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Gold/Mining/Energy : TLM.TSE Talisman Energy -- Ignore unavailable to you. Want to Upgrade?

To: Tomas who wrote (296)	5/26/1999 8:16:00 AM
From: Tomas	Read Replies (1) \| Respond to of 1713

Euro refiners study Sudan's new Nile Blend oil LONDON, Reuters World News Service, May 26 New crude grade Nile Blend of Sudan could ultimately cut into the market share of Libya's Amna grade in the Mediterranean if the price is right, oil refiners analysing the grade said on Tuesday. Around 120,000 barrels per day (bpd) of Sudan's new Nile Blend crude are expected to compete in world markets by the end of June, Sudan having nearly completed a 1,500-km pipeline from its southern oilfields to the Red Sea. Refiners and traders in the Mediterannean and Europe have received assays of the new grade in the run-up to its debut. Among the crude grade's positive attributes are a relatively low metals content and low sulphur content compared to Amna, traders familiar with Nile Blend's specifications said. "In the end it could be quite a good competitor for Amna in the Mediterranean depending on one's refining system, and depending on the discount offered," said a trader with a refiner. According to an initial sample of Nile Blend drawn from 12 wells in the Sudan on March 7, the new grade has a nickel content of five parts per million and a vanadium content of less than one part per million. This compares with Amna specifications of roughly 8.5 parts per million for nickel and 1.1 parts per million for vanadium. "The lower metals content of the new Blend could be very enticing for some refiners," the refining source said. An assay of the new Sudan crude shows sulphur content of 0.04 percent sulphur by weight, compared to a 0.15 percent sulphur level for Amna. Nile Blend's relatively high pour point of 36 degrees celsius, however, could add to shipping costs, as volumes will most likely have to be heated in transit, the trader said. A Sudan Energy and Mining Ministry official said initial sales of the grade will be spot or short-term contracts until the best buyers and markets have been identified, and customers have had a chance to test the new crude in their refineries. Customers in the United States are out of bounds owing to a U.S. embargo on Sudan. Canada's Talisman Energy Inc <TLM.TO> has a 25 percent stake in the new project. Its partners include China National Petroleum Corp, Malaysia's state oil company Petronas and Sudan's Sudapet. Sudanese crude costs a competitive $3 to $4 to produce, including investment and operating costs, a ministry official said. Freight rates for the blend for Mediterranean customers will be higher than for Libyan grades due to shipment from the Red Sea through the Suez canal. Nile Blend's API gravity has been estimated by traders in a range near 33 degrees. Peter Lardner, London energy desk