comment on commercial matters. Oil Search did not immediately reply to an email requesting comment.
The resumption of Kutubu Light crude oil could weigh on premiums of ultra-light crude oil cargoes as there is ample supply in the region, said one Singapore-based trader, who declined to be identified because he was not authorized to speak with media.
(Reporting by Jessica Jaganathan and Florence Tan Editing by Kenneth Maxwell and Christian Schmollinger)