I think for the purposes of discussing the commercial value of MAY's oil discovery, we limit it to Unit 1B - API 19 where it's been completed for production. Unit 1A and Unit3 with API12 have been suspended.
Unit 1B is far and away the largest net pay from the upper sheet - AMISTAD.
255-488mmbls of prospective recoverable oil to MAY (ie, it's 30% share).
So we aren't going to talk about what lies ahead with Alameda and Marti ok...cos we haven't drilled A3 yet.
Now the contention by some is that: The oil (API 19) MAY have discovered is NEXT TO WORTHLESS.Folks...Far from it!
For example, look at Woodsides Vincent Crude (API 17.4), the Van Gogh (API 17) and Pyrenees (API 19)....lots of opportunities for oil with a gravity of API 19.
SINGAPORE (Reuters) - Woodside Petroleum will improve the quality of Vincent crude (API 17.4) by increasing its flash point from July so that it can be blended into very low sulfur fuel oil (VLSFO) and capture higher premiums, two sources told Reuters.
Australian heavy sweet crude oil grades Van Gogh (API 17) and Pyrenees (API 19) have hit record double-digit premiums to benchmark dated Brent thanks to their blending value, benefiting producers such as BHP Group, Santos Ltd and Inpex Corp.
(source:
https://www.reuters.com/article/us-australia-oil-woodside-idUSKBN22X1G0)
IRAN - there are 32 wells in Soroush, producing oil with an API gravity of 14 to 21. The API gravity of the oil currently being produced is
API18. The heavy crude oil extracted from Soroush is blended with that of nearby Norouz field to be shipped to the Persian Gulf floating terminal before being sold by the Directorate of International Affairs of National Iranian Oil Company.
Soroush currently selling at $78.47(SOURCE: https://en.shana.ir/news/319960/Cutting-Edge-Technology-Needed-in-Soroush-Reshadat#:~:text=In%20total%2C%20there%20are%2032,oldest%20oil%20reservoirs%20in%20Iran.)
ECUADOR NAPO
API 17 - $70.56Exports of Napo heavy crude have continued flowing, according to trading and company sources, as the privately held OCP pipeline, which transports that grade from oilfields, is working with "relative normality." But the state-owned SOTE pipeline remains halted since Monday due to low flows.Customers including BP (BP.L) and Marathon Petroleum (MPC.N), which had resorted to Ecuadorian oil to try and replace cargoes of Russian crude lost due to sanctions, are now in talks with other Latin American and Middle Eastern producers, including Brazil's state-run Petrobras (PETR4.SA), to buy oil cargoes for refining, the trading sources said.U.S. refiners have increased purchases of Ecuadorian crude since Washington imposed a phased wind-down of Russian oil imports.
(source
https://www.reuters.com/world/americas/ecuadors-oriente-crude-exports-suspended-napo-flowing-amid-force-majeure-2022-06-29/)
COLOMBIA CASTILLA Blend A
PI 18..8 (Castilla blend is a heavy crude with an API of 18.8 and 1.97% S. The Blend is the result of mixing Castilla crude with other heavy crudes produced in the Llanos Orientales basin). Now in case you think it can't be sold....read on:
Colombian state energy company Ecopetrol is selling more of its oil production to Europe, replacing Russian supplies, while it sees growing competition for market share in Asia.About 40-50% of Ecopetrol's crude production is exported to Asia this year compared with 60% last year, Ecopetrol's Chief Executive Officer Felipe Bayon told Reuters on the sidelines of APPEC 2022.Bayon said there is growing competition with Russian, Mexican, Canadian Heavy and Venezuelan crude in Asia.Ecopetrol established an office in Singapore earlier this year. The team of four will mainly focus on trading Colombia's heavy sour Castilla Blend crude and look into hydrogen, renewables, carbon capture and storage.
source:
https://www.reuters.com/business/energy/appec-ecopetrol-selling-more-colombian-oil-europe-competition-asia-grows-2022-09-26/Venezuela Merey (API 16) (current price is $62.58 ...this a delayed price of 154 days!)
(source:
https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/americas-crude-methodology.pdf)
