Page 14 - LatAmOil Week 17 2022

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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