Bahrain offers 2012 naphtha at $22.50 per tonne

Bahrain Petroleum Co (Bapco) has pegged offers for its 2012 naphtha at $22.50 a tonne above Middle East quotes on a free-on-board (FOB) basis despite a weak market, traders said on Monday.

The offer, which has not been accepted by any buyers, including those from Japan, is nearly 41 per cent higher than its existing one-year contract which expires in December 2011.

"Bapco is likely taking the cue from Kuwait, but the weak fundamentals are working against them. Bids at best are at the low teen price levels," said a trader.

Kuwait had on October 19 made an offer of $23.50 a tonne to the same price formula on FOB basis for full-range grade lifting December 2011 to November 2012.

It eventually sealed the deals with some Asian buyers at $18.50 a tonne.

But the market has weakened further since then, traders said, adding that Bapco will likely finalised the deal after Adnoc's term talks which are ongoing but no firm offers have been made.

Bapco's 2011 contract was sealed at $16.00 a tonne and it usually sets aside about 1.1 million tonnes a year of B210 and 200,000 tonnes of B220 grade for term exports.

It exports an average of 50,000 tonnes of spot naphtha a month.

Bapco is also in the midst of term talks for diesel and jet fuel for 2012 lifting.