SINGAPORE: Indonesia has become the latest Asian customer for Iraqi oil as it signed a deal with Iraq's State Oil Marketing Organisation (SOMO) to buy Basra Light crude in the second half of 2013, a source familiar with the matter said on Wednesday.
Iraq is winning more customers in Asia as it is selling its crude cheaper than comparable grades, undercutting rival Saudi Arabia to grab a bigger slice of the Asian market.
Petral, the trading unit of Indonesia's state-run energy firm Pertamina, will lift 1 million barrels of the medium, high sulphur crude each month between June and December, the source said.
SOMO typically sells crude to term customers based on the grade's official selling price (OSP) every month.
This will add to Petral's sour crude supply as the company already has an annual contract to buy 1.9 million barrels of Saudi Arab Light crude each month. (Reuters)
