BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
COOKIE NOTICE

Register with us today

and in less than 60 seconds continue your access to: Latest news headlines Analytical topics and features Commodities videos, podcast & blogs Sample market prices & data Special reports Subscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber (https://pmc.platts.com), Please navigate to Platts Market Center to reset your password.

In this list
Natural Gas

Papua New Guinea's Kutubu crude gets lighter as share of PNG LNG condensate rises

Agriculture | Grains | Sugar | Coal | Oil | Crude Oil | Polymers | Tankers

Market Movers Asia, Jul 23-27: US-China trade tensions continue; soybean CFR China premiums in free fall

Natural Gas | Oil

Platts Wellscape P2P

Asia Pacific Petroleum (APPEC)

Natural Gas

Vopak acquires 29% share in Engro's Pakistan LNG terminal

Papua New Guinea's Kutubu crude gets lighter as share of PNG LNG condensate rises

Papua New Guinea's Kutubu blend crude has grown lighter, the latest assayfrom an equity holder showed Friday, in a continuing evolution of the grade'squality as dwindling production from the main Kutubu field is replaced bycondensate from the PNG LNG project.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

An assay by Kutubu equity holder ExxonMobil showed that the Kutubu Blendnow has a gravity of 51.2 API and a sulfur content of 0.021%.

The assay was not dated. Sources said, however, that Kutubu blend cargoeshad been showing a gravity of around 51-52 API for the last one year.

An earlier assay by Kutubu operator Oil Search issued in June 2014 andseen by S&P Global Platts showed that the Kutubu Blend then had a gravity of49.1 API and a sulfur content of 0.026%.

A 2010 assay by Oil Search showed a gravity of 44.8 API and a sulfurcontent of 0.044%.

The changes in Kutubu Blend's quality comes amid falling production atsome of the heavier crude fields that make up the Kutubu Blend. At the sametime, the share of condensate from the PNG LNG project mixed into the KutubuBlend has increased.

Production from the Kutubu field in the last quarter of 2017 was 649,000barrels, down 17% year on year.

Condensate production from the PNG LNG project also declined over thesame period, falling 8.2% year on year to 759,000 barrels in Q4 2017.Production was lower due to LNG plant compressor upgrades in October, OilSearch said.

"As the [Kutubu] oil field production declines, you will see thecondensate component gradually increasing. Additional production will comefrom other wells," a source said.

The Kutubu Blend comprises crude oil from the Kutubu, Moran and Gobefields in the Southern Highlands of Papua New Guinea. Condensate from the PNGLNG project was added to the Kutubu Blend in 2014.

Kutubu Blend currently has a combined production of around 55,000 b/d,according to Oil Search. Two-three cargoes of 650,000 barrels each aretypically available for export every month.

ExxonMobil's assay also showed that the yield of heavy naphtha was at38.6%, up from 28.8% in the June 2014 assay by Oil Search.

The yield of kerosene, meanwhile, fell to 17.7% in the latest assay, from22.3% in the 2014 assay.

Gasoil yield was at 12.3% and residue yield at 10.9% in the latest assay,down from 20.7% and 11.3% respectively in the 2014 assay.

Kutubu Blend loads from the Kumul Marine Terminal, located offshore inthe Gulf of Papua.

Oil Search holds a 60% interest in the Kutubu complex. Other equityholders are ExxonMobil with a 14.5% interest, JX Nippon's Merlin PetroleumCompany with an 18.7% stake, and landowner interests with 6.8%.

--Andrew Toh, andrew.toh@spglobal.com

--Edited by E Shailaja Nair, shailaja.nair@spglobal.com