Page 15 - LatAmOil Week 14 2020

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NEWS IN BRIEF
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UPSTREAM
Petrobras reveals new oil discovery in Campos Basin
Petrobras report that it has identified the pres- ence of oil in an exploratory well at the Sudoeste de Tartaruga Verde block, located in the Campos Basin.
Thewell,informallycalledNatator,islocated 130 km from the city of Macaé (RJ), in water depths of 1,080 metres, with the discovery of oil in carbonate reservoirs in the post-salt section. The well data will be analyzed to better target exploratory activities in the area and assess the potential of the discovery.
The Sudoeste de Tartaruga Verde block, acquired in the 5th Production Sharing Round, in September 2018, is inserted in the so-called Pre-salt Polygon, under a production sharing regime. Petrobras is the operator of the block with 100% interest, with Pre-sal Petróleo (PPSA) as manager.
Petrobras, April 07 2020
Brazil: Petro-Victory
Energy announces oil
discovery at Vida well
Petro-Victory Energy has announced the dis- covery of oil at the 1-VID-1-ES (Vida) explo- ration well located in Block ES-T-487 Espírito Santo Basin, Brazil. This is the company’s first exploration well in Brazil.
The Vida exploration well was drilled to a total depth of 1,890 metres in the onshore por- tion of the Espírito Santo Basin, Brazil. Evalua- tion of logging, pressure, and fluid data confirms that Vida comprises of high-quality oil-bear- ing Cretaceous sandstone reservoirs. The well encountered 49 metres of net oil pay, exceed- ing Petro-Victory’s pre-drill forecast of 855,000 barrels of mean recoverable resource. Oil was successfully recovered to surface during fluid sampling from a sandstone reservoir at 1,600 metres and preliminary observations of the oil sample show similar qualities to a nearby oil field (24 API, low BSW). Oil pay was encountered across the Vida well, with the majority of oil pay occurring between 1,560 and 1,660 metres.
The Company will now suspend the well, evaluate the data from the Vida oil discovery, update the recoverable oil resource, determine an appropriate testing program, and source a workover rig to conduct a detailed testing pro- gram and put the Vida well on production in Q3. Upon completion, the Company projects ongo- ing OPEX to be in the $10-12 per barrel range, generating positive cash flow and profitable
netbacks in the current price environment. This oil discovery significantly de-risks other Cretaceous age prospects on the ES-T- 487 license and the Company’s other nearby licenses, ES-T-477, ES-T-373, ES-T-354, includ- ing our next well, the Sintonia prospect located
on ES-T-441.
Richard F. Gonzalez, Chief Executive Officer
of Petro-Victory, commented: “I would like to thank our operating partner, Imetame Ener- gia, for their hard work and dedication in drill- ing the Vida well during these turbulent times. Making a significant oil discovery in our first Brazil exploration well is an excellent result for our shareholders. We will now work steadfastly to bring our Vida well online while preparation commences for the drilling of our second explor- atory well, Sintonia.”
Petro-Victory, April 07 2020
Petrobras makes new oil
discovery at Uirapuru
block in pre-salt zone
Petrobras reports that it has identified the pres- ence of oil in the pioneer well of the Uirapuru block, located in the Santos Basin pre-salt.
The pioneer well is located about 200 km off the coast of the city of Santos (SP), at a water depth of 1,995 metres, with the discovery of oil in porous reservoirs in the exploratory prospect known informally as Araucária. The well data will be analysed to better target the exploratory activities in the area and assess the potential of the discovery.
The Uirapuru block, acquired in the 4th
Production Sharing Round in June 2018, is inserted in the so-called Pre-salt Polygon, under a production sharing regime, having Pré-sal Petróleo S (PPSA) as manager. Petrobras is the operator of the block and holds a 30% stake, in partnership with ExxonMobil (28%), Equinor (28%) and Petrogal (14%).
Petrobras, April 02 2020
PETROCHEMICALS
Braskem reports net
cash generation of
BRL3bn in 2019
Braskem announces today its results for Q4-2019 and full year 2019.
In 2019, recurring EBITDA came to $1.514bn, down 50% from 2018, mainly explained by the narrower spreads in the inter- national market, given the slower growth of the world economy and the new capacities coming online for PE in the United States and for PP and refineries in Asia, with these factors partially off- set by the higher sales volume of PP in the United States and PE in Mexico. In Brazilian real, recur- ring EBITDA came to BRL5.936bn ($1.15bn), decreasing 46% from 2018.
In the year, the Company recorded a net loss of BRL2.798mn ($541.15mn), which is explained by the accrual of a provision in the amount of BRL3.383bn ($654.29mn) for imple- menting the Financial Compensation and Sup- port for Relocation Programme in Alagoas, by the actions to close certain salt wells of the Company and by the Programme to Support the Recovery of Businesses and Educational Activi- ties, as well as the adverse effect from the depre- ciation in the Brazilian real depreciation against the U.S. dollar on the Company’s net exposure not designated for hedge accounting.
In 2019, the Company made investments in its operations ($470mn) and strategic projects ($229mn) in the amount of $700mn, which was $187mn (21%) lower than the amount estimated at the start of the year and surpassed the reduc- tion target of $100mn set at the end of H1-2019, demonstrating the Company’s commitment to financial solidity.
Free cash generation in 2019 was BRL3.108mn ($601.1mn), down 56% from 2018, due to the lower EBITDA and the payment of interest related to the full/partial prepayment of certain bonds (breakfund costs), with these factors partially offset by: (i) the decrease in accounts receivable, due to the lower sales vol- ume and lower sales prices of products; (ii) the lower volume and costs of feedstock and fin- ished goods inventories; (iii) the higher volume
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