Page 16 - LatAmOil Week 34 2021

LatAmOil NEWS IN BRIEF LatAmOil

Operations: An increase of 12% in Group net production, reduced operating and administra-
average production to 2,714 boepd (2019: 2,415 tive costs as well as overall debt. I am sincerely
boepd) Two new wells successfully drilled in grateful to everyone within the business for their
Argentina in 2020 on time and budget with efforts. We have a lot of work to do this year, but
follow-on drilling targets identified. Significant we are very much up for it and relishing the
new infrastructure completed in Argentina prospects.
including laying some 20 km of new pipelines “The energy landscape has changed even
and installing new compressors. Continued faster and more dramatically than anticipated.
improvement in Argentina core operating per- President, as an energy company focused on
formance with well operating costs per boe long term goals, embraces this and shareholders
in 2020, excluding royalties and workovers, may have noticed the rapid progress we are mak-
reduced by 17% to $17.6 per boe (2019: $21.1). ing with Atome Ltd, the subsidiary we formed
Group-wide administrative costs per barrel were earlier this year to focus on hydrogen-related
further reduced to $4.7 per boe (2019: $4.8 per opportunities.”
boe). President Energy, August 24 2021
Production and reserves: Net 2P (proven and
probable) reserves in Argentina at year end, as
confirmed by an independent reserves audit, INVESTMENT
decreased to 24.3mn boe (2019: 25.9mn boe). equivalent to 51.4% of the outstanding shares
Louisiana 1P proven producing reserves esti- Petrobras receives payment of ISA and representing 100% of the MHCP’s
mated at 724mn boe (2019: 540mn boe). ownership interest in ISA, were satisfactorily
Peter Levine, Chairman, commented in the from partners under Búzios fulfilled.
Chairman’s Statement: “When I wrote my state- The closing of the transaction included: i)
ment on June 30 last year, I don’t think any of Co-participation Agreement the payment by Ecopetrol to the MHCP of the
us could have imagined that 14 months on we agreed price of COP14,236,814,025,000 for all
would still be battling the impact of COVID-19. Petrobras has received cash payment of $2.9bn the Shares at a price of COP 25,000 per share.
As I said previously, I spent several months ear- for the obligations of its partners CNODC Brasil The payment was made in US dollars in an
lier this year travelling around our operations Petróleo e Gás (CNODC) and CNOOC Petro- amount equivalent to $3,672,992,823.94, using
in South America overseeing our exciting work leum Brasil (CNOOC) in the Búzios co-partici- the effective market exchange rate on the trans-
programme and advancing a material invest- pation agreement. action’s closing date of COP3,876.08 per US dol-
ment in our Paraguay assets. During that time, With this payment, Petrobras will issue the lar; and ii) the transfer of the Shares to Ecopetrol
I saw first-hand the devastation wrought by the certificate of compliance to the National Agency as its new owner, through the respective entry
global pandemic and the significant sacrifices of Petroleum, Natural Gas, and Biofuels (ANP), in ISA’s shareholders’ book by the Centralised
required to keep businesses operational during aiming to meet the last precedent condition Securities Depository of Colombia (DECEVAL).
such difficult times. Having myself been hospi- required by the agreement, which will be in The closing of this acquisition represents a
talised for two weeks, although thankfully now effect as of September 1, 2021. milestone in the development of the Ecopetrol
well on the way to recovery, I remain eternally From the effective date of the Agreement, Group’s energy transition strategy, which seeks
grateful for the skill and dedication shown by the CNODC and CNOOC have up to 30 calendar to maximise the life and value of its hydrocar-
medical professionals in Paraguay and across the days to express their interest in exercising the bon portfolio, while progressing in decarboni-
Globe. option to purchase an additional portion, of 5% sation and diversification towards low-emission
“As I said at the time, I have never been one each, in the Production Sharing Contract for the businesses.
to sit behind a desk to manage my business and Suplus of the Transfer of Rights. Ecopetrol is the largest company in Colombia
I am willing to put myself in harm’s way for the Petrobras currently holds 90% of the explo- and one of the main integrated energy compa-
benefit of our stakeholders so say none of this to ration and production rights for the surplus vol- nies in the American continent, with more than
gain sympathy. I make these observations so that ume of the Transfer of Rights of the Búzios field, 17,000 employees. In Colombia, it accounts for
people might understand the dedication shown in partnership with CNODC (5%) and CNOOC more than 60% of hydrocarbon production,
by our hardworking employees in the face of (5%). and most of the hydrocarbon transportation,
such adversity. It is this dedication that has led Petrobras, August 24 2021 logistics, and refining systems, and has leading
to us delivering all the progress noted in the last positions in petrochemicals and gas distribution.
20 months. Ecopetrol closes With the acquisition of 51.4% of ISA’s shares, it
“Day by day, our Company gets stronger participates in energy transmission, manage-
although always subject to intermittent variables acquisition of 51.4% ment of real-time systems (XM) and the Con-
which do throw stones in our path to deflect us. cesión Costera Barranquilla-Cartagena. At the
We do all we can to grow President organically majority stake in ISA international level, Ecopetrol focuses on strate-
and by strategic initiative. I am confident that gic basins on the American continent, with E&P
2021 will be seen by its end as a year of progress Ecopetrol informs that on August 20, 2021, operations in the United States (the Permian
with the Paraguay farmout, new drilling in Salta the closing conditions set forth in the Inter-ad- basin and the Gulf of Mexico), Brazil and Mex-
and the spin off and float of Atome all set to be ministrative Contract, dated August 11, 2021, ico, and through ISA and its subsidiaries it has
completed by year-end. between Ecopetrol and the Colombian Ministry leading positions in the transmission business in
“We successfully controlled what we could, of Finance and Public Credit (MHCP) relating Brazil, Chile, Peru and Bolivia, in road conces-
and the key performance metrics through to the acquisition by Ecopetrol of 569,472,561 sions in Chile and in telecommunications.
2020 bear witness to this: increased average shares of Interconexión Eléctrica SA ESP (ISA), Ecopetrol, August 20 2021

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