Page 9 - LatAmOil Week 39 2019

LatAmOil
NEWS IN BRIEF
LatAmOil
UPSTREAM
CGX Energy provides operational update
CGX Energy is pleased to provide an operational update on its operations in the Corentyne block. The company, through its wholly owned subsidiary CGX Resources as the operator of the Corentyne block under a joint operating agreement with Frontera Energy Guyana Corp., has executed a contract with PGS Geophysical to provide acquisition and processing of a full broadband marine 3D seismic survey and to produce seismic data covering approximately 582 square km of the northern portion of the
Corentyne block offshore Guyana.
The survey is expected to commence in
mid-October 2019 and be completed by Novem- ber 27, 2019. This is in line with CRI’s re-se- quenced work plan for the Corentyne Block, which requires CRI to complete a seismic sur- vey by November 27, 2019, and the drilling of an exploration well by November 2020.
PGS plans to use an integrated acquisition and imaging approach for reliable operation and fast turnaround of the seismic data. A Ram- form Titan-class seismic vessel will be used to complete the acquisition, ensuring a high level of safety and operational reliability. GeoStreamer acquisition technology will enable advanced imaging techniques to provide structural imag- ing to support drilling decisions.
CRI has a 66.667% participating interest in the block, with FEGC holding a 33.333% interest in the block.
CRI has also executed a letter of understand- ing (LoU) with Rowan Rigs regarding the drill- ing rig contract entered into on December 14, 2018, which required the prepayment of certain costs for the use of the Ralph Coffman offshore jack-up rig.
Under the terms of the LoU, CRI has agreed with the contractor that all operational obli- gations under the drilling rig contract will be deferred until the parties can enter into an amended agreement, owing to the resequenc- ing of the commitments in the Corentyne block and plans to drill in its Demerara block back-to- back with its Corentyne block during 2020. CRI will not be entitled to the reimbursement of the mobilisation fee under the terms of the LoU and if an amended agreement is executed by CRI and the Contractor on or before July 1, 2020, CRI will receive a credit towards payments due under the amended agreement.
Professor Suresh Narine, Executive Chair- man, commented: “Recent discoveries in close proximity to the northern region of the Cor- entyne block and in the shallow water east of the Demerara block presents a compelling
endorsement of CRI’s re-sequenced plans to drill exploration wells back-to-back on its Corentyne and Demerara blocks in 2020, following further forensic seismic investigation of the northern region of the Corentyne block. CRI’s arrange- ment with PGS will allow us to take advantage of PGS’ previous experience in this region of the basin to both acquire and process 3D seismic crucial to our understanding of the northern region of the Corentyne block. In the meantime, CRI has been streamlining its prospects in the Demerara block based on the 3D seismic cam- paign it conducted over the Demerara block in 2014.
“The arrangement with the contractor will allow CRI to utilise funds previously committed to the Ralph Coffman rig to drill the Utakwaaka well to any of the contractor’s rigs that are utilised to drill the Corentyne and Demerara blocks in 2020.
Several of the more recent discoveries in the basin continue to provide tangible endorsements of the company’s exploration focus and I wish to thank our partners and shareholders for their continued support of the company as we move towards realising a 21-year vision and commit- ment to the Guyana basin.”
CGX, September 23 2019
SERVICES
SBM Offshore confirms
participation in auction for
FPSOs in Brazil
Following the public sale notice by Serviços de Petróleo Constellation, formerly Queiroz Gal- vão Óleo e Gás S.A., of its equity ownership in the lease and operating companies related to five
Brazilian FPSOs, SBM Offshore confirms that it will participate in this sealed bids competitive process.
The auction consists of the minority stake held by affiliated companies of Constellation in the entities related to the following five FPSOs (with Constellation’s ownership percentage in brackets): Cidade de Paraty (20%), Cidade de Ilhabela (12.75%), Cidade de Marica (5%), Cidade de Saquarema (5%) and Capixaba (20%).
SBM Offshore is already the majority share- holder of the related entities and operator of these FPSOs. To enable an efficient continua- tion of the sales process for all parties involved in case SBM Offshore is successful bidder, SBM Offshore has reached an agreement in principle with Constellation with respect to the terms of the contemplated transaction. This agreement remains conditional upon the outcome of the competitive auction process.
SBM Offshore, September 30 2019
INVESTMENT
Sempra Energy announces
agreement to sell stake In
Luz del Sur In Peru
Sempra Energy today announced that it has entered into an agreement to sell its equity interests in its Peruvian businesses, including its 83.6% stake in Luz del Sur, to China Yangtze Power International (Hongkong) (CYP). Sem- pra Energy’s interests will be sold for $3.59bn in cash, subject to closing adjustments for working capital and net indebtedness.
“We could not be more pleased about today’s announcement,” said Jeffrey W. Martin, chair- man and CEO of Sempra Energy.
Week 39 03•October•2019
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