Page 15 - LatAmOil Week 38 2022

LatAmOil NEWS IN BRIEF LatAmOil

The Offering was the largest issuance of Com- Company’s intention to implement a new Cap- Board is also considering a modest share buy-
mercial Notes ever carried out in Brazil, suc- ital Allocation Policy which is likely to include back programme, and expects to provide further
cessfully opening a new alternative for domestic the payment of a regular dividend and a share guidance in due course.
funding for Petrobras. The demand was of buy-back programme to further deliver value to Trinity Exploration & Production, September 20
BRL3.8bn approximately, with the participation our shareholders.” 2022
of 26 professional investors. 2022 Year to Date Strategic Highlights:
The final settlement of the Offering took H1-2022 saw production levels broadly main- Petrobras reaches
place on September 15, 2022. tained and the Company benefit from stronger
The Issuance Agreement and any amend- operational cash flows due to higher realised oil gains of BRL342mn with
ments thereto are available on the Company’s prices, with the impact of these partially offset by
website. the effect of hedging instruments . The Compa- improvements in supply
Petrobras, September 16 2022 ny’s oil price hedge payment exposure reduces
and unwinds in H2-2022 and there are no hedg- chain management
ing instruments in place currently for 2023. In
PERFORMANCE addition to continuing its programme of rec- ASCM, one of the industry’s main international
ompletions and workovers which kept produc- organisations, has awarded the company in its
Trinity Exploration tion stable, the Company commenced its fully Corporate Transformation category.
Petrobras reached gains of BRL342mn
funded onshore drilling operations. The first two
announces interim results wells successfully encountered target reservoir between 2021 and 2022 thanks to the imple-
sections as prognosed, confirming our pre -drill mentation of a number of advances in its supply
Strong operating and financial resilience con- expectations, and are currently on production chain management, focused on its operations
tinue to underpin the Group’s pursuit of multiple test. The Company is preparing to move onto that involve exploration and production, refin-
initiatives to meaningfully scale the business the third well of the planned six well campaign. ing and transport of products and services.
Trinity Exploration & Production has Onshore: Onshore continues to be a robust The efficiency gains were achieved mainly due
announced its unaudited interim results for the set of assets with a break-even price of $18.5 per to advances in the management of supplies for
six-month period ended June 30, 2022. barrel (H1-2021: $17.9 per barrel) even after maintenance, repair and operation of the units
Jeremy Bridglalsingh, CEO of Trinity, com- observing inflationary increases from the sup- run by the company, including production plat-
mented: “The first six months of 2022 was a ply chain. Successful analysis and interpretation forms, support vessels, drilling rigs, gas treat-
period of consolidation for Trinity, positioning of the 3D Seismic across all our onshore Blocks, ment units, among others.
the Company strongly for the second half of the including PS-4, which was acquired in Decem- These savings contributed to the results
year and beyond. Stable production and higher ber 2021, has de-risked our drilling campaign already presented by the company, reflecting a
oil prices boosted our revenues in the period, the that commenced in June 2022. 25% reduction in Petrobras’ inventory coverage,
benefit of this will be fully felt when our hedges East Coast: The Company has continued to as well as a 34% cut back in excess inventory and
expire at the end of 2022. Towards the end of the refine its plans for Galeota via a staged develop- a 40% cutback in the company’s active material
first half the Company commenced a poten- ment initially exploiting the 9.77mn barrels of codes, both important supply chain manage-
tially transformational drilling programme 2P reserves in the Trintes field. This approach ment indicators. Supply management involves
onshore Trinidad. The six-well programme is reduces risk and capex and offers a shorter time- the provision of the most diverse types of mate-
ongoing, with drilling of the most notable wells, frame to achieve production. rials, such as tubes and connections, subsea
a horizontal well and a deeper appraisal well, Galeota’s 40.39mn barrels in 2C resources equipment, turbines, pumps, compressors and
due to start in the coming months. I believe offer the potential for future phase of develop- their spare parts required to support the compa-
this has the potential to meaningfully increase ment or optimisation of the development. The ny’s operations.
our scale, and as such prove to be the start of Company is hopeful that the Government of Petrobras has a complex supply chain, with
one of the most exciting periods in the Compa- Trinidad and Tobago will conclude its deliber- thousands of suppliers and the need for perma-
ny’s history. I am also pleased to announce the ations and provide further details on reforms to nent availability of materials for its numerous
Supplemental Petroleum Tax (SPT) in the near operations. At the same time, the company’s
term and this will facilitate potential coventur- supply management faces the challenge of avoid-
ers to fully assess the economics of the oppor- ing material shortages in these units and, at the
tunity when the Galeota farm down process same time, preventing expenses inherent to any
recommences. excessive or unexpected inventories. The gains
Corporate: The Board wishes to advise share- obtained in this area reflect Petrobras’ focus on
holders of its intention to announce a new Cap- improving management, discipline in capital
ital Allocation Policy during H1-2023, once the allocation and cost reduction.
outcome of the six well drilling campaign has The company’s supply management effi-
been assessed. This is likely to include: Payment ciency gains relied on the intensive use of tech-
of a regular dividend that will help inform future nology. The company improved a computerised
capital allocation decisions whilst not impeding system for automatically evaluating purchase
the Company’s growth potential; and a buy-back orders and requisitions from the units, based on
programme that will flex depending on com- an algorithm to determine whether or not mate-
modity prices. rials were needed. If necessary, they would be
Further details on Trinity’s Capital Allocation acquired. If their need was not clear, orders were
Policy will be provided in conjunction with the analyzed and refined, which would lead to the
preliminary results for 2022. In the interim, the purchase or complete elimination of the order.

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