Page 16 - LatAmOil Week 12 2020

LatAmOil
NEWS IN BRIEF
LatAmOil
Effective immediately, GeoPark has adjusted its 2020 capital expenditures programme to $70- 80mn, approximately a 60% reduction from prior preliminary estimates (approximately $180-200mn, including capital expenditures for Amerisur assets).
The bulk of the revised 2020 work pro- gramme will be allocated to the Llanos basin in Colombia to continue unlocking the potential of the Llanos 34 block (GeoPark operated, 45% WI) and to carry out discretionary development, appraisal and exploration activities in the newly acquired CPO-5 block (GeoPark non-operated, 30%WI).
The Llanos 34 and CPO-5 blocks represent key strategic assets, providing GeoPark with the lowest risk production and reserve replacement opportunities and attractive operating netbacks even in a low oil price environment.
GeoPark, March 22 2020
MIDSTREAM
Northern Hemisphere
Logistics hires Mirage
Energy to help develop
Isthmus Corridor pipeline
Mirage Energy/Northern Hemisphere Logis- tics announces it has signed an agreement with Consejo Nacional de Energia y Petroquimica Horacio Zarate Acevedo-President to acquire all permits and necessary documents for the con- struction and operations for Cenote Energy for storage, WPF Mexico Pipelines for all pipelines and Northern Hemisphere Logistics in reference to the Isthmus project.
Cenote Energy: first underground natural gas storage facility first phase 52 bcf (1.473 bcm) of working gas storage. with the capability of stor- ing up to 786 bcf (22.258 bcm) once full devel- oped as demand by customers dictate.
WPF Mexico Pipelines: a 42-inch (1,067- mm) diameter pipeline interconnected to pro- posed storage facility with interconnects to Station #19 and Los Ramones all on Mexico’s National Pipeline System. Including intercon- necting and rehabilitating an existing 48-inch (1,219-mm) pipeline running all the way to the Isthmus Corridor, thus bringing abundant supply of natural gas to the southern region of Mexico. Will be approximately 1,000 miles long.
Northern Hemisphere Logistics: will include rehabilitating dock facilities at Coatzacoalcos, Veracruz, on the Gulf of Mexico side with new mono-bouys. Rehabilitating 30-inch (762-mm) and 48-inch (1,219-mm) lines running from Coatzacoalcos to Salina Cruz, Oaxaca, dock and
mono-bouys in the Pacific side, this including the pumping stations along the track and tank- age on both side of the Isthmus.
Northern Hemisphere Logistics, March 18 2020
LNG
Golar Power reaches COD at Sergipe power plant
Golar LNG announces today that Golar Power, a joint venture with Stonepeak Infrastructure Partners, has reached COD on the 1.5-GW Porto de Sergipe I Power Project.
On March 21, Golar Power received its com- mercial operations certificate from ANEEL (Brazil’s Electricity Regulatory Agency). This allows commercial operations to commence at the 1.5-GW Sergipe power station. The first inte- grated LNG-to-power project in Brazil and the largest and most efficient thermal power station in Latin America, the Project also includes a ded- icated LNG import and regasification terminal using the Golar Nanook, a newbuild FSRU with 170,000 cubic metres of LNG storage capable of supplying more than 21mn cubic metres per day of natural gas.
The project revolutionises the way power is delivered to millions of people in Brazil, allow- ing the country to meet its growing requirement for base-load capacity using a large-scale power plant fuelled by cleaner and more reliable LNG. This achievement will facilitate Brazil’s transi- tion to lower-carbon energy generation sources whilst also promoting the use of LNG to balance and diversify its supply of energy.
Golar LNG (GLNG) owns 25% of the power station through its 50% investment in Golar Power. In 2015, the Project was awarded 25-year 1.5-GW power purchase agreements at the gov- ernment-promoted A-5 Power Auction. The
power station will now start to deliver electricity to a pool of 26 power distribution companies across the country until December 2044.
Golar LNG, March 23, 2020
PETROCHEMICALS
Methanex reduces
production levels in
Trinidad and Chile
Methanex announced today that it has idled its Titan plant in Trinidad effective today and will idle its Chile IV plant effective April 1, 2020. These changes are being made for an indefinite period.
John Floren, President and CEO of Meth- anex, commented: “We anticipate that meth- anol demand could be impacted in the second quarter of 2020, as there has been a substantial reduction in manufacturing activity in countries that have had significant outbreaks of COVID- 19. As a result, we are reducing production at our methanol facilities, where we have flexibility in our gas agreements, to prepare for lower demand for methanol. We do not expect this production change to have a significant impact on our cash flows in the current price environment.”
“Given the uncertainty in the global economy and challenging commodity price environment, we are taking steps to strengthen our balance sheet while maintaining financial flexibility. We are evaluating all capital and operating spending, including our advantaged Geismar 3 project.”
Methanex currently has significant liquidity of approximately $700mn, including cash on hand and an undrawn committed revolving credit facility, as well as an $800mn undrawn construction facility for the Geismar 3 project. Methanex, March 16, 2020
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Week 12 26•March•2020