Page 16 - LatAmOil Week 49 2021

LatAmOil NEWS IN BRIEF LatAmOil

INVESTMENT arrangements across the joint venture. Rock- and Navitas. The importance of Sea Lion in the
hopper retains a higher working interest in the Navitas portfolio is, in my mind, without ques-
Rockhopper announces Sea Lion project than under the previous Pre- tion a further positive as we both seek to unlock
its underlying value.
mier-Navitas transaction announced in Janu-
update on Sea Lion project ary 2020. The proposals continue to materially ing documentation in the first quarter of next
”We look forward to entering into fully bind-
satisfy Rockhopper’s proportion of both pre-
Rockhopper Exploration, the oil and gas explo- FID and post-FID costs for Sea Lion. Access to year.”
ration and production company with key inter- Navitas’ expertise in executing and financing Keith Lough, Chairman, commented: “We
ests in the North Falkland Basin, has announced large scale oilfield developments. Clean exit for look forward to welcoming Navitas to the Falk-
that Rockhopper, Harbour Energy and Navitas Harbour. Optionality for Temporary Dock Facil- lands and thank Harbour not only for coming to
Petroleum have signed detailed heads of terms ity, with scope to upgrade for Sea Lion develop- a clear decision on Sea Lion but for their work
for Harbour to exit the Falklands and for Navitas ment or future decommissioning. Forward plan over the recent months in securing a deal which
to farm-in. for Sea Lion. Technical work to commence by allows a clean exit for them and an exciting
The proposed transaction remains subject to Rockhopper and Navitas jointly in relation to future for Sea Lion, Rockhopper and Navitas.”
definitive documentation and completion sub- a lower-cost, alternative development for Sea Rockhopper Exploration, December 8 2021
ject to, inter alia, regulatory approval. Lion utilising the existing extensive design and
Highlights: Harbour will divest its licence engineering work undertaken for the project Petrobras concludes
interests in the Falkland Islands, and Rock- in recent years. Finalisation of definitive docu-
hopper and Navitas will seek to align working mentation expected in Q1-2022, with comple- sale of Miranga cluster
interests across all their Falkland Islands petro- tion subject to satisfaction of certain conditions
leum licences - Rockhopper 35%, Navitas 65%, including regulatory approval. Petrobras has concluded the sale of its total stake
subject to necessary consents. Rockhopper and Navitas to become Operator at comple- in nine onshore exploration and production
Navitas to jointly develop and agree a technical tion. Potential for an additional project part- fields, jointly called Miranga Cluster, located
and financing plan to enable the development of ner dependent upon funding requirements, to in the state of Bahia, to SPE Miranga, a wholly
the project to achieve first oil on a lower cost and be defined through ongoing development and owned subsidiary of PetroRecôncavo.
expedited basis. financing processes. Should an additional part- After compliance with the preceding condi-
Navitas to provide loan funding to Rockhop- ner be required, Rockhopper does not intend to tions, the transaction was concluded with the
per: Rockhopper’s share of Sea Lion costs from reduce its working interest. Navitas intends to payment of $47.7mn to Petrobras, already with
transaction completion up to Final Investment strengthen its offshore operating capability with the adjustments provided for in the contract. The
Decision (FID) will be funded through a loan a focus on safe and efficient developments. amount received at closing is in addition to the
from Navitas with interest charged at 8% per Samuel Moody, CEO, commented: “We $11mn paid to Petrobras when the sale contract
annum. In the event of a positive FID, Navitas are delighted to be able to announce what was signed. The company will still receive the
will provide an interest free loan to Rockhop- we believe is the start of a new chapter in the following installments, subject to adjustments:
per to fund two-thirds of Rockhopper’s share potential development of Sea Lion. The new (i) $80.1mn that will be paid in installments over
of development costs (for any costs not met by Rockhopper-Navitas joint venture will be fully 12, 24 and 36 months; and (ii) up to $85mn of
third party debt financing). Funds drawn under aligned and committed to bringing Sea Lion to contingent payments related to future oil prices.
the loans will be repaid from 85% of Rockhop- production. This disclosure is in accordance with Petro-
per’s working interest share of free cash flow. In “We at Rockhopper have huge historic and bras’ internal rules and with the provisions of
the event that FID has not occurred within five detailed technical knowledge of the asset and the special procedure for assignment of rights
years of completion of the proposed transaction, experience of operating in the Islands, while on exploration, development and production
Rockhopper can elect to remove Navitas from Navitas brings significant proven capital rais- of oil, natural gas and other fluid hydrocarbons,
the Falkland Islands petroleum licences (should ing expertise and ability as well as development provided for in Decree 9,355/2018.
the licences still be in effect at that time) by experience. This transaction will ensure we have This transaction is aligned with the com-
repaying the Pre-FID Loan. material funding while increasing our retained pany’s strategy of portfolio management and
Benefits of the proposed transaction: working interest compared to the previously capital allocation improvement, aiming to max-
Greater alignment and simplified commercial announced partnership structure with Premier imise value and provide greater return to soci-
ety. Petrobras is increasingly concentrating its
resources on assets in deep and ultradeep waters,
where it has shown a great competitive differen-
tial over the years, producing better quality oil
and lower greenhouse gas emissions.
About the Miranga Cluster: The Cluster com-
prises the onshore fields of Miranga, Fazenda
Onça, Riacho São Pedro, Jacuípe, Rio Pipiri,
Biriba, Miranga Norte, Apraiús, and Sussuar-
ana, located in the state of Bahia. Petrobras is the
operator with a 100% stake in these concessions.
The average production of the Miranga Cluster
in 2021 was approximately 691 barrels per day
(bpd) of oil and 362,300 cubic metres per day of
natural gas.
Petrobras, December 6 2021

P16 www. NEWSBASE .com Week 49 09•December•2021