Page 15 - LatAmOil Week 36 2021

LatAmOil NEWS IN BRIEF LatAmOil

“This important and strategic agreement is a subsidiary of the Corporation entered into The project began in late August, building on
aligned with the Colombian governments a $75mn senior unsecured bridge term loan the success of a similar effort with DIMAR in
commitment to energy transition by ensuring with a syndicate of banks. Notable terms of the 2019, and is scheduled to complete in Novem-
a long term, affordable, and stable supply of Bridge included an interest rate of LIBOR + ber. As with the previous collaboration, this
clean natural gas to all of Colombia´s natural gas 4.25%, a two-year term, and the Corporation’s year’s work will involve the acquisition, analysis
consumers.” ability to repay the Bridge at any time within the and interpretation of seabed sediment samples
Under the terms of the contract, Canacol term without penalty. Within 30 days of the July and heat flow measurements to help assess the
will deliver gas to EPM in Medellin starting on 31, 2020, closing, the subsidiary was obligated region’s resource potential. Fugro will also pro-
December 1, 2024, with an initial minimum to draw the first $25mn of the Bridge, with the vide classroom- and vessel-based training to
volume of approximately 21 mcf (594,700 cubic remaining $50mn to be available to be drawn at DIMAR personnel before and during offshore
metres) per day, escalating to approximately 54 any time up to 12 months from the closing date. operations, continuing the knowledge exchange
mcf (1.529 mcm) per day on December 1, 2025, On August 12, 2021, the Bridge was amended that began in 2019.
and remaining at this level until the sales con- to extend both the Bridge term and the availabil- Fieldwork for the project will be conducted
tract expires on November 30, 2035. ity period on undrawn amounts to July 31, 2023. from DIMAR’s ARC Roncador multipurpose
To deliver the gas, a new 20-inch (508-mm) The Bridge was entered into by the Can- hydrographic vessel using specialised Fugro
pipeline will be built between Canacol´s gas acol subsidiary that is intended to be used to equipment, including a state-of-the-art ship-
treatment plant at Jobo to the city of Medellin construct and own the Medellin pipeline, with board analytical laboratory. The ability to per-
located approximately 300 km to the south. The Canacol being the guarantor throughout the form preliminary geochemical analyses at sea
pipeline will have an initial transportation capac- outstanding term of the Bridge. The initial draw enables rapid identification of high-potential
ity of approximately 100 mcf (2.8 mcm) per day. from the Bridge will be used for expenditures coring locations, significantly streamlining the
A subsequent phase contemplated for the pipe- such as engineering and environment permit- overall project schedule. New to the 2021 scope
line project will have the ability to increase total ting, with the following $50mn currently budg- of work, Fugro and DIMAR will examine a set
transportation capacity to approximately 200 eted to order long lead time items needed for of decommissioned well sites using a specialised
mcf (5.7 mcm) per day via the installation of construction. It is anticipated that during the camera system. This work will help DIMAR
additional compression. term Canacol will divest between 75% to 100% of understand the environmental conditions at
The Corporation will focus on the follow- the shares of the subsidiary to an equity partner, these locations to determine whether any mit-
ing activities related to the pipeline project, all while maintaining up to a 25% working interest igating steps may be required now or during
of which are anticipated to be completed by the (with 25% being the maximum permitted own- future decommissioning activities.
end of Q1-2022. 1) Finalise work on the envi- ership level for a gas producer under Colombian “We are pleased to continue partnering with
ronmental permit to submit to the ANLA for law) in the ownership of the pipeline project. DIMAR on their seep studies in the Caribbean
approval, 2) finalise the selection of the con- Detailed discussions are ongoing with respect to Sea,” said Jim Gharib, Fugro’s Global Manager
struction company that will be responsible for this project with interested equity partners and for Seep Hunting and Geochemical Explora-
building and operating the pipeline, 3) arrange a syndicate of banks. Once equity partners and tion. “Not only will our Geo-data programme
the necessary financing as required to execute bank syndicate agreements have been signed, with DIMAR help Colombia unlock insights
the project, and 4) continue to negotiate and and any applicable conditions precedent have about their offshore energy assets, [but] it will
execute an additional 45 mcf (1.274 mcm) per been met, it is anticipated the long-term funding ultimately help the country develop these
day of gas sales contracts with consumers in the will be advanced and the Bridge will be repaid, resources in a safe and efficient way, minimising
interior to fill the initial 100 mcf (2.8 mcm) per thus freeing Canacol of its guarantees on the environmental impacts throughout the project
day capacity of the pipeline. Bridge. life cycle.”
$75mn Senior Unsecured Bridge Term About Canacol: Canacol is a natural gas Fugro, September 8 2021
Loan Amendment: As originally outlined in an exploration and production company with
August 4, 2020, press release, on July 31, 2020, operations focused in Colombia. The Corpora- DOF Subsea reports on
tion’s common stock trades on the Toronto Stock
Exchange, the OTCQX in the United States of contract award for Skandi
America, and the Colombia Stock Exchange
under ticker symbol CNE, CNNEF, and CNE.C, Achiever and restructuring
respectively.
Canacol Energy, August 30 2021 DOF Subsea is pleased to inform that the div-
ing support vessel Skandi Achiever has been
awarded a contract extension with Petrobras for
SERVICES ROV and diving services until Q4-2022.
As disclosed in the Q2-2021 Financial
Fugro and DIMAR continue Report, DOF Subsea has entered into a settle-
ment agreement with a secured lender, subject
collaborative seep studies to certain conditions. All conditions related to
the settlement agreement has now been fulfilled.
in the Caribbean Sea As a result of the above agreement, the share
of the secured lenders in DOF Subsea Group
The Colombian Maritime Authority (Dirección (excluding DOF Subsea Brasil Ltda) supporting
General Maritima, DIMAR) has selected Fugro the suspension agreements has increased from
to perform a joint environmental and explora- 88% to 95%.
tion seep study in the Caribbean Sea. DOF Subsea, September 2 2021

Week 36 09•September•2021 www. NEWSBASE .com P15