Page 10 - LatAmOil Week 43 2019

LatAmOil
NEWS IN BRIEF
LatAmOil
In this new refinery, it is not contemplated to use money from the general state budget since the investment will be 100% private.
Ecuador Ministry of Energy and Non-Renewable Resources, October 21 2019
Brazil’s Petrobras starts
non-binding phase of
refinery sale
Petrobras, following up on the press release issued on September 13, 2019, reports the beginning of the non-binding phase related to the sale of downstream assets, which includes: Isaac Sabbá Refinery (REMAN) in Amazonas, Lubrificantes e Derivados de Petróleo do Nord- este (LUBNOR) in Ceará, and the Shale Indus- trialization Unit (SIX) in Paraná, as well as their corresponding logistical assets.
Potential buyers qualified for this phase will receive a descriptive memorandum with more detailed information about the aforementioned assets, as well as instructions on the divestment process, including guidelines for preparing and submitting non-binding proposals.
Distribution of the descriptive memoran- dum will begin today for prospective qualified buyers who sign the Confidentiality Agreement and the Compliance Statement. Potential buyers will need to sign and submit these documents to Petrobras until December 6, 2019 and must state their interest as provided for in teasers up until November 22, 2019.
Adjusted teasers, including the extension of the above deadlines, are available on the
Petrobras website.
This market disclosure is in accordance with
Petrobras’ Divestment Methodology and with the special regime for the divestment of assets by federal mixed-capital companies, provided for in Decree 9.188/2017. Downstream divestments are aligned with the portfolio optimization and the company’s capital allocation improvement, aiming to maximize value for our shareholders.
REMAN, located in Manaus, State of Amazo- nas, has a processing capacity of 46,000 bpd and its assets include a storage terminal.
LUBNOR, located in Fortaleza, Ceará, has a processing capacity of 8,000 bpd, is one of the national leaders in asphalt production and the only one in the country to produce naphthenic lubricants.
SIX, located in São Mateus do Sul, Paraná, has an installed capacity of 6,000 bpd and its assets include a mine in one of the largest oil shale reserves in the world and a shale process- ing plant.
Petrobras, October 24 2019
LNG
Golar Power awarded PPA
for 605-MW LNG-to-power
project in Brazil
Golar LNG announces today that Golar Power, a 50:50 joint venture with Stonepeak Infrastruc- ture Partners, has been awarded a 25 year power purchase agreement (PPA) for the construction
of a 605-MW combined cycle thermal power plant at the 2019 A-6 New Energy Auction held on Friday, October 18, by the Brazilian National Electric Energy Agency (ANEEL).
The LNG-to-power project will be developed by CELBA (Centrais Eletricas Barcarena), a spe- cial-purpose company 50% controlled by Golar Power.
Located in the Brazilian city of Barcarena, State of Pará, the 605-MW power plant will uti- lise imported LNG for the generation of electric- ity using modern H-Class gas turbines, which will then be distributed to the Brazilian national electricity grid through the existing Vila do Conde Substation located nearby. Total invest- ments for the power project are estimated at $430mn, of which Golar LNG’s share is $107mn. Capex will be funded through debt and equity between 2022 and 2025, with the equity portion expected to come from proceeds of the first wave of small-scale distribution in Golar Power.
The PPA has been awarded with a pool of nine different power distribution companies and is expected to generate fixed annual revenues of $174mn (BRL711.7mn) for 25-years starting on January 1, 2025. Payments under the PPA are inflation-indexed and provide for pass-through of fuel costs to the PPA counterparties.
In connection with the PPA, Golar Power anticipates accelerating investment in a new LNG Terminal at the Port of Vila do Conde, also located in Barcarena. The terminal will be wholly operated by Golar Power and will provide an FSRU for 25 years to supply the project. The terminal is expected to commence operations by mid-2021 and is located in a strategic entry point in the North region of Brazil, which will be used as a hub to allow the distribution of LNG and supply of natural gas for electricity generation, commercial and industrial customers, trans- portation and bunkering well in advance of the power project commencement. FSRU selection and detailing of the terminal are under way, with an anticipated FID in H1-2020.
Golar Power CEO Eduardo Antonello com- mented: “We are extremely excited about the Barcarena project, which is amongst the most strategic LNG developments across the entire world. For decades, this whole region has been starving for cleaner and cheaper energy, right at the centre of one of the most prominent nat- ural resource basins in the globe. The energy hub that will be introduced by Golar Power in the State of Pará has the potential to supply an area larger than Western Europe, with mil- lions of kilometres of river navigation routes. We’ve been working for over three years on this endeavour, whilst also mapping the potential LNG applications such as road and river trans- portation, mining, agriculture, industries as well as large population areas, and now it has become a reality.
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Week 43 31•October•2019