Australia’s Last Enfield Crude Oil Cargo to Load in November

OILMONSTER.COM- The last cargo of Australia's Enfield crude oil will load in November, as operator Woodside Petroleum proceeds with plans to halt production at the field amid declining production, a source with knowledge of the matter said Thursday.

The heavy, sweet crude will be loaded in one cargo in mid-November. The volume is variable as it is the last cargo, sources said. Previous Enfield crude cargoes were around 300,000 barrels.

The cargo has already been sold to a Japanese trading house, likely at a premium of around $1-$1.50/b to Platts Dated Brent on a FOB basis, sources said.

Production of Enfield crude has fallen over the years due to natural reservoir decline, dropping from around 40,000 b/d at its peak in 2008 to 3,550 b/d in the second quarter of this year, Woodside financial reports showed.

The grade is typically bought by trading houses and sold to Chinese independents whose refineries are configured to process heavier crude grades.

Following the loading of the last cargo, the Nganhurra floating production, storage and offloading vessel, which loads Enfield crude, will be disconnected and the remaining Enfield reserves diverted to the Ngujima-Yin FPSO, which handles Vincent crude.

The Ngujima-Yin FPSO is currently undergoing modifications at a shipyard as part of the Greater Enfield project, with Vincent crude production suspended since the loading of a May 5-9 cargo.

Under the Greater Enfield project, Vincent crude output is expected to increase by 40,000 b/d, with production expected to resume in mid-2019, Woodside said.

Courtesy: www.spglobal.com