Page 15 - LatAmOil Week 34 2021

LatAmOil NEWS IN BRIEF LatAmOil

The well continues to clean-up, but thus far 2,200 metres. The Carioca FPSO, a unit char- price to less than $20 per barrel, the Company
oil production of approximately 81 bpd been tered from Modec, has the capacity to process still delivered solid progress and operational
observed (200 API), with produced oil being up to 180,000 barrels per day (bpd) of oil and to profitability, with adjusted EBITDA of almost
gathered and sold. The Company expects to compress up to 6mn cubic metres of natural gas. $2.1mn on turnover of approximately $28mn.
be able to increase that production further by The project foresees the interconnection of This demonstrates the continued strength of the
optimising the production parameters as flow seven producing wells and four injection wells Group and resilience in navigating through the
rates become better understood, as well as by to the FPSO. The oil production will be flown out perfect storm of COVID-19 and its tsunami of
producing from a further 11 feet (3.353 metres) by off-loading vessels, while the gas production economically challenging waves which envel-
of reservoir as yet unperforated in the Upper will be drained through the pre-salt gas pipeline oped the whole of the World.
Cruse, to add to the production mix in due routes. The project also has a system to remove The Company’s Annual Report will be posted
course. Production volumes from this horizon CO2 from the gas produced and to reinject it to shareholders by the end of August.
deliver immediate income and cashflow to the into the reservoir, reducing the release of carbon Highlights FY2020, Financial: Group reve-
Company, and represent a material uplift in the dioxide into the atmosphere and improving its nue to December 31, 2020, of $27.8mn (2019:
Company’s overall net production (currently oil recovery. $40.8mn) largely due to significantly lower aver-
ranging between 400 to 500 bpd, inclusive of The Sépia shared reservoir is composed by age realised commodity prices, with a reduction
Saffron-2). As such, the plan for the foreseeable Sépia and Sépia Leste fields, located in the Trans- of 40% in Argentina to $30.0 per boe (2019:
future is to continue to run maximum produc- fer of Rights and Concession (BM-S-24) areas, $49.9 per boe) and 34% in the US to $29.9 (2019:
tion at Saffron-2 from the currently producing respectively, operated by Petrobras (97.6%), in $45.5 per boe).
Middle Cruse reservoir units. partnership with Petrogal Brasil (2.4%). Free cash generation from core operations
In aggregate, therefore, the Saffron-2 Petrobras, August 23 2021 (excluding workovers) $6.2mn (2019: $15.1mn).
appraisal well has demonstrated the ability to Net cash generated by operating activities
drill and produce at the Saffron project on an $4.4mn (2019: $21.5mn). Adjusted EBITDA
economic basis – albeit that aggregate well pro- SERVICES remained positive in the face of unprecedented
duction rate at this time, without the benefit of adversity at $2.1mn (2019: $11.6mn). Borrow-
Lower Cruse production, is below that targeted DOF Subsea wins contracts ings at year end significantly reduced year on
pre-drill. Importantly, however, high-quality year by 22% to $17.6million (2019: $22.6mn).
oil has been produced to surface naturally from for Skandi Vitoria, Skandi Of this, only $6.5mn is third-party financial
the Lower Cruse at Saffron, thereby proving debt with the balance being to IYA, an affiliate
the presence of mobile hydrocarbons in those Niteroi from Petrobras company of Peter Levine. After depreciation,
zones. The Company considers that techniques depletion and amortisation of $10.3mn (2019:
identified for remediation of the technical and DOF Subsea is pleased to inform that Petro- $10.5mn), reflecting the challenging trading
mechanical issues experienced in the Lower bras has awarded the pipelay support vessels conditions, a loss after tax for the year arose of
Cruse (due to the impact of non-reservoir clay (PLSVs) Skandi Vitória and Skandi Niteroi a 3 $11.3mn (2019 loss: $88.3mn).
and shales) will enable these zones to ultimately years firm plus option contract for each vessel, Corporate: Trafigura, one of the largest com-
contribute to production as part of any overall via JV partner TechnipFMC and via Norskan modity traders in the world and a major off-taker
Saffron development. Offshore Ltda (a fully owned DOF ASA Com- of President, became a circa 16% shareholder.
Over the coming months, in addition to con- pany) respectively. Atome created as a UK intermediate holding
tinuing clean-up operations, perforating and Both vessels are Brazilian-built and flagged company focusing on developing a hydrogen
production testing of additional zones, and fur- and owned by DOFCON Navegação Ltda., a and ammonia production, marketing and sales
ther maximising oil production revenues from joint venture between DOF Subsea (50%) and business. Work with significant potential is being
the Saffron-2 well, the Company will be work- TechnipFMC (50%). progressed, as is an intended spin off and sepa-
ing to incorporate the results of the well into an Operations will start at latest in February rate flotation on the London Stock Exchange for
optimal forward plan for the Saffron project. 2022. later this year.
These operations also provide a significant input DOF Subsea, August 24 2021
into defining the prospective and contingent
resources for both the Saffron location and other
targets within the Company’s South West Penin- PERFORMANCE
sula portfolio, which will contribute to an update
of resource estimates. President Energy reports
Challenger Energy, August 25 2021
Petrobras starts production audited results for the year
ended December 31, 2020
from Carioca FPSO at Sépia AIM-listed President Energy, the upstream oil

Petrobras has started oil and natural gas produc- and gas company with a diverse portfolio of pro-
tion from the Carioca FPSO, the first platform at duction and exploration assets focused primarily
the Sépia field, in the Santos Basin pre-salt. in Argentina, has announced its audited results
The platform, an FPSO type (floating produc- for the year ended December 31, 2020, and a
tion, storage and off-loading unit for oil and gas), 2021 update and outlook.
is located approximately 200 km off the coast of In the face of the unprecedented challenges
the state of Rio de Janeiro, in water depths of in 2020, including the dramatic drop in the oil

Week 34 26•August•2021 www. NEWSBASE .com P15