UAE to offer new crude blend by July
Abu Dhabi, November 12, 2013
Abu Dhabi National Oil Company (Adnoc) will blend its Lower Zakum and Umm Shaif oils into a new export crude called Das by July 2014, the state oil company said on Tuesday.
Trade sources said in June that Adnoc was planning to offer the Das blend from early 2014.
The two similar quality crude streams are currently exported separately from the same terminal on Das Island in the Gulf by Abu Dhabi Marine Operating Company (Adma-Opco).
The UAE typically sells Lower Zakum at a premium to Umm Shaif. The benchmark Murban crude is usually sold at a premium to both.
"The new blend will not differ that much from Lower Zakum, so we are expecting it will hover around the same (price) level, but we have to give time to see the market reaction," Ali Rashid Al-Jarwan, Adma-Opco chief executive, said.
Oil from Lower Zakum has an API gravity of 40.5 degrees and a sulphur content of 1.04 per cent. Umm Shaif crude has a weight of 36.9 degrees and a 1.44 percent sulphur content.-Reuters