LatAmNRG Prospector: Week 22 2019

LATAMNRG PROSPECTOR VOL 22 2019

Petrobras Requesting Lower Gas Volumes From Bolivia

LatAmNRG Q&A: Latina Women In Energy And Stem, Junellie González Quiles

ANH Says 22 Companies Qualified To Bid On 20 Oil Areas In Colombia

Cameron LNG Ships Out First Commissioning Cargo From LNG Plant

Environmental Prosecutor Expects More Oil Samples From Añelo Plant

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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

ABOUT US

Q&A SERIES Latina Women In Energy And Stem, Junellie González Quiles

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: E. news@energy-analytics-institute.org E. webmaster@energy-analytics-institute.org W. www.energy-analytics-institute.org

(Energy Analytics Institute, Jared Yamin, 1.Jun.2019) — Junellie González Quiles was born and raised in Puerto Rico. She studied at the Colegio Congregación Mitain Hato Rey, Puerto Rico before later studying at the University of Maryland, College Park. González currently works at NASA Goddard Space Flight Center doing research on exoplanet data science, and plans to pursue her PhD in Earth and Planetary Sciences at Johns Hopkins University starting next year as a NSF Graduate Research Fellow. What follows is our Q&A interview with Ms. González.

Energy Analytics Institute: How did you gain an interest in STEM fields, and what industry do you want to pursue post graduation?

Junellie González Quiles: I gained interest in science from a very young age. When I was in third and fourth grade, I was fascinated with meteorology. I remember always searching for weather reports, and watching the weather

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channel. I thought our atmosphere was so interesting.

Then, in fifth grade when I went to a science summer camp by the Conservation Trust of Puerto Rico, I fell in love with space. One night, astronomers came and brought some telescopes, and it was the first time that I was introduced to the cosmos. Even though I was fascinated by our atmosphere, I fell in love with space when I realized there was so much out there just waiting to be discovered. First, I plan on pursuing my PhD in Earth and Planetary Sciences at Johns Hopkins University starting next year. I am still considering my options and deciding whether to pursue a career in academia, or come back to work at NASA as a civil servant.

Energy Analytics Institute: Why is it important to get more students, including females and Latinas, interested in STEM education?

Junellie González Quiles: If it had not been for the science summer camp I attended in fifth grade, I would have not gotten interested in astronomy from such an early age. It was crucial for me to become motivated to learn more about astronomy from a young age because I was able to start paving my way towards that goal in my middle and high school years. I was able to start looking for opportunities in science and math early on in order to get myself ready for when it was time to look for colleges. I knew it wasn’t going to be easy to be admitted to a school in the US, so I made sure I got involved in every science and math activity, club and competition there was in order to achieve my goal of becoming an astronomer.

Getting students exposed and interested in STEM like I was is crucial for opening the doors of opportunity to them early on in their lives.

On the other hand, I believe that most students, especially women, Latinas, and minorities in general, already possess and express overwhelming interest in STEM either early on or at a later stage in life. The issues arise when the environment in which they express their interests does not fully support them or even encourage them in the first place. This is where we start seeing disparities in populations of students that pursue STEM fields. This is why it is so important to not only get them interested in STEM fields, but to also support them and give them the opportunities to expand and develop those interests. We can’t advocate for diversity in STEM without advocating for inclusion as well. If an institution can’t support students of color, but they still bring those students for their diversity efforts, then they are still failing to recognize the institutional structures that push

out students of color. This can result in an unsupportive environment, and therefore a loss of students of color in these fields. It is not only important to motivate, but also support these students.

Energy Analytics Institute: What advice would you give to female and latina students concerned about the gender disparities in STEM fields?

Junellie González Quiles: You are not alone. Even though there are still big gender disparities in STEM fields, there are a few of us that are here being strong and breaking barriers, like you. I remember the biggest thing I noticed when I walked into my first physics class was the amount of men in the room, and the looks. Remain strong and confident in your abilities. You are there because you can do it. Remember who you are and where you came from, and use it as a fuel to continue on. Don’t ever hide your light and who you are for anyone. I also want you to recognize your needs for thriving. If your environment is not supportive, there are other places that already have a much better environment for their students. It’s not selfish to seek out those places for yourself. It is what you need to thrive. By being ‘different’, we are making our own way to success while paving that path for students to come. While it may not be an easy path to find the right environment, surrounding yourself by those who believe in you and building that network will help you get there. ¡TÚ PUEDES! Energy Analytics Institute: What projects are you working on now of interest and/or related to STEM? Junellie González Quiles: I am extremely interested in studying exoplanets, which are planets outside of our Solar System. I am currently working on exoplanet data simulations at NASA Goddard Space Flight Center. Before coming to NASA, I did research at Johns Hopkins University with Prof. June Wicks on studying minerals at high pressures and temperatures to see how they would behave in planetary interiors. I am extremely interested and excited to do research on exoplanets through the collaboration between the fields of astronomy and planetary science because through such interdisciplinary work, we will be able to fully characterize exoplanets. If we are able to fully characterize exoplanets, then we will be able to put our Solar System in context with the rest of the planetary systems.

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FINANCIAL Frontera Energy Corporation BOD Declares Dividend (Frontera, 30.May.2019) — Frontera Energy Corporation’s board of directors has declared a dividend of C$0.205 per common share, which will be paid on or about July 17, 2019 to shareholders of record at the close of business on July 3, 2019.

The company’s board of directors has also amended its dividend policy to increase the quarterly dividend by 20% from $12.5 million to approximately $15 million during periods in which Brent oil prices sustain an average price of $60/bbl or higher. The declaration and payment of any specific dividend, the actual amount, the declaration date, the record date, and the payment of each quarterly dividend will be subject to the discretion of the Company’s board of directors.

The dividend is designated as an eligible dividend under the Income Tax Act (Canada).

The dividend is eligible for the company’s Dividend Reinvestment Plan to provide shareholders of Frontera who are resident in Canada (“Eligible Shareholders”) with the option to have the cash dividends declared on their common shares of Frontera reinvested automatically back into additional Shares, without the payment of brokerage commissions or service charges. Participation in the Plan is optional.

TPHL Announces Conditional Term Loan Commitments Of Up To $720 Million (TPHL, 31.May.2019) — Trinidad Petroleum Holdings Limited (TPHL) announced that in connection with its ongoing negotiations with a syndicate of financial institutions to enter into a new senior secured term loan facility under which TPHL is the borrower and The Guaracara Refining Company Limited, Heritage Petroleum Company Limited and Paria Fuel Trading Company Limited will be guarantors, it has received loan commitments of up to $720 million in term loans from a

syndicate of banks led by Credit Suisse AG, Cayman Islands Branch as Global Coordinator. The Term Loan Facility contemplates a single syndicated amortizing term facility, which may have multiple tranches, maturing as early as three years following the funding date. The Commitments are conditioned on (i) the negotiation and execution of the definitive documentation for the Term Loan Facility and (ii) the satisfaction of certain conditions precedent under the Term Loan Facility.

ARGENTINA Environmental Prosecutor Expects More Oil Samples From Añelo Plant (Energy Analytics Institute, Aaron Simonsky, 27.May.2019) — Argentina’s Environmental Crimes prosecutor Maximiliano Breide Obeid anticipates more samples will be taken from Treater’s oil waste plant located in Añelo in Argentina.

Treater recently released a statement that states results from the first samples taken by the prosecution showed normal values, reported online media Río Negro.

“All the parameters analyzed are below limits established

by National Law related to hazardous waste and complementary provincial standards,” Treater said in the statement.

Sources from the prosecutor’s office assured online media Río Negro that the results weren’t definitive because counter-tests are needed to determine the analysis.

However, dates for when new samples would be taken from the site haven’t been specified.

“We’re not an oil dump. We’re an environmental services company that treats waste from the oil industry. We comply with the law and all the requirements related to the activity we carry out” Treater said in its statement.

“Our plant is in the heart of Vaca Muerta and we’ve accepted the challenge of the industry, for which we’ve made significant investment in technology and in a highly specialized human team.”

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BRAZIL Petrobras Starts Teaser For 27 Onshore Fields In Espírito Santo

“Our new ebike is a major step forward for electric mobility in cities. We are proud to introduce it first in Santiago, in close consultation with the administration of Las Condes,” said Michael Keating, Founder and President of Scoot.

(Energy Analytics Institute, Aaron Simonsky, 27.May.2019) — Brazil’s state oil and gas entity Petrobras started the opportunity disclosure phase or Teaser, related to divestment of its total equity interest in 27 mature fields onshore Brazil. The interest include shared production outflow and treatment facilities located in Espírito Santo, in the Municipalities of São Mateus, Jaguaré, Linhares and Conceição da Barra, jointly designated as Cricaré Cluster, Petrobras said 27 May in an official statement.

Petrobras, acting as operator, holds an 100% interest in all concession, which is made up of the following fields: Biguá, Cacimbas, Campo Grande, Córrego Cedro Norte, Córrego Cedro Norte Sul, Córrego Dourado, Córrego das Pedras, Fazenda Cedro, Fazenda Cedro Norte, Fazenda Queimadas, Fazenda São Jorge, Guriri, Inhambu, Jacutinga, Lagoa Bonita, Lagoa Suruaca, Mariricu, Mariricu Norte, Rio Itaúnas, Rio Preto, Rio Preto Oeste, Rio Preto Sul, Rio São Mateus, São Mateus, São Mateus Leste, Seriema and Tabuiaiá. Petrobras said average total production in 2018 from these fields reached approximately 2800 barrels per day of crude oil and 11,000 cubic meters per day of natural gas.

CHILE Scoot Awarded Permit To Operate Ebikes In Santiago (Scoot, 28.May.2019) — Scoot, the original shared electric vehicle company, is launching their new shared ebike in the Las Condes district of Santiago, Chile.

At a joint press event this weekend, Mayor Joaquin Lavin announced that Scoot had been awarded 650 permits to operate shared ebikes, making it the first shared, electric bicycle operator in Chile. Scoot will expand to other parts of Santiago with additional ebikes and electric scooters in the coming months.

Scoot’s ebikes have a top speed of 25 kilometers/hour and are free to unlock and then just 100 Chilean Pesos per minute to ride. Each ebike comes with a custom smart lock which allows riders to secure the vehicle to bike racks at the end of each ride. As proven with Scoot’s electric scooters, Scoot’s smart lock ensures a safe and reliable network of shared vehicles. The addition of ebikes to their service in Santiago shows how Scoot is offering more comprehensive solutions for cities’ mobility needs.

With the launch of ebikes in Santiago, Scoot becomes the first company in Chile to operate two types of shared electric vehicles in a single city. And Scoot plans to build on the success of their service in Santiago by continuing to expand in Latin America. Scoot’s collaboration with Las Condes and Mayor Lavin extends beyond electric vehicles.

Last month, Scoot partnered with Mayor Lavin to roll out the Holland Plan, which established a low-speed, shared transit zone in the El Golf neighborhood. Patrolled by a safety enforcement team on Scoot scooters, this new initiative created a space with a maximum speed of 30 kilometers/hour for cars, thereby allowing bicycles, scooters and pedestrians to safely travel through some of the busiest streets in Chile.

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BOLIVIA

COLOMBIA

Petrobras Requesting Lower Gas Volumes From Bolivia

ANH Says 22 Companies Qualified To Bid On 20 Oil Areas In Colombia

(Energy Analytics Institute, Ian Silverman, 28.May.2019) — Brazil’s Petrobras requested lower volumes of Bolivian natural gas from 1-19 May, marking the third consecutive month the Brazilian oil and gas has done so, reported online media La Razón.

During the period, Petrobras demanded an average 12.34 million cubic meters per day (MMcm/d) of Bolivian gas, below the 13.04 MMcm/d sent in March and the 12.41 MMcm/d sent in April.

(ANH Colombia, 30.May.2019) — After having been validated by the firm Gestión y Auditoría Especializada S.A.S., independent auditor, the National Hydrocarbons Agency of Colombia published the final list of investors that are enabled to compete for the 20 areas for exploration and production of hydrocarbons. These areas were released on February 21st during the launching of the Permanent Process of Area Allocation (PPAA), for the first stage of 2019.

Bolivia’s other large gas export market Argentina requested an average 15.36 MMcm/d during the same period, slightly below the 16 MMcm/d established as the minimum volume as per the addendum to the original gas purchase and sale contract signed between YPFB and Integración Energética Argentina SA (IEASA).

Investments To Industrialize Bolivian Lithium Reach $600 Million, YPFB Says (Energy Analytics Institute, Ian Silverman, 29.May.2019) — Investments to industrialize Bolivia’s lithium deposits have reached $600 million, reported Bolivia’s Information Agency or ABI, citing Yacimientos de Lito Boliviano (YLB) Manager Juan Carlos Montenegro.

These investments to date relate to infrastructure built in the Salar de Uyuni pilot plants in Potosí, Montenegro said.

Medium-term investment from Germany and China could reach a combined $3.6 billion on new lithium projects that are in the final stages of industrialization, the agency reported.

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Among the qualified companies are operators of recognized trajectory in Colombia and in the world, and the presence of two new players who venture into the local market, with headquarters in the United States, stands out. These are the companies Noble Energy and Hunt Overseas, companies that have expressed their interest in entering the national market thanks to the investment opportunities offered by the government of President Iván Duque.

The audit study evaluated five aspects of the interested parties, for purposes of shaping the final eligible list. The areas of study were: legal, financial, technical, environmental and social responsibility.

Once this stage has been completed, the selected companies will be able to participate in bidding for the 20 areas that were initially offered. This process will begin next Tuesday, June 4, when the Proposal Deposit Hearing is held.

The 20 areas of conventional deposits postulated by the ANH for the first stage of 2019 correspond to an area of 1,418,000 hectares, 18 of which are located in the continental zone and two in the offshore zone.

Colombia Had 4th Greatest Loss Of Primary Rainforest Of Any Country In 2018 (Reuters, Anastasia Moloney, 31.May.2019) — Colombia is fighting a losing battle against the destruction of its rainforests in war-hit regions where the government remains weak, a Norwegian climate envoy said during a visit to the country.

Norway, rich from offshore oil, is a key financial backer of Colombia’s efforts to conserve its rainforests, which include the Amazon, the world’s most ecologically important rainforest.

The threat to the forests has grown since a 2016 peace deal between the Revolutionary Armed Forces of Colombia (FARC) and the government created a power vacuum in former conflict areas in the jungle where illegal deforestation now goes unchecked.

GUYANA Guyana Says Oil Activity Offshore Is Unprecedented (AP, 30.May.2019 ) — Guyana’s top energy official said Thursday that interest in oil drilling and development operations in the South American country is unprecedented.

Department of Energy head Mark Bynoe AP that the country has never seen such “interest in deep and ultradeep concessions” and is stepping up its efforts to promote activity.

Repsol of Spain, Tullow Oil of the United Kingdom and CGX Energy of Canada will drill four separate offshore wells in the Stabroek Block in coming weeks. Exxon Mobil says it has made 13 discoveries in the block since 2015 and will begin producing up to 120,000 barrels of oil per day by early 2020.

MEXICO Mexico Charges Former Oil Official With Bribery In Anticorruption Drive (New York Times, Kirk Semple and Azam Ahmed, 28.May.2019) — The administration of President Andrés Manuel López Obrador of Mexico has launched its first major anticorruption prosecution, delivering on a central campaign promise by taking aim at corruption inside the ailing state-owned oil company.

Bribery and tax fraud charges have been filed against Emilio Lozoya Austin, the former head of the state-run oil company Pemex who was a top ally of the former president, Enrique Peña Nieto, officials said Tuesday.

Mr. Lozoya is accused of receiving bribes in connection with the oil company’s purchase of a fertilizer plant, the officials said.

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PERU YPFB Plans To Open An Office In Peru Soon (Energy Analytics Institute, Ian Silverman, 30.May.2019) — Bolivia’s Yacimientos Petrolíferos Fiscales Bolivianos eyes opening an office soon in neighboring Peru, reported online media Correo, citing YPFB Vice Minister of Planning and Development Carlos Quispe. “We already have offices in Argentina and Brazil and one is being opened in Paraguay and we are working to open a YPFB office in Peru,” Quispe said.

from reaching Venezuela, Nicolas Maduro said in a televised speech.

“Last week, sabotage was committed against ten tankers [with gasoline] to prevent them from reaching the Venezuelan coast,” Russian news outlet Sputnik quoted Maduro as saying.

INT’L Cameron LNG Ships Out First Commissioning Cargo From LNG Plant (Sempra, 31.May.2019) — Sempra LNG, a subsidiary of Sempra Energy, announced that Cameron LNG has shipped the first commissioning cargo of liquefied natural gas (LNG) from the first liquefaction train of the export project in Hackberry, La. “This achievement brings Cameron LNG, one of Sempra’s five strategically located LNG infrastructure projects, one step closer to commercial operations,” said Carlos Ruiz Sacristán, chairman and CEO of Sempra North American Infrastructure. “Seeing the first tanker depart loaded with U.S. LNG produced at this world-class facility is significant for our company.”

Commissioning cargos are a critical step in the start-up process and support stabilizing production and performance testing. Commercial operations from the facility will begin after Cameron LNG receives authorization from the Federal Energy Regulatory Commission (FERC), which is expected in mid-2019.

VENEZUELA Tanker Sabotage (Oilprice.com, Tsvetana Paraskova, 28.May.2019) — Tankers carrying gasoline and ships transporting food for Venezuela were sabotaged last week to prevent them

More than 72 million hours were spent safely constructing the Cameron LNG export project to date, with nearly 11,000 workers supporting peak construction.

Phase 1 of the Cameron LNG export project includes the first three liquefaction trains that will enable the export of approximately 12 million tonnes per annum (Mtpa) of LNG, or approximately 1.7 billion cubic feet per day.

Cameron LNG is jointly owned by affiliates of Sempra LNG, Total, Mitsui & Co., Ltd., and Japan LNG Investment, LLC, a company jointly owned by Mitsubishi Corporation and

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Nippon Yusen Kabushiki Kaisha (NYK). Sempra Energy indirectly owns 50.2% of Cameron LNG.

term Brent oil price of US$58.12/bbl implies an attractive price for Canadian Natural Resources.”

Cameron LNG Phase 1 is one of five LNG export projects Sempra Energy is developing in North America: Cameron LNG Phase 2, previously authorized by FERC, encompasses up to two additional liquefaction trains and up to two additional LNG storage tanks; Port Arthur LNG in Texas, which recently was approved by FERC; and Energía Costa Azul LNG Phase 1 and Phase 2 in Mexico.

“Another metric that proves the attractive valuation is consideration per flowing barrel. C$29,425/bbl (US$21,824/bbl) for this deal is well below other heavy oil and oil sands deals done in the past five years.”

Development of Sempra Energy’s LNG export projects is contingent upon obtaining binding customer commitments, completing the required commercial agreements, securing all necessary permits, obtaining financing, other factors, and reaching final investment decisions. In addition, the ability to successfully complete construction projects, such as the Cameron LNG facility, is subject to a number of risks and uncertainties.

Sempra LNG develops, builds and invests in natural gas liquefaction facilities and is pursuing the development of five strategically located LNG projects in North America with a goal of delivering 45 Mtpa of clean natural gas to the largest world markets, which would make Sempra Energy one of North America’s largest developers of LNGexport facilities.

CNR Snaps Up Devon’s Canada Assets In US$2.8 Billion Deal (WoodMac, 29.May.2019) — Canadian Natural Resources today announced a C$3.8 billion (US$2.8 billion) acquisition of Devon Energy’s Canadian assets, marking the company’s seventh major acquisition since 2014.

Taking into account the subsequent corporate effects of the deal, Wood Mackenzie has valued the assets at US$3.7 billion.

The assets include the 108,000 barrels of oil per day (bbl/d) Jackfish oil sands project, which comprises about 88% of the valuation. The remainder includes primary heavy oil production of 20,000 bbl/d in Alberta, the undeveloped Pike oil sands lease, and Devon Energy’s Horn River and Liard positions.

Devon Energy previously telegraphed its exit process on 19 February, to focus on its US assets. Canadian Natural Resources was amongst the short list of potential buyers.

The company acquired Devon Energy’s Canadian conventional assets in 2014 for C$3.1 billion (US$2.8 billion) and added other gas-weighted conventional properties from Apache and EOG that same year.

Mr Kallir said: “Since 2014, the focus has been heavy oil.

The March 2017 US$9.8 billion acquisition into the Athabasca Oil Sands Project from Shell and Marathon, as well as the September 2017 US$786 million buy of Cenvovus’ Pelican Lake asset, has proved the company’s commitment to the Canadian heavy oil theme.”

“Canadian Natural Resources is Canada’s largest producer, which has come from a mix of organic growth and opportunistic acquisitions. Pro forma production will be 1.198 billion barrels of oil equivalent per day. In context, this is slightly less than all of India, and more than Colombia.

“The company is also the 25th largest producer in the world. When you remove national oil corporations, it is the eighth largest, behind only the Majors and ConocoPhillips. In comparison, Devon will drop from 49th to 56th.

“This continues the trend of Canadian-domiciled consolidation that we’ve seen since 2016. In 2020, the oil sands will produce 3.3 million bbl/d and just four companies now account for 85% of that volume. Those companies operate an even larger share – close to 95%.”

Stephen Kallir, senior analyst at Wood Mackenzie, said: “Our valuation of the deal increases substantially once the corporate effects are accounted for. The estimated long-

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