Page 12 - LatAmOil Week 09 2020

LatAmOil
NEWS IN BRIEF
LatAmOil
UPSTREAM
Bahamas Petroleum wins
environmental permit for
Perseverance-1 well
Following a considerable body of work, engage- ment and consultation both before and further to submission for an Environmental Authori- sation (EA) by the Company in April 2018, the Bahamas Minister of Environment, upon notice of “no objection” from the Bahamas Environ- ment Science and Technology Commission (BEST Commission), has today granted the requisite EA to the Company for the proposed activities associated with the drilling of the Per- severance-1 well.
The EA has been granted by the Minister in accordance with Regulation 3 of the Bahamian Petroleum (Offshore Environmental Protection and Pollution Control) Regulations 2016, and was made on the basis that the Ministry of the Environment and Housing (MOE&H) is sat- isfied, having regard to all information made available to it, that the Company be allowed to undertake the activities the subject of the EA. The Company notes that the grant of the EA confirms that the potential impacts associated with the Company’s intended drilling activities have been adequately and appropriately noted and suitably addressed by the proposed mitiga- tion measures outlined in the EA as submitted by the Company, and were in accordance with all laws and regulations applicable in The Bahamas, as well as applicable performance measures or guidelines established by international bodies, standards, conventions, treaties and maritime laws.
Since its submission, the Company’s EA has been extensively reviewed by independent, internationally recognised consultants engaged by the BEST Commission, been assessed and tested against the guidelines and performance measures detailed above, and subsequently revised by the Company (with the assistance of industry leading international consultants engaged by the Company), so as to ensure the EA would adhere to all applicable laws and regulations, as well as international standards and industry best practices. All areas of addi- tional work identified by the BEST Commis- sion (inclusive of all the details, specifications and procedures associated with the specific rig intended to undertake the Company’s drilling activities) were comprehensively addressed, with various updated and revised sections of the EA accordingly re-submitted by the Company to the BEST Commission, consistent with the established timetable agreed by all parties, and thereby completing the formal technical review
portion of the approval process.
Simon Potter, Chief Executive Officer, com-
mented: “On the way to delivering our sin- gle-minded goal of safely completing the drilling of the Perseverance-1 exploration well there will be no more important milestone than receipt of Environmental Authorisation from the Govern- ment of The Bahamas. I am therefore extremely pleased and proud to advise that Environmental Authorisation has today been granted. This is the outcome of an extensive and collaborative work effort over an extended period of time by our team of predominately Bahamian employ- ees, various third-party consultants, and The Government and Ministry, advised by the BEST Commission.
“Today’s approval reflects our steadfast com- mitment to ensuring that Perseverance-1 will be drilled in an entirely safe and responsible manner, in full compliance not only with the stringent laws and regulations in place in The Bahamas, but also in accordance with all appli- cable international standards, and adherence to global best practices as defined by the guidelines and performance measures adopted by multiple international agencies.
“We continue to make rapid progress toward the drilling of Perseverance #1, and remain on schedule for a well spud in April 2020.
“I look forward to updating shareholders on additional milestones in the coming weeks, in what we expect to be an exciting time for our Company.’
Bahamas Petroleum Co., February 27 2020
MIDSTREAM
Argentina: President
Energy commissions new
Rio Negro pipeline and
infrastructure
President has announced that it has commis- sioned the previously announced new 16-km section of gas pipeline section between its Puesto Prado and Las Bases facilities in Rio Negro prov- ince, together with the associated infrastructure which have been placed into operation thereby enabling a significantly greater volume of gas to flow through the entire length of the Company’s 70-km pipeline to market.
The work, completed without any incident on budget and on time, and all managed by President’s own procurement, engineering, operations and regulatory teams, included the following: engineering, design, permitting and procurement for all work; proactively working with all landowners and interested stakeholders
including all necessary transportation conces- sions; civil works, installing compressors and dehydration units in both Angostura and Las Bases; significant reconstruction work in Ango- stora, Las Bases and Estancia Vieja fields to meet international industry standards; project man- agement and supervision of all construction phases including excavation and installation of the 16-km pipeline, with the number of work- ers on site peaking at over 100; extensive testing of new and existing pipelines and facilities, and commissioning and bringing shut in wells on line.
The aggregate cost of all the work was approx- imately $5mn and is being met out of the Com- pany’s current cash flows.
Current net gas production is now being ramped with gas flowing successfully to market from Estancia Vieja field at significantly greater volumes than at any time in the history of the field now the new pipeline is in operation.
Once the ramp up has progressed to an appropriate level, expected within the next few days, a further announcement will be made in relation to aggregate volumes of gas production. President is pleased to report that current projec- tions of the increasing gas production are in line with previously announced expectations being approximately 1,200 boepd.
As a result of the installation of a larger scale compressor, and the opening up of more shut-in wells in Estancia Vieja due in Q2-2020, it is pro- jected that from June Group production should be boosted by a further 800 boepd.
In such a scenario, this would by or around the end of H1 2020 result in some 2,000 boepd total net gas production (12mn cubic feet per day, or 339,800 cubic metres per day) from President’s Neuquen basin assets thereby boost- ing aggregate oil and gas production net to the Company to 4,000 boepd excluding the impact of drilling results to come in Argentina during H2 2020.
Gas prices in Argentina have not been impacted in any way by the coronavirus with President’s gas being sold for domestic consumption.
Peter Levine, Chairman, commented: “The story of the first half of 2020 is all about gas. The necessary base infrastructure in Rio Negro is now in place and it is a tribute to, and reflective of, the depth of management and employees of our Argentina operations that this has been effected safely, on time and on budget.
“President is now a much more balanced energy company from a year ago, as we continue our strategy of growth both organically and by way of appropriate value enhancing acquisitions. We move on to planning our 2020 drilling cam- paign and will provide further information on this in due course.”
President Energy, March 03 2020
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Week 09 05•March•2020