(Repeats story published late on Thursday with no changes to
By Shu Zhang
SINGAPORE, May 21 (Reuters) - Woodside Petroleum
will improve the quality of Vincent crude by increasing its
flash point from July so that it can be blended into very low
sulphur fuel oil (VLSFO) and capture higher premiums, two
sources told Reuters.
Among crude grades, heavy sweet oil, with higher density and
less sulphur, is most suitable for blending into VLSFO that
meets the new marine fuel sulphur regulations dubbed IMO 2020.
However, crude with a low flash point could ignite easily and
can cause engine issues.
The increase in the flash point will be made possible by
shutting in the Cimatti field off Western Australia, one of four
oilfields that blend into Vincent crude, which was dragging down
Vincent's flash point, one of the sources said. Two Vincent
crude cargoes would be exported per month, the source added.
Australian heavy sweet crude oil grades Van Gogh and
Pyrenees have hit record double-digit premiums to benchmark
dated Brent thanks to their blending value, benefiting producers
such as BHP Group, Santos Ltd and Inpex Corp.
In January, a March-loading Pyrenees crude cargo scored a
record premium of above $30 a barrel to dated Brent.
Last month, BHP sold a June-loading cargo of Pyrenees crude
at a premium of more than $10 a barrel to dated Brent, at a time
when most crude grades were sold at deep spot discounts in a
market flooded with cheap oil amid the coronavirus pandemic.
Vincent crude is marketed jointly by Mitsui & Co. Energy
Trading Singapore, a unit of Japanese trading house Mitsui & Co
, and Woodside.
The companies did not immediately respond to emails seeking
comment outside of business hours.
In September last year, Woodside offered the first Vincent
crude cargo for export since production resumed at the $1.9
billion Greater Enfield project off western
The company operates the Greater Enfield project with a 60%
stake, while Mitsui E&P Australia Pty Ltd, a unit of Mitsui,
holds the remainder.
(Reporting by Shu Zhang; Editing by Susan Fenton)