Page 19 - LatAmOil Week 30

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FINANCE Block 9 to date; Melbana remaining operator for price. Now, for the first time, President is export-
the two well drilling programme. ing some of its oil.
Petrobras comments on edent requiring satisfaction before the FIA dent, with the assistance of Trafigura, will export
After receiving regulatory consents, Presi-
The FIA defined certain conditions prec-
revolving credit lines becomes effective, all of which have now been approximately 18,000 barrels of oil by the end of
completed other than the formal receipt of July, with the balance of the Company’s produc-
Petrobras, following up on the press release on Cuban regulatory approval for the registration tion being sold domestically. The value achieved
May 20, 2020, informs that, as of today, it has of Sonangol’s interest in Block 9 PSC. Melbana for the exported quantity is projected to be in
made the partial prepayment of its Revolving has been advised by the Cuban regulator that this line with current ICE Brent pricing less $6. The
Credit Lines, in the amount of $3.5bn. These approval has been granted and is in the process domestic price for President’s Rio Negro July
resources will be available for new withdrawals, of being formally documented. production is $37.54 per barrel, not yet at the
if necessary. Melbana also made considerable progress $45 Government Decree level due to demand
“The $8bn withdrawal of the revolving credit during the quarter towards finalising well side factors in Argentina.
lines was important in facing this moment of designs and identifying preferred providers Having navigated regulatory mechanisms in
increased volatility. Our ability to react with of the necessary inventory. Preparations for relation to this first pathfinder export load, in the
resilience measures proved effective in getting the construction of the required well pads and coming months further oil exports are expected
us through the crisis. We will continue working related infrastructure advanced as well, work on to follow, always depending on demand factors,
to make Petrobras an even more resilient and which is expected to commence in the current thus providing President with another string to
able to generate more value for its shareholders” quarter. its bow for sales of product to end markets.
commented Andrea Almeida, Petrobras’ Chief Melbana’s proposed two-well drilling pro- Group production guidance: President is
Financial and Investor Relations Officer. gram for Block 9 would test four separate targets currently projecting Group average production
The operation will allow greater efficiency in totalling 236mn barrels (best estimate) of pro- for H2-2020 in the range of 3,000-3,400 boepd,
cash management, in line with the company’s spective resource, the best of which is estimated an increase of approximately 30% over the same
capital optimisation strategy. to have a 32% chance of success. period last year.
Petrobras, July 27 2020 Cuba, Santa Cruz Incremental Oil Recovery The estimated increases in production from
Project (Melbana 100%): No material progress the two workovers scheduled to commence by
was made during the quarter with regards to the end of August and two new wells scheduled to
COMPANIES granting to Melbana of a Production-Sharing commence by end of September will only be felt
Contract for the Santa Cruz oilfield. in the latter part of this half year. Of the Group’s
Melbana Energy provides the necessary resources to advancing this pro- anticipated that oil will compromise some 60%
The Company remains ready to allocate average production in H2-2020, it is currently
quarterly activities ject once approval is received from the Cuban of the total.
regulators.
President Energy, July 27 2020
summary for Q2-2020 decade, has been studied by Melbana during its
The Santa Cruz oilfield, discovered mid last
Highlights: Cuba, Block 9 PSC, 100%; formal initial study period resulting in the Company LEGAL
farm-in documentation completed with Mel- and CUPET entering into a binding agreement
bana’s partner for the drilling of two exploration in December 2018. Petrobras comments on
wells in Block 9, Cuba; sole remaining unsat- Corporate: Melbana’s farm-in partner has
isfied Condition Precedent (receipt of Cuban agreed, subject to satisfaction of certain condi- arbitration with Sete Brasil
regulatory approval) has been verbally received tions, to acquire a 70% interest in Block 9 PSC in
and is in the process of being formally docu- consideration for agreeing to make certain pay- Petrobras informs that the Board of Directors
mented; first payment received from Sonangol ments to and on behalf of the Company related approved, in a meeting held today, an agreement
under Farm-in Agreement; progress continued to the two well drilling program planned for with Fundação Petrobras de Seguridade Social
to be made on well planning, permitting, con- Block 9 in Q4-2020. (Petros), which aims to end the arbitral dispute
tractor engagement and sourcing of inventory Melbana Energy, July 28 2020 proposed by Petros in order to obtain compensa-
to allow commencement of drilling operations tion from Petrobras for alleged material damages
in Q4-2020. President Energy exports related to the investment in Sete Brasil.
During the quarter, Melbana entered exe- The agreement extinguishes the dispute
cuted a Farm-in Agreement (FIA) with Sonangol crude oil from Argentina without acknowledgment of guilt or liability by
with respect to its Block 9 Production-Sharing both parties and does not affect other lawsuits or
Contract (PSC) onshore Cuba. The FIA details for the first time arbitrations involving the parties, as well as other
the commercial arrangement and responsibili- disputes involving the investment in Sete Brasil.
ties for the drilling of two exploration wells in AIM-listed President Energy, the energy com- As a result of the agreement, whose terms are
Block 9, which include: Sonangol funding 85% pany with a diverse portfolio of production and protected by confidentiality, Petrobras will pay
of all costs associated with the drilling of Melba- exploration assets focused primarily in Argen- Petros BRL950mn ($183.72mn), an amount
na’s two highest ranked and high impact targets tina, has provided an update on sales of oil from already reflected in the financial statements for
(Alameda-1 and Zapato-1); Sonangol receiving its Rio Negro fields in Argentina and guidance 2Q20. The Company will inform the date of pay-
a 70% participating interest in Block 9 PSC; on H2-2020 Average Group production. ment to Petros in due time.
Melbana retaining a 30% participating interest Export of Oil: Since commencing production Finally, Petrobras remains in defence of its
in Block 9 PSC; Sonangol paying approximately in Argentina, President has sold all its oil exclu- interests in the ongoing proceedings.
$5mn to Melbana to cover its expenditure on sively in the country at the prevailing domestic Petrobras, July 29 2020

Week 30 30•July•2020 www. NEWSBASE .com P19