From Joe Arrow has a number of buyers (marketers) who make offers to buy both our C7 and Ubaque crude at Carrizales Norte and RCE. The list of buyers that we have had contracts with in the past include Frontera, Trafiguar, BP, PMI, Invesegg, and others. We are continually trying to find the best prices and buyer for our crude.
Currently our Ubaque crude is being sold at Brent, less the Vasconia differential (approximately $3.50/bbl currently), less a $9/bbl logistics fee. The logistics fee is a quality differential (from Vasconia) and transportation charge rolled into one discounted price. The marketer picks up our crude from our tanks in their oil trucks and is responsible for all trucking fees.
The current Ubaque contact is not with Frontera but with a different marketer. The Ubaque crude is 13 degree API. It is not being used as a diluent. It is going directly into the pipeline, perhaps after being mixed with a lighter crude to increase its value.
One of the options we are looking into is preparing our own mixing plant on the CN or RCE pad. The objective would be to mix our own C7 and Ubaque oil to try to maximize our revenue. With greater production this option may be economic.
There does not seem to be a limit to the amount of crude that we are able to sell. Colombia and the Llanos basin in particular, have a very developled crude marketing business. Remember that some fields in the Llanos basin is in decline, and marketers are quite happy to use our crude to make up for other operators declines.
I hope that answers your question.
Thanks
Joe