Page 15 - LatAmOil Week 29 2021

LatAmOil NEWS IN BRIEF LatAmOil

scenario. The average production of oil, NGL Valuable reservoir data collected: Two cores treatment, storage tanks, and water treatment
and natural gas reached 2.80mn boepd, 1.1% were cut and recovered while drilling the 3WD all scheduled for completion in early Q4-2021.
above Q1-2021, due to the continued ramp-up well, one from the top of the Vivian oil reservoir This will provide for approximately 100,000 bpd
of platforms P-68 (Berbigão and Sururu fields) and the second throughout the oil-to-water tran- water disposal capacity.
and P-70 (Atapu field). Production in the pre- sition zone that shows a better-than-expected June 30, 2021 liquidity update: At June 30,
salt area totaled 1.96mn boepd in the quarter, shorter transition zone. This will be verified by 2021, PetroTal had a cash position of approxi-
representing 70% of Petrobras’ total production, the ongoing petrophysical studies, allowing for mately $79mn, of which $54mn is unrestricted,
1% above Q1-2021 and 4% above Q2-2020. a more thorough estimate of oil in place for the $20mn is dedicated to accretive acquisitions
Because of the pandemic, the company kept 2021 year-end reserves assessment. and $5mn is collateral for commodity price
the headcount reduced on platforms, with the Q2-2021 oil production: As stated in the May hedges. Accounts receivable from current oil
adoption of measures such as pre-shipment iso- 31, 2021 announcement, current production sales, including VAT, is $16.7mn, and accounts
lation and extensive testing, in addition to chang- levels were approximately 9,000 bpd inclusive of payable are approximately $37mn. Pursuant to
ing operational routines in order to preserve the well shut ins, and as a result of drilling delays, contractual terms with suppliers, approximately
health of our employees and reduce risks of con- created a restricted production level for most $7mn (19%) of the accounts payable balance
tamination and impacts on production. of Q2-2021. Q2-2021 oil production averaged is due after Q3 2021. Ongoing payments will
We highlight the following points in our 8,825 bpd, up 20% from 7,331 bpd in Q1 2021, be managed from expected oil field revenues,
operating performance: and 2% higher than guidance of 8,655 bpd. Cur- internal cash resources, and the $100mn Febru-
• In June, we started the integrated operation rent field production is 8,800 bpd and while the ary 2021 secured bond issue proceeds. The Com-
of Routes 1 and 2 of the Santos Basin gas flow, 3WD water disposal well has now been com- pany maintains access to an additional $25mn
close to the FPSO Cidade de Angra dos Reis, as pleted, one of the booster pumps is not fully from the bond issue for potential acquisitions
a result of the beginning of the Integrated Gas operational, constraining water injection rates. and development drilling.
Flow System contracts, allowing more flexibility This results in current field oil production being Recognition by Ministry of Energy and Mines
due to better distribution of the production units constrained just below 9,000 bpd. The booster (MINEM): PetroTal is pleased to acknowledge
connected to the system and boosting gas supply. pump is expected to be either repaired or being recognised by MINEM for its Commu-
• In the same month, we started the gas replaced over the next month, allowing PetroTal nity Citizen Socio-Environmental Monitoring
flow from P-76 in Búzios, contributing to the to restore production rates to the unencumbered Programme (PROMOSAC). The Company was
exploitation of the field’s potential and enabling 10,000 bpd level. one of three, selected out of a group of 33 nom-
better reservoir management and increased Horizontal well BN-8H has commenced inations. This award seeks to recognise those
value generation. drilling: Drilling of the next horizontal devel- Peruvian companies with a strong commitment
• On July 5th, FPSO Carioca completed the opment well (BN-8H) commenced on July 12, to local community, the environment, and local
journey to its final location, in the Sépia field, 2021, and is expected to cost $12.25mn. The social and economic monitoring initiatives.
with subsequent start of mooring activities. The well will take approximately 53 days to drill and Furthermore, PetroTal is also supporting the
unit’s first oil is expected in August 2021. complete and is prognosed to be 4,200 metres in Indigenous Chamber of Commerce of Peru and
• P-68 and P-70 units continued to ramp-up total length. This will be the first horizontal well will work closely with this emblematic institu-
and delivered high operational efficiency rates in 2021 with the last development well, 7D, being tion promoting mutually beneficial projects to
in the quarter. On July 18th, P-70 reached the a deviated well. The Company expects that, upon empower the local communities.
maximum allowed production capacity, 161,000 completion of the BN-8H and fixing the water Manuel Pablo Zuniga-Pflucker, President
bpd. Thus, despite the pandemic, the ramp-up pumping disposal capacity, to ramp production and Chief Executive Officer, commented:: “We
was concluded in less than 13 months, close to to over 13,000 bpd and meet Q3-2021 average are pleased to continue meeting our goals even
our average of 11 months in the last three years. production guidance of 11,750 bpd. though Peru continues to suffer the conse-
Petrobras, July 20 2021 CPF-2 nearing completion: The final instal- quences of a third COVID-19 wave. After suc-
lations for CPF-2 are ongoing with the crude oil cessfully completing the 7D well that continues
PetroTal announces Q2-2021 to outperform our 3P forecast, we completed the
3WD well which will effectively double our water
operations update disposal capacity to approximately 100,000 bpd.
We are now starting to drill more of our prolific
PetroTal has announced an operational update horizontal wells which are weighted nicely in
for Q2-2021. the back half of the 2021 capital investment pro-
Completion of two new wells: PetroTal com- gramme. Despite some operational challenges,
menced drilling a second water disposal well, the Company was able to slightly beat Q2-2021
3WD, on May 3, 2021. It was successfully com- production guidance, even considering curtailed
pleted on July 9, 2021, approximately one month production rates.
later than the original estimate due to a required “The core data extracted from the 3WD well
sidetrack. Despite the drilling delay, and inclu- will be useful for oil in place calibration in our
sive of the coring operation, the total well cost is 2021 year-end reserves report. The field is now
expected to be $11.9mn, compared to the budget producing approximately 8,800 bpd and should
of $9.8mn. The additional expenditure is par- ramp up quickly as we optimise water disposal
tially offset by cost savings on the 7D develop- operations and prepare to receive production
ment well that was completed in late April 2021 from the new BN-8H oil well in early September
and has already accumulated approximately which will allow us to take Bretaña’s oil produc-
260,000 barrels of oil and achieved payout in tion to new highs.”
early July. PetroTal, July 20 2021

Week 29 22•July•2021 www. NEWSBASE .com P15