Singapore oil companies are courting key oil exporting nations outside the Asia-Pacific region to forge new business ties.
KUWAIT
A willing trading partner is Kuwait Petroleum Co. (KPC). In the wake of damage to Kuwait's petroleum industry during the Persian Gulf war, KPC has taken aggressive steps to renew ties with Singapore refiners.
It also is seeking similar opportunities elsewhere in the Asia-Pacific region.
KPC recently signed a 1 year contract to supply fuel oil to an undisclosed Singapore oil company. The contract, worth about $90 million (U.S.), calls for delivery of about 19,200 b/d of bunker grade fuel oil.
Singapore port authorities are heavily promoting bunkering at Singapore. The contract follows KPC's sales of several spot cargoes of fuel oil to Singapore Petroleum Co. Ltd. in recent months.
MEXICO
Mexico's Petroleos Mexicanos plans to open an office in Singapore in 1993. Pemex sees the office as a regional "listening post" and a base for expanding its Far East business.
Part of Singapore's appeal for Pemex is the Singapore Mercantile Exchange (Simex), the energy futures trading exchange. Pemex started trading energy futures July 1 with small swaps on the New York Mercantile Exchange and plans to expand that activity with trading on Simex.
Because of Singapore's role as an oil trade hub, Pemex's Singapore office probably will focus on the refined products and petrochemical trade and chartering. Pemex, which exports 100,000 b/d of crude to Japan, has a Tokyo office that handles crude sales, processing contracts, financing, and capital goods procurement.
The Far East currently accounts for about 6-7% of total Pemex oil exports.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
