Page 15 - LatAmOil Week 20 2021

LatAmOil NEWS IN BRIEF LatAmOil

UPSTREAM Operational Highlights: Average produc- $11mn, and the well’s estimated payback period
tion volumes grew in aggregate by 7.3% to 3,226 is under 3 months.
Trinity Exploration bpd in 2020 (2019: 3,007 bpd). This increase PetroRio, May 11 2021
was achieved despite no new drilling during
announces preliminary the Period. Created strategic framework to
meaningfully scale the business. Acquisition DOWNSTREAM
results for FY2020 of Onshore 3D & 2D Seismic Data package.
MOU with NGC to Explore and Develop New
Trinity Exploration & Production, the inde- Energy Projects. Established partnership with a Petrobras beats S-10
pendent E&P company focused on Trinidad and large international operator. Continued roll out diesel sales record
Tobago, has announced its unaudited prelimi- of wellsite automation and the digitalisation of
nary results for the 12 months ended December operations. Driving efficiencies and increasing In April, Petrobras beat the S-10 low sulphur
31, 2020. recovery rates. Reducing carbon emissions. diesel sales record, reaching the 437,000 bpd
This was a year of both strong performance Licence Renewals: Renewal of Onshore LOAs mark, a 4.4% increase compared to the previous
and wider development as the Group positioned with Heritage is expected imminently. Acquisi- record of 418,000 bpd, set in March 2021. Also
itself to deliver a step change in scale, establish- tion of Onshore PS-4 Block. Further enhances in April, total diesel sales reached 824,000 bpd,
ing a broader opportunity set from which to Trinity’s contiguous acreage. representing a growth of 59% when compared
grow. Furthermore, while the depressed oil Continued momentum into Q1-2021: Q1 to sales in the same month of 2020. In the com-
price impacted revenues and profits, the Group production levels resilient with volumes aver- parison with April 2019, without the impacts on
proved its resilience, with cash flows remaining aging 3,107 bpd (Q4-2020: 3,202 bpd). Cash demand arising from the pandemic, there was a
strong. balance of $20.0mn as at March 31, 2021 (unau- growth of 12%.
Importantly, in order to further enhance dited) ($20.2mn as at December 31, 2020) Petrobras’ increased participation in the die-
Trinity’s standing in the region and drive the despite increased investment in growth initia- sel market and the growth in S-10 sales gener-
business forward the Group established part- tives occurring in Q1-2021. Average realisation ated diesel revenue of $4.6bn in Q1-2021, 24%
nerships with significant industry players, grew of $52.3 per barrel for Q1 (Q1-2020: $46.3 per more than in Q4-2020. This increase reflects
its portfolio and leveraged datasets and rela- barrel). the company’s actions to mitigate the effects of
tionships - with a view to creating a roadmap Trinity Exploration, May 18 2021 the COVID-19 pandemic on fuel demand and
for significantly increased production over the efforts to expand the supply of high value-added
medium term by building on its strong existing PetroRio announces derivatives with less impact on the environment.
base. “This expansion of the S-10 diesel supply is
The Group was profitable at an operating successful Polvo field one of the company’s projects to offer products
level in 2020, despite the material reduction with higher added value and less emissions. We
in the realised oil price, with a 46% increase in drilling result are thus seeking better operational performance
the year-end cash balance to $20.2mn (2019: and more competitiveness in the new refining
$13.8mn) and a 25% increase in the net cash PetroRio has announced the results of drilling in market,” says Cláudio Mastella, the company’s
plus working capital surplus of $21.7mn (2019: the Polvo field’s Eocene reservoir, which resulted Commercialisation and Logistics director.
$17.3mn). in a well, POL-K, with initial production of 2,500 In line with its Strategic Plan, Petrobras is
Financial Highlights: Revenues of $44.1mn bpd of oil, still in the assessment period. adapting its refining park to expand the pro-
(2019: $63.9mn) - reflecting the significantly This highly satisfying result, following the duction of the S-10 Diesel fuel, which has low
lower average realised oil price in 2020. Cash POL-L drilling in 2020, confirms the potential sulphur content. Adjustments are planned for
operating costs down 7% to $13.9 per barrel of the Eocene reservoir, the volume of which is the Duque de Caxias Refinery (REDUC), the
(2019: $15.0 per barrel). Adjusted EBITDA of already accounted for in the latest reserves cer- Paulínia Refinery (REPLAN), and the Henrique
$12.3mn (2019: $21.8mn). Adjusted EBITDA tification report. The well’s estimated recover- Lage Refinery (REVAP), in São José dos Cam-
margin of 28% (2019 34%) or $11.4 per bar- able production of approximately 4mn barrels pos. The expectation is to increase S-10 diesel
rel (2019: $19.8 per barrel). Adjusted EBITDA of oil will be reclassified from Proved Undevel- production by up to 16,500 cubic metres per
after SPT & PT of $12.0mn (2019: $13.9mn). oped Reserves to Proved Developed Producing day with the implementation of these additional
Group operating break-even price reduced by Reserves. projects.
24% to $20.1 per barrel (2019: $26.4 per barrel). The increase in production takes the Polvo With this, the S-10 production, which cur-
Cash balance of $20.2mn (2019: $13.8mn). Net field’s production to a 12,000 bpd level and con- rently represents 50% of Petrobras’ total diesel
cash (cash minus $2.7mn drawn working cap- tributes to a reduced lifting cost. This incremen- production, will reach practically 100% by 2025.
ital facility) of $17.5mn (2019: $13.8mn). Cash tal production will also benefit from the lower The interventions will increase the quality of the
plus working capital surplus of $21.7mn (2019: royalty rate of 5%, approved by ANP in early diesel fuel produced, promoting the reduction
$17.3mn). 2020. The well’s CAPEX was approximately of the sulphur content (from 500 ppm to only 10
ppm), with the aim of meeting the specifications
of the local and international markets, in addi-
tion to environmental requirements.
The use of the S-10 Diesel allows diesel
vehicles to use more modern technologies and
promotes the improvement of the fuel’s perfor-
mance in the engines, with positive impacts on
the reduction of particulate matter emissions by
up to 80%, and of nitrogen oxides by up to 98%.

Week 20 20•May•2021 www. NEWSBASE .com P15