Saudi Aramco has sold its first Jafurah condensate cargos to US firms and India, according to sources

Four 'trade sources' said that Saudi Aramco, the state energy giant, has sold several cargoes - of ultra-light crude oil from its $100 billion Jafurah plant - to U.S. refiners and majors in India as it prepares to ship its first cargo this month.

Aramco is aiming to increase its natural gas production to become one of the world's major players and expand its light crude grade offerings. The Jafurah Project, which contains an estimated 229 trillion standard cubic feet of raw gas, and 75 billion barrels condensate of liquid gas, is at the heart of its ambitions.

Sources said that U.S. giant Chevron purchased two cargoes of?Jafurah Condensate for loading in March and later this month while Exxon Mobil Corp. and Indian Oil Corp. purchased cargoes due to be lifted by next month.

They added that the cargoes had been sold at a premium of $2 to $3 per barrel, compared with Dubai's quotes.

First cargo likely for South Korea

Two sources say that the first shipment of Chevron cargo will likely go to GS Caltex, a joint venture between Star Petroleum Refining and Chevron in South Korea. The second shipment could be sent to Thailand.

Saudi Aramco stated that it is working closely together with the Ministry of Energy in order to increase production safely, according to approved development plans and market demands.

Aramco added that it does not comment on speculation on the market or specific cargoes or customers, or commercial arrangements.

Chevron has declined to comment. Exxon IOC and SPRC didn't immediately respond to requests for comment. GS Caltex had no immediate comment.

The largest shale project outside of the U.S. is Jafurah, which is expected to produce 2 billion cubic feet per day by 2030.

A source said earlier that Aramco would be able to export between four and six cargoes of Jafurah Condensate of 500,000 barrels per month from the eastern port of Yanbu.

Condensate, a non-gas fluid, can be split at splitters into petrochemical feedstock naphtha or other refined products. It can also be mixed with crude oil to be distilled in refineries.

According to an initial crude?assay, the Jafurah condensate contains 0.17% of sulphur and has an API gravity of 49.7 degrees.

The assay revealed that about 40% of its output was petrochemical naphtha. This is mostly the heavier grade. Most of the remaining output is gasoil or kerosene.

(source: Reuters)