Page 13 - LatAmOil Week 46 2019

LatAmOil
NEWS IN BRIEF
LatAmOil
Subject to government approvals, project sanc- tion by ExxonMobil subsidiary Esso Explo- ration and Production Guyana Ltd (EEPGL) and its partners HESS Guyana Exploration Ltd and CNOOC Nexen Petroleum Guyana Ltd, an authorisation to proceed with the final phase, and execution of the definitive coating agreement,
Shawcor will provide thermal insulation and anticorrosion coating services from its Veracruz, Mexico facility. Before the necessary govern- ment approvals and project sanction, the defini- tive contract is expected to allow a limited release of funds to enable procurement activities.
Saipem previously awarded Shawcor coat- ing contracts for the first two phases of the Liza development in Guyana in 2017 and 2018, respectively. Coating work under the Liza 2 pro- ject is currently in progress at Shawcor’s Chan- nelview, Texas and Veracruz, Mexico facilities and is expected to be completed during the first quarter of 2020.
Shawcor, November 14 2019
FINANCE
Argentina: President Energy
announces completion of
Angostura acquisition
AIM-listed President Energy has announced that, further to the announcement dated October 21, 2019, the acquisition of the Angostura explo- ration contract in Rio Negro Province, Argen- tina from Compania General De Combustibles (CGC) has successfully completed alongside the agreement for subscription for $1.825mn of new ordinary shares in the capital of the company by CGC becoming unconditional.
The province of Rio Negro has granted a decree agreeing to the acquisition and is also extending the time period of the exploration phase of the relevant contract for a further four years from November 2019, during which time President will receive the benefit of all revenues from this producing block. The work commit- ment of approximately $9mn, pertaining to the contract, is spread across the life of the extended contract. In the first six months, this work will consist of sub-surface studies and some surface infrastructure work.
As part of the acquisition, up to three expe- rienced employees are being transferred to the company and these are currently being inte- grated into President’s operational team at the same time as steps are being taken to capitalise on the synergies and economies of scale that have already been identified in the pre-acquisi- tion due diligence.
Further information about Angostura can be found in the Company’s announcement dated October 21, 2019.
Following the completion of the acquisition, the agreement by CGC to invest $1.825mn in President by way of the subscription has now become unconditional and the first tranche of the subscription has been completed.
CGC has invested an initial sum of $500,000, or approximately GBP388,138.49 at an exchange rate of GBP1:$1.2882 being the spot rate on the day prior to completion of the acquisition. To satisfy the initial subscription amount, 8,722,213 new ordinary shares have been issued to CGC at a subscription price of GBP0.0445 per initial subscription share, being the closing mid-mar- ket price per ordinary share on the day prior to the subscription. CGC has agreed not to dispose of any interest in the initial subscription shares for a period of six months after their issue.
CGC will thereafter invest the remaining $1.325mn of the subscription in seven quarterly instalments in consideration for the issue of new ordinary shares at the prevailing middle market price on the date prior to the relevant quarter date, with the first such quarterly payment being due on January 25, 2020.
Application has been made for the 8,722,213 initial subscription shares to be admitted to trad- ing on aim and dealings are expected to com- mence on November 21, 2019.
The new initial subscription shares will rank pari passu with the existing shares of the company. Following admission, the company’s issued share capital will consist of 1,135,282,890 ordinary shares. Accordingly, the figure of 1,135,282,890 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the company under the FCA’s Disclosure Guid- ance and Transparency Rules.
President Energy, November 20 2019
Petrobras signs contract for sale of Liquigás
Petrobras, following up on the press release of November 7, 2019, reports that it has signed today with Copagaz and Nacional Gás Butano a contract for sale of all its stake in Liquigás Dis- tribuidora. The sale price is BRL 3.7bn, to be adjusted according to contract rules and paid upon transaction closing. As part of the transac- tion structuring, a minority and material equity investment will be made by Itaúsa in Copagaz.
The transaction closing is subject to com- pliance with precedent conditions, including approval by the Administrative Council for Eco- nomic Defense (CADE).
The operation complies with Petrobras’
divestment guidelines and with the special regime of asset divestment by federal mixed-cap- ital companies, provided for in Decree 9,188/2017. This transaction is in line with the portfolio optimisation and the improvement of the company’s capital allocation, aiming at creat- ing value for our shareholders.
Liquigás is a wholly owned subsidiary of Petrobras and operates in the bottling, distribu- tion and sale of liquefied petroleum gas (LPG) in Brazil. The company is present in almost all Brazilian states, and has 23 operating centres, 19 warehouses, a railroad storage and loading base and a network of about 4,800 authorised resellers, with a 21.4% market share approximately.
Copagaz, established in 1955, sells about 620,000 tonnes of LPG per year, standing out as the fifth largest LPG company in Brazil. The company has over 1,800 direct employees and a network of 2,700 resellers. The company dis- tributes LPG to about 1,800 cities located in 18 Brazilian states and the Federal District.
Nacional Gás Butano is an energy subsidiary of Edson Queiroz Group that has been operating for 68 years in the distribution of LPG nation- wide, standing out as an important LPG com- pany in Brazil. The company serves about 7.5mn households on a monthly basis and about 17,000 companies through a network of 44 branches and 3,500 resellers.
Itaúsa is a Brazilian investment holding, publicly traded company, with over 40 years of experience. The company invests in industries relevant to the economy – financial, consumer goods and infrastructure – and has a consistent portfolio of leading brands in their markets in more than 50 countries.
Petrobras, November 19 2019
Week 46 21•November•2019
w w w . N E W S B A S E . c o m
P13