Page 13 - LatAmOil Week 05 2021

LatAmOil NEWS IN BRIEF LatAmOil

UPSTREAM Cubans arriving for the holiday season. This
has not materially impacted preparations for
Melbana Energy provides the commencement of drilling operations. Field
operations are maintaining a high level of dis-
summary of activities at cipline in following procedures to minimise the
occurrence or spread of any infection
Cuban Block 9 in Q4-2020 Melbana Energy, February 01 2021

During the quarter ending December 31, Petrobras discovers
2020, Melbana reached the following mile-
stones in relation to its Cuban Block 9 drilling hydrocarbons at Campos
programme: director of SEA. “The character of our commu-
Civil works for well pad constructions, roads Basin pre-salt block nity is based on a lifestyle and well-being that is
and other related facilities in preparation for the closely tied to nature and the environment. We
commencement of drilling of the Alameda-1 Petrobras has discovered hydrocarbons in a well want clean air, clean water, a healthy ecosystem,
well are now more than half completed and pro- in Block C-M-411, located in the Campos Basin and the ability to create a strong resilient future
jected to be completed off the critical path. The pre-salt, in the State of Rio de Janeiro. based in sustainability. Limetree’s operation and
contractors performing these works under Mel- Well 1-BRSA-1377-RJS, informally called the permit, as it is currently written, compromise
bana’s supervision have been instructed to spend Urissane, is located approximately 200 km from the St. Croix community’s ability to achieve that
some time improving the roads of the local com- the coast, in a water depth of 2,950 metres. The quality of life.”
munity, in fulfilment of undertakings that were well encountered oil in reservoirs in the pre-salt Last year’s reopening was complicated by
made as part of the land access agreements. section. The well data will be analyzed to better delays, corroded equipment, a fire, unscheduled
The Company elected to enhance the near target exploratory activities in the area and assess flares, an airborne chemical release and more oil
finalised drilling contract to accommodate pos- the potential of the discovery. spills. Oil giant BP announced in January that
sible changes to the operational environment The CM-411 block was acquired in Sep- it will delay oil deliveries to the refinery until
that may result from the COVID-19 pandemic. tember 2017, in the 14th Bidding Round of the its problems are corrected and the plant fully
The work plan is now more robust in the face of National Agency of Petroleum, Natural Gas and restarts. The plant restart was rushed to meet
possible travel or border restrictions that may Biofuels (ANP), together with Blocks CM-210, anticipated demand for cleaner, low-sulfur mar-
occur during the drilling programme. CM-277, CM -344, CM-346 and CM-413. itime fuel that was required starting last year.
Award of the contracts for the long lead items Petrobras is the operator of the block and holds Center for Biological Diversity, February 03 2021
(tubulars, well pads, liners etc.) were withheld a 50% interest, in partnership with ExxonMobil
to align with the completion of this upgraded (50%). President Energy
contract and work plan. Tenders from the main Petrobras, February 01 2021
preferred suppliers have been refreshed and are announces operational
in good standing for execution at the Company’s
election. DOWNSTREAM update on treatment plant
The work programme and budget for the
two well drilling programme has received all Legal action contests AIM-listed President Energy has provided an
partner and regulatory approvals. Timing and update on the treatment plant development in
amount of proposed cash calls in support of the reopening of controversial Puesto Flores and its beneficial impact on opex.
projected expenditure profile for the drilling of Highlights: Treatment plant development
these two wells has similarly received all neces- refinery in US Virgin Islands commenced with first stage set to open by end
sary approvals. June. Material savings in opex expected from
Land access agreement for the second well, Community and conservation groups filed a start H2-2021.
Zapato-1, has been received. Civil works will legal appeal today challenging the federal per- Treatment plant development: The devel-
commence there immediately following the mit for the controversial Limetree Bay refinery opment of the treatment plant in Puesto Flores
completion of works at Alameda-1. on the Caribbean island of St. Croix that started referred to in the Company’s announcement of
Senior members of Melbana’s project man- operating this week. The long-shuttered, pollu- December 22, 2020, has commenced and to date
agement team are expected to start arriving in tion-plagued Limetree refinery has been one of is on time and on budget.
Cuba before the end of Q1-2021to supplement the world’s biggest oil-processing facilities. The first stage of the development, which
the Company’s local staff and contractors who St. Croix Environmental Association (SEA), President has now fast-tracked, is projected to be
have been managing operations to date. Cuban the Center for Biological Diversity, NRDC and completed by the end of June whereupon oil will
work visas have been received for relevant Sierra Club filed the petition for review of Lime- be capable of being delivered by truck to refiner-
personnel. tree Bay’s permit with the US Environmental ies direct from the core Puesto Flores/Estancia
All airports in Cuba opened but with the Protection Agency’s Environmental Appeals Vieja fields without going through third-party
caveat that all incoming travellers must pres- Board. The filing faults the agency for setting pipelines, treatment and water disposal facilities.
ent a negative COVID-19 PCR test taken less lenient air-pollution standards and failing to On completion of the first stage, savings and
than 72hrs before arrival. There has been an protect a vulnerable community of colour, value-added benefits are estimated for oil so
increase in the number of people testing posi- among other concerns. delivered to be approximately $4 per barrel rep-
tive for COVID-19 in Cuba in recent months, “The future of St. Croix should not be as a pol- resenting a reduction of some 20% of opex and
possibly in part due to the increased arrivals in lution haven for a dying industry that has caused sales cost per barrel. Whilst Trafigura remains
the country due to the tourists and expatriate a climate crisis,” said Jennifer Valiulis, executive President’s largest off-taker, the completion of

Week 05 04•February•2021 www. NEWSBASE .com P13