Mitsui set to increase heavy crude oil output during 2019
The Japan-based trading company, Mitsui, is set to produce more heavy crude oil during 2019 following the completion of projects in Australia and Italy, according to Energy World.
It is expected that heavy crude production from the Tempa Rossa project in Italy is anticipated to begin in the near future while the Greater Enfield project in Australia will continue production by the middle of 2019.
The new production will be an important boost as output cuts from Saudi Arabia and US sanctions on Iran and Venezuela has decreased the availability of high-sulphur heavy crude oil worldwide and ensured a rise in spot premiums for these grades.
It is hoped that heavy sour crude production at Tempa Rossa could reach 50,000 barrels per day.
Speaking to Reuters, Yuji Kikkawa, general manager of strategic planning for Mitsui's energy business units, commented: “We certainly see that as a great opportunity for our trading activities because Mitsui has been very active in low-sulphur fuel oil trading thanks to past success in securing Indonesian low-sulphur feedstock and having Japan as a traditional main market for the fuel.”