Page 16 - LatAmOil Week 18 2020.pdf

LatAmOil
NEWS IN BRIEF
LatAmOil
Petrobras releases teaser for E&P in Camamu Basin
Petrobras reports that it has started the opportu- nity disclosure stage (teaser), referring to the sale of its entire stake in the Manati field, a maritime production concession in shallow waters located in the Camamu Basin, in the State of Bahia.
The teaser, which includes key information about the opportunity, as well as the eligibility criteria for selection of potential participants, is available on the Petrobras website. The main subsequent stages of the project will be reported to the market in due course.
Manati field is located 10km off the coast of the city of Cairú, Bahia, at a water depth of between 35 and 50 meters. The field started operating in 2009 and its average production in 2019 was 105 bpd of condensate and 1,269 cubic metres per day of gas, through the PMNT-1 fixed platform, which involves a submarine structure composed of six gas-producing wells.
Petrobras is the operator of the field, with 35% stake, in partnership with Enauta Partici- pações (45%), Geopark Brasil E&P de Petróleo e Gás Ltda. (10%) and Brasoil Manati Exploração Petrolífera Ltda. (10%).
Petrobras, May 04 2020
Sea Lion issues
update on Falklands
farm-in discussions
Rockhopper Exploration, the oil and gas explo- ration and production company with key inter- ests in the North Falkland Basin, is pleased to provide the following update in relation to the previously announced Heads of Terms with
Navitas Petroleum to farm into the Sea Lion project.
On January 7,2020, Rockhopper and Premier Oil announced that a detailed Heads of Terms had been signed with Navitas to farm-in for a 30% interest in the Sea Lion project. Despite the current oil price weakness, all parties remain committed to the finalisation of the definitive Navitas farm-in agreement.
To reflect the good progress which has been made since the January Heads of Terms were signed, the parties have agreed to extend the exclusivity period to the earlier of (i) Decem- ber 31, 2020; and (ii) execution of the definitive transaction document (targeting late Q2 or Q3-2020), or until a decision by Navitas has been made not to proceed with the farm-in.
In addition, the effective date of the farm-in proposed in the January Heads of Terms will now be amended from March 1, 2020, to the date on which the Falkland Islands Government approves Navitas becoming a licencee (target- ing late Q3 or Q4). In turn, Premier will fund Rockhopper’s share of the remaining pre-effec- tive date costs, with interest accruing at 12% per annum, which, on completion of the farm-in, will be rolled into the Standby Loan.
The previously announced Standby Loan (which will be available from Premier to cover Rockhopper’s share of production area licence fees and any Capital Gains Tax liability) will now attract interest at 12% per annum (previously 15% per annum).
All other proposed terms in the January Heads of Terms remain unchanged with Rock- hopper’s costs for the Phase 1 development (not met by external debt and excluding licence fees, taxes, costs incurred prior to 1 January 2020 and project wind down costs) from the effec- tive date to Phase 1 Project Completion (esti- mated to occur nine to 12 months after first
oil) continuing to be funded by Premier Oil and Navitas. Once definitive documentation is reached, completion of the farm-in will remain subject to agreed consents and approvals. Rock- hopper remains responsible for funding its share of costs incurred prior to January 1, 2020.
Sam Moody, Chief Executive, commented: “We are pleased to have made significant pro- gress on the farm in and that all parties have reinforced their commitment to its completion, despite the volatile market conditions. Sea Lion remains a highly exciting project, and the farm in will underpin our ongoing efforts to move it towards sanction. We look forward to updating shareholders further.”
Rockhopper Exploration, April 30 2020
PERFORMANCE
Petrobras reaches oil export record in April
Petrobras exported 1mn barrels per day of oil in April. This represents a new oil export record and contributes to strengthening the company’s cash flow. The previous record was 771,000 bpd, set in December 2019.
The result occurs in a challenging period of the world economy, with high reduction of global oil and oil product demand, caused by the outbreak of novel coronavirus (COVID-19). Due to the strong contraction of the national market, Petrobras is directing efforts to export its production, after meeting domestic demand.
“We are attentive to international movements and accessing all markets. Our oil, which is low in sulphur, maintains its value in the interna- tional market due to the specifications of IMO 2020,” informs Anelise Lara, Chief Refining and Natural Gas Officer at Petrobras.
The volume exported in April is 145% higher than that sold internationally in April 2019. The growth follos the trend observed in the first quar- ter of 2020, when there was an increase of 25% in relation to the previous quarter (Q4-2019).
In the first four months of 2020, China was the main destination for sales, absorbing 60% of the oil exported. Besides the giant Asian, Petro- bras usually sells oil to the USA, Europe, India and other Asian markets. “We are directing our efforts to export oil and oil products through a series of logistical actions, which allow us to expand our capacity. We expect to continue with a good performance of our exports, due to the resumption of demand from China together with actions to develop new markets for our products,” added Anelise Lara.
Petrobras, May 04 2020
P16
w w w . N E W S B A S E . c o m
Week 18 07•May•2020