Page 14 - LatAmOil Week 08 2022

LatAmOil NEWS IN BRIEF LatAmOil

The more resources the company generates, the $340 to $365mn, assuming a 2022 average Brent approvals, PetroTal will continue to evaluate the
more society receives in return. price of $88 per barrel and a $37mn net deriva- Company’s deep portfolio of exploration assets
Financial Recovery: The year 2021 consol- tive true-up payment from oil arriving and being for ways to maximise shareholder value.
idated the company’s trajectory of financial commercialised at Bayovar through the North- Production Guidance: The Company gener-
recovery, after having incurred the world’s big- ern Peruvian Pipeline (ONP); Execute a facili- ates various sensitivities for possible production
gest corporate debt. In the fourth quarter, Petro- ties and infrastructure expansion programme downtime attributable to social and technical
bras reached a gross debt of $58.7bn, resulting in of approximately $43mn, which includes a new issues. Considering the implementation of the
a net debt/EBITDA ratio of 1.1. diluent tank, additional separators, a power social trust, the Company’s current assessment
“With the reduction in debt, it was possible to plant expansion, additional injection facilities of likely downtime, mostly due to social unrest,
redirect resources paid as interest to investments. and key process optimisation projects; Generate and the planned $120mn capital expendi-
In 2021, we invested $8.8bn, a 9% increase over free cash flow (before debt service) of between ture programme, PetroTal’s 2022 oil produc-
2020. In the next five years, we plan to invest $220 and $245mn in 2022; Repay $20mn of the tion is expected to range between 17,500 bpd
another $68bn, 24% more than projected for 2021 $100mn bond issue in H1-2022; Redeem and 19,500 bpd. At the midpoint of the range,
2021-2025. This shows we are working for Petro- the balance of the bonds in Q3-2022, should PetroTal would produce about 6.6mn barrels
bras to grow sustainably and profitably. And, in cash and working capital levels permit; Assum- of oil in 2022, representing a 100% production
this way, deliver the maximum return to our ing the entire bond is retired, PetroTal intends to growth rate over 2021. In addition, the Company
shareholders and to society,” concludes Rodrigo reinstate a stable and rewarding return of capital expects to exit 2022 with production at approx-
Araujo, Petrobras’ Chief Financial and Investor programme as early as Q4-2022; and, Allocate imately 21,500 bpd and with production mate-
Relations Officer. approximately $15mn in community social trust rially surpassing the 20,000 bpd mark at certain
Main achievements: Net income of $5.6bn payments and direct community investment flush production points during the year.
and EBITDA of $11.2bn, in the fourth quarter projects in 2022. Manuel Pablo Zuniga-Pflucker, President
of 2021. Achievement of all top metrics estab- Drilling and Completion Budget: PetroTal and CEO, commented: “We are excited to com-
lished in the Strategic Plan 2021-2025 and of will invest approximately $75mn to drill four municate our 2022 development plans to the
all production targets for the year, with pre-salt separate producing development wells in 2022 market. 2022 will be a year of achievement and
accounting for about 70% of our production. and complete well 10H which commenced rewarding shareholders who continue to believe
Largest reserves addition in Petrobras’ history, drilling in late 2021 and started production in our story and management team. It is vital that
with 1.97bn barrels of oil equivalent, resulting on January 31, 2022. The four new drills in the we continue drilling wells and executing our 2P
in a 219% replacement of 2021 production. remainder of 2022 are 11H, 12H, and 13H in the development plans by drilling proved-undevel-
Achievement of the debt target 15 months ahead south-eastern part of the field and 14H in the oped locations that should allow future booked
of schedule, closing the year with a gross debt of north-west. These proved undeveloped wells location upgrades, prevent base declines, and
$58.7bn. Moody’s credit rating updated by one were strategically selected to maximise produc- optimise water handling peaks based on our cur-
level, from Ba2 to Ba1, with a stable outlook, and tion increases, and to continue the extension of rent infrastructure. We will continue to deliver
upgrade of the company’s intrinsic rating by one the reservoir boundaries. Rig maintenance pro- investment grade well results and manage our
level, from ba2 to ba1. Average total utilisation grammes are budgeted to ensure a safe and stable balance sheet prudently, as we have over the past
factor (FUT) of 83% of our refineries in 2021, the drilling campaign. four years our team has been together.”
highest index in the last five years, which shows Facilities Budget: In 2022, PetroTal will focus PetroTal, February 22 2022
the efficiency gains in unit management. Con- on developing necessary infrastructure needed
clusion of obligations with the US Department to support continued growth. Approximately
of Justice (DOJ). Return to the Dow Jones Sus- $25mn is allocated for a new diluent tank, a POLICY
tainability Index World, one of the world’s most three-phase separator unit including engineer-
important indexes, after six years. ing and mechanical works, central processing GOGEC hails IECE event
Petrobras, February 23 2022 facilities (CPF-3) planning and construction
costs, which will commence in April 2022 and as major success
PetroTal announces 2022 enhance the water injection system with new
water injection pumps. This will enable the Guyana’s inaugural energy conference and exhi-
capital budget of $120mn Company to manage diluent levels to avoid bition, a four-day event held at the Marriot, was
frequent diluent shipments and allow the field a grand success and the organisers and all the
PetroTal has announced a fully funded 2022 cap- to process nearly 200,000 barrels of fluid when stakeholders must be commended for this suc-
ital programme of $120mn that is expected to completed, which is expected to be by mid-2023. cessful event.
generate material free cash flow, allowing for an Over 20 key field infrastructure projects have
expected resumption of a dividend to sharehold- been identified, totaling $18mn, which will be
ers by Q4-2022. allocated for optimisation, process/production
2022 Key Highlights: Invest $75mn in drill- improvement, power expansion, maintenance,
ing and completing four horizontal development and security projects. These projects will be com-
wells in 2022. Inclusive of well 10H, which com- pleted in priority of near-term need and are sub-
menced production on January 31, 2022, a total ject to changes given the material and logistical
of five new wells will commence production in challenges caused by the COVID-19 pandemic.
2022; Target a 2022 average production range Block 107 Budget: A total of $2mn is budg-
between 17,500 bpd and 19,500 barrels per day eted in 2022 for Block 107 permits. Petro-
(bpd) of oil with an estimated exit December Tal expects approval of the Constitucion and
2022 production rate of approximately 21,500 Kametza (Osheki) permits in H1-2022 and
bpd; Generate an adjusted EBITDA range of H1-2023, respectively. With these permit

P14 www. NEWSBASE .com Week 08 24•February•2022