Page 15 - LatAmOil Week 04 2020

LatAmOil
NEWS IN BRIEF
LatAmOil
Report highlights: President’s net 1P reserves stable at just over 15mn barrels of oil equivalent (boe) boe representing a net increase from the previous year as production has been replaced. The company’s net Argentine 2P reserves increased to 25.9mn boe (2018: 25.0mn boe). The higher value Neuquen basin 2P Reserves increased in 2019 by over 20% to 13.4mn boe (2018: 11.4mn boe). The report therefore shows the increasing influence of the higher value and productive Neuquen reserves compared to that in Salta Province, with the former now compris- ing 53% of the total 2P reserves compared to 2017 where the respective percentage was 30%. President’s net Argentina 3P reserves increased by 40% to 43mn boe (2018: 30.5mn boe) with additional 2C Resources reported at 14.6mn boe. The Neuquen Basin 1P and 2P reserves now comprise 30% gas, up from 16% in 2018 with gas production set to increase materially this year to a level reflective of the reserves ratio (2018: 3% of total production was gas). Only a limited amount of reserves have as yet been attributed to the Angostura block acquired in late 2019, which by the end of February is projected to be producing over 100,000 cubic metres of gas per day (3.5mn cubic feet per day, equivalent to 600 boepd) after a new more powerful compressor is commissioned. The EV/2P* ratio (enterprise value to 2P reserves) based on 4.05p being the mid market price of the company’s shares as at close of business on 24 January 2020 is calculated as approximately US$3.4 per 2P barrel
Peter Levine, chairman and group CEO com- mented: “In a year when no drilling took place, albeit numerous workovers, the reserves replace- ment and increases in key producing reserves in the Neuquén Basin in Argentina is commend- able and sends a positive message underlining the future potential in our current assets. At the
same time, our Puesto Guardian concession remains an important and valuable asset which will also receive our substantive attention this year. Thus, with a resumption of development and exploration drilling in both Rio Negro and Salta, we look forward to another year of reserves growth.
“Furthermore, whilst abiding by the prudent and appropriate mantra of ‘step by step,’ we do not rule out a more substantial leap or two in 2020 if and when the right opportunities arise.” President Energy, January 27 2020
Brazil’s annual
oil production
exceeds 1bn barrels
for the first time
Brazil’s ANP reports that annual oil production in Brazil in 2019 rose 7.78% and exceeded 1bn barrels for the first time.
Total oil production in Brazil in 2019 was 1.018bn barrels, an increase of 7.78% over the volume produced in 2018, when 944.117mn barrels were produced. The total production of natural gas in 2019 was 44.724bn cubic metres, an increase of 9.46% over the 40.857 bcm regis- tered in 2018.
The pre-salt produced 633.980mn barrels of oil and 25.906bcm of natural gas, which cor- responds to increases of 21.56% and 23.27%, respectively, in relation to 2018 production, when 521.543mn barrels of oil and 21.016 bcm of natural gas were produced.
In December 2019, oil production was 3.106mn barrels per day (bpd), exceeding the record recorded in the previous month by
0.52% and the production of December 2018 by 15.44%. Natural gas production also sur- passed the previous month’s record, registering an increase of 0.87% and reaching an average of 137.8mn cubic metres per day. In relation to December 2018, the variation was 21.19%.
Pre-salt production in December corre- sponded to 66.82% of national production, totaling 2.655mn barrels of oil equivalent per day (boepd), including 2.118mn boepd of oil and 85.4mcm per day of gas Natural. In the pre- vious month, total production increased 2.58% and 40.62% in relation to December 2018. Once again, the Lula field in the Santos Basin was the largest producer of oil and natural gas, yielding 1.074mn bpd of oil and 45mcm per day of nat- ural gas.
ANP, January 24 2020
INVESTMENT
Petrobras starts
non-binding phase
for sale of BSBios
Petrobras, following up on the press release of December 20, 2019, announces the beginning of the non-binding phase related to the sale of all shares of BSBios Indústria e Comércio de Bio- diesel Sul Brasil (BSBios) by its wholly-owned subsidiary Petrobras Biocombustíveis (PBio).
Potential buyers qualified for this phase will receive a descriptive memorandum with more detailed information about the aforementioned company, as well as instructions on the divest- ment process, including guidelines for preparing and submitting non-binding proposals.
PBio holds a 50% stake in BSBios and will sell it together with its partner, RP Biocombustíveis SA, which owns the remaining 50%, through a competitive process carried out exclusively by PBio.
BSBios owns two biodiesel plants: i) Passo Fundo Biodiesel Plant, located in the city of Passo Fundo, in the state of Rio Grande do Sul, with a production capacity of 288,000 square metres/year (expected to expand to 414,000 square metres per year of biodiesel in 2020), a crushing capacity of 1.152mn tonnes per year and a storage capacity of 120,000 tonnes of grains, 60,000 tonnes of bran and 7,500 square metres of biodiesel; and ii) Marialva Biodiesel Plant, located in the city of Marialva, state of Paraná, with a production capacity of 414,000 square metres per year and a storage capacity of 3,000 square metres of vegetable oil, 1,500 square metres of animal fat and 4,500 square metres of biodiesel.
Petrobras, January 23 2020
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