Page 9 - LatAmOil Week 40 2019

LatAmOil
NEWS IN BRIEF
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UPSTREAM
Petrobras and Equinor
celebrate Memorandum of
Understanding focused on
natural gas value chain
Petrobras reports that, following up to the Stra- tegic Partnership signed on December 18, 2017, celebrated today a Memorandum of Under- standing (MoU) with Equinor, a company based in Oslo (Norway), focused on the joint develop- ment of businesses related to the value chain of natural gas produced from the partnership projects.
One of the main goals of the MoU is to max- imise value in the downstream segment of both companies through natural gas thermoelectric generation projects as well as feasibility studies related to gas processing assets and pipelines in TECAB (Cabiúnas Terminal in Macaé, RJ) and COMPERJ (Petrochemical Complex of Rio de Janeiro, in Itaboraí, RJ), where a natural gas pro- cessing plant (UPGN) is under construction, both belonging to Petrobras.
These locations have potential to become relevant natural gas hubs in the country in the coming years.
e MoU was signed in Rio de Janeiro by Petrobras CEO, Roberto Castello Branco, and Equinor CEO, Eldar Saetre, with the purpose of con rming the parties’ intention to combine e orts in investments in the natural gas, lique ed natural gas (LNG) and power generation seg- ments and, although it is non-binding in nature, it indicates the companies’ intention to work together to develop projects in these segments.
Currently, Petrobras and Equinor are part- ners in the Roncador eld and in the exploratory blocks BM-C-33, Dois Irmãos, and C-M-709 among others, and this MoU reinforces the rela- tionship between the parties, being aligned with the Petrobras Business Plan.
Petrobras, October 09 2019
Petrobras concludes the
sale of Pargo, Carapeba and
Vermelho fields
Petrobras, following up on the release of Novem- ber 28, 2018, reports that today it completed the sale of its interests in Pargo, Carapeba and Ver- melho elds, located in shallow waters o the coast of the State of Rio de Janeiro, to Perenco Petróleo e Gás do Brasil.
A er all precedent conditions had been met, the operation was completed with the payment
of about $324mn to Petrobras, including the adjustments provided for in the contract. is value adds to the amount of $74mn paid to Petrobras upon signing of the contract.
is transaction is in line with the company’s portfolio optimisation and improvement of cap- ital allocation, aiming at generating value for our shareholders.
e Pargo eld was discovered in 1975 and the Carapeba and Vermelho fields in 1982, and production began in 1988. ese conces- sions were granted to Petrobras in 1998 in the so-called Round Zero biddings. e production system of these elds is integrated and comprises seven xed jacket type platforms. With the clos- ing of the transaction, Perenco becomes the operator of the elds.
Petrobras, October 08 2019
Citla Energy launches
exploration drilling program
at the Istmo Salinas Basin
Citla Energy, a Mexican independent oil com- pany, announced the beginning of its explora- tion drilling program in shallow water in the southeastern part of the Gulf of Mexico, at the proli c and under-explored Salinas del Istmo basin, the same region where top class field Zama was discovered in 2017 and where impor- tant discoveries such as Amoca-Mizton-Tecoalli and Hokchi are being developed.
e program will be developed in partner- ship with consortium members and opera- tors Eni and Cairn Energy, from the Q4-2019
through Q1-2020. e initial program includes three wells in contract areas 7 and 9 of Round 2.1. Together, such areas total 1,153 square km. Drilling will take place in 100-500 metre water depth and 40-70 Km o shore of the Mexican states of Veracruz and Tabasco, with a total esti- mated investment of US $165mn. e results of this initial e ort will determine next steps in this exploration campaign.
Alberto Galvis, CEO of Citla Energy, com- mented: “We are thrilled and proud to begin our exploration drilling program. e assets have huge potential, and the project’s implementa- tion is moving forward according to plan and contract terms.”
Citla Energy is a Mexican independent upstream company founded in 2015. Citla is backed by financially solid institutions such as ACON Investments and the China-Mexico Fund. With o ces in Mexico City and Houston, Texas, Citla has partnered in consortiums with top international rms to assemble a selected o shore asset portfolio in Mexico.
Citla Energy, October 03 2019
DOWNSTREAM
Petrobras starts non- binding phase of REGAP
Petrobras, following up on the release dated September 13, 2019, informs the beginning of the non-binding phase related to the sale of the Gabriel Passos Re nery (REGAP) in Minas Gerais state, with its associated logistics assets.
Week 40 10•October•2019
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