SINGAPORE: Pakistan State Oil (PSO) has issued a tender to buy up to 520,000 tons of high-sulphur fuel oil (HSFO) for December-January delivery, a tender document on the company’s website showed on Monday.

PSO requested two firm 65,000-ton cargoes of HSFO for December delivery, one firm cargo in December or January, another three firm parcels in January, and two optional parcels for December or January delivery.

The tender closes on November 24, with bids remaining valid until November 27.

PSO last bought 1.04 million tons of HSFO for September-November delivery from Middle East oil traders FAL Oil and Bakri at higher premiums versus earlier deals.

The state oil firm paid FAL and Bakri a premium of $22-$24 per ton to Middle East spot quotes, on a cost-and-freight (C&F) basis, for the 16 cargoes of 65,000 tons each.

This compares with a premium of $18-$21 a ton to Middle East spot quotes, C&F, that PSO paid FAL and Bakri for 780,000 tons of HSFO for delivery in August and October.

Pakistan’s oil requirements for its power sector are expected to rise 29 per cent by year-end as new oil-burning plants come online to overcome the country’s severe electricity shortage.

The country imports about 80 per cent of its oil. It spent $9.5 billion on the import of 10.6 million tons of petroleum products and 7.8 million tons of crude oil in 2008-09.—Reuters