Vaalco Energy (EGY)

[spec machine]

Yes, it's heavy sour from Egypt

So it makes sense that they were tran-shipping Russian grades (Urals are also sour) in the black market through Egypt

Not sure what "alternate flow routes" are feasible for the Shell platforms but there is a need for sour grades in our Gulf state refineries that are geared for it

I believe they can easily switch from refining sour to sweet, but it's not the best use of the equipment

I doubt they would mix production from the platforms in question and another producer's sweet grades in the "alternate" pipeline

Not going to be a quick fix either

Upside risk in crude markets has always exceeded downside risk since the Ukraine war

That's a big chunk of supply to be taken out, even temporarily, but TGA might benefit from improved sour pricing if drags out several months

thanks for catching that

spec