Page 14 - LatAmOil Week 03 2020

LatAmOil
NEWS IN BRIEF
LatAmOil
“This project and training were carried out to support DIMAR’s strategic objectives, includ- ing developing the skills of our personnel, and producing technical and scientific information to support Colombia’s maritime authority,’ stated Petty Officer First Class Luis Olarte, project manager for DIMAR.
The field programme was conducted in two phases onboard DIMAR’s new multipurpose hydrographic vessel, the ARC Roncador. Fugro mobilised specialised equipment for the testing, including two self-contained laboratories and a state-of-the-art heat flow probe. The ability to perform preliminary geochemical analyses at sea is unique to Fugro and results in the rapid identi- fication of high-potential cores. This service can significantly reduce project delivery schedules: on this DIMAR project, our offshore analyses shortened the project by approx. 2 months.
“We are grateful for this opportunity to have partnered with DIMAR and provided training to their personnel in our areas of expertise,’ said Dr Jim Gharib, Fugro’s Global Manager for Seep Hunting and Geochemical Exploration. “Oper- ations were carried out safely and successfully, and Fugro appreciates this opportunity to create a partnership with DIMAR and to demonstrate our commitment to Colombian scientific and business objectives now and in the future.” Fugro, January 22 2020
FINANCE
Petrobras announces
BNDES equity
secondary offering
Petrobras announced today that Banco Nacional de Desenvolvimento Econômico e Social – BNDES has commenced an offering of up to 734,202,699 common shares, without par value, of Petrobras, including Common Shares rep- resented by American depositary shares, each of which represents two Common Shares, in a global offering that consists of:
(i) an international offering of Common Shares and Common ADSs in the United States and other countries outside Brazil, registered with the U.S. Securities and Exchange Commis- sion (SEC) under the U.S. Securities Act of 1933, as amended; and
(ii) a concurrent public offering of Common Shares in Brazil pursuant to the Comissão de Valores Mobiliários (CVM) Instruction 400 and other applicable legal provisions.
Petrobras also announced that the Market Announcement (Aviso ao Mercado) relating to the Brazilian offering and a prospectus and preliminary prospectus supplement relating to
the international offering were made available today. The global offering is expected to price on or about February 5, 2020.
Credit Suisse Securities (USA) LLC and BofA Securities, Inc. are acting as global coordinators and joint bookrunners for the international offering. Banco Bradesco BBI S.A., Banco do Brasil Securities LLC, Citigroup Global Mar- kets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and XP Investments US, LLC are acting as joint bookrunners for the interna- tional offering. Banco de Investimentos Credit Suisse (Brasil) S.A., Bank of America Merrill Lynch Banco Múltiplo S.A., Banco Bradesco BBI S.A., BB-Banco de Investimento S.A., Citigroup Global Markets Brasil CCTVM S.A., Goldman Sachs do Brasil Banco Múltiplo S.A., Banco Mor- gan Stanley S.A., and XP Investimentos Corre- tora de Câmbio, Títulos e Valores Mobiliários S.A. are acting as Brazilian underwriters in the Brazilian offering.
Petrobras, January 22 2020
PetroTal announces
fully funded 2020 capital
budget of US$99mn
PetroTal, the Peruvian focused E&P company, has announced its 2020 capital program of US$99mn, expected to be fully funded with funds generated from operations and existing cash resources. This capital program will allow PetroTal to become a free cash-flowing company and reach 20,000 barrels of oil per day (bpd) from the Bretaña oil field, operated 100% by PetroTal, before year-end 2020.
2020 capital budget: Based on the successful results of the most recent horizontal wells (5H
and 4H), PetroTal will drill four new horizon- tal oil production wells in 2020 and a second water disposal well. The new horizontal wells will have an average cost of $13mn per well, and will include longer lateral sections (more than 1,000 metres) in addition to being completed with automatic inflow control devices (AICD). To accommodate associated water production, another water disposal well will be drilled in the western flank of the field at a cost of $9mn, inclusive of a coring program to further refine Bretaña’s oil-in-place estimates.
Based on the Company’s operating experi- ence of optimising oil production rates in excess of nameplate facility capacities, CPF-2 is now designed for a nominal processing capacity of 15,000 bpd. This will enable total field facility capacity to handle approximately 24,000 bpd. It will also reduce the CPF-2 estimated investment to $22mn, leading to a saving of approximately $5.5mn from the original estimate. Enhance- ments to the loading dock to handle larger oil volumes and optimal integration of the CPF-1 and CPF-2, will require $9mn. Fast tracking CPF-2 to commence commissioning by late August will allow us to achieve our average oil production target along with handling increased oil production coming from the new horizontal oil wells to be drilled in 2020.
The remaining capital investments include the environmental drilling permit for the Con- stitución prospect in Block 107, an environmen- tal seismic permit over the Envidia prospect and a couple of other leads in Block 95, as well as abandonment costs for a legacy asset in accord- ance with regulatory obligations. Approximately $8mn of the 2020 Capital Budget represents projects carried forward from 2019, with about $4mn carried forward for the completion and commissioning of the CPF-1.
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Week 03 23•January•2020