Page 14 - LatAmOil Week 17 2022
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LatAmOil                                     NEWS IN BRIEF                                          LatAmOil








                                           concentrate its resources on assets that have   Total gross oil production for Q1-2022 was
       INVESTMENT                          shown great competitive edge over the years,  32,183 barrels, representing an average daily
                                           with lower greenhouse gas emissions.  production rate of approximately 358 barrels per
       Petrobras reports on the            field has an area of 511.56 square km and is  imately 400 bpd at the end of Q1-2022 has sus-
                                              About Albacora Leste: The Albacora Leste  day (bpd). The gross production rate of approx-
       sale of Albacora Leste field        located in the northern area of the Campos  tained consistently into April 2022. This current
                                           Basin, in water depths ranging from 1,000 to  level of production is approximately 12% higher
       Petrobras, following up on the release disclosed  2,150 metres, at a distance of about 120 km from  than the overall daily average for Q1-2022.
       on April 27, 2021, informs that it signed today  Cabo de São Tomé. The average daily produc-  The increase in average daily gross produc-
       with Petro Rio Jaguar Petróleo (PetroRio), a sub-  tion of Albacora Leste from January to March  tion is principally because of the successful
       sidiary of Petro Rio SA, a contract for the sale  2022 was 25,400 barrels per day (bpd) of oil and  recompletion work undertaken in March and
       of its total interest in the Albacora Leste conces-  615,300 cubic metres per day of gas. Petrobras  April 2022 as communicated in the Company’s
       sion, located predominantly in deep waters in  is the field operator with a 90% stake and the  previous announcement dated April 20, 2022.
       the Campos Basin.                   remaining 10% belong to Repsol Sinopec Brasil.  Additional near-term production enhance-
         The total amount of the sale is up to $2.20bn,   About PetroRio: Petro Rio Jaguar Petróleo  ment activities are being planned for the coming
       being (a) $292.7mn paid on today’s date; (b)  Ltda (PetroRio) is a wholly owned subsidiary of  months, with the objective of further increasing
       $1.66bn to be paid at the closing of the transac-  PetroRio SA. PetroRio is the largest independ-  production by up-to an additional 10%.
       tion and (c) up to $250mn in contingent pay-  ent oil and gas company in Brazil, focusing on   Total oil sales in Q1-2022 amounted to 29,727
       ments, depending on future Brent quotations.  the acquisition, redevelopment and efficient and  barrels with a gross realised average price per
       The amounts do not consider adjustments due  safe operation of mature fields, with operations  sold barrel of $83.37. It is noted that the realised
       until the closing of the transaction, which is  concentrated in the Campos Basin.  gross average price per barrel sold in March 2022
       subject to compliance with certain precedent   Petrobras, April 28 2022  was $97.13, approximately 17% higher than the
       conditions, such as the non-exercise of the right                        quarterly average, reflecting the rise in global
       of first refusal by the current consortium mem-                          oil prices seen through the quarter. The prices
       ber Repsol Sinopec Brasil, the approval by the  PERFORMANCE              realised by the Company are at an approximately
       Administrative Council for Economic Defense                              10% discount to the quoted WTI prices. The
       (CADE) and by the National Agency of Petro-  Challenger Energy           Company does not currently use any hedging
       leum, Natural Gas and Biofuels (ANP).                                    instruments in relation to its oil sales so is mak-
         This disclosure is in accordance with Petro-  announces operating      ing full gain of the current pricing regime.
       bras’ internal rules and the provisions of the                             Revenue received by the Company from oil
       special procedure for the assignment of rights of   results for Q1-2022  sales (being gross revenues less Government
       exploration, development and production of oil,                          royalties and mandatory source deductions
       natural gas and other fluid hydrocarbons, pro-  AIM-listed Challenger Energy, the Caribbean  and adjustments applicable under the relevant
       vided for in Decree 9,355/2018.     and Atlantic-margin focused oil and gas com-  licences), amounted to approximately $1.17mn
         This transaction is in line with the compa-  pany, with oil production, appraisal, develop-  in Q1-2022 and represents average net revenue
       ny’s portfolio management strategy and the  ment and exploration assets across the region,  to the company of $39.29 per barrel sold. It is
       improved allocation of its capital, aiming to  has provided the following update on its Trini-  noted that average net revenue for the month
       maximise value and provide greater return to  dad and Tobago business unit’s operating results  of March was $46.20 per barrel sold, approx-
       society. Petrobras continues to increasingly  for Q1-2022:               imately 17% higher than the quarterly average
                                                                                and, again, reflecting the increase in global oil
                                                                                prices seen through the quarter that continue to
                                                                                be sustained.
                                                                                  In total, the Company’s operations in Trin-
                                                                                idad and Tobago generated an (unaudited)
                                                                                pre-tax operating cash surplus in Q1-2022 of
                                                                                approximately $200,000. This surplus is stated
                                                                                after field operating costs, in-country G&A and
                                                                                other Trinidad expenses, but before corporation
                                                                                and other taxes (including supplemental petro-
                                                                                leum tax, where applicable). It is noted however
                                                                                that, given large carry-forward tax losses in
                                                                                Trinidad and Tobago, the Company is currently
                                                                                largely shielded from corporation taxes.
                                                                                  The improved operating and financial perfor-
                                                                                mance of the Company’s Trinidad and Tobago
                                                                                operations during Q1-2022 was achieved despite
                                                                                a number of material disruptions to operations
                                                                                and production caused by grid power supply
                                                                                issues. This included an extended nationwide
                                                                                grid outage in February 2022 that caused pro-
                                                                                duction facilities and well pumps to go offline for
                                                                                an extended time.



       P14                                      www. NEWSBASE .com                           Week 17   28•April•2022
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