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UPDATE 1-S-Oil declares force majeure after outage-sources

Wed Mar 26, 2008 5:01am EDT

Stocks

   

(Adds details, trader comments)

SEOUL, March 26 (Reuters) - South Korean refiner S-Oil (010950.KS) has declared force majeure on April-loading oil products including gas oil and gasoline due to an outage earlier this week, two trading sources said on Wednesday.

Whether jet fuel supplies will be disrupted was not immediately confirmed as traders had different information.

"Gas oil and gasoline supplies will be delayed for sure, but S-Oil is saying that it has some stocks left for jet fuel," said a trader who buys products from the refiner.

But another jet fuel buyer in Asia said S-Oil had notified supply disruptions earlier in the day.

An S-Oil spokesman was not immediately available for comment.

Naphtha supplies were to be loaded on schedule as S-Oil has high naphtha inventory, said a Japanese naphtha buyer.

S-Oil, South Korea's third-largest refiner with a daily crude run capacity of 580,000 barrels per day (bpd) had its crude distillation units shut on Monday for around 12 hours due to a power outage.

The refiner's crude units were reported to have restarted on Tuesday, but industry sources said its secondary units were still down, prompting the refiner to declare force majeure. [ID:nSEO335970]

S-Oil is equipped with the most complex facilities in South Korea to produce lighter products such as gasoline and diesel. (Reporting by Angela Moon; Editing by Keiron Henderson)



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