LatAmNRG Prospector: Week 3 2019

ENERGY ANALYTICS INSTITUTE LatAmNRG Prospector

Week 3

Petrobras Releases 2018 Oil And Natural Gas Production Details Gasoline Shortage Yet To Affect Mexican Exports Venezuela’s Shares In Petrojam Being Offered For US$100m

Venezuela Producing 1.137 MMb/d, Says EnergyNomics (Energy Analytics Institute, Piero Stewart, 15.Jan.2019) — Oil production in the OPEC country has decreased 58% during the tenure of Venezuela’s President Nicolás Maduro to 1.137 million barrels per day (MMb/d), which is equivalent to the country’s production in 1947.

The fall is of the exact percentage magnitude as that of the economic fall during the same time, announced EnergyNomics President Carlos Rossi in an emailed report to clients. In recent months, the rate of decline in production has accelerated, he added.

production of oil in Brazil was 2.03 million barrels per day (bpd).

The annual average of the company’s total operated production (both Petrobras and partner’s share) in 2018 was 3.29 million boed, of which 3.16 million boed in Brazil.

The production of oil and natural gas in 2018 is in line with the goal established for this year in the company’s Business and Management Plan, which projects 2.8 million boed in 2019.

Mexican Petroleum Sector Backs AMLO Actions Against Fuel Theft

Venezuela’s Maduro Aims To Lift Oil Production To 5 MMb/d By 2025

(Energy Analytics Institute, Jared Yamin, 16.Jan.2019) — The Mexican petroleum sector supports the strategy of the government of Mexico’s President Andrés Manuel López Obrador to combat fuel theft.

(Energy Analytics Institute, Piero Stewart, 14.Jan.2019) — Oil Venezuela’s President Nicolás Maduro announced plans to focus on efforts to raise crude oil production in the OPEC member country to 5 million barrels per day (MMb/d) by 2025.

The business sector also expressed its willingness in increasing investments in the energy sector to generate employment opportunities across Mexico, reported online media La Jornada.

Venezuela continues to suffer a corruptioninduced economic collapse with has severely affected the country’s oil sector and its ability to stop production declines, let alone maintain or boost oil production.

“Personally, I’ll assume leadership of the oil industry as of today, and ask for the maximum support of the oil workers to achieve it,” announced Maduro in a broadcast on Venezuelan state television.

Petrobras Releases 2018 Oil And Natural Gas Production Details (Petrobras, 15.Jan.2019) — Petrobras reports that in 2018, its total production of oil and gas, including natural gas liquids (NGL), was 2.63 million barrels of oil equivalent per day (boed), of which 2.53 million boed produced in Brazil and 101,000 boed abroad. Petrobras’ own

Gasoline Shortage Yet To Affect Mexican Exports (Energy Analytics Institute, Jared Yamin, 16.Jan.2019) — Mexican exports to the U.S., such as those related to automotive and agricultural sectors, including those related to avocados, have yet to be affected by gasoline shortages in Mexico since the former are transported by train and the latter in large trucks based on diesel, reported online media La Jornada, citing Mexican Foreign Trade Council (Comce) Director Fernando Ruiz Huarte.

Although 60% of Mexico’s exports are transported using trucks, the Comce official assured that the council has not received any types of reports from its associates about their exports being affected by the fuel issue.

BAML Rules Out Rise In Inflation Amid Fuel Shortage In Mexico (Energy Analytics Institute, Jared Yamin, 16.Jan.2019) — Bank of America-Merrill Lynch downplayed speculation that the shortage of gasoline in Mexico would lead to higher inflation and impact the economy, reported online media La Jornada.

Ferromex Says Ready To Transport Fuel (Energy Analytics Institute, Jared Yamin, 15.Jan.2019) — Ferromex assured “it is ready to meet the needs of transporting large volumes of fuel efficiently and safely” across Mexico. The company also promised to “support the strategy of the federal government with all its possible resources,” reported online media La Jornada.

Alvopetro Commences Trading on the OTCQX Market (Alvopetro, 15.Jan.2019) — Alvopetro Energy Ltd. announces that its common shares are now trading on the OTCQX® Best Market, a U.S. market operated by OTC Markets Group (OTCQX: OTCM), under the symbol “ALVOF”.

Alvopetro shares will continue to trade on the TSX Venture Exchange under the symbol “ALV”. United States investors can find current financial disclosure and Real-Time Level 2 quotes for the company on www.otcmarkets.com.

Securities Fraud Class Action Filed Against Tenaris S.A. (Kessler Topaz, 17.Jan.2019) — The law firm of Kessler Topaz Meltzer & Check, LLP alerts investors that a securities fraud class action lawsuit has been filed against Tenaris S.A. on behalf of purchasers of Tenaris securities between May 1, 2014 and November 27, 2018, inclusive (the Class Period).

Investors who purchased Tenaris securities during the Class Period may, no later than February 11, 2019, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please visit www.ktmc.com/tenaris-securities-class-action.

Petrobras Ordered By CARF Decision To Pay Tax Of R$1.5 Billion (Petrobras, 17.Jan.2019) — Petrobras announces that the Administrative Board of Tax Appeals (CARF) issued today, by a casting vote, an unfavorable decision on a tax administrative proceeding that addresses the collection of Corporate Income Tax (IRPJ) related to 2010, on profits earned by controlled and subsidiary companies abroad, in the approximate amount of R$ 1.5 billion.

Petrobras awaits the notification of the decision in the administrative sphere and will appeal to the Judiciary. The company understands that the judgment does not change the classification of expectation of possible loss.

Petrobras To Resume Competitive Processes That Result In Sale Of Control (Petrobras, 17.Jan.2019) — Petrobras, following up on the Material Facts disclosed on 07/03/2018, announced its Executive Board decided to resume the competitive processes for the sale of a 90% stake in Transportadora Associada de Gás S.A (TAG), sale of 100% of Araucária Nitrogenados S.A (ANSA) and formation of partnerships in refining.

Regarding the divestment of TAG, whose respective competitive process was also suspended by a decision of the 4th Panel of the Federal Regional Court of the 5th Region, according to press release of 06/05/2018, it was taken into account the decision by the Superior Court of Justice of 01/15/2019, which complied with a request made by the Federal Government for reversal of the decision.

Petrobras Updates On Forman’s Nomination To Company BOD

Venezuela’s Shares In Petrojam Being Offered For US$100m

(Petrobras, 16.Jan.2019) — Petrobras informs that it received a letter from Mr. John Milne Albuquerque Forman resigning from his nomination, by the controlling shareholder, to be a member of the company’s Board of Directors, as disclosed in a press release of 01/14/2019.

(Jamaica Gleaner, Avia Collinder, 16.Jan.2019) — A &A Lime Hall Development Limited, a company incorporated in 2004 as a rental service in Montego Bay, St James, has offered PDV Caribe S.A. a subsidiary of Petroleos de Venezuela (PDVSA), US$100 million for its 49 per cent stake in Jamaican oil refinery Petrojam Limited.

Forman thanked for the invitation to participate in the Board of Directors and stated that the reasons for such a decision are personal, in order to avoid any discomfort or problem for the company, considering the news reported by the media since his appointment regarding a conviction in a CVM proceeding, which is currently under discussion in the judiciary.

Tullow Oil plc Updates On Activities In Guyana, Ghana, Kenya, Uganda (Tullow, 16.Jan.2019) — Tullow Oil plc issues this statement to summarise recent operational activities and to provide trading guidance in respect of the financial year to 31 December 2018.

This is in advance of the Group’s Full Year Results, which are scheduled for release on Wednesday 13 February 2019. The information contained herein has not been audited and may be subject to further review and amendment.

“Tullow is well-placed to deliver on its growth ambitions. In 2019, we will increase oil production in West Africa, target Final Investment Decisions in East Africa and drill the first wells in an exciting exploration campaign in Guyana. Despite a volatile oil price, Tullow’s improved balance sheet, low cost production and strong cash flow generation, even at lower oil prices, will allow us to both invest for growth and pay a sustainable dividend.”

In a letter dated January 4, 2019, and addressed to chairman of Petrojam Russell Hadeed and the permanent secretary in the Ministry of Science, Energy and Technology, PDVSA said that it has been encouraging the potential vendor to make a similar offer for the remaining shares in Petrojam, which are held by the Jamaican Government.

Jamaica Ready With Legislation To Reclaim Venezuela Shares In Petrojam (Jamaica Gleaner, Livern Barrett, 16.Jan.2019) — Amid calls by the parliamentary Opposition for the Government to reconsider its decision, the special legislation being crafted to sanction the decision by the Andrew Holness administration to retake Venezuela’s stake in Jamaica’s state-owned oil refinery Petrojam is expected to be unveiled in the House of Representatives next week.

In fact, Jamaica’s Attorney General Marlene Malahoo Forte has revealed that the plan was to have the proposed bill tabled during yesterday’s sitting of the Lower House.

White House Told US Refiners Venezuela Oil Sanctions Under Consideration (S&P Global Platts, 16.Jan.2019) — The White House National Security Council has told some US refiners that sanctions on Venezuelan crude exports are under consideration, a signal that opposition within the Trump administration to sanctions on Venezuela’s oil sector may be weakening, sources familiar with the conversations told S&P Global Platts.

Mainstream Renewable Power Secures €90 Million Trade Finance Facility (Mainstream Renewable, 16.Jan.2019) — Mainstream Renewable Power announced closure of a new €90 million Trade Finance Facility with DNB and HSBC. The agreement represents one of the largest corporate debt raises in Mainstream’s history and will be used in addition to Mainstream’s significant existing resources to support bid bonds, performance bonds, and equity commitments for Mainstream’s projects globally.

The €90m Trade Finance Facility is funded equally by DNB and HSBC. Mainstream has the option to bring new lenders into the Trade Finance Facility to allow an increase in size to €200 million, subject to approval. Mainstream expects the first use under the new facility will be to support the Group’s equity commitments to construct the 569MW Condor Portfolio in Chile, which is the first phase of its whollyowned 1.3 GW Andes Renewables Platform of fully contracted wind and solar projects.

EOG Resources Sets Date For 4Q:18 And YE:18 Conference Call (EOG, 15.Jan.2019) — EOG Resources, Inc. will host a conference call and webcast to discuss fourth quarter and full year 2018 results on Wednesday, Feb. 27, 2019, at 9 a.m. Central time (10 a.m. Eastern time). Please visit the

Investors/Events & Presentations page on the EOG website to access a live webcast of the conference call. If you are unable to listen to the live webcast, a replay will be available for one year.

Trinity Exploration & Production Provides 4Q:18 Ops Update (Trinity, 15.Jan.2019) — Trinity Exploration & Production plc provided a 4Q:18 operational update related to its activities in Trinidad and Tobago.

During the period, Trinity continued to build on the momentum achieved during the first three quarters in 2018 by delivering further growth in profitable production. This was enabled by the continuation of its fully funded onshore drilling programme with the six new wells coming on stream on time and below budget thus contributing to a strong upswing in production during the period.

Frontera Energy Updates On Shareholder Enhancement Initiatives (Frontera Energy, 15.Jan.2019) — Frontera Energy Corporation announced that as at January 14, 2019 it has repurchased for cancellation 2,062,885 shares at an average cost of C$14.20 per share for a total of C$29.3 million ($22.2 million).

A further 2,937,698 shares are available for repurchase under the terms of the amended Normal Course Issuer Bid. A dividend of C$0.33 per share is payable on January 17, 2019, to shareholders of record as of January 3, 2019.

Frontera Energy To Hold Investor and Analyst Day Feb. 7 In Bogota (Frontera Energy, 15.Jan.2019) — Frontera Energy Corporation will host an investor and analyst day on Thursday February 7, 2019 from 8 a.m. until 4 p.m. in Bogota which will be webcast via the company’s website.

Those wishing to participate in the webcast should pre-register for the event using the link on the company’s website www.fronteraenergy.ca.

Mexican Oil Theft Even Reached Drilling Rigs, President Says (Reuters, 15.Jan.2019) — Mexican President Andres Manuel Lopez Obrador said that widespread fuel theft extended to oil drilling platforms and he pledged to take actions to alleviate shortages sparked by his crackdown on gasoline thieves.

Reminder On Loma Negra Compania Industrial Argentina Suit Deadline (Rosen Law Firm, Jan. 15, 2019) — Rosen Law Firm reminds purchasers of the securities of Loma Negra Compania Industrial Argentina Sociedad Anonima pursuant and/or traceable to Loma Negra’s Registration Statement filed in connection with its November 2017 Initial Public Offering (IPO) of the important February 4, 2019 lead plaintiff deadline in the class action. The lawsuit seeks to recover damages for Loma Negra investors under the federal securities laws.

Petrobras Will Have To Pay $400 Mln In Additional Income Tax (Reuters, 17.Jan.2019) — Brazil’s state-run oil company Petrobras said it had lost an appeal in a Brazilian tax court and will have to pay an additional 1.5 billion reais ($398.10 million) in income tax, according to a securities filing.

Ocean Infinity To Perform AUV Surveys In Brazil (Ocean Infinity, 15.Jan.2019) — Ocean Infinity, the next generation seabed survey and ocean exploration company, is pleased to announce that its partner, Cepemais, the Brazilian offshore consulting company, has been awarded a contract to provide high-resolution hydrographic mapping services to Petrobras, the Brazilian national oil company.

The project is for the Campos, Espirito Santo and Santos basins, offshore Brazil, and will see Ocean Infinity working under contract to Cepemais to map an area of 5,000km2 and inspect 12,000km of pipelines. Operating from Ocean Infinity’s ‘Island Pride’ vessel, the Company’s Autonomous Underwater Vehicles (AUVs) will be working in water depths of between 50 and 3,000 metres. The data collected by Ocean Infinity will then be interpreted and reported upon by Cepemais.

Work commences in mid-2019 and the contract duration is for three years.

Petrobras Aims To Exercise Pre-emption Right In Sixth Bidding Round (Petrobras, 14.Jan.2019) — Petrobras formally expressed to the National Energy Policy Council (CNPE) interest to exercise the pre-emption right for the 6th Bidding Round of exploration blocks under the production sharing regime, pursuant to Law 12,351/2010 and Federal Decree 9.041/2017.

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