Saudi Aramco has notified Japan’s top oil distributor about a potential change in shipments, stoking concerns about the kingdom’s ability to supply crude following attacks on its major refineries a week ago, Nikkei learned Saturday.
State-owned Aramco did not say why it wants to change the oil grade it supplies to JXTG Nippon Oil & Energy from light to heavy and medium, starting in October, JXTG officials said.
But the move indicates that the Saudi national oil company is having a hard time restoring its production as quickly as it has promised, despite repeated assurances that the company’s supply would be restored by the end of September.
Two of Aramco’s refineries were attacked in what is believed to be a drone and cruise missile strikes on Sept. 14. The attacks, which were claimed by Iran-backed Houthi rebels in Yemen, knocked out more than half the country’s oil production.
JXTG officials said they suspect that Aramco is taking more time than expected to repair its desulfurization facility, which is necessary to produce light-grade crude used in the production of gasoline and light gas oil.
Saudi Arabia accounted for almost 40% of Japanese oil imports in fiscal 2018. (more…)
