LatAmNRG Prospector: Week 15 2019

LATAMNRG PROSPECTOR VOL 15 2019

Tarija Gas Region To Generate $2.7 Billion Through 2025

TechnipFMC Signs Significant Subsea Deal For The Lapa Pre-Salt Field In Brazil

Ecopetrol President Says Colombia Gas Potential Between 14-64 Tcf

Chevron To Gain Anadarko’s Offshore Guyana Oil Assets After Takeover

PetroPerú President Say Final Cost Of Talara Refinery Is $5 Billion

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Energy Analytics Institute’s weekly LatAmNRG prospector and select highlights from the week. Read the full stories online 24/7 at www.energy-analytics-institute.org

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BOLIVIA Tarija Gas Region To Generate $2.7 Billion Through 2025 (Energy Analytics Institute, Ian Silverman, 14.Apr.2019) — Bolivia’s Tarija department is forecast to generate natural gas revenues of $2.7 billion through the end of 2025, Bolivia’s Information Agency (ABI) reported April 14.

During 2006 and 2018, Tarija department generated estimated oil and gas revenues of $5 billion, ABI reported, citing the country’s Hydrocarbon Minister Luis Alberto Sánchez.

Energy Analytics Institute (EAI) is a Houston-based private organization focused on provided integrated services related to the Latin American and Caribbean upstream, downstream, midstream and renewable energy sectors.

I. EAI’s primary focus related to the Latin American and Caribbean petroleum sectors is to assist businesses establish and nurture relationships with other businesses or consumers by facilitating integrated business-to-business (B2B) and business-to-consumer (B2C) solutions.

II. EAI also organizes timely forums, seminars or executive speaking engagements related to the Latin American and Caribbean petroleum sector covering topics relevant to the upstream, midstream, downstream and renewable enegy sectors.

III. EAI also provides unbiased breaking news, among project updates, related to the Latin American and Caribbean petroleum sectors covering countries small and big from Jamaica and Trinidad and Tobago in the Caribbean to Guyana, Bolivia and Peru in South America and bigger regional players including Mexico, Colombia, Venezuela, Brazil and Argentina.

CONTACT / FOLLOW US: Twitter: @EAI_USA and @EAI_LatAm E. news@energy-analytics-institute.org E. webmaster@energy-analytics-institute.org W. www.energy-analytics-institute.org

Tarija holds the bulk of Bolivia’s gas reserves and is the department that generates the most economic benefits for the country. The department holds 6 trillion cubic feet (Tcf) of Bolivia’s total 10.7 Tcf of proven gas reserves.

Bolivia’s state oil and gas entity YPFB, Beicip Franlab and other oil and gas companies have identified 13 exploration projects with potential to boost the landlocked country’s gas reserves over the short-to-medium term: Los Monos X12, Chaco Este X1, Chaco Este X2, Boyuy X2, Aguaragüe Centro X1, Astillero X1, Boyuy X3, Domo Oso X1, Domo Tarija X1, Iñiguazu X5, Margarita Profundo, Villamontes X7, and Jaguar X6.

Bolivia’s Gas Reserves To Double By 2025: Minister (Argus, 12.Apr.2019) — Bolivian hydrocarbons minister Luis Alberto Sanchez predicts a jump in natural gas reserves as the country’s “year of exploration” gains momentum.

“Results from the first quarter were very promising,” Sanchez told Argus in an interview. “Reserves will increase from a current 10.7 trillion cf when we certify at the end of the year.”

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BRAZIL TechnipFMC Inks Significant Subsea Deal For The Lapa PreSalt Field In Brazil (Energy Analytics Institute, Aaron Simonsky, 9.Apr.2019) — TechnipFMC said it has been awarded a significant contract for the Lapa field by Total E&P do Brasil Ltda., on behalf of the Lapa Field Consortium, comprised of Total (35% WI), Shell Brasil Petróleo Ltda. (30% WI), Repsol Sinopec Brasil S.A. (25% WI) and Brazil’s state oil company Petrobras (10% WI).

The Lapa field is located in the pre-salt Santos Basin, under the BM-S-9A concession, at 2,150 meters of water depth offshore Brazil.

TechnipFMC didn’t provide a value for the contract but said in an official statement that a ‘significant’ contract is one valued between $75 million and $250 million.

The contract covers the supply of flexible pipes for oil production, gas lift and gas injection as well as associated accessories. The field will be connected to the Floating Production Storage and Offloading (FPSO) unit Cidade de Caraguatatuba, already in operation.

“We look forward to collaborating with Total and the Lapa Field Consortium to further enhance the hydrocarbon potential of Brazil,” said TechnipFMC President Arnaud Piéton in the statement.

Petrobras Updates On National Council of Energy Policy (CNPE) (Petrobras, 9.Apr.2019) — Petrobras informs that became aware of the CNPE announcement regarding the revision of the Transfer of Rights Agreement in reference to their meeting held today.

According to the CNPE statement, Petrobras will be compensated by US$ 9,058 billion (nine billion and fifty eight million dollars) due to the revision of the Agreement.

Petrobras awaits the official publication of the collegiate body deliberative acts, containing the entire decision, to provide additional information to the market.

Material facts on this subject will be timely announced to the market.

Brazil’s Petrobras Announces Final Tender Results (Petrobras, 9.Apr.2019) — Petrobras announced the final results of its previously announced debt tender offers (the “Waterfall Offers”). As of 11:59 p.m., New York City time, on April 8, 2019 (the “Expiration Date”) holders of US$1,867,021,000 and €371,098,000 principal amount of the outstanding notes of the series set forth in the table below (the “Notes” and each a “series” of Notes), issued

by Petrobras’s wholly-owned subsidiary Petrobras Global Finance B.V. (“PGF”), tendered their Notes, pursuant to PGF’s previously announced Waterfall Offers.

The Waterfall Offers were made pursuant to the terms and conditions set forth in the offer to purchase dated March 12, 2019 (as amended or supplemented, the “Offer to Purchase” and, together with the related letter of transmittal, the “Offer Documents”).

Petrobras Informs On Sale Of Liquigás: Publication Of The New Teaser (Petrobras, 9.Apr.2019) — Petrobras, following up on the press release disclosed on 04/05/2019, regarding the competitive sale process of 100% of Liquigás Distribuidora SA, informs that the new Teaser, which contains the main information about the opportunity, as well as wider eligibility criteria for the selection of potential participants, is available at Petrobras website: http://www.petrobras.com.br/ri The new Teaser is in line with Petrobras’ disinvestment methodology, as well as with Decree 9.188/17 and replaces in its entirety the one released on 03/29/2019.

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The adjustments made are intended to increase the competitiveness of the process, making possible the participation of investors from other sectors, and mitigating competitive risks and market concentration.

The new deadline for the expression of interest is 04/19/2019.

environmental body, according to documents obtained by the Associated Press.

Petrobras Updates On Diesel Price Readjustment

Environmentalists say it’s the latest example of how Bolsonaro, who campaigned on promises to revive Latin America’s largest economy by cutting red tape, is pushing aside warnings and scientific evidence in the name of progress. It comes at a time when Brazil, one of the world’s largest oil producers and energy consumers, is moving toward the privatization of several industries, including offshore exploration.

(Petrobras, 12.Apr.2019) — Petrobras informs that, in line with its strategy for diesel price readjustments, announced on 03/26/19, it revisited its hedge position and evaluated, throughout the day, with the closing of the market, that there is space to extend some days the diesel readjustment.

Petrobras Price Move Damages Bolsonaro’s Pro-Business Stance

The company reaffirms the maintenance of the alignment with the International Parity Price (PPI).

(Bloomberg, Simone Preissler Iglesias and Sabrina Valle, 12.Apr.2019) — A conversation lasting less than 20 minutes was enough to put the neo-liberal credentials of Brazil President Jair Bolsonaro’s government in question.

Bolsonaro and his Chief of Staff Onyx Lorenzoni suspended oil giant Petrobras’ diesel price increase late Thursday after that discussion and a phone call to Petrobras CEO Roberto Castello Branco, according to a government official with knowledge of the matter.

CHILE Enel Ups Stake In Chile Unit, Supports $3.5bn Capital Hike Plan Brazil To Auction Oil Camps Despite Environmental Warnings

(Renewables Now, 11.Apr.2019) — Italian renewablesfocused utility Enel SpA said it has concluded the purchase of an additional 4.62% stake in its Chile-based unit and announced plans to support an upcoming capital hike at the same subsidiary.

(AP, Peter Prengaman and Mauricio Savarse, 13.Apr.2019) — The administration of President Jair Bolsonaro plans to auction seven offshore oil fields in the northeast despite contrary advice from analysts of Brazil’s main

Enel has settled two previously announced share-swap transactions, buying nearly 1.71 billion shares of Enel Americas SA common stock plus about 18.9 million American depositary shares (ADSs), each of which represents 50 shares of common stock. The Italian

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company paid CLP 198 billion (USD 298.9m/EUR 265m) for the shares and a further USD 164.7 million (EUR 146m) for the ADSs.

Ecopetrol Reports New Attack On OTA Pipeline

COLOMBIA

Ecopetrol President Says Colombia Gas Potential Between 14-64 Tcf (Energy Analytics Institute, Piero Stewart, 10.Apr.2019) — Colombia’s natural gas potential — including onshore, offshore and non-conventional resources — is between 14 and 64 trillion cubic feet (Tcf), Ecopetrol President Felipe Bayón said on 10 April in an official company statement.

Colombia’s potential gas resources are distributed as such: — Llanos Piedemonte: 3-10 Tcf — Offshore Caribbean: 7-30 Tcf — Non-conventional: 4-24 Tcf – Middle Magdalena Valle – Cesar-Ranchería – Catatumbo Total Gas Potential: 14-64 Tcf Source: Ecopetrol Colombia’s proved gas reserves were a mere 3.9 Tcf at year-end 2017, according to BP’s Statistical Review of Energy, while its reserves-to-production or R/P ratio was 10.8 years.

(Energy Analytics Institute, Piero Stewart, 12.Apr.2019) — A new attack was reported along the Trasandino pipeline or Oleoducto Trasandino (OTA) in Colombia on 12 April 2019, reported Ecopetrol. No details were revealed by the company.

Ecopetrol President Says Orca1 Well Online In 2026 (Energy Analytics Institute, Piero Stewart, 10.Apr.2019) — The Orca-1 well in the Tayrona Block could come online in 2026, Ecopetrol President Felipe Bayón said on 10 April in an official company statement.

Grupo Ecopetrol Aims To Expand Renewables Portfolio To 181 MW (Energy Analytics Institute, Piero Stewart, 10.Apr.2019) — Grupo Ecopetrol aims to continue with efforts to transform its renewables energy portfolio (solar, biomass and hydraulic) in coming years and expand capacity to 181 mega-watts from 43 mega-watts, Ecopetrol President

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Felipe Bayón said on 10 April in an official company statement.

Ecopetrol Announces Dates For Colombian Ex-dividend Period (Ecopetrol, 12.Apr.2019) — Ecopetrol announced that according to the regulation of the Colombia Securities Exchange, the Colombian ex-dividend period for Ecopetrol’s shares begins on April 17, 2019.

with guidance for 2019 and our plan to sustain production in Colombia at current levels for the next five years as we grow production and reserves from new projects in the North Andean region. We also have made significant progress unwinding legacy transportation commitments, which will have long-term benefits for the company’s profitability and flexibility. Our upstream investments are moving forward, with drilling soon to start on the VIM-1 block in Colombia and on the Corentyne block offshore Guyana. Lastly, we demonstrated our commitment to enhancing shareholder returns with ongoing share repurchases and dividends.”

The ex-dividend period corresponds to the first business day for the dividend payment (April 25, 2019) and the four (4) trading days immediately prior to that date.

Therefore, those persons who buy stock during this period will not be entitled to receive dividends on the relevant dividend payment date.

As approved by the Company’s General Shareholders’ Meeting held on March 29, 2019, the dividend for minority shareholders will be paid April 25, 2019, in a single installment.

Furthermore, the majority shareholder will be paid in three equal installments, on April 25, 2019, June 25, 2019and September 25, 2019, as resolved by the Company’s General Shareholders’ Meeting.The information on the equal payment amounts for the Nation’s dividend updates the information presented on page 126 of the Company’s annual report on form 20-F for the year ended December 31, 2018 filed with the United States Securities and Exchange Commission on April 5, 2019.

Frontera Announces 1Q:19 Update On Colombia, Peru, Guyana, and Ecuador (Frontera, 11.Apr.2019) — Frontera Energy Corporation announces a first quarter 2019 operational update. All values in this news release and the company’s financial disclosures are in United States dollars, unless otherwise noted.

Richard Herbert, Chief Executive Officer of Frontera, commented: “2019 is off to a strong start for Frontera, with our production and exploration proceeding in line

Production Update Frontera delivered estimated first quarter 2019 production of 67,930 boe/d within 2019 production guidance range of 65,000 to 70,000 boe/d despite production from Block 192 in Peru being off line for most of the quarter.

Current production is estimated at over 75,000 boe/d, as production from Block 192 in Peru continues to ramp back up towards pre-force majeure volumes. Current Block 192 production is over 10,000 bbl/d with total Peru production estimated at 10,650 bbl/d.

Colombia Colombia production averaged approximately 65,560 boe/d in the first quarter of 2019, an increase of 4% from the fourth quarter of 2018 as a result of increased production at Quifa following the commissioning of the

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water handling expansion project and continued stable production at Guatiquia, assisted by the Candelilla-7 development well which is currently producing at a stable rate of approximately 2,000 bbl/d. The company’s first quarter 2019 Colombia production was the highest since the fourth quarter of 2017.

GUYANA

ECUADOR Frontera Updates On Perico And Espejo Blocks (Frontera, 11.Apr.2019) — Frontera Energy Corporation announced on April 9, 2019, as part of the Intracampos bid round held on March 12, 2019, the Hydrocarbons Bids Committee resolved to recommend to the Ministry of Energy and Non-Renewable Natural Resources the award of the Tender Blocks in the XII Round. In that round Frontera was awarded the Perico and Espejo blocks in the Intracampos bid round in Quito, Ecuador (Frontera 50% WI).

The Perico and Espejo blocks are attractive, low-risk exploration blocks located in Sucumbíos Province in the north-eastern part of Ecuador in the Oriente basin.

Both blocks are covered with 3D seismic and are adjacent to multiple producing fields and existing infrastructure.

More than five multilayer and ready-to-drill light oil prospects and leads have been identified on these blocks.

Geoscience evaluation is ongoing and field operations are expected to start in late 2019 or early 2020.

The winning bid consisted of a minimum investment program including 55 sq km of 3D seismic in the Espejo block and drilling four exploration wells in each block, with a total estimated investment commitment of $60 million ($30 million net to Frontera) over the next four years. GeoPark Limited has a 50% working interest in the consortium.

Final award of the blocks is contingent upon regulatory approvals and the execution of the contracts, expected in the second quarter of 2019.

Frontera Announces 1Q:19 Update On Colombia, Peru, Guyana, and Ecuador (Frontera, 11.Apr.2019) — Frontera Energy Corporation announced that progress continues to be made with respect to the finalization of a joint venture agreement with CGX Energy Inc. A definitive rig agreement has been executed with Rowan Rigs S.A R.L and CGX for the use of the Ralph Coffman offshore jack-up rig, which is targeted to commence during the second quarter of 2019 with an expected spud date in the third quarter of 2019. All the required activity is being undertaken to ensure the Utakwaaka-1 exploration well will be drilled by November 27, 2019 to satisfy the contractual commitment.

Chevron To Gain Anadarko’s Offshore Guyana Oil Assets After Takeover (Stabroek News, 14.Apr.2019) — Guyana could see oil exploration activity in the ultra-deepwater region picking up pace in the near future with United States oil giant

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Chevron set to buy Anadarko Petroleum Corp, which holds an exploration licence for the Roraima Block offshore Guyana.

As part of its crude and liquefied natural gas (LNG) push, Chevron entered a $33 billion proposed buy over of Anadarko. Officials at Chevron told Stabroek News that when the deal closes, the Anadarko-owned Roraima Block would form a part of its assets.

US Acknowledges Guyana’s Right To Renegotiate Exxon Deal If It So Chooses (Stabroek News, 10.Apr.2019) — The United States acknowledges that it is within Guyana’s sovereign right to renegotiate the controversial Production Sharing Agreement (PSA) between the country and ExxonMobil and its partners if it so chooses, recently accredited US Ambassador to Guyana, Sarah-Ann Lynch says.

“We certainly believe that Guyana is a sovereign country so that would be for Guyana to work that out with the private sector to see if there is room for renegotiation.

We certainly won’t interfere with that,” Lynch said, when asked by Stabroek News on Monday during an interview she held with the print media at the US Embassy.

She stressed that the decision would be one taken by the government of this country and the US would in no way intervene, as its role is not to be part of any negotiation but to ensure that its businesses are treated fairly. “Our main role in looking at this tremendous opportunity in the oil and gas industry…is that businesses are treated fairly.

There is ample opportunity for growth and interaction with the government and mostly that there is a level playing field. That would be our focus,” she said.

JAMAICA JPS Invests $25m In Storage Facility To Address Power Fluctuations (Jamaica Gleaner, Steven Jackson, 14.Apr.2019) — Power utility Jamaica Public Service Company (JPS) will commission a $25 million storage facility in phases this year as a safeguard against power outages.

The 24.5 megawatt plant, the first of its kind for Jamaica, will be installed at the company’s Hunt’s Bay power station in Kingston.

MEXICO Mexico Would Consider State Gas Stations In Push For Fair Prices (Reuters, 9.Apr.2019) — Mexico’s President Andres Manuel Lopez Obrador said on Tuesday he would consider creating a chain of government gas stations if existing fuel outlets did not charge “fair prices,” as he seeks to make good on a campaign vow to ensure stable fuel rates.

Benchmark gasoline prices have been rising this year in line with increases in prices for crude oil, the main input for gasoline and diesel.

AMLO Warns Retailers: Keep Gas Prices In Check (Oilprice.com, Tsvetana Paraskova, 9.Apr.2019) — The Mexican government may consider creating a small network of gas stations that would sell gasoline at lower, “fair prices”, if gas station operators in the country don’t keep gas prices in check, Mexico’s leftist President Andrés Manuel López Obrador said on Tuesday.

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López Obrador—in office since December 1, 2018—called on gas station operators in Mexico to sell gas at lower prices by cutting their profit margins, Reuters quoted the Mexican president as saying at a regular news briefing on Tuesday.

PERU Frontera Says Production Affected By Shutdown Of Block 192 (Frontera, 11.Apr.2019) — Frontera Energy Corporation announced that production in Peru in the first quarter of 2019 averaged an estimated 2,370 bbl/d a decrease of 73.6% compared to the fourth quarter of 2018 due to the shutdown of Block 192 as a result of a force majeure event relating to the NorPeruano pipeline from November 27, 2018 until March 1, 2019.

Production from Block 192 in Peru contributed approximately 1,720 bbl/d in the first quarter of 2019 as production from the block gradually restarted during March 2019. The company expects that the contract relating to Block 192 will be extended to at least January 2020, from September 7, 2019 previously as a result of the force majeure event. Current production from Peru is approximately 10,640 bbl/d.

Work on the refinery commenced in 2014 and has reached the 53% completion mark. It is anticipated that in December 2020 it will under go final testing and be online in the first quarter of 2021, Bertarelli said.

To-date, an estimated 7,000 direct employees and 14,000 indirect have been used during the construction process, PetroPerú said.

Peru Cuts Gas Reserves, CNPC Block On Hold (Argus, 10.Apr.2019) — Peru’s natural gas reserves declined after the energy ministry reclassified the potential of Chinese state-owned CNPC’s block 58 from proven/probable reserves to contingent resources.

The ministry said the decision was based on the methodology used for the report, which classifies P2 reserves as those that will be available within a five-year horizon or by 2022.

TRINIDAD Shell’s STEM Path To The Future

PetroPerú President Says Final Cost Of Talara Refinery Is $5 Billion (Energy Analytics Institute, Ian Silverman, 10.Apr.2019) — The inal cost of the Talara refinery in Peru is $5 billion, including $695 million in interest related to the project’s financing, announced PetroPerú’s President Esteban Bertarelli Bustamante in a company video.

This compares to an initial cost of around $5.4 billion, when first announced. The current price is within the price range of other refineries similar in size, Bertarelli said.

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(Trinidad and Tobago News Day, Melanie Waithe, 11.Apr.2019) — Ever took a walk on the bottom of the sea, to see how natural gas is extracted from beneath the earth’s surface and brought on land to be processed at a liquefied natural gas (LNG) facility?

More than 900 students got this opportunity through a virtual tour and were exposed to a lot more when they attended the first Shell STEM technology fair in TT on March 28, at Centre of Excellence, Macoya. The students, from more than 40 secondary schools as well as the UWI and UTT, were exposed to some of the latest technologies used in the energy industry by more than 24 companies.

Education institutions including NIHERST, NESC, UWI and UTT (as well as other professional associations like the Society for Petroleum Engineers of TT) also participated in the exhibition.

USA Texas’ Pete Olson Calls For Maduro To Release Citgo 6

TOP M&A Chevron Buys Anadarko In $50bn Cash-And-Stock Deal (WoodMac, 12.Apr.2019) — Commenting on Chevron’s $50 billion cash-and-stock acquisition of Anadarko, Roy Martin, senior analyst, corporate analysis, said: “This is the biggest upstream deal since Shell and BG in 2015.

“Chevron now joins the ranks of the UltraMajors – and the big three becomes the big four.”

Once the deal closes, Chevron will now be the secondlargest producing major, in 2019 terms. It was fourth.

Mr Martin added: “The acquisition makes the Majors’ peer group much more polarised. ExxonMobil, Chevron, Shell and BP are now in a league of their own.

“The deal plays to Chevron’s strengths, which are tight oil and LNG,” he said. “On top of this, it diversifies their growth options, while also giving them more in tight oil.

(The Katy News, 8.Apr.2019) — Rep. Pete Olson (TX-22) issued the following statement calling on the Maduro regime to release the six Citgo executives, five of whom are Texans, who have been detained in Venezuela since November 2017: “The CITGO 6 are Texas and Louisiana residents who have been detained for over a year in Venezuela. While I am deeply disturbed about their access to legal representation, due process and State Department assistance, the most pressing issue is their health and safety. Their families—many of whom also live in Texas— are in agony as they try to get more information and coordinate care for them. I call on the Maduro regime to release these individuals immediately so they can get the medical care they desperately need.”

The CITGO 6 are: Tomeu Vadell, Alirio Zambrano, Jose Luis Zambrano, Gustavo Cardenas, Jorge Toledo, and Jose Angel Pereira. Five of them live in Texas, the other one lives in Louisiana.

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