Page 22 - LatAmOil Week 40

LatAmOil NEWS IN BRIEF LatAmOil

transaction in the last half of October 2020 and
will keep the market updated on progress.
Transaction Effective Date: As previously
announced, the effective date of the transaction
remains 1 January 2019 such that the operating
costs and revenues arising from Baúna will be
captured in the adjustment to the purchase price.
Sale of Baúna Oil: Karoon is preparing to
market its first Baúna cargo following comple-
tion of the Baúna transaction.
Karoon Energy, October 05 2020

Petrobras starts binding
Parex Plans 10% Share contingent upon community safety. Along with phase of Petrobras
a Block LLA-34 and Cabrestero development
Buy-Back & Executing program, Parex is investing in growth oppor- Biocombustível sale
tunities through: Fortuna Block: Drill Cayena
Exploration Programme horizontal exploration well (spudded October Petrobras, following up on the press release
1, 2020); Boranda Block: Drill 1 appraisal well; disclosed on August 3, 2020, informs the
Parex Resources, a company headquartered in Block LLA-94: Re-entry of Grulla well. beginning of the binding phase regarding the
Calgary, Alberta and focused on Colombian oil Financial Strength: Parex is well-positioned sale of its wholly-owned subsidiary Petrobras
exploration and production, provides an opera- for the challenges presented in the current busi- Biocombustível.
tional update. ness environment. The Company is debt-free Potential buyers qualified for this phase will
Share Buy-Back: Pursuant to the normal and as at September 30, 2020 has a cash posi- receive a process letter with detailed instructions
course issuer bid (NCIB) that commenced on tion of approximately $350mn and an undrawn on the divestment process, including guidelines
December 23, 2019, Parex has increased the credit facility of $200mn. As at June 30, 2020 the for due diligence and the submission of binding
maximum daily cumulative share purchase Company’s working capital was $339mn. proposals.
amount under the NCIB’s automatic share pur- Parex Resources, October 05 2020 This disclosure complies with Petrobras’
chase plan to 111,500 shares. As of September divestment guidelines and the special regime of
30, 2020, Parex has repurchased 7.5mn shares Karoon Energy provides asset divestment by federal mixed capital com-
under the NCIB and has 137.0mn basic shares panies, provided for in Decree 9,188/2017.
outstanding, compared to 155.0mn as of January Baúna acquisition update This transaction is in line with the portfolio
1, 2019. strategy optimization and the improvement of
Focused on generating long-term share- Karoon Energy has provided the market with the the company’s capital allocation, aiming at max-
holder value, Parex has identified share buy- following update on the status of the Baúna asset imizing value for its shareholders.
backs as a tool to acquire high quality proven acquisition: About PBIO was founded in 2008 and is
barrels that generate a greater than two times Remaining Conditions Precedent: As previ- one of the largest producers of biodiesel in the
recycle ratio at current Brent strip pricing. As ously announced, transaction completion is sub- country with 5.5% of market share in 2019. It
such, Parex expects to purchase the maximum ject to certain remaining conditions precedent has three biodiesel plants located in: (a) Montes
allowable 13.98mn shares under the NCIB, prior under the Sale and Purchase Agreement (the Claros, in the state of Minas Gerais, with a pro-
to its expiry in late December 2020. SPA), including the following key outstanding duction capacity of 167,000 m3/year; (b) Can-
Production: In response to COVID-19, Parex third party/regulatory conditions precedent: deias, in the state of Bahia, with a production
minimized its social interactions in its operat- (i) Agencia Nacional do Petróleo, Gás Natural e capacity of 304,000 m3/year, and (c) Quixadá, in
ing communities and to maximize shareholder Biocombustíveis (ANP) approval, and (ii) FPSO the state of Ceará, mothballed, with a production
value during periods of low oil pricing, Parex charter assignment. capacity of 109,000 m3/year.
voluntarily reduced Q2 production. Following ANP Approval: Significant progress has The three plants are capable of using a mix-
the increase in realized pricing, the Company been made towards obtaining ANP approval ture of up to 5 different raw materials (soy, cotton
resumed production and operational activities. and Karoon is addressing the ANP’s proposed and palm oil, animal fat and waste oils) to pro-
The Company’s priority remains the health and form of approval and outstanding minor admin- duce biodiesel, capturing advantages of seasonal
safety of its employees, partners and the commu- istrative issues relating to finalisation of the par- price dynamics.
nities where we operate. ent company guarantee provided by Karoon in This transaction consists of the sale of 100%
Q2 2020 production of 40,858 boepd is com- favour of the ANP. of Petrobras’ shares in PBIO, including the three
prised of 39,664 bpd of crude oil and 7,164 mcf FPSO Charter Assignment: The FPSO char- biodiesel plants, and does not include the sale
per day of conventional natural gas. ter assignment has also progressed and Karoon of PBIO’s stake in BSBios Indústria e Comércio
2020 Capital Expenditures $130-145 mm: expects the documentation associated with this de Biodiesel Sul Brasil (50.0%). As disclosed to
The Company has re-activated its development assignment to be finalised and ready for execu- the market, on July 10, 2020, PBIO concluded
and exploration programme. Total full-year tion after ANP approval is received. the sale of its 8.4% stake in the company Bambuí
2020 capital is estimated at $130-145mn with Expected Transaction Completion: In light of Bioenergia to Turdus Participações
an H2 2020 capital program of $55-$70mn, the above, Karoon is now aiming to complete the Petrobras, September 30 2020

P22 www. NEWSBASE .com Week 40 08•October•2020