Page 19 - LatAmOil Week 24

LatAmOil NEWS IN BRIEF LatAmOil

Petrobras extends $20mn, seven-year term loan agreement with Manager of Petroperu, commented:”Petroperu
Republic Bank. Touchstone withdrew $15mn appreciates the dedication and investment that
deadline for Espirito Santo to satisfy obligations relating to prepaying the PetroTal has made in the development of the
Company’s former CAD20mn credit facility. Bretana oil field. Petroperu expects to complete
basin opportunity Pursuant to the Term Loan, Touchstone has the the significant upgrade of the Talara refinery in
option to withdraw the remaining $5mn availa-
mid-2021 and the ability to utilise domestic oil
Petrobras, in reference to the press release on ble balance prior to June 15, 2021. production will be an important element. Petro-
June 1, 2020, regarding the sale of a part of its Touchstone Exploration, June 16 2020 Tal is an important player in Peru’s oil industry
interest in the exploratory blocks belonging to and is now an important oil producer in the
the ES-M-596-R11, ES-M-598-R11, ES-M- Country.
671-R11, ES-M-673-R11 and ES-M-743-R11 COMPANIES “The Oil Sales Contract between Petrop-
concessions, located in the Espírito Santo Basin, eru and PetroTal is an important link between
has disclosed that the deadline for companies to PetroTal signs enhanced our two companies, and I’m pleased that we’ve
express their interest in the opportunity is being reached agreement to extend it to three years
extended to 06/18/2020, the other provisions of oil sales contract with along with the additional contract enhance-
the document remaining unchanged. ments. In recognition of the significant invest-
Due to the change described above, the teaser Petroperu ment PetroTal has made in the Bretana oil field
available on the Petrobras website was changed and production facilities, Petroperu is very com-
to consider the new deadline. PetroTal has entered into an arrangement with fortable with allowing the contingent liability to
There is no need to send a new expression of Petroperu which will result in the Company’s be settled over the next three years.
interest if the participating company has already liability to Petroperu in relation to the recent oil “The Bretana oil production coming through
submitted its expression. The main subsequent price movements being payable over a three-year the Northern Pipeline also represents an impor-
stages of the project will be reported to the mar- period, rather than at the point of sale of the oil. tant benefit for the Loreto Region and for the
ket in due course. The arrangement has been structured to mini- Country.”
Petrobras, June 12 2020 mise the impact of the recent oil price decline Manolo Zuniga, President and Chief Execu-
on the Company’s cash flows and forward plans, tive Officer, commented: “PetroTal is pleased to
Petrobras reports on whilst allowing the Company to benefit from embrace the strong working relationship it has
any future increase in oil prices when physical with Petroperu. Oil production from the Bretana
binding phase of asset oil sales occur. As announced on May 7, 2020, oil field is an important component of Petrop-
the liability relates to the oil price differential eru’s pipeline and refinery network. Solidifying
sale in Colombia between the date that oil enters the Northern Oil a three-year arrangement for both settlement of
Pipeline (ONP) and the current oil price (and, the contingent liability and ensuring future oil
Petrobras, following up on the press release dis- ultimately, the physical oil sales price). sales, significantly enhances PetroTal’s opera-
closed on May 21, 2020, announces the begin- Additionally, PetroTal announces an exten- tions. It also sets the stage for PetroTal to con-
ning of the binding phase related to the sale of sion of the oil sales contract with Petroperu tinue the development of the Bretana oil field, as
100% of the shares held by Petrobras Inter- dated December 23, 2019, from one year to three and when oil prices recover.
national Braspetro B.V. (PIB BV) and other years on enhanced terms. All monetary amounts “Our focus on balance sheet strength and
Petrobras subsidiaries, in Petrobras Colombia in this release are in United States dollars. enhancing liquidity will ensure PetroTal has the
Combustibles (PECOCO). The contingent liability announced on May 7, financial strength for working capital manage-
Qualified parties for this phase will receive a 2020 has been structured into a three-year pay- ment and the ongoing development of Bretana.
process letter with detailed instructions on the ment arrangement with Petroperu at an interest PetroTal appreciates the support of its suppliers
divestment process, including guidelines for due rate of 6.5% ;the contingent liability at the end of and the continued dedication of our employees
diligence and submission of binding proposals. May is estimated to be approximately $43mn; the and contractors. Together, PetroTal will emerge
In Colombia, Petrobras operates, through Arrangement allows PetroTal to settle the obli- from the pandemic stronger, in order to rebuild
PECOCO, in the gasoline, diesel, and lubricant gations to Petroperu now while still allowing the value for shareholders.’
distribution and trading market, through a net- Company to benefit from higher oil prices fore- Eight Capital acted as strategic advisor to
work of 124 service stations and seven storage casted by the Brent forward strip pricing curve PetroTal on the Arrangement with Petroperu.
units, one of which is in Puente Aranda. when the physical oil sales occur; PetroTal and PetroTal, June 12 2020
Petrobras, June 12 2020 Petroperu have agreed to extend the one-year
Oil Sales Contract to three years upon expiry of
the current term on December 23, 2020;
FINANCE The Parties will establish a framework to
ensure that future oil sales under the Oil Sales
Touchstone announces Contract have adequate hedge protection to
avoid future downside losses;
closing of Trinidad-based ments to the Oil Sales Contract for lower pipe-
The Parties have agreed to further amend-
$20mn term loan line tariffs and fees during the period of low oil
prices; and,
Touchstone Exploration has announced that on PetroTal is coordinating with Petroperu to
June 15, 2020, the conditions precedent were reopen the Bretana oil field in early July.
satisfied in respect of its previously announced Carlos Barrientos Gonzales, the General

Week 24 18•June•2020 www. NEWSBASE .com P19