Page 16 - LatAmOil Week 06 2023

LatAmOil NEWS IN BRIEF LatAmOil

The vessel was named Prosperity FPSO by Guest
of Honour Arya Ali, the First Lady of the Co-op-
erative Republic of Guyana at a ceremony held
today at Keppel Shipyard.
Chris Ong, CEO of Keppel O&M, said: “We
are pleased to support SBM Offshore and Exx-
onMobil in contributing to Guyana’s oil and gas
industry with a third FPSO for deployment in
the Stabroek block. FPSO Prosperity reinforces
Keppel O&M’s standing as the world leader in
the integration of FPSOs and extends our track
record of more than 130 FPSO projects. It also
marks our 27th major project for SBM Offshore,
building on the strong partnership that we have
forged over decades of collaboration.”
Keppel O&M’s scope of work on FPSO Pros-
perity includes the fabrication of several topside
modules, riser, mooring and umbilical struc- alternative energy sub-sectors. further two years, subject to future negotiation
tures, followed by the installation and integra- Molecular Energies, 03 February 2023 and market pricing.
tion of these structures and all topside modules The improved pricing terms and the upfront
onto the FPSO. Echo Energy announces cash payment (without financing costs), com-
The FPSO, which will be spread moored in bined with volume flexibility, represent a sig-
water depth of about 1,900 metres, is designed to commercial and financial nificant step for the Company in its strategy to
produce 220,000 bpd of oil, with associated gas maximise the commercial value of its produc-
treatment capacity of 400mn cubic feet per day update tion as it continues with the ongoing programme
and water injection capacity of 250,000 bpd. The of increasing production.
FPSO will be able to store approximately 2mn Echo Energy, the Latin American-focused Reduction in Joint Venture Creditor Bal-
barrels of crude oil. energy company, has provided the following ances: The Company reported total creditors of
Keppel Offshore & Marine, 01 February 2023 commercial update regarding the Company’s approximately $19.5mn in its unaudited Interim
natural gas sales from the producing Santa Cruz Results announced on 30 September 2022. Of
Molecular Energies issues Sur assets onshore Argentina, and a financial this total, approximately $11.5mn related to the
update.
Company’s joint venture in Argentina (net to
update on Paraguay rig confirms that, following a successful commer- reduced to approximately $9.3mn (unaudited)
New Gas Sales Contracts: The Company Echo), which has since been estimated to have
AIM-listed Molecular Energies, the interna- cial process for industrial clients, it has secured as at December 31, 2022, using the official ARS-
tional energy company, has provided an update two new gas sales contracts for the upcoming USD exchange rate of 177. This estimated cred-
on the drilling rig for its Paraguay operations. 2023-2024 period with materially improved itor amount when calculated using the current
Further to the announcement of 9 January terms compared with the contracts announced ARS-USD international market exchange rate
2023 the relevant drilling rig has been success- on May 3, 2022. (blue chip swap) of 368, is $4.5mn (unaudited).
fully procured and the drilling contract with The Contracts have an initial term of 12 This reduction is due to a combination of cred-
President Energy Paraguay now signed. As months, with gas sales under the Contracts itor negotiations, positive business develop-
flagged previously, the rig will now undergo nec- beginning in May 2023. The Contracts provide ments, favourable exchange rate movements
essary repairs and checks due to the rig having gross 6.8 mcf per day of committed production and the repayment of creditors from production
being cold-stacked for a prolonged period. (4.8 mcf per day net to Echo) at an increased cash flows.
The agreements for ancillary drilling services average price of $4.48 per mmBtu for the 2023- The Company continues to focus on suc-
are now being signed with the objective of com- 2024 period (compared with $4.33 per mmBtu cessfully reducing its creditor balances in a con-
mencing drilling as soon as possible. for the previous period). In addition, an upfront trolled manner, whilst also pursuing the strategic
Due to the significant delays completely out- gross cash payment of $1mn ($700,000 net to objective of investing in order to further increase
side of MEN’s control the estimated time for Echo) will immediately be paid and applied production and asset value at Santa Cruz Sur.
commencement of drilling is in May. We restate towards the working capital of the Santa Cruz The Company’s unaudited cash balance as at
that such delays were directly due to the complex joint venture. January 2, 2023, was $1.1mn.
financial insolvency of the previous owners of The Company is able to elect to sell additional Martin Hull, CEO of Echo, commented:
the rig which necessitated dealing with multiple volumes of up to 0.7 mcf per day (net to Echo) “We are very pleased to see our financial and
parties. under the Contracts. This optionality, at the elec- commercial positions continuing to improve
The drilling time projected to reach target tion of the Santa Cruz Sur partners, allows for and provide firmer foundations for our growth
depth is estimated to be 40 days from the time of the potential sale of additional volumes under strategy, as we look to increase production and
commencement. the Contract at contract pricing, whilst also pro- revenues across our asset base. These enhanced
Molecular Energies, formerly known as viding the Santa Cruz partners with a degree of gas sales contracts will contribute to that process
President Energy, is an AIM listed company at flexibility with which to capitalise on spot mar- while the decrease in our joint venture creditors
the forefront of energy development and has ket or other pricing when attractive. The Con- contributes to a stronger financial footing for
interests across the energy spectrum, from oil tracts additionally enable the potential for the Echo as we grow the business.”
and gas projects to subdivisions in the green and parties to mutually extend arrangements for a Echo Energy, 02 February 2023

P16 www. NEWSBASE .com Week 06 08•February•2023