Aug 11 Vietnamese state-owned PV Oil is continuing to market its light sweet Song Doc crude, said an industry source and a trader familiar with the matter.
The move comes after the company said in April that a cargo loading in June would likely be the last from the field.
The industry source said that supply and marketing of Song Doc crude would continue as the lease on the project's floating production storage and offloading (FPSO) unit was recently extended.
A PV Oil spokesman did not immediately reply to requests for comment.
PV Oil last sold a 200,000-barrel Song Doc cargo loading June 11-17 to Shell at a premium of between $1.50-2.00 per barrel to dated Brent.
The Vietnamese state-marketer is now offering 200,000-barrels of the grade for Oct. 5-11 loading via a sell tender that was issued Aug. 10, according to the trader. The tender, which closes on Aug. 17, is the first in four months.
Commercial production at the project began in 2008, with the grade's first 250,000-barrel cargo loading in November that year.
The Song Doc field was expected to yield around 25,000 barrels per day at peak production levels, but declining output rates have slashed current levels to around 2,000 bpd.
"If a field is closed for too long it will damage the reservoir and maybe kill the field off," the trader said.
He noted that continuing production could also look more attractive than previously as regional crude premiums have started to recover in recent months.
(Reporting by Mark Tay; Editing by Joseph Radford) - reuters.com
The move comes after the company said in April that a cargo loading in June would likely be the last from the field.
The industry source said that supply and marketing of Song Doc crude would continue as the lease on the project's floating production storage and offloading (FPSO) unit was recently extended.
PV Oil last sold a 200,000-barrel Song Doc cargo loading June 11-17 to Shell at a premium of between $1.50-2.00 per barrel to dated Brent.
The Vietnamese state-marketer is now offering 200,000-barrels of the grade for Oct. 5-11 loading via a sell tender that was issued Aug. 10, according to the trader. The tender, which closes on Aug. 17, is the first in four months.
Commercial production at the project began in 2008, with the grade's first 250,000-barrel cargo loading in November that year.
The Song Doc field was expected to yield around 25,000 barrels per day at peak production levels, but declining output rates have slashed current levels to around 2,000 bpd.
"If a field is closed for too long it will damage the reservoir and maybe kill the field off," the trader said.
He noted that continuing production could also look more attractive than previously as regional crude premiums have started to recover in recent months.
(Reporting by Mark Tay; Editing by Joseph Radford) - reuters.com
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