Page 14 - LatAmOil Week 08 2020

LatAmOil
NEWS IN BRIEF
LatAmOil
To ensure transparency and accountability, the NRF Act 2019 requires several reports on the NRF to be published, including, but not limited to: reports from the Public Accountability and Oversight Committee, Macroeconomic Com- mittee and Investment Committee; reports on withdrawals from the NRF, to be included in the annual budget proposal and, if needed, in a Sup- plementary Appropriation Bill; annual reports of the NRF, including audited financial statements; quarterly reports and financial statements of the NRF; and monthly reports of the NRF.
These reports will allow the public to moni- tor deposits in, and withdrawals from, the NRF so as to ensure that petroleum revenues are being managed according to the provisions of the NRF Act 2019. However, these reports may not contain sufficient information to allow one to determine how government revenues that are deposited into the NRF are calculated. As such, the Report on Petroleum Production and Revenues (RPPR) serves to bridge this gap by providing regular updates on petroleum pro- duction and revenues. The regular publication of the RPPR will allow for greater transparency in this new sector of the economy, ensuring that the public is fully aware of the amount of petroleum being produced and revenues being generated. Such transparency is important, given the mag- nitude of revenues that will be generated from this resource.
Guyana Ministry of Finance, February 17 2020
EVENTS
FPSO Brasil Congress returns to Rio de Janeiro
Following two successful events since 2018, the FPSO Brasil Congress, taking place on May 25-27, 2020, is returning to Rio de Janeiro. It will continue to be the largest FPSO-dedicated plat- form for the robust Brazilian market.
Organised by the FPSO Network, the Con- gress will welcome the region’s oil companies, FPSO contractors, investors and solution pro- viders at the Windsor Convention & Expo Cen- tre. The community explored practical solutions to deliver cost-effective FPSO projects while working within the confines of the Brazilian reg- ulatory framework, and engaged in interactive discussions and networking activities like never before.
With increased investments and strategies in place to monetise Brazil’s deepwater fields, the total production of Brazil Oil is set to grow at an average rate of 5% per year between 2020 and 2023, bringing light to even more FPSOs pro- jected to be ordered by both local and Interna- tional oil operators.
“The 2020 Congress will focus on accelerat- ing FPSO growth in the Brazilian seas, focusing on three key areas; maximising local capacity and capability, enhancing project execution and development strategies and adopting opera- tional excellence in active FPSO projects in the country,” said Jamie Tan, Director of the FPSO Network.
The potential of the FPSO Brazilian market is made evident by the presence of key indus- try players, including Agencia Nacional do Petroleo, Petrobras, Dommo Energia, Equinor Brasil, Shell Brasil Petroleo, SBM Offshore Brasil, MODEC, Petrogal Brasil, Teekay Offshore, Yin- son, Ocyan and many more.
They will discuss various issues affecting the Brazilian FPSO industry including local con- tent regulations, new contracting models, FPSO automation systems, project legal compliance, engaging mobile connectivity for increased accessibility, asset integrity, LATAM oil discov- eries and more.
FPSO Network, February 18 2020
Ecopetrol presents Q4 and full-year 2019 results
Ecopetrol announced today the business group’s 2019 fourth quarter and full-year financial results, prepared in accordance with Interna- tional Financial Reporting Standards (IFRS) applicable in Colombia.
In words of Felipe Bayón Pardo, CEO of Ecopetrol: “2019 was an outstanding year for the Ecopetrol group, both operationally and financially, reaching the targets we set in the 2019-2021 Plan update. Our financial results were the highest of the past six years, with a net profit of COP 13.3 trillion, an EBITDA of COP 31.1 trillion and an EBITDA margin of 44%. This performance allowed for the highest divi- dend payment in the Company’s history (COP
314 per share), as well as investments focused on profitable organic (80%) and inorganic (20%) growth totalling $4.4bn, maintaining our credit rating. The Gross Debt-to-EBITDA ratio was 1.2 times in 2019.
“The financial results achieved demonstrate the positive operational performance and the positioning of our crudes in markets that gener- ate greater value, reaching in the fourth quarter 2019 a record differential in the crude basket of -$4.7 per barrel. Our sales and marketing strat- egy enabled us to establish a direct relationship with refiners, strengthening our position as a reliable heavy crude supplier for our customers, with high quality standards and competitive delivery times, thus maximising the value of our basket amidst a favorable market context for heavy crudes in the region. These favorable performance was further facilitated by to a bet- ter average exchange rate, savings in financial expenses from debt prepayments and a lower nominal tax rate. The foregoing allowed to offset the lower average Brent price, which declined from $72 per barrel in 2018, to $64 per barrel in 2019, showing our ability to face a challenging environment, reflected in a lower net income breakeven of $29.9 per barrel.
“2019 net profit was positively impacted as a result of our increased stake in Inversiones de Gases de Colombia (Invercolsa) from 43% to 52%, pursuant to the Supreme Court ruling of October 2019, whereby our interest position changed, and this Company thus ceased to be a subsidiary and became an associate, generating a non-recurring income in the amount of COP 1.0 trillion.
“As part of our corporate strategy, we remain committed to our operational and financial effi- ciency plan. During 2019, Ecopetrol Group’s cumulative efficiencies amounted to COP3.3tn, a 22% increase versus 2018 and exceeded the tar- get set in the 2019-2021 Plan.”
Ecopetrol, February 25 2020
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Week 08 27•February•2020