Page 11 - LatAmOil Week 48 2019

LatAmOil
NEWS IN BRIEF
LatAmOil
UPSTREAM
Apache awarded SP2
offshore block in Dominican
Republic’s first oil and gas
licensing round
e Dominican Republic’s rst oil and gas licens- ing round was concluded November 27 with the award to Apache Dominican Republic Corp., a subsidiary of Apache Corp., of the SP2 block o - shore in the San Pedro de Macorís basin.
e other areas proposed by the MEM in this rst round were declared void and will be availa- ble for the next round. e terms and conditions, as well as the Round 2 schedule will be published in the days following the conclusion of this rst process.
e areas to be auctioned in Round 2 will be the areas not assigned in Round 1 as well as those that are proposed by stakeholders and approved by the MEM within the process schedule of Round 2.
Ministry of Energy and Mines, December 03 2019
Argentina: Echo Energy provides operational update on Santa Cruz Sur assets
Echo Energy, the Latin American focused upstream oil and gas company, has provided an update on its Santa Cruz Sur assets in Argentina.
Integration of the recently acquired interest in the assets is progressing positively. To this end, detailed meetings have been held between the company and the operator. Particular focus is on the near term work programme and 2020 activity and budget.
Since November 1, 2019, the e ective date of Echo’s Santa Cruz Sur transaction, which com- pleted on November 13, the assets have delivered average gross production of 3,687 boepd (2,581 boepd including 587 barrels of oil per day net production to a 70% interest).Total production in the period from November 1 to November 28 net to Echo is 16,431 barrels of oil and 335mn cubic feet (9.487mn cubic metres) of gas.
Echo has also announced that once the Petreven H-205 rig has completed drilling the company’s Campo La Mata x-1 (CLM x-1) well on Tapi Aike, it will be mobilised to the Palermo Aike production concession on Santa Cruz Sur to spud the Campo Limite exploration well (CLix-1001). Mobilisation of the rig to the drill site is expected to take place by year end.
CLix-1001 will target the conventional Sprin- ghill reservoir on a structure located 2 km from the Chilean border. Technical work across the well location has identi ed the Springhill target via the characterisation of a negative seismic amplitude at reservoir level.
e well will be drilled to a total measured depth of approximately 2,600 metres in two ver- tical sections. A full suite of wireline logging tests will be conducted over the Springhill reservoir which is expected to be encountered at a true vertical depth of 2,150 metres.
As previously announced the costs of the Campo Limite well that correspond to Echo’s interest will be paid for by Petrolera El Trebol, a subsidiary of Phoenix Global Resources, the previous owner of the interest. Echo will reim- burse up to 60% of these costs at a later date in a mixture of cash and ordinary shares. Total reim- bursement will not exceed a maximum amount of US$1.1mn.
Martin Hull, Chief Executive O cer, com- mented: “Following the successful completion of our acquisition of a 70% interest in the Santa Cruz Sur assets, Echo now has a diversi ed E&P portfolio in the Austral Basin consisting of sig- ni cant base production, lower risk, near-term production enhancement opportunities, as well as strong exploration potential in both Tapi Aike and Sant Cruz Sur. We are delighted to be able to con rm the Campo Limite well remains on track to spud before year end, representing the continuing delivery of our growth strategy.” Echo Energy, December 02 2019
Petrobras signs contract
for sale of Frade field
interest to PetroRio
Petrobras has signed a contract with PetroRio for the sale of its 30% stake in the Frade concession,
located in the Campos Basin, north coast of the state of Rio de Janeiro, for $100mn. Currently, PetroRio holds the remaining 70% of Frade’s concession through its subsidiaries.
e transaction also included the sale of the entire stake held by Petrobras Frade Inversiones (PFISA), a subsidiary of state-owned Petrobras, in the company Frade, which owns the o shore assets used in the development of Frade eld production.
The sale price of $100mn, will be paid in two installments: (i) $7.5mn upon signature of the contract; and (ii) $92.5mn at the close of the transaction, subject to adjustments due. In addition, there is a contingent $20mn due to a potential new discovery in the eld.
e transaction closing is subject to the ful- llment of precedent conditions, such as secur- ing approvals from the Administrative Council for Economic Defense (CADE) and the National Agency of Petroleum, Natural Gas and Biofuels (ANP).
This disclosure complies with Petrobras’ divestment guidelines and is aligned with the provisions of the special procedure for assign- ment of rights on exploration, development and production of oil, natural gas and other fluid hydrocarbons, provided for in Decree 9,355/2018.
is transaction is in line with the portfolio optimization and the improvement of the com- pany’s capital allocation, aiming at generating value for our shareholders.
e Frade eld is located about 118 km from the north coast of the state of Rio de Janeiro, in water depths between 1,050 and 1,300 metres. Production started in June 2009 and the average production in 2019 was about 18,400 barrels of oil equivalent per day.
A er the completion of the sale, PetroRio will hold 100% of the consortium and Frade BV through its subsidiaries.
Petrobras, November 29 2019
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