Page 11 - LatAmOil Week 12 2023

LatAmOil BRAZIL LatAmOil

They were designed to break the national oil consumers purchasing upwards of 70,000 cubic
company (NOC) Petrobras’ monopoly over the metres per day and larger-scale consumers
domestic gas market by allowing large indus- ordering upwards of 340,000 cubic metres per
trial consumers to purchase gas directly from day.
producers. The average TUSD for smaller consumers
After assessing the tariff and its implemen- is BRL0.80 ($0.15) per cubic metre, while the
tation in 19 Brazilian states, Argus Media suc- average TUSD for the largest consumers was
ceeded in identifying 11 state distributors that BRL0.3038 ($0.058) per cubic metre.
currently have TUSDs. It also noted that three While TUSDs are believed to be essential for
other distributors – namely, Amazonas state’s developing a free market, several other issues
Cigas, Ceara’s Cegas and Espirito Santo’s ES Gas will also need to be resolved in order to reach
– are in the process of establishing their own this end goal. Such issues include boosting the
trade tariffs. Another four distributors – namely, amount of gas in the market, which is expected
Alagoas’ Al Gas, Paraiba’s PBGas, Pernambuco’s to be achieved following the commencement of
Copergas and Rio Grande do Norte’s Potigas – the operation of pipeline Route 3. Connecting
confirmed that they did not have any such tar- additional LNG terminals to the national grid
iff in place, while Parana’s Compagas did not and improving the co-ordination of gas regula-
respond to queries from Argus Media. tion between states is also expected to assist in
Much like captive consumer tariffs, TUSDs overcoming this challenge.
enable higher-volume gas consumers to pay Currently, Brazil’s Mines and Energy Minis-
lower tariffs. The company considered three try (MME) is engaging with state government
thresholds for industry demand in its research and regulators with the goal of establishing
— smaller-scale consumers that use upwards clearer rules and tariffs to further cultivate a free
of 1,700 cubic metres per day, medium-scale market. ™

BW Energy resumes acquisition of

stakes in Camarupim, Golfinho clusters

THE Norwegian oil and gas company BW deals with Petrobras were supposed to make BW
Energy said on March 16 that it was resuming Energy the operator of all the upstream conces-
the process of acquiring Petrobras’ stakes in the sions, which are located in the post-salt Espírito
Golfinho and Camarupim deepwater oilfields Santo basin.
and was also buying the floating production, Then in early March, the Brazilian govern-
storage and off-loading (FPSO) vessel used to ment ordered a review of the NOC’s divestment
develop the sites from Italy’s Saipem. programme. \is in line with the Brazilian lead-
BW Energy had signed an agreement to ership’s concerns about privatisation, led to the
acquire a 100% working interest in the Golf- temporary suspension of the transaction.
inho and Camarupim clusters, along with a On March 16, though, BW Energy said it
65% working interest in the offshore BM-ES- had now been informed that work related to
23 block, from Brazil’s national oil company the Golfinho transactions could be restarted.
(NOC) Petrobras in June 2022. It also arranged As such, the Norwegian company said it would
at the same time to purchase the FPSO Cidade continue to prepare to wrap up its acquisition
de Vitoria, which has been installed at the Golf- of a 100% operated working interest in the
inho field, from Saipem. Golfinho and Camarupim clusters and a 65%
Initially, all of these transactions were antic- working interest in the BM-ES-23 block from
ipated to close in the first quarter of 2023. The Petrobras.

BW Energy had originally arranged to acquired stakes in the two blocks in June 2022 (Image: BW Energy)

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