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President Energy starts building treatment plant; forecasts related cost savings
StockMarketWire.com
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Argentina-focused oil company President Energy said development of a treatment plant had commenced there, with related 'material' operating expenditure savings to start from the second half of 2021.
The first stage of the treatment plant in Puesto Flores was expected to open by the end of June.
Savings from the first stage were estimated at $4 per barrel, representing a reduction of some 20% of opex and sales cost per barrel.
'Whilst Trafigura remains President's largest offtaker, the completion of the first stage will also allow for the flexibility to supply certain quantities of oil to smaller more local refineries,' the company added.
'The proximity to the fields of these mini refineries will result in lower transport costs.'
The second stage of the project involving an updated pipeline delivery system was currently projected for the end of August.
'Discussions with the relevant third party currently treating President's oil continue with regard to tie in facilities circumventing their plant thereby on completion of the second stage giving President optionality to deliver oil by truck or through its pipeline system,' the company said.
Story provided by StockMarketWire.com
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