Page 13 - LatAmOil Week 01 2022

LatAmOil NEWS IN BRIEF LatAmOil

PIPELINES & TRANSPORT
Petrobras comments

on contracts with TAG

Petrobras informs that, as part of the actions
taken to open the Brazilian natural gas market,
signed, today, with Transportadora Associada
de Gás (TAG) the Flexibility Reduction Agree-
ment to be used by Petrobras (Agreement) and
amendments to the Malha Nordeste, Gasene
and Pilar-Ipojuca Natural Gas Transportation
Contracts (Amendments), which reflect the debt, will generate approximately BN12-$15mn compliance with precedent conditions and
referred flexibility limitation of Petrobras. These of annual EBITDA, which may grow as addi- approval by the National Petroleum, Natural Gas
instruments allow for the access of other agents tional synergies are realised, including poten- and Biofuels Agency (ANP).
to TAG’s transportation system as of January 1, tially commercialising recent gas discoveries in This disclosure complies with the Petrobras’
2022. VIM-1 block in a very competitive market. internal rules and with the provisions of the
The execution of the Agreement and Amend- The Company’s 100% working interest in special procedure for assignment of rights to
ments was carried out after approval by the El Dificil block combined with its acquisition exploration, development and production of oil,
National Agency of Petroleum, Natural Gas and of PetroSud’s interests in Entrerrios and Rio natural gas and other fluid hydrocarbons, pro-
Biofuels (ANP) and is in line with the commit- Meta Blocks is expected to add approximately vided for in Decree 9,355/2018.
ment made by Petrobras under the Commit- 1,800 boepd of total production (1,300 boepd This transaction is aligned with the com-
ment Agreement (TCC), signed on August 7, through the PetroSud acquisition beginning in pany’s strategy of portfolio management and
2019, between the Administrative Council for January 2022 and 500 boepd when the trans- capital allocation improvement, aiming to max-
Economic Defense (CADE) and Petrobras. action with PCR closes). The production mix imise value and provide greater return to soci-
Petrobras, December 22 2021 consists of approximately 7.7 mcf per day of ety. Petrobras is increasingly concentrating its
conventional natural gas, 120 bpd of natural gas resources on assets in deep and ultradeep waters,
liquids, 260 bpd of heavy oil and 60 bpd of light where it has shown great competitive edge over
INVESTMENT and medium crude oil. Production costs asso- the years, producing better quality oil and with
ciated with the acquired assets are expected to lower greenhouse gas emissions.
Frontera to acquire be $7.50-$8.50/boe. The Company anticipates About the Paraná Basin block: The PAR-T-
increasing El Dificil production to 2,000-3,000 218_R12 Concession, located in the far west of
PCR’s 35% interest boepd between 2022 and 2024. Additionally, the State of São Paulo, was acquired in the 12th
ANP Bidding Round in 2013 and is currently in
the Company expects to increase organic pro-
in El Deficil Block duction in the Lower Magdalena Valley in 2022 the 1st Exploratory Period and with the Mini-
as it continues to ramp up production at VIM-1 mum Exploratory Programme (MEP) commit-
Frontera Energy has entered into an agreement block and surrounding areas. ments already fully met. Petrobras holds 100%
to acquire the 35% working interest in Colom- Frontera’s acquisition of 100% interest in El interest in the concession.
bia’s El Dificil block held by PCR Investments, Dificil block supports the Company’s strategy Petrobras, December 30 2021
a wholly owned subsidiary of Petroquímica to increase gas production, lowers carbon emis-
Comodoro Rivadavia (PCR) for a total aggregate sions and includes strategically located, high Petrobras concludes
cash consideration of approximately BN13mn. quality gas facilities.
The PCR transaction is expected to close in the According to recent analysis by Welligence sale of onshore fields
second half of 2022 and is subject to customary Energy Analytics, Frontera is one of the top three
closing conditions and approval of the transac- largest acreage holders in the Lower Magdalena in Espírito Santo
tion by the Agencia Nacional de Hidrocarburos Valley.
(ANH). Frontera Energy, December 30 2021 Petrobras, following up on the release disclosed
Frontera also announced today that the on August 27, 2020, informs that it concluded
Company has now closed its previously Petrobras on sale of E&P today the sale of all of its stakes in 27 onshore
announced acquisition of 100% of the issued and exploration and production concessions, located
outstanding shares in Petroleos Sud Americanos asset in Paraná Basin in Espírito Santo, jointly denominated Cricaré
(PetroSud), acquiring PetroSud’s 65% working Cluster to Karavan Seacrest SPE Cricare, a com-
interest in El Dificil block and 100% interests in Petrobras, following up on the release disclosed pany in which Karavan O&G Participações e
Entrerrios and Rio Meta blocks. Upon comple- on March 8, 2021, informs that it signed today Consultoria Ltda holds 51% of the capital stock,
tion of the transaction with PCR, Frontera will with Ubuntu Engenharia e Serviços Ltda con- and Seacrest Exploração e Produção de Petroleo
hold a 100% working interest in El Dificil block. tracts for the sale of its total interest in the PAR- Ltda holds the remaining 49%.
Frontera anticipates its acquisition of Petro- T-218_R12 concession, located in the Paraná After compliance with the preceding condi-
Sud’s assets and PCR’s interest in El Dificil for Basin. tions, the operation was concluded with the pay-
a total consideration of approximately $40mn, The total value of these transactions is ment of BN 27mn to Petrobras, already with the
including the assumption of $18mn in PetroSud BN 32 thousand and the closing is subject to adjustments provided for in the contract.

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