Fresh from concluding a rare tender of its Kirkuk (34° API, 2.2% sulfur) grade in February, Iraq’s Somo has announced a tender for another cargo. Somo this week issued the tender for a 600,000 barrel cargo to be loaded 3-5 April at Turkey’s port of Ceyhan. Bids were to be submitted by 9 March.
The previous tender was ultimately won by Greece’s Motor Oil at a modest premium to Kirkuk’s OSP (MEES, 10 February). Bids were relatively modest because the loading date was just ten days from the closing of the tender, increasing the costs of chartering a vessel. Given the longer gap in this instance, Somo will be looking to secure a healthier premium to its OSP, which has been set for April at a $1.45 discount to Brent (MEES, 10 March). (CONTINUED - 164 WORDS)