Azerbaijan, Baku, Dec. 6 / Trend E. Ismayilov /
The State Oil Company of the Azerbaijan Republic's trading department, SOCAR Trading, plans to expand its black oil and naphtha trade in Asia next year. The move will entail leasing storage tanks in Singapore, Reuters cited SOCAR Trading Vice President Arzu Azimov as saying.
SOCAR Trading plans to make its office in Singapore fully responsible for the development of crude oil trade in Asia, and to increase its market share at the expense of long-term contracts.
"We want to transport arbitral black oil from the West to the East and to start a bunkering business in Singapore," Azimov said.
SOCAR Trading expanded its presence in Singapore due to the amount of oil supplies heading in the eastwards direction and the quantity of vessel fuel moving toward the world's largest bunkerage port.
The company sells about 200,000 tons of fuel oil per month, mostly in Western countries. However, plans include increasing this volume by exploring more fuel at refineries in the Mediterranean Sea, Azimov said.
SOCAR Trading also negotiates with operators on the leasing of oil storage tanks in Singapore. It is a part of a vessel fuel supply plan.
Earlier, SOCAR Trading invested in the construction of a terminal with a capacity of 650,000 cubic meters in the port of Fujairah (UAE). It is expected to be commissioned within 18 months.
SOCAR Trading also supplies oil as feedstock for petrochemical producers in Europe. It plans to supply the same oil products to Asian buyers.
"From time to time, we use higher prices for naphtha," Azimov said. "Perhaps, we will expand our business in Singapore."
The office in Singapore also plans to trade on the swap oil market in the future as a tool to hedge its physical volumes.
"We are actively working on the swap market," he said. "But everything is done outside of Geneva. At last, Singapore will do it for itself."