going to be the next coe and bpt??, page-4

diesel margins /entropylord Following is an interesting article that tells us a little more about the approx. margin per barrel oil being around $20.

So that would be an extra $20 on top of todays high oil price received per barrel.
Not bad at all.

jojo

STUART Petroleum chief Giustino (Tino) Guglielmo is not content with the already fat margins being enjoyed on Cooper Basin oil production. He wants to boost the margin by as much as $20 a barrel by building a $20 million diesel refinery in South Australia's far north.

The off-the-shelf refinery would produce up to 100 million litres of diesel a year, or about 10 per cent of the total diesel market in SA — a market that will explode once BHP Billiton develops its planned super-pit at Olympic Dam and Oxiana gives the go-ahead for the development of Prominent Hill.

The refinery will treat crude oil produced from Stuart's existing fields (832,000 barrels last financial year) as well as pitching for supplies by the region's other small producers. It won't be a bad pitch either, given transport savings (as much as $11 a barrel) and the prospect of quicker payment terms (at present as much as three months).

Stuart must be pretty confident the diesel refinery is a goer as it has committed $900,000 to a 16-week front-end engineering and design study. The thing could be built and commissioned within 15 months of a go-ahead decision.

"We see the refinery project as the next logical step in the development of Stuart as an integrated energy business based in South Australia," Guglielmo said last week. "The Cooper Basin has already formed the basis for one major South Australian company. We are at the start of the process of building another." The market is waiting to see how things go, leaving the stock at $1.20 on Friday ahead of results from the exploration program.