Ceypetco buys 375KB monthly

Ceylon Petroleum Corp. (Ceypetco) has contracted to buy 375,000 barrels of 0.25 per cent sulphur gas oil per month from European trader Trafigura from this month to next January, a Company source said on Tuesday.

The state refiner fixed the eight-month term deal at a discount of 2 cents to Singapore spot quotes, on a cost-and-freight (C&F) Colombo basis, the source added.

"It's a very good price for us," he said.

Ceypetco last forked out a $2.10 premium for 75,000 barrels of similar products through a spot tender, on a C&F basis for late-June delivery.

Ceypetco usually purchases around 300,000 barrels of gas oil every month through spot tenders, but will need less spot supplies after securing regular supplies from Trafigura, the source said.

The Company has already received the first cargo from Trafigura earlier this month. Arrival dates of later cargoes for each month will be decided on mutual agreement, the source said. Reuters