Page 8 - LatAmOil Week 19 2022
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LatAmOil                                       VENEZUEL A                                           LatAmOil




















                                        Iranian feedstock seems to be in high demand at PdVSA’s El Palito refinery (Photo: PdVSA)
                         This deal was made just days after Iranian Oil   barrels are being stored at the port of Jose and
                         Minister Javad Owji visited Venezuela and   are expected to be discharged shortly. The very
                         met with President Nicolas Maduro to sign a   large crude carrier (VLCC) Dino I, which car-
                         raft of new agreements. Iran and Venezuela,   ried the 400,000-barrel shipment, is scheduled
                         as two countries still burdened by heavy sanc-  to return to Iran with Venezuelan residual fuel
                         tions imposed by former US president Donald   oil for Naftiran Intertrade Colater, a unit of
                         Trump, have taken a stand of solidarity and defi-  NIOC, later this month, it noted.
                         ance in the face of pressure from Washington.  In addition to the completed and ongoing
                           This development follows the signing of a   shipments, Iranian feedstock supplies also seem
                         swap deal between the two states near the end   to be in high demand at the El Palito refinery in
                         of last year. PdVSA began implementing that   the Puerto Cabello municipality. This refinery is
                         agreement by importing Iranian gas conden-  in the process of restarting its crude distillation
                         sate and using it as a blendstock for processing   unit (CDU) after heavy repairs. These upgrades
                         its own heavy crude oil into a synthetic fuel for   relied on equipment imported from Iran.
                         export, while then shipping Venezuelan crude   As limited oil production and ongoing short-
                         to Iran via the National Iranian Oil Co. (NIOC).  ages of motor oil continue to plague the South
                           Now, though, it is importing Iranian heavy   American country, Venezuelan refineries are
                         crude and using it to augment locally sourced oil   struggling to source light and medium grades of
                         slated for delivery to its refineries. The heavier   crude (or even lighter refined petroleum prod-
                         Iranian feedstock is similar in quality to Vene-  ucts) for use as blendstocks. These are in short
                         zuelan Mesa-30 crude, according to the com-  supply, particularly in light of the fact that the
                         pany documents viewed by Reuters.    country’s own crude reserves are mostly heavy
                           The news agency reported that more than   and extra-heavy grades, but they are sorely
                         200,000 barrels of Iranian heavy crude had   needed, as Venezuelan refineries use them to
                         arrived on Venezuelan shores in mid-April,   turn heavy oil into exportable synthetic fuels.
                         with the shipment expected to make its way to   Outside the deal, Iran continues to supply
                         the 310,000 bpd Cardon refinery, the country’s   PdVSA with condensate, with the Venezue-
                         second-largest oil-processing plant.  la-owned tanker Maximo Gorki scheduled to
                           Meanwhile, it added, an additional 400,000   discharge 2mn barrels at the Jose refinery. ™



                                                        GUYANA
       CGX, Frontera announce integrated




       results of oil, condensate find at Kawa-1





                         CANADA’S CGX Energy and its parent com-  of net hydrocarbon pay in multiple zones at
                         pany Frontera Energy issued a statement on May   various depths between 4,638 metres in the
                         9 confirming the discovery of light crude oil and   Maastrichtian horizon and 6,568 metres in the
                         gas condensate in Kawa-1, an exploration well   Coniacian horizon.
                         drilled in the northern section of the Corentyne   The pay zones were split between the Maas-
                         block offshore Guyana.               trichtian horizon, with 21 metres; the Campa-
                           In the statement, the companies said that the   nian horizon, with 20 metres; the Santonian
                         integrated results from the drilling programme   horizon, with 23 metres; and the Coniacian
                         showed that Kawa-1 had encountered 69 metres   horizon, with 5 metres.



       P8                                       www. NEWSBASE .com                           Week 19   12•May•2022
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