Hydro to Increase N Sea Oseberg Supply by Injecting Grane

Norsk Hydro will increase supply of its North Sea Oseberg crude by injecting it with lower quality Grane crude from May 1, the company said Thursday. The move will increase Oseberg supply by around 30,000 barrels a day, or 6%, traders said.

"The reason we're doing it is to increase the value of both Grane and Oseberg crudes," a Hydro spokesman said.

But traders said it was more likely to lower the quality of Oseberg because Grane is very sour grade.

"People are still digesting to see what it means," a North Sea crude trader said.

The April Oseberg program schedules 9.65 million bbl to load, down 1.25 million bbl from March. Oseberg prices are currently at around dated BFO plus 90 cents.