Replies to post #526 on 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

[spec machine]

here's a little bit on one of the pipelines mentioned

Also, Shell Midstream Partners said, shippers on Amberjack can deliver into multiple pipelines allowing for the transportation of four different crude grades. This optionality is a significant value driver for shippers as they can leverage arbitrage opportunities between crude grades and delivery locations, the company said.

Must be the supermoon helping my brain cells to learn something new every day

here's a link to the full text
https://www.offshore-energy.biz/shell-midstream-partners-buying-amberjack-pipeline-company/

spec