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John- Google "Interoil degrees API".
Don't get the wrong Interoil.
Looks like it has ranged from 33 to 47 degrees API.
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That's the drum several of us have been pounding for a few years. The gas is great, but "it's the liquids stupid!"
The gas is onshore, in a huge reservoir and is very clean. AND it is very wet with high quality liquids. It's what gives the overall project a very low net cost of production and a very high return.
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Phil M in a Reuters interview May 2009??? stated IOC could save $1 Billion a year if it could provide its own feedstock to the refinery.IOC currently buys feedstock and refines it and marks the final product up on margins agreed to with the PNG govt. Oil prices were higher than thats true. Adjust for oil price difference oil was $150 a barrel then and $117 today and yes IOC uses Brent pricing not WTI. Estimated condensate output is 24,000 barrels a day in a product that could be sold or refined with some costs at IOC's refinery in Port Moresby. How many know that the $100 million loan was for the refinery and its growth.????
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From what I've seen over the years in various PR's, IOC Reports and industry information ...
The Elk/ Antelope Condensate is in the area of 43-47 API Gravity. It is a relatively heavier Condensate than others in the region, such as NW Shelf (Australia) and Senipah (Indonesia) which have API's ranging from 52-59 (remember, the higher the API, the lighter the Condensate).
For reference, the Kutubu Crude has a very similar API to E/A Condensate. Kutubu Crude is compared to E/ A Condensate below (mass%):
. . . . . . . . . . . . . .Kutubu . . . . . . . . .Elk/ Antelope (data I found)
API . . . . . . . . . . . . 46.6 . . . . . . . . . . .43-47
Sulfur . . . . . . . . . . . 0.04 . . . . . . . . . . . . 0.15
TAN . . . . . . . . . . . . 0.04 . . . . . . . . . . . . ???
LPG . . . . . . . . . . . . . 9.7 . . . . . . . . . . . . 1.0 (the LPG would be in the E/A gas and not in the Condensate)
NAPHTHA . . . . . . . . .31.8 . . . . . . . . . . . . 46.4
JET/KERO . . . . . . . . .17.1 . . . . . . . . . . . . 24.9
DIESEL/GASOIL . . . . . 25.5 . . . . . . . . . . . . 17.9
LSFO . . . . . . . . . . . . 15.9 . . . . . . . . . . . . 9.8
HSFO . . . . . . . . . . . - - . . . . . . . . . . . . . - -
The E/A Condensate contains more Naphtha and Jet/Kerosene range materials than Kutubu and less Diesel/ Gas Oil and Low Sulfur Fuel Oil.
So InterOil would certainly have to spend some money to modify the refinery to run 100% E/A Condensate and then they would produce a different range of products if they used E/A Condensate to replace Crude.
The options they have, it seems to me, are:
+ Sell all the E/ A Condensate and continue to import Crude (or use Kutubu Crude)
+ Modifiy the refinery to run 100% E/A Condensate and produce different ratios of products
+ Run about 10-20% E/A Condensate in the refinery without any modifications and mix it with heavier crudes to synthesize a blend that is similar to the Kutubu compostion
I believe that the value of the E/A Condensate is about $5-7 per barrel lower than a typical Crude.
Any talk of a huge price reduction for E/A Condesnte as compared to Crude is not correct.
. A comparison product, albeit slightly lighter, would be Alba condensate, produced in Equatorial Guinea. Closest potential markets for the condensate would be South America, the Caribbean and South Africa. Based on this initial study, the Company believes that the condensate might trade at a slight discount to the Brent crude oil benchmark price ($1 to $6 per barrel).
