Page 14 - LatAmOil Week 44 2022

LatAmOil NEWS IN BRIEF LatAmOil

The ne``t funds obtained and raised by the Com- in Q3-2022 was $85.02, an approximately 13%
pany with the Issuance of the Commercial Notes decrease over Q2-2022. Revenue received by
will be allocated, by the Company, (a) until the the Company from oil sales (being gross reve-
maturity date of the 3rd series real state receiv- nues less Government royalties and mandatory
ables certificates, backed by the Commercial source deductions and adjustments applica-
Notes, to be established in the CRI securitisa- ble under the relevant licences), amounted to
tion term, or (b) until the Company proves the approximately $1.3 million in Q3-2022. This
application of all the resources obtained with represents average net revenue to the Company
the Issuance of the Commercial Notes, which- of $40.20 per barrel sold, an approximately 11%
ever occurs first, directly by the Company, for decrease on Q2-2022, largely as a consequence of
(I) payment of expenses, costs and expenses not 9,188/2017. a decline in oil price.
yet incurred, by the Company, directly related to This transaction is aligned with the portfolio The Company’s business in Trinidad and
the construction, expansion, development and/ management strategy and the improvement of Tobago operated on a break-even pre-tax oper-
or renovation, and/or the payment of amounts the company’s capital allocation, aiming at the ating profit basis in Q3-2022 (Q2-2022: $0.2mn).
due under contracts of lease and other real maximisation of value and greater return to In aggregate during the first nine `months of
estate contracts, of certain properties and/or society. 2022 the business in Trinidad and Tobago has
real estate developments to be described in the Metanor is a corporation, established in 1969, generated field operating profits of approxi-
Issuance Instrument, and/or (II) reimburse- jointly controlled by Petrobras and Dexxos Par- mately $1.6mn, and a pre-tax operating cash
ment of expenses, costs and expenses already ticipações. It operates, through its subsidiary surplus of approximately $0.6mn (stated after
incurred by the Company, within a maximum Companhia Petroquímica do Nordeste (Cope- field operating costs, in-country G&A and other
period of 24 months prior to the closing of the nor), in the segments of methanol commercial- Trinidad expenses, but before corporation and
real state receivables certificates offering, directly isation and production of methanol-derived other taxes including supplemental petroleum
related to the payment of amounts due under products, notably formaldehyde and hexamine. tax where applicable, and noting that, given the
lease agreements and other real estate agree- Petrobras, October 27 2022 extent of carry-forward tax losses, the Company
ments, of certain properties and /or real estate is currently largely shielded from corporation
projects to be described in the Issuance Agree- taxes).
ment, observing the way in which the resources PERFORMANCE Eytan Uliel, CEO of Challenger Energy,
are used and the indicative schedule for the use said: “We plan for a certain level of disruption
of the resources to be described in the Issuance Challenger Energy provides each year during the rainy season, but during
Agreement. the third quarter we experienced considerably
This notice to the market is exclusively update on operations in more than expected, resulting in production
informative, under the terms of the legislation downtime, and it also became necessary to delay
in force, and should not be interpreted or con- Trinidad in Q3-2022 much of the routine maintenance and produc-
sidered, for all legal purposes and effects, as sales tion enhancement activities we had hoped to
and/or disclosure material for the Commercial AIM-listed Challenger Energy, the Caribbean undertake. At the same time realised oil prices
Notes and/or the CRI offering. and Atlantic-margin focused oil and gas com- declined from the highs seen in Q2. Operation-
Petrobras, October 31 2022 pany, with oil production, appraisal, develop- ally, therefore, the third quarter of 2022 was
ment and exploration assets across the region, challenging. Nonetheless, in aggregate the first
Petrobras reaches has provided the following update on its Trini- nine months of 2022 continues to represent an
dad and Tobago business unit’s operating results improving overall financial performance for
teaser stage in sale for Q3-2022 (July 1, 2023, to September 30, the Trinidad business, with positive field level
operating profits (unaudited, before G&A) and
2023).
of stake in Metanor 32,370 barrels, representing an approximately During the fourth quarter, as weather conditions
Total gross oil production for Q3-2022 was a positive unaudited pre-tax operating profit.
Petrobras informs that it has started the oppor- 5% decline on Q2-2022. The decline reflects improve, we expect less production disruption,
tunity disclosure stage (teaser), regarding the the impact of especially adverse weather condi- so we will be able to begin clearing the backlog of
sale of its entire shareholding, corresponding to tions causing grid and field level electrical fail- delayed field activity, which should benefit pro-
50% of the voting capital and 34.54% of the total ures through the quarter (and continuing into duction levels further.”
capital, in the company Metanol do Nordeste the beginning of Q4-2022), and which resulted Note 1: Oil sales are predominantly made
(Metanor), headquartered in Camaçari, in the in between three to eight days of production to Heritage Petroleum Company Ltd (HPC),
state of Bahia. downtime (varying by field), as well as the need the Trinidadian national oil company, which
The teaser, which contains the key infor- to delay/reschedule much of the production then apply certain deductions and adjustments
mation about the opportunity, as well as the enhancement work that had been planned for before payment of funds to the Company. These
eligibility criteria for the selection of potential the quarter. vary between various licences, and include
participants, is available on Petrobras’ Investor Despite the lower gross oil production, the deduction of Government royalties, Heritage
Relations website. Company was able to maintain oil sales at a overriding royalties, facilitation fees, escrow and
The main subsequent stages of the project will comparatively constant level during Q3-2022, mandatory contributions to the abandonment
be informed to the market in due course. through release of inventory build-up in fund, oil impost, and in respect of Goudron and
This disclosure is in accordance with Petro- Q2-2022, with total oil sales in Q3-2022 amount- Inniss-Trinity only, deduction of agreed first
bras’ internal rules and with the special regime ing to 31,267 barrels (marginally higher than tranche volume and addition of an agreed han-
for divestment of assets by federal mixed Q2-2022 oil sales, by 0.3%). dling fee.
economy companies, provided for in Decree Gross realised average price per barrel sold Challenger Energy, November 1 2022

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