Page 15 - LatAmOil Week 03 2021

LatAmOil BRAZIL LatAmOil

The original version of the agreement between name any other potential investors.
the parties, known as the Commitment Agree- Meanwhile, the three refineries that have not
ment (TCC), called for the NOC to complete all yet attracted binding offers are the Landulpho
the sales by December 31, 2021, it said. Alves Refinery (RLAM) in Bahia, the Abreu e
Petrobras went on to say that it intended to Lima Refinery (RNEST) in Pernambuco and
approve the amendments in due course, once the Gabriel Passos Refinery (REGAP) in Minas
its governing bodies gave the green light for this Gerais.
step. It did not say when it expected to reach this Petrobras is awaiting final offers for RLAM
milestone. and expects to receive binding offers for RNEST
In a separate statement, the company and REGAP in the first quarter of 2021. ™
reported that it had already received binding
offers for five of the eight refineries slated for
sale. It named those refineries as the Alberto
Pasqualini Refinery (REFAP) in Rio Grande
do Sul; the Presidente Getúlio Vargas Refinery
(REPAR) in Paraná; the Isaac Sabbá Refinery
(REMAN) in Amazonas; the Shale Industri-
alization Unit (SIX) in Paraná and the Lubrif-
icantes e Derivados de Petróleo do Nordeste
(LUBNOR) base oils plant in Ceará.
Additionally, it said it was in the negotiation
phase for four of the above refineries – REFAP,
REMAN, SIX and LUBNOR – and was analys-
ing the proposals received for REPAR. It cited
Ultrapar Participações as the company partic-
ipating in negotiations for REFAP but did not RLAM is one of three plants that have not attracted binding offers (Image: RLAM)

ARGENTINA
YPF prepares for talks on debt

restructuring, securities swap

ARGENTINA’S national oil company (NOC) the need for the NOC to spend its dwindling
YPF is gearing up for talks with creditors on a reserves of foreign currency on imports of
debt restructuring deal that may include a vol- LNG.)
untary bond swap proposed earlier this month. YPF is highly motivated to move forward
The firm’s bondholders are setting up groups to on discussions with investors, since one of the
negotiate the terms of the restructuring, and the bond issues slated for exchange is due to mature
company has declared itself open to discussions in March 2021.
with these groups, according to a report from Several months ago, Argentina’s central bank
Bloomberg. refused to allow the company to borrow all of
The swap plan provides for YPF to exchange the money it needed to pay holders of the dol-
$6.2bn worth of its bonds for securities with a lar-denominated bond.
later expiration debt. Specifically, it calls for the Creditors, however, may be less eager. Ray
NOC to issue three new sets of bonds to replace Zucaro, the chief investment officer at Miami-
seven outstanding issues of securities that are based RVX Asset Management in Miami, which
due to mature between 2021 and 2047. owns some of YPF’s outstanding bonds, said
If creditors accept these terms, the company earlier this week that the proposed exchange
will be able to delay $2.1bn worth of payouts “crossed the line of reason.” He told Bloomberg:
until the end of 2022 and use the money instead “There was no reason they needed to include all
to invest in efforts to expand its upstream pro- the bonds when they only needed relief on the
duction base, including development projects in short-dated notes.”
the vast Vaca Muerta shale formation. YPF has said it included all seven sets of
These investments, in turn, would put YPF securities so that it could offer bondholders
in a better position to meet domestic demand something different – namely, export-backed
for natural gas, which is expected to spike in notes that are slated to mature in 2026. Accord-
mid-2021 as the Southern Hemisphere enters ing to the company, these bonds offer creditors
the heating season. (That is, they would reduce more protection than unsecured debts. ™

Week 03 21•January•2021 www. NEWSBASE .com P15