In 2018,Estonia produced over 1.1MM mt(20K b/d,using a conversion factor of 6.70 b/mt rather than the standard 7.33 b/mt factor since the crude is heavier than average)of heavy oil shale.Viru Keemia Grupp(VKG)produced a record volume of 620K mt(UK b/d),state energy company Eesti Energia produced 41 IK mt(8K b/d),and Alexela Grupp produced around 100K mt(2K b/d).The oil shale produced in Estonia is largely used in the bunker fuel sector,but its sulfur content is 0.7,so a facility that could reduce the sulfur level will make the oil more attractive when the IMO's 0.5-sulfur cap takes effect in Jan.2020.Oil shale is said to only be profitable if international crude prices are ≥$50/bbl.VKG CEO Ahti Asmann noted that a desulfurization and processing project such as the one being discussed could add significant value to the country's production.Alexela CEO Andreas Laane believes such a facility should have a large enough capacity to handle the country's entire output with room for production growth.
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