Page 21 - LatAmOil Week 48 2020

LatAmOil NEWS IN BRIEF LatAmOil

To provide appropriate financial headroom, Production from Goudron currently
the Conditional Convertible Note facility (as accounts for approximately 40% of BPC’s base-
previously announced) has been increased line daily production in Trinidad and Tobago.
by GBP4.75mn (circa $6.3mn) to GBP15mn Bahamas Petroleum Co., November 30 2020
(circa $20mn) in total, with an initial subscrip-
tion notice issued for GBP3mn (circa $4mn, ANH signs four contracts in
with funds anticipated before year end) and the
balance of the facility to be provided in a time- third cycle of Continuous
frame consistent with the demands of operations
(subject to satisfaction of certain conditions Area Nomination Process
precedent).
Commenting, Simon Potter, CEO of BPC, The National Hydrocarbons Agency (ANH) has
said: “Given the ever-evolving and escalating signed four new contracts as a conclusion of the
COVID-19 situation around the world, the third cycle of the Continuous Area Nomination
sobering reality is that preventing the COVID- Process (PPAA). Parex Resources and CNE Oil
19 virus spreading onto the Perseverance-1 drill- & Gas were awarded four areas, with associated
ing installation in the first place is dramatically investments estimated at approximately $40mn.
more cost effective than having to deal with it Parex Resources was awarded VIM 43 and LLA
once it has arrived offshore. Hence the consid- 134, while CNE Oil & Gas was awarded VIM 44
erable efforts put in by BPC, Stena and partic- and VMM 47.
ipating contractors and service companies to Santos Sedimentary Basins, totaling 54,000 “The signing of these four contracts, which
develop even more stringent measures to detect square km. represent an associated investment of approx-
and diminish the risk of infection, which are The 96 blocks are located in the Campos imately $40mn, are a sample of how the Gov-
now being implemented, but which will come sedimentary maritime basins (sectors SC-AP1, ernment’s policies for the reactivation of the
at a cost. SC-AP3 and SC-AUP2), Pelotas (sectors hydrocarbon sector have worked, because after
“Fortunately, given the flexible range of fund- SP-AR1, SP-AP1 and SP- AUP1), Potiguar (sec- five years without signing new exploration and
ing options the Company has developed over the tors SPOT-AP2 and SPOT-AUP2) and Santos production contracts, we will close 2020 with 30
course of the last two years, we have successfully (sectors SS-AP4, SS-AUP4 and SS-AUP5). new contracts thanks to the Continuous Area
agreed an increase to the size of our Conditional ANP, November 30 2020 Nomination Process. This sector will continue
Convertible Note facility by GBP4.75mn to offset to be the core of the sustainable reactivation as
this increased cost. Moreover, we are pleased that Bahamas Petroleum Co. a gateway to investment and employment gen-
the providers of this facility have demonstrated eration, as well as the fundamental axis of our
their commitment to the project by agreeing to signs Goudron EPSC energy self-sufficiency,” said the Minister of
provide a portion of this facility uncondition- Mines and Energy, Diego Mesa Puyo.
ally once the well is [spudded], and the balance Bahamas Petroleum Co., (BPC) has advised The minister continued: “The result of the
expected to be available as required. In aggregate, that the Goudron Enhanced Production Shar- third cycle of the PPAA is the reflection of a sec-
these arrangements provide enhanced financial ing Contract (ESPC) has been signed. As a con- tor that has remained active and in force, despite
capacity, notwithstanding a worsening COVID- sequence, the Company will proceed to issue the challenges posed by the pandemic and the
19 environment. 35,759,140 new ordinary shares in BPC, the price crisis and also of the stake that companies
“We are aiming to assess what hydrocarbon issue of which was conditional on signing of the like Parex and Canacol have made in the Colom-
resource potential lies within the territorial Goudron EPSC. bian industry. We already have great expecta-
waters of The Bahamas, for the mutual benefit The Company has entered into an EPSC in tions for the fourth cycle, the Colombia Round
of the nation and people of The Bahamas, the respect of the Goudron Block in Trinidad and 2021, which will present an attractive offer of
shareholders of BPC, and all other stakeholders. Tobago, with Heritage Petroleum Company. opportunities, the revision of the contractual
Safe, responsible, and uninterrupted operation The EPSC provides the Company with the con- terms and the simplification of the processes,”
is our key objective in the ever changing global tinuing exclusive right to extract petroleum on assured Armando Zamora Reyes, President of
COVID-19 environment, and these additional Goudron until June 30, 2030. The EPSC was the ANH.
costs and increased funding arrangements entered into after consent of the Trinidad and The first two cycles of the PPAA awarded 26
reflect a prudent approach to achieving this Tobago Ministry of Energy and Energy Indus- areas with investment commitments of $950mn.
objective.” tries was duly obtained. A total of 70 areas were offered, with an award
Bahamas Petroleum Co., November 27 2020 The EPSC replaces the existing 10-year Pro- success rate of 37%. The third cycle completes
duction Sharing Contract (as amended and 30 awarded areas with associated investments of
extended) in respect of Goudron that was oth- nearly $1bn.
INVESTMENT erwise due to expire at the end of 2020. Signing The fourth cycle of the PPAA, the Colombia
of the new Goudron EPSC had been anticipated 2021 Round, will present an attractive offer of
ANP announces details of earlier in 2020 but had been delayed as a result of opportunities based on geological knowledge,
the redefinition and release of the land map, the
delays to obtaining the necessary consents aris-
17th Bidding Round ing from the COVID-19 pandemic. simplification of the terms of reference, a more
The terms of the EPSC are largely consistent efficient selection process of contractors, done in
Brazil’s ANP has announced details of the 17th with the terms that previously prevailed under a joint construction with the industry and other
Bidding Round, in which ninety-six blocks will the existing Goudron Production Sharing stakeholders.
be offered in the Campos, Pelotas, Potiguar and Contract. ANH, December 01 2020

Week 48 03•December•2020 www. NEWSBASE .com P21