Page 14 - LatAmOil Week 18 2021

LatAmOil NEWS IN BRIEF LatAmOil

UPSTREAM Forest and Cruse Formations. It is located geo- an integrated oil company that is among the 50
logically up-dip and due east of the Company’s largest in the world and the four largest in Latin
Ascent Resources extends WD-5/6 Block and due northeast of the WD-2 America. In addition to Colombia, where it gen-
Block. The PS-4 Block is therefore strategically erates over 60% of the country’s production, it is
MoU for negotiation of PSCs located from both an operating and geological active in exploration and production in Brazil,
standpoint, and enables Trinity to expand its Peru and the United States (Gulf of Mexico).
Ascent Resources, the onshore Caribbean-, His- new 3D seismic sequence stratigraphic interpre- Ecopetrol operates the largest refinery in Colom-
panic American- and European-focused energy tation approach across not only a larger contigu- bia, most of the country’s oil-pipeline and poly-
and natural resources company, has announced ous area but also to a less well-developed area of duct network and is significantly increasing its
that, further to the announcement of April 12, the Southern Basin. share of bio-fuels.
2021, it has agreed a six-month extension to the Production in the PS-4 Block started in early Ecopetrol, April 30 2021
Memorandum of Understanding (MoU) it has 1930s and has produced over 9mn barrels of
signed with Cupet, the Cuban national oil com- oil to date with a recovery factor of 12.5-17%.
pany, that gives the Company the exclusive right Global averages for conventional recovery fac- SERVICES
to negotiate the Production-Sharing Contracts tors in similar clastic reservoirs average between
(PSCs) for the onshore producing Block 9B and 25-30% and, as such, there is the potential for a Baker Hughes awarded
onshore exploration Blocks 9A, 12 and 15. significant uplift in production and reserves.
The MoU extension follows delays in country In comparison to the WD-5/6 Block, the PS-4 subsea contract for
as a result of COVID-19 protection and isolation Block has seen relatively little new investment
measures that were successfully implemented in over the last 30-40 years, from both a technical Petrobras’ Marlim and
Cuba. and drilling perspective, and therefore offers
Ascent Resources, April 30 2021 significant opportunities to add reserves and Voador fields
production on a meaningful scale. The PS-4
Trinity Exploration Block has had only six wells drilled on it over the Baker Hughes has been awarded a subsea oil-
last 30 years. In contrast, Trinity’s neighbouring field equipment contract from Petrobras as part
announces acquisition of WD-5/6 Block has had over 50 wells drilled on it of the Marlim and Voador field revitalisation
during the same period and currently produces plan in the Campos Basin, offshore Brazil. The
onshore PS-4 Block over 1,000 bopd. Given the geographic proxim- contract includes several key technologies from
ity, Trinity believe there are substantial synergies Baker Hughes’ Subsea Connect portfolio and
AIM-listed Trinity Exploration & Production, from a financial, operational and technical per- will provide Petrobras with a connected suite of
the independent E&P company focused on Trin- spective. Building on Trinity’s automation and solutions to help drive efficiencies, reduce costs
idad and Tobago, has executed a Sale and Pur- data driven operating approach, the Company and improve execution speed.
chase Agreement (SPA) with Moonsie Oil Co., expects to compound the enhanced economic Baker Hughes will supply up to five subsea
a private Trinidad-based operator, to acquire an returns expected from the resultant larger, con- production and injection manifold systems,
operated 100% interest in the PS-4 Block Lease tiguous acreage position over this prolific basin. which benefit from a lightweight and compact
Operatorship Sub-Licence, onshore Trinidad for Trinity Exploration & Production, May 04 2021 design for installation from smaller vessels and
a total headline cash consideration of $3.5mn include integrated hydraulic connection systems
(subject to potential closing adjustments as and retrievable choke modules to realise life of
described below), to be funded from the Com- MIDSTREAM field cost savings. The manifold systems will
pany’s existing cash resources. also include Baker Hughes’ field proven vertical
Acquisition Highlights: Offers significant Ecopetrol sanctioned by mechanical clamp connection system which
opportunities to add reserves and production on increases installation efficiencies.
a meaningful scale. Contiguous to Trinity’s larg- ANLA in connection with In addition to the manifold systems, Baker
est and most prolific onshore Block, WD-5/6. Hughes will provide 32 modular, structured,
Enables Trinity to expand its new 3D seismic Andino project subsea control modules – called Modpods -
sequence stratigraphic interpretation approach. which are powered by the company’s industry
80% of the PS-4 block covered by Trinity’s 3D Ecopetrol informs that the National Authority leading, ultra-reliable SemStar5 technology,
seismic cube. Provides substantial synergies on Environmental Licensing (ANLA), through manufactured in the company’s Nailsea facility
from a financial, operational and technical per- Resolution No. 754 of 2021, declared the Com- in Bristol, UK.
spective. Funded from existing cash resources pany responsible for carrying out works, dur-
and immediately accretive to operating and free ing the construction phase of the hydrocarbon
cash flow. transportation system of the Poliducto Andino
The PS-4 Block covers circa 4 square km project, that would not have been covered by the
located onshore in the Southern Basin of Trin- environmental management plan.
idad in the prolific producing Grande Ravine Therefore, the ANLA decided to impose on
area within the Super-Giant Forest Reserve Ecopetrol a fine of nearly COP1.309bn. The
Field (produced more than 1bn barrels to date). sanction does not constitute a final decision
Significantly, the PS-4 Block is contiguous to within the framework of the administrative
Trinity’s largest and most prolific onshore Block, sanctioning process. The Company can appeal
the WD-5/6 Block, and to Trinity’s WD-2 Block. this decision, and will make the appropriate fil-
Current production from the PS-4 Block is from ing within the required legal timeframe.
multiple stacked sands in the Morne L’Enfer, Ecopetrol is Colombia’s largest firm and is

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