Page 14 - LatAmOil Week 14 2021

LatAmOil NEWS IN BRIEF LatAmOil

UPSTREAM the months of May, June, and July the reference 2019, respectively.
are the prices of January, February, and March. Also in March 2021, Petrobras surpassed
Petrobras reports on During this period, oil prices rose 38%, follow- the sales record for S-10 Diesel, with low sul-
ing the upward trend of global commodities. In phur content, reaching 416,000 bpd. This figure
production start-up at Mero 1 addition, domestic commodity prices rose due exceeds the previous record of 407,000 bpd, set
to the devaluation of the Brazilian real.
in October 2020, by 2%.
Petrobras informs that the production expected Petrobras’ natural gas prices also include the In March, despite three mandatory refinery
to start from Mero 1, through FPSO Guanabara, pass-through of the costs incurred by the com- shutdowns for maintenance, Petrobras’ refining
was postponed from the fourth quarter of 2021 pany to transport the energy source to the deliv- park reached a utilisation factor of 80.2%, con-
to the first quarter of 2022. The FPSO will be ery point to the distributors, which are defined tributing decisively for these results.
installed in the Mero field, which belongs to the by tariffs regulated by the National Agency of The record sales of S-10 Diesel and the
Libra Block, in the Santos Basin pre-salt area, Petroleum, Natural Gas and Biofuels (ANP). growth in total Diesel sales reflect the commer-
with a processing capacity of 180,000 barrels of This part of the price is updated annually in cial and operational actions implemented by the
oil per day. May by the IGP-M, which, for the measurement company in order to mitigate the effects of the
The FPSO is being converted in China and, period (March 2020 to March 2021), had an Covid-19 pandemic on fuel demand and the
due to the COVID-19 pandemic scenario, there increase of 31%. successful efforts to expand the supply of the
was a delay in the unit’s construction, with a con- Despite the increase in May, June and July product with lower sulfur content, replacing the
sequent adjustment to the schedule. throughout 2020, the natural gas prices to dis- S-500 Diesel.
The Mero field is operated by Petrobras tributors had an accumulated reduction of 35% Petrobras, April 01 2021
(40%) in partnership with Shell Brasil Petróleo in reais; and 48% in dollars, due to the effect of
Ltda. (20%), Total E&P do Brasil Ltda. (20%), the in change oil prices at the beginning of the
CNODC Brasil Petróleo e Gás Ltda. (10%), year. SERVICES
CNOOC Petroleum Brasil Ltda. (10%) and Pré- Petrobras clarifies that the final price of nat-
Sal Petróleo S.A. (PPSA), which is the contract ural gas to the consumer is determined not only MODEC comments on
manager. by the company’s sales price, but also by distribu-
Petrobras, April 07 2021 tor margins (and, in the case of vehicular natural suspension of eligibility for
gas, by resale stations) and by federal and state
taxes. In addition, the tariff approval process taking part in Petrobras bids
DOWNSTREAM is carried out by the state regulatory agencies,
according to specific legislation and regulations. MODEC has received a notification from Petro-
Petrobras on natural gas public and are available for consultation on the tive bidding by Petrobras has been suspended for
The sales contracts for the distributors are bras its eligibility to participate in new competi-
price for distributors ANP website. 13 months from March 31, 2021.
According to the notification, the main basis
Petrobras, April 05 2021
Petrobras informs that as of May 1, 2021, the nat- for this administrative sanction is losses to Petro-
ural gas sale prices for distributors will increase, Petrobras comments on bras presumably caused by the performance of
by 39% in BRL per cubic metre, in relation to the three Floating Production Storage and Offload-
last quarter. Measured in US dollars per million record sales of S-10 diesel ing (FPSO) vessels under charter services that
Btu, the increase will be 32%. MODEC has provided in the past and/or is pres-
The variation results from the application Petrobras informs that in March it recorded total ently providing to Petrobras.
of the supply contract formulas, which link the diesel sales in the amount of 791,000 bpd, rep- These FPSOs are the FPSO Cidade do Rio
price to the oil price and the exchange rate. The resenting growths of 35% and 17% when com- de Janeiro MV14, the charter contract for
updates of the contract prices are quarterly. For pared to sales in the same month of 2020 and which expired in 2019, and two FPSOs that are
currently chartered to Petrobras – namely, the
FPSO Cidade de Niterói MV18 and also the
FPSO Cidade de Santos MV20, according to the
notification.
There is no expectation of further develop-
ments or implications, including on MODEC’s
financials, as this administrative sanction does
not impact the execution of the current con-
tracts in place between MODEC and Petrobras.
MODEC remains committed to improving its
practices, in order to eliminate any issues in its
activities under the current contracts.
MODEC continues to see Brazil as its main
and most promising market and reaffirms its
commitment to the oil and gas sector, with the
excellence that has always been linked to its
name during the more than 15 years in Brazil,
with its employees, customers and suppliers.
MODEC, April 01 2021

P14 www. NEWSBASE .com Week 14 08•April•2021