Page 17 - LatAmOil Week 27

LatAmOil NEWS IN BRIEF LatAmOil

MIDSTREAM

Alvopetro announces first

gas deliveries to Bahiagas
from Caburé project

Alvopetro Energy announces that we have com-
menced natural gas deliveries from our flagship
Caburé Project under our long-term Gas Sales
Agreement with Bahiagás. The Caburé Project
is the culmination of a conventional upstream
natural gas development coupled with a natural
gas commercial solution that includes highly
strategic midstream assets. Commercial deliver-
ies commenced on July 5, and on July 6 we have
ramped up to our planned daily Firm delivery
rate of 10.6mn cubic feet (300,000 cubic metres) capacities of up to 17.6 mcf per day (500,000 permit for natural gas focused exploration drill-
per day. cubic metres per day). The Facility is a mechan- ing on Block 182 and we expect to be in a posi-
Our Caburé natural gas field is a joint Unit ical refrigeration plant and was constructed and tion to start activity on this block later this year.
development (Alvopetro 49.1% working inter- is being operated by Enerflex. The Facility allows Our medium-term objective is to reinvest cash
est). The field now has a total of seven wells, with Alvopetro to deliver sales specified quality natu- flows in the upstream part of our business or new
six of these wells tied into recently expanded ral gas into Bahia State’s natural gas market. business development initiatives to maximise
production facilities that are delivering Alvo- During construction, our project generated the utilisation through our Facility and GSA.
petro’s share of natural gas from the Unit. The over 400 jobs in the State of Bahia. Our natural Alvopetro, July 06 2020
Unit has a planned gross production plateau gas is priced attractively and helps retain and
rate of 15.9 mcf per day (450,000 cubic metres stimulate industrial activity in the State of Bahia.
per day). Depending on our partner’s delivery Compared to fuel oil, this cleaner burning natu- SERVICES
nominations, we have the ability to produce up ral gas generates a 53% reduction in greenhouse
to 450,000 cubic metres per day against Alvo- gas emissions for electrical power generation. ABB teams up with Yinson
petro’s share of reserves from the Caburé Unit. Over the life of the project it is estimated to gen-
During the commission phase of our midstream erate over $20mn in royalties and taxes. A signif- on offshore oil and gas
assets the Unit delivered Alvopetro a total of 59.3 icant percentage of the free cash flows from this
mcf (1.68mn cubic metres) of gas at rates up to project are expected to be reinvested in growing project in Brazil
11.7 mcf per day (330,000 cubic metres per day). our business in Brazil.
Alvopetro’s share of natural gas produced Corey Ruttan, President and CEO, com- ABB has signed an agreement with energy solu-
from the Caburé Unit is being sold under our mented: “This is a very exciting time for tions provider Yinson for electrical, control
long-term gas sales agreement with Bahiagás, Alvopetro. I am very proud of the collective con- and telecommunication equipment and ser-
the local distribution company for the state of tributions that everyone has made to make this vices onboard the FPSO Anna Nery bound for
Bahia. Bahiagás commenced the prepayment project a success in the face of a very challenging the Marlim 2 oilfield in Campos Basin, Brazil.
of natural gas effective May 1, 2020, at a rate of environment. I want to thank Bahiagas, our Unit Yinson secured the contract to convert the 2002
120,000 cm per day with a price of BRL0.867 per partner, our contractors, our capital providers, Crude Oil Tanker leading operations and main-
cubic metre ($4.31 per mmBTU). July deliver- the regulatory agencies in Brazil, and all of our tenance of the FPSO. The vessel is planned to
ies are priced at BRL1.02 per cubic metre ($5.13 employees for their hard work and perseverance operate on the field for 25 years.
per mmBTU). As part of our GSA, Bahiagás in reaching this important milestone. This pro- Leveraging its ABB Ability™ System 800xA
extended their distribution network by 15 km ject is the first of its kind in Brazil. We are the control system with Select Input/Output (IO),
and constructed a new gas receiving station (City first independent company with the capability to ABB will take responsibility for integration
Gate) at the Facility site, this new infrastructure process natural gas to sales specification and sell engineering in the project, integrating all the
has a capacity of up to 70 mcf per day (2.0 mcm). it to a local distribution company. This now posi- production modules onboard the vessel into a
Construction of these projects was completed in tions us to realise the benefits from our Caburé combined Integrated Safety and Control System
early July 2020. Our Firm deliveries under our project and it allows us to unlock the remining (ICSS).
contract are currently set at 10.6 mcf per day natural gas potential in our portfolio as we focus Yinson’s Chief Executive Officer Offshore
(300,000 cubic metres per day) and the agree- on our next stage of growth.” Production Flemming Grønnegaard added: “We
ment currently provides for deliveries of up to We plan to continue the evaluation of the are committed to deliver this FPSO in a lean, effi-
17.6 mcf per day (500,000 cubic metres per day). Gomo deliverability at our 183-1 wellbore and cient, timely manner, and we believe that ABB’s
Our Caburé Midstream Project includes an expect to undertake further testing in the second technology solutions and experience on numer-
11-km Transfer Pipeline and a Gas Treatment half of 2020, subject to the approval of the ANP. ous other projects of this nature will enable us to
Facility. Construction of the Transfer Pipeline Concurrently we plan to complete the permit- achieve this. Marlim 2 is an important project for
and Facility were completed earlier in 2020 and ting process for an 8-km flowline to connect the Yinson, and given ABB’s global experience and
commissioning was completed in May 2020. well to our Caburé Transfer Pipeline. expertise, we have confidence in ABB as partners
The Transfer Pipeline and Facility both have We recently received our environmental for FPSO Anna Nery.”

Week 27 09•July•2020 www. NEWSBASE .com P17