Page 19 - LatAmOil Week 21 2020

LatAmOil
NEWS IN BRIEF
LatAmOil
INVESTMENT
Cuba: Melbana Energy
announces Block 9 farm-in
agreement with Sonangol
Melbana Energy has entered into a farm-in agreement (FIA) with Sonangol with regards to its Block 9 production-sharing contract (PSC) onshore Cuba. Sonangol is the national oil com- pany of the Republic of Angola. It produces over 2mn barrels of oil per day and is Africa’s second largest producer.
Subject to Sonangol’s interest in Block 9 PSC receiving Cuban regulatory approval (which we are advised has been received and is now in the process of being formally documented), the FIA provides for: Sonangol to fund 85% of all costs associated with the completion of the drilling of Melbana’s two highest ranked and high impact targets (Alameda and Zapato) to earn a 70% par- ticipating interest in Block 9 PSC, with the first well expected to commence drilling in Q4-2020; and Sonangol to pay Melbana approximately $5mn to cover its expenditure to date related to Block 9 PSC.
All other conditions have been confirmed by Sonangol as having been satisfied.
In parallel with negotiating the FIA, Melbana has been working with drilling contractors and service providers to generate updated proposals to support the drilling of these two wells. The preferred entities all have an established pres- ence in Cuba and significant experience there in the oil and gas sector. Further announcements are expected to be made in due course once these agreements are finalised.
All necessary permitting for these two wells is either already in place, in the process of being renewed or extended (as applicable) or need only be sought once all agreements for rigs and services are in place and drilling is ready to commence.
Drilling operations are currently forecast to commence in Q4-2020, subject to currently unknown timing and movement implications due to COVID-19 management practices that Cuba and other relevant countries may continue to employ in the months ahead. A contingency is currently built into the project schedule which is hoped would be sufficient to absorb any pro- longed impact of this pandemic. Melbana notes that mills in China and Europe for the manufac- ture of tubulars and accessories (to supplement existing inventories) have been either working without interruption or have had their opera- tions normalised after being slightly affected in Q1 of this year.
Melbana Energy’s Executive Chairman Andrew Purcell said: “It has been a challenging
period in which to advance formal agree- ments and well planning, but we are fortunate and appreciative to have had the experience and commitment of Sonangol and CUPET to assist us. We are pleased, too, by the commit- ment being shown to the drilling of these two wells by the various contractors we are in dis- cussions with. These are difficult times for the energy sector, but it does mean there is a lot of available capacity and inventory for this drilling programme.
“We look forward to commencing this drill- ing program later this year, subject to the impacts of COVID-19 on the movement of people and materials abating in a timely manner.”
Melbana Energy, May 27 2020
Petrobras on sale
of assets in Colombia
Petrobras, following up on the press release disclosed on March 6, 2020, informs that the non-binding phase related to the sale of 100% of the shares held by Petrobras International Braspetro (PIB BV) and other Petrobras sub- sidiaries, in Petrobras Colombia Combustibles (PECOCO) is underway, as described in the teaser, with expectation of the beginning of the binding phase in the next weeks.
Potential buyers qualified for this phase have received a descriptive memorandum with more detailed information about the aforementioned assets, as well as instructions on the divestment process, including guidelines for preparing and submitting non-binding proposals.
The main subsequent stages of the project will be reported to the market in due course. This disclosure is in accordance with Petrobras’ divestment guidelines. This transaction is in line with the portfolio optimisation and the improve- ment of the company’s capital allocation, aiming at maximising value for its shareholders.
In Colombia, Petrobras operates, through PECOCO, in the gasoline, diesel, and lubricant distribution and trading market, through a net- work of 124 service stations and seven storage units, one of which is in Puente Aranda. Petrobras, May 21 2020
HUMAN RESOURCES
Mirage Energy/Northern Hemisphere Logistics signs agreement with Mexico labour union
Mirage Energy/Northern Hemisphere Logis- tics announces it has signed an agreement with El Sindicato Nacional de Infraestructura for the support and cooperation of the union for the various projects Cenote Energy for storage, WPF Mexico Pipelines all pipelines and North- ern Hemisphere Logistics in reference to the Isthmus project.
Projects: Cenote Energy: the first under- ground natural gas storage facility, first phase 52bn cubic feet (1.473bn cubic metres) of work- ing gas storage with the capability of storing up to 786 bcf (22.258 bcm) once full developed, as demand by customers dictates; WPF Mex- ico Pipelines: 42-inch (1,067-mm) diameter pipeline interconnected to proposed storage facility with interconnects to Station #19 and Los Ramones all on Mexico’s National Pipeline System, including interconnecting and rehabil- itating an existing 48-inch (1,219-mm) pipeline running all the way to the Isthmus Corridor, thus bringing abundant supply of natural gas to the southern region of Mexico, approximately 1,000 miles (1,600 km) long.
Mirage Energy, May 20 2020
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