LatAmNRG Prospector: Week 24 2019

LATAMNRG PROSPECTOR VOL 24 2019

Eco Reports Mobilization Of Stena Forth Drillship To Orinduik Block

Argentina Eyes Exporting Oil In 2020, Lopetegui Says

IEnova Reports Mechanical Completion Of Sur de Texas-Tuxpan Pipeline

ENERGY ANALYTICS INSTITUTE | LATAMNRG PROSPECTOR | HOUSTON • CARACAS

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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ARGENTINA Argentina Eyes Exporting Oil In 2020, Lopetegui Says (Energy Analytics Institute, Aaron Simonsky, 14.Jun.2019) — Argentina’s Energy Secretariat Gustavo Lopetegui highlighted investments announced by Exxon Mobil destined for the massive development the Bajo del Choique – La Invernada block during the 6th Vaca Muerta Executive Board meeting that took place 14 June in Neuquén.

“There are already four companies with scalable projects related to the production of oil, which will allow us to become frequent exporters of crude oil during the coming year,” reported Argentina’s Energy Secretariat in an official statement, citing Lopetegui.

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Related Story: Sixth Vaca Muerta Executive Board Meeting In Neuquén Argentina is working to simplify the export process for oil companies to the extent that the production surplus is permanent and predictable, Lopetegui said. Additionally, during the first half of July a tender will be launched for the construction of a new natural gas pipeline that will increase Vaca Muerta gas evacuation capacity, he said.

“It’s been 30 years since a gas pipeline was built in Argentina. Our goal is to award it in October and have it available for the winter of 2021,” Lopetegui said. “This will allow Argentina to substitute imports of liquefied natural gas (LNG), while increasing exports.”

In terms of the growth potential of Vaca Muerta, the Energy Secretariat said the availability of competitive hydrocarbons allows Argentina to think about growth of other industries such as petrochemicals and other intensive energy user industries.

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ARG CONT’D Argentina And Uruguay To Advance Salto Grande Project (Energy Analytics Institute, Aaron Simonsky, 14.Jun.2019) — The first phase of the joint development plan between Argentina and Uruguay to renovate the Salto Grande Binational Hydroelectric Complex will move forward with financing of $80 million from an Inter-American Development Bank (IDB) loan, Argentina’s Energy Secretariat said 14 June in an official statement.

The project will be implemented in three phases: the initial will be developed from 2019-2023 with financing from the $80 million IDB loan ($40 million for Argentina, and $40 million for Uruguay); while the second and last phases, which will last until 2049, will be developed from year 5 to year 30 with financing to be defined.

The modernization of the Salto Grande hydroelectric complex consists of a 30-year strategic plan to maintain and extend its useful life, production capacity, efficiency and safety with aim to guarantee efficiency of the interconnection between Argentina and Uruguay. The connection benefits millions of users by providing them with renewable energy, quality service and an efficient cost, the Energy Secretariat said.

PROJECT SCOPE The scope of the renovation consist of the following: — modernization of the turbine speed regulators; — renovation of the hydro-mechanical landfill systems and the structural reinforcement of the dump hatches; — renovation of the complex’s lifting systems; — modernization of auxiliary electrical systems and control systems; — replacement of the main transformers and communication, control, protection and reactive compensation systems of the 500 kv transmission quadrilateral, among other upgrades.

The Salto Grande Technical Commission is a bi-national entity created to take advantage of the rapids of the Uruguay River in the area of Salto Grande. It consists of two powerhouses, one on the Argentine side and another on the Uruguayan side of the border, with a landfill in the middle of both. Each machine house contains 7 generating units, with a total of 14 units, 1,890 megawatts of total installed capacity and an average annual generation capacity of 8,546 GWh. The Salto Grande Technical Commission is a key player in the frequency regulation of the interconnected system of Argentina and Uruguay and the administrator of 500 kv, which allows the flow of energy between the different energy markets and to the consumption centers of up to 2,000 MVA. The entity supplies almost 50% of the electric power consumed in Uruguay and 3% of the energy demanded in Argentina, the Energy Secretariat said.

Sixth Vaca Muerta Executive Board Meeting In Neuquén (Energy Analytics Institute, Aaron Simonsky, 14.Jun.2019) — The 6th Vaca Muerta Executive Board meeting took place 14 June in Neuquén in the presence of the Neuquén Governor Omar Gutiérrez and Argentina’s Energy Secretariat Gustavo Lopetegui.

During the meetings, several sub-working table groups comprised of representatives of the national and provincial governments as well as companies and unions reviewed progress made on issues, reported Argentina’s Energy Secretariat in an official statement.

The working table groups were comprised of the following: upstream and midstream; infrastructure; value chain and supplier development; intensive use of gas for development of the economy; productivity, training and job security; social and environmental aspects; and refining and marketing of liquid fuels.

Within the value-chain and supplier development table, discussions centered on implementation of electronic credit invoice systems for the sector, which will allow small-to-medium enterprise suppliers to have more accessible financing options.

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Another table discussed issues related to the competitiveness of the productive sector with incorporation of emerging technologies such as the use of big data, 3D printing, artificial intelligence and design, among others, the Energy Secretariat said.

“ExxonMobil has been an active player in the Neuquén basin since 2010 and in Argentina for more than 100 years,” said Daniel De Nigris, ExxonMobil’s lead country manager. “We will continue to work closely with the government and our partners and will use our expertise and capabilities to bring jobs and other benefits to local communities.”

In 2015, the Neuquén provincial government granted ExxonMobil a 35-year concession in Vaca Muerta for the Bajo del Choique-La Invernada block. ExxonMobil began an exploration pilot program the following year and now has three producing wells, and three additional wells moving into production. A production facility, gas pipeline and oil terminal have been in operation since 2017 and were recently connected to the Pacific Gas pipeline by a 16-inch pipeline.

ExxonMobil Moving Forward With Vaca Muerta Expansion (Exxon, 13.Jun.2019) — ExxonMobil is proceeding with a long-term oil development in Argentina’s Bajo del Choique-La Invernada block. The project is expected to produce up to 55,000 oil-equivalent barrels per day within five years and will include 90 wells, a central production facility and export infrastructure connected to the Oldeval pipeline and refineries.

“We are encouraged by the excellent results of our Neuquén pilot project and look forward to increased production through this significant expansion,” said Staale Gjervik, senior vice president of unconventional at ExxonMobil. “The reforms implemented by the federal and provincial governments have been critically important to enabling the development of the Vaca Muerta basin as one of the country’s main energy resources.”

If the expansion is successful, ExxonMobil could invest in a second phase, which would produce up to 75,000 oilequivalent barrels per day. Timing of the second phase depends on initial project performance and business and market conditions, among other factors.

Bajo del Choique-La Invernada is a 99,000-acre block, located about 58 miles northwest of Añelo and 114 miles northwest of Neuquén city. ExxonMobil Exploration Argentina is operator and holds 90 percent interest in partnership with Gas y Petróleo del Neuquén, which holds 10 percent interest. ExxonMobil Exploration Argentina is leading its unconventional operations in the Neuquén basin under a joint venture agreement with Qatar Petroleum, which has 30 percent interest in ExxonMobil’s upstream affiliates in Argentina.

Power Failure Cuts Power To All Of Argentina And Uruguay, Supplier Says (BBC, 16.Jun.2019) — A massive electrical failure has left all of Argentina and Uruguay without power, according to a major Argentine electricity provider.

Reports said the power cut had also affected parts of Brazil and Paraguay.

“A massive failure in the electrical interconnection system left all of Argentina and Uruguay without power,” electricity supplier company Edesur said in a tweet.

Alejandra Martinez, a spokeswoman for the company, described the power cut as unprecedented.

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BRAZIL Libra Consortium Takes FDI On Mero-2 FPSO In Brazil’s Pre-Salt

Production worldwide is on track to reach more than 900,000 boe/d by 2020 from already discovered, established reservoirs.

Editors Notes: — Shell Brasil Petroleo Ltda. (Shell) is a subsidiary of Royal Dutch Shell plc.

— Mero field is part of the Libra Production Sharing Contract (PSC), signed in Dec 2013. Libra is located in the Santos basin, 170 km south of Rio de Janeiro in 2100 m of water.

— The Libra consortium, which operates production on the Libra block, is led by Petrobras – with 40% stake – in partnership with Shell (20%); Total (20%); and the Chinese companies CNPC (10%) and CNOOC Limited (10%). The consortium also has the participation of the state-owned enterprise Pré-Sal Petróleo – PPSA, which operates as contract manager.

Petrobras Announces Secondary Equity Offering By Caixa Econômica Federal (Shell, 11.Jun.2019) — Libra Consortium announced the final investment decision to contract the Mero-2 floating production, storage and offloading (FPSO) vessel to be deployed at the Mero field offshore Santos Basin in Brazil.

The FPSO will have a capacity to process up to 180,000 barrels of oil per day. The consortium plans four new production systems to be deployed in the Mero field.

Mero-2 is the second, with first oil expected in 2022.

“Shell is the largest foreign producer in Brazil, which has become a heartland for us. Mero-2 is the latest in a series of FPSOs that will come online,” said Andy Brown, Upstream Director, Royal Dutch Shell. “From production to development, appraisal and exploration, we have a full funnel of long-life, resilient growth opportunities in the country, which is home to some of the best deep-water basins in the world.”

As one of Shell’s Core Upstream themes, Deep Water is set to generate robust cash flow for decades to come.

Shell’s global deep-water business has a strong funnel of development and exploration opportunities in Brazil, the US, Mexico, Nigeria, Malaysia, Mauritania, and the Western Black Sea.

(Petrobras, 10.Jun.2019) — Petrobras announces that Caixa Econômica Federal (the “Selling Shareholder”), has commenced an offering of 241,340,371 common shares, without par value, of Petrobras, including Common Shares represented by American depositary shares, each of which represents two Common Shares (the “Common ADSs”), in a global offering that consists of (i) an international offering of Common Shares and Common ADSs in the United States and other countries outside Brazil, which will be registered with the U.S. Securities and Exchange Commission,and (ii) a concurrent public offering of Common Shares in Brazil. The global offeringis subject to market and other customary conditions.

The global offering is expected to price on or about June 25, 2019.

Caixa Ecônomica Federal, UBS Securities LLC, Morgan Stanley & Co. LLC and BofA Securities, Inc. are acting as global coordinators and joint bookrunners for the international offering. XP Securities, LLC is acting as joint bookrunner for the international offering.

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Caixa Ecônomica Federal, UBS Brasil Corretora de Câmbio, Títulos e Valores Mobiliários S.A., Banco Morgan Stanley S.A., Bank of America Merrill Lynch Banco Múltiplo S.A.and XP Investimentos Corretora de Câmbio, Títulos e Valores Mobiliários S.A. are acting as Brazilian underwriters in the Brazilian offering.

Brazil Cities Paralysed As Bolsonaro Faces Strike

“To give an example, when the price of gas was at its highest value in 2013-2014, Brazil, due to the size of its market and its accesses, paid Bolivia around $11/MMbtu, while LNG shipments were between $13/MMbtu and $15/Mmbtu,” said Cronembold. “Paraguay at the same time paid over $30/MMbtu precisely because of the size of its market,” she added.

COLOMBIA

(AFP, 14.Jun.2019) — A nationwide strike called by Brazil’s trade unions disrupted public transport and triggered road blocks in parts of the country Friday, ahead of protests against far-right President Jair Bolsonaro’s pension reform.

ANH Reveals Details Of Initial 11 PPAA Proposals

Hours before the opening match of the Copa America in Sao Paulo, some metro lines in the country’s biggest city were paralyzed as professors and students also prepared to take to the streets over the government’s planned education spending cuts.

(ANH Colombia, 14.Jun.2019) — Colombia’s National Hydrocarbons Agency (ANH) reveals the initial proposals of the seven individual companies and the consortium that start the bid to stay with 11 area in the first cut of the Permanent Process of Area Allocation (PPAA) of 2019.

BOLIVIA

After the process of validation of offers made by independent auditor, Gestión y Auditoría Especializada S.A.S., the ANH publishes the list of best initial proposals for the 11 areas that remain in dispute in the first cut (auction) of the Permanent Process of Area Allocation (PPAA) of 2019.

CBHE President: Export Volumes Don’t Determine Profitability (Energy Analytics Institute, Aaron Simonsky, 16.Jun.2019) — An agreement signed between Bolivia and Paraguay, to carry out a study aimed at building a binational gas pipeline, is important and the volume exported doesn’t determine the profitability of a business, Bolivia’s Information Agency (ABI) reported, citing Bolivia’s Hydrocarbons and Energy Chamber (CBHE) President Claudia Cronembold.

Her statements came in response to doubts raised by Bolivia’s former Hydrocarbons Minister Álvaro Ríos, who considered Paraguay a very small market for high expectations.

According to Luis Miguel Morelli, President of the ANH, “With the publication of the initial proposals for the 11 areas that remain in competition, the bid for the first blocks that the country will assign in the last five years remains strong. The second round of this bid will continue on June 26, when the Counter-Offer Hearing is held. On that day, any of the 22 qualified investors will have the possibility to improve the initial proposal of any of the 11 areas that are of interest to them. As president of the ANH, but above all as a Colombian, I expect a large participation of counter-offers, because with each proposal received the investment grows and the country as a whole benefits.”

Success of the Permanent Process of Area Allocation (PPAA) One fact to highlight within the new PPAA, which was launched last February by the ANH, is the possibility for investors to propose areas that are of interest to them and that have not been offered by the Agency.

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“Among the 22 investors authorized for the first cut of the PPAA, the ANH received 38 requests for the incorporation of areas. These proposed areas will be studied by the Agency, and those that comply will be incorporated into the Land Map as available areas and may be part of the blocks that are offered in the cuts (auctions) planned for the rest of 2019. These areas will be published during the month of August,” ANH President Luis Miguel Morelli.

Valley Basin of Colombia. Given the magnitude of this new discovery, Canacol is altering its previously announced 2019 drilling program and has spud the Ocarina 1 well in order to prove up its reserve potential.

Additionally, Promigas S.A. has received all regulatory approvals, including approvals of the two modifications to the Jobo to Majaguas pipeline segment, required to complete the construction of the pipeline expansion.

Canacol estimates that the 80 million cubic feet (MMcf/d) of new pipeline capacity will be on stream by mid-July 2019, lifting Canacol’s gas sales to approximately 215 MMcf/d.

Acordeon 1 Tests 33 MMcf/d The Acordeon 1 exploration well is located approximately 4 kilometers southeast of Canacol’s Clarinete gas field on the company’s 100% operated working interest VIM 5 Exploration and Production Contract.

Counter-offer Hearing on June 26 The counteroffers received on June 26 will be validated by the firm Gestión y Audiencia Especializada S.A.S., independent auditor, and on July 8, the National Hydrocarbons Agency will publish the definitive list of the most favorable counter offer for the areas that received proposals. On July 9, only the initial proponents of each area in dispute may exercise the option to improve the respective counteroffer. Finally, on July 16, after validation of the independent audit, the ANH will publish through an administrative act the award of the 11 areas in competition to the best offer reached for each of them.

As of July 17, the new contracts will be subscribed.

Canacol’s Acordeon 1 Exploration Well Tests At 33 MMcf/d

Using the Pioneer 53 drilling rig the Acordeon 1 well was spud on 11 May and reached a total depth of 8,500 feet measured depth in 14 days. The well encountered 420 feet of gross gas pay between 7,646 and 8,066 feet true vertical depth (ft TVD) with average porosity of 18% within the primary Cienaga de Oro (CDO) sandstone reservoir target. The interval between 7,706 and 7,862 ft TVD was production tested at multiple rates for a 42-hour period. This interval flowed at a final rate of 33 MMcf/d at a flowing tubing head pressure of 1476 psi and a choke of 60/64 inch.

The well will be tied into the Jobo production facility via the Pandereta flow line and brought onto permanent production by the end of July 2019.

Canacol Spuds Ocarina 1 Well The Pioneer 53 drilling rig spud the Ocarina 1 appraisal well on June 11, 2019 from the same platform that the Acordeon 1 well was drilled from. Ocarina 1 will test the same CDO reservoir encountered at Acordeon 1 in a downhole location situated approximately 1 kilometer to the southeast and at a structural elevation approximately 400 feet up dip of where the CDO reservoir was encountered at Acordeon 1. Canacol anticipates the Ocarina 1 well will take approximately 5 weeks to drill, complete, and test.

(Canacol, 11.Jun.2019) — Canacol Energy Ltd. released results of the Acordeon 1 exploration well located on its 100% operated VIM 5 block in the Lower Magdalena

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ANH Approves Occidental Farm Out Deal With Amerisur (Amerisur, 11.Jun.2019) — Colombia’s National Hydrocarbon Agency (ANH) granted approval of the farmout agreement with Occidental announced 23 November 2018. The deal relates to four exploration blocks: Putumayo-9, Terecay, Tacacho and Mecaya in the Putumayo region, southern Colombia.

As previously stated, Occidental acquires a 50% interest in each block and in consideration will fund a $93 million exploration and appraisal programme between 2019-21.

Funding includes 85% of the 1,068km 2D seismic equivalent and 100% of the planned four well drilling programme.

Amerisur remains operator of the blocks that cover 1.4 million gross acres and hold 448 million barrels of oil (MMBO) mid-case gross prospective resources, based on management estimates.

John Wardle, CEO of Amerisur, said: “Work has started to initiate seismic surveys and drilling on the acreage later this year. Production optimisation at Platanillo continues to deliver with production now over 4,500 BOPD from the field. On completion at Sol-1 the drilling rig on CPO-5 will return to Indico for appraisal drilling that has the potential to increase reserves and production from the field.”

Parex Announces Discovery At Andina Norte-1 Well, Test Of 2,900 B/D

Platanillo (WI 100%): Production Optimisation The company recently completed the Platanillo-26 infill well targeting an undrained area of the Platanillo field.

The well reached the target depth of 9,350ft and encountered 46ft net pay in the upper and lower U sands.

The well is now onstream and producing around 710 BOPD. Production optimisation on the field continues with a sidetrack well at Platanillo-22.

Production Update: Current Production over 6,800 BOPD Year-to-date production to the end of May 2019 averaged around 5,300 BOPD. Current group working interest production is now over 6,800 BOPD following the successful infill well at Platanillo and continued stable production from CPO-5. FY19 production guidance is maintained at 5,000 – 6,000 BOPD and does not include any contribution from exploration drilling.

CPO-5 (WI 30%): Sol-1 Exploration Well Operations on the Sol-1 exploration well continue and results will be announced shortly. After drilling operations are completed at Sol-1 the rig will move to drill the Indico2 appraisal well.

(Parex, 10.Jun.2019) — Parex Resources Inc. highlighted testing of the Capachos Block Andina Norte-1 well in the Guadalupe Formation.

Capachos (WI Parex 50%, Ecopetrol S.A 50%): Parex, as the operator drilled the Andina Norte-1 exploration well to a total depth of 18,852 feet and encountered oil bearing reservoirs in the Une and Guadalupe formations.

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The primary objective, the Guadalupe reservoir was completed following a cement remediation and production testing commenced on June 5, 2019. A total of 9,398 barrels of 40 API oil, 488 barrels of water and 14 million cubic feet (“MMCF”) of natural gas have been recovered to date. Over a 81 hour period the average production test rate for the well was 2,785 barrels of oil per day, 4.3 million cubic feet per day (“MMCFD”) of natural gas under natural flowing conditions with a wellhead pressure of 1,420 psi. The facility restricted measured rate during the last 12 hours of testing has been 2,892 BOPD and 4.6 MMCFD of gas with a watercut of 2%. The water production from the well is believed to be remaining completion fluids as less than one third of the completion fluid has been recovered to date. Bottom hole pressure recorders in the well indicate a drawdown of approximately 15% and a pressure buildup and analysis will be conducted at the end of the test. Parex expects to produce the Guadalupe Formation in the Andina Norte-1 well.

reservoir will be produced later along with the Une reservoir discovered in the Andina field.

The drilling rig will be skidded on the same pad to drill the Andina-3 appraisal well.

Currently the Capachos block gross production is restricted at approximately 5,100 bopd (net 2,550 bopd).

Production: Parex’ Q2 2019 average production is estimated to exceed 52,000 barrels of oil equivalent per day (“boe/d”) compared to the Company’s Q2 2018 average quarterly production of 42,052 boe/d.

Share Repurchases: On December 21, 2018 Parex began a normal course issuer bid (“NCIB”) with the intent to repurchase for cancellation approximately 15 million shares (10% of public float). As at June 7, 2019 the Company has repurchased 10,454,355 shares at an average cost of C$19.90 per share for a total of C$208 million. The total cost of this program will be funded from existing working capital and/or free cash flow.

GUYANA Eco Reports Mobilization Of Stena Forth Drillship To Orinduik Block

The Andina Norte-1 well also evaluated a secondary objective, the Une Formation. The Une was tested over a 63 hour period under natural flowing conditions and recovered a total of 1,631 Barrels of 37 API Oil, 1,173 barrels of water and 3.9 MMCF of natural gas. Average production during the test was 621 barrels of oil per day, 446 barrels of water per day and 1.5 million cubic feet of gas per day. Parex believes remediation of the Une Formation would be required to isolate the water production. As the Une Formation was a secondary well objective, this zone was suspended to allow testing of the up-hole Guadalupe Formation. Parex expects that the Une

(Eco Atlantic, 10.Jun.2019) — Eco (Atlantic) Oil & Gas Ltd. announced mobilisation of the Stena Forth drillship which is now en route to Guyana from West Africa where it has been operating for Tullow. The drillship is expected to reach Eco’s Orinduik Block on or around 24 June 2019 and spud the Jethro Lobe prospect offshore Guyana on or around 26 June 2019. A further announcement will be released confirming the spud date of the first well.

As announced on 20 February 2019, the Stena Forth was actively drilling for Tullow on an existing contract immediately prior to its transition to Guyana and is fully crewed with experienced personnel. This will allow a smooth transition and less rig-up and training time.

The Stena Forth is being mobilized for Eco and its partners, Tullow Guyana B.V. and Total EP Guyana BV, for a committed two well campaign. The first exploration well

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is to be drilled on the Jethro Lobe prospect, as announced on 5 December 2018. The second well is the Joe prospect, a few kilometres away. The two wells are not contingent and will be drilled immediately one after the other.

Following the Company’s placing and subscription completed on 10 April 2019, the Company has a cash balance today of approximately US$35 million and is funded for its share of up to a further six potential new exploration or development wells in addition to the Jethro Lobe and Joe wells.

Colin Kinley, Chief Operating Officer commented: “The Mobilization of the Stena Forth is the final stage of a long, conservative and quality-controlled process to plan and drill the initial two wells on Orinduik. The Block licence was applied for in March 2014 and was awarded to Eco and Tullow in January 2016 with a first well commitment for 2021/2022. With 13 discoveries, so far totalling over 5.5bboe on Exxon’s adjacent Stabroek Block in the past three years, and with our strong commitment to Guyana, the Joint Venture partners have since expedited and significantly expanded their work programme far beyond and ahead of the committed requirements.

We understand this play well and we are confident in our interpretation as supported by a relatively high Chance of Success, estimated at over 40% for both the Jethro and Joe prospect. Whatever the outcome of the two planned wells, we have enough capital for a multi well drilling campaign.

We know that there are hydrocarbons on the Block, and good quality sands like those on Stabroek, therefore the main risks are the quality of the seal and the presence of a trap. Thanks to our successful US$17 million placement and subscription in April, we have a cash balance today of over US$35 million so we are in the fortunate position of being fully funded to drill up to six additional wells on Orinduik, across the fifteen identified prospects.

The two wells will test both the Upper and Lower Tertiary aged turbidites, while Jethro will also be drilled down to the Cretaceous section. Our focus is on near-term oil production and we have ordered our exploration programme around risking, development and deliverability of oil for the people of Guyana and our stakeholders,” he concluded.

Europe’s Norway To Fund 30 MW Solar-Plus-Storage (Renewables Now, 10.Jun.2019) — Norway, through its ministry of climate, has approved the transfer of funds for the construction of 30 megawatts of solar photovoltaic (PV) farms with energy storage in Guyana.

According to the Guyanese department of public information, Norway will release GYD 16 billion (USD 77m/EUR 68m) to bankroll the initiative.

JAMAICA Our team, together with Tullow and Total, have comprehensively interpreted the nearly 3,000 km2 of 3D seismic data we shot over and beyond Orinduik and have selected the first two targets that we feel will allow us to accelerate the Block’s development. With the Stena Forth now mobilizing westwards to Guyana waters, we are on course to drill a pair of potentially transformational wells for the Company, for the Block partners, and for Guyana.

Ad Hoc PDVSA Board Suggest Jamaica Suspending Petrojam Takeover (Energy Analytics Institute, Piero Stewart, 16.Jun.2019) — The ad hoc administrative board of Petróleos de Venezuela (PDVSA) appointed by interim Venezuelan president Juan Guaidó requested that the government of

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Jamaica suspend the “illegal expropriation” of the shares of PDVSA Caribe in Petrojam, approved by the Jamaican parliament in February 2019, online media El Nacional reported 16 June.

MEXICO IEnova Reports Mechanical Completion Of Sur de TexasTuxpan Pipeline (IENova, 11.Jun.2019) — Infraestructura Marina del Golfo, a joint venture between TC Energy Corporation and Infraestructura Energética Nova (IEnova), announced its Sur de Texas-Tuxpan Pipeline project in northeastern Mexico has achieved mechanical completion. Sur de Texas-Tuxpan will provide capacity to transport 2.6 billion cubic feet of natural gas per day.

The project represents approximately US$2.5 billion in infrastructure investment to provide much-needed natural gas to power plants, industrial and urban centers to increase the economic development throughout the country, in line with Mexico’s government objectives.

natural gas. It will supply cleaner and more efficient fuel for power generation and industry development.

“Mexico benefits from a geographic location that allows the country to have access to some of the lowest natural gas prices in the world. The expansion of its pipeline network and the supply provided by Sur de Texas-Tuxpan will contribute to increasing Mexico’s competitiveness.

We are proud to build and deliver the critical infrastructure needed to help Mexico make this a reality,” said Robert Jones, president, TC Energía. “The pipeline represents a key piece for the country’s energy security as it will be able to supply natural gas through its interconnections to central and southern regions of Mexico,” Jones said.

The 772 kilometres (480 miles) of 42-inch diameter pipeline runs offshore from the border with the United States, near the city of Brownsville, Texas to Altamira, near the city of Tampico in the state of Tamaulipas, where it continues towards Tuxpan in the state of Veracruz. The inland portion of the pipeline will supply Mexico’s natural gas needs by through TC Energía’s Tamazunchale and Tula pipelines, as well as feed Mexico’s Sistrangas system.

The Sur de Texas-Tuxpan pipeline has been one of the most challenging projects in the world and was the highest single source of foreign direct investment in Mexico in 2017. The project included the construction of the largest compressor station in the country, located in Altamira, Tamaulipas and the creation of 3,000 jobs during its construction phase.

“This important project will ensure the reliable and safe supply of an economic, efficient and environmentally friendly fuel that will promote economic development, job creation and well being for Mexicans. Through the construction of energy infrastructure IEnova confirms its commitment to continuing investing in Mexico,” said Tania Ortiz Mena, CEO of IEnova.

Shell To Invest At Least $397 Million In Deepwater Oil Projects The Sur de Texas-Tuxpan pipeline is expected to deliver a 40-percent increase in Mexico’s current import capacity of

(Reuters, 11.Jun.2019) — Mexico’s independent oil regulator approved deepwater energy exploration plans for five areas operated by Royal Dutch Shell Plc in Mexican waters near the maritime border with the United States.

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The plans commit the Anglo-Dutch oil major to invest at least $397 million over the next four years, but if the drilling proves successful it could grow to some $1.316 billion, according to the regulator, known as the National Hydrocarbons Commission, or CNH. Four of the areas are located in the Perdido Fold Basin, where significant oil and gas activity exists on the U.S. side, as well as one area further south in the Salina Basin.

Oil Regulator Cancels October Tender To Pick Pemex Partners (Reuters, 13.Jun.2019) — Mexico’s oil regulator announced on Thursday the cancellation of October auctions to pick joint-venture partners in seven onshore areas for state oil company Pemex, which is struggling to reverse more than a decade of falling crude output.

The move represents a fresh blow to the flagship energy reforms of Mexico’s previous government that had allowed Pemex to partner with private oil companies for the first time in an effort to boost production.

TRINIDAD Trinidad Moves Past Venezuela To Tap Border Gas (Argus, 11.Jun.2019) — Trinidad and Tobago has cleared Shell to develop the country’s side of a shallow-water natural gas field that straddles the maritime border with Venezuela, prime minister Keith Rowley said.

The move indicates Trinidad’s “impatience” with Venezuela’s delay in agreeing on the development of the Loran-Manatee field that contains an estimated 10 Tcf of gas, the country’s energy ministry tells Argus.

INT’L Poland’s PGNiG And Venture Global LNG To Acquire 1.5 MTPA Of LNG (Venture Global, 12.Jun.2019) — In connection with the state visit of The President of Poland, Andrzej Duda to Washington D.C., the Polish Oil and Gas Company (PGNiG) has signed, in the Eisenhower Executive Office Building of the White House, an agreement with Venture Global LNG to purchase an additional 1.5 million tonnes per annum (MTPA) of liquefied natural gas (LNG). United States Secretary of Energy, Rick Perry and Secretary of State for Strategic Energy Infrastructure of Poland, Piotr Naimski attended the signing ceremony.

Under this agreement, the volume of LNG from the Plaquemines terminal will increase from 1.0 to 2.5 million tonnes per year (from 1.35 to 3.38 bcm of natural gas after regasification).

Deliveries will commence on the commercial operation date, currently expected in 2023. This new amendment raises PGNiG’s total commitment with Venture Global LNG projects to 3.5 MTPA (4.73 bcm), sourced from Calcasieu Pass (1 MTPA) and Plaquemines LNG (2.5 MTPA).

Schneider Electric Launches 1st U.S. Smart Factory (Schneider, 13.Jun.2019) — Schneider Electric launched the first Smart Factory in the U.S. to demonstrate in real time how its EcoStruxure architecture and related suite of offerings can help increase operational efficiency and reduce costs for its customers.

Embracing cutting edge technology and the benefits of the Industrial Internet of Things (IIoT) to drive process optimization, the facility has opened its doors to share their IIoT knowledge and smart manufacturing technology best practices with customers and partners across industries.

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Renewables Can Benefit The Upstream Business: WoodMac (WoodMac, 12.Jun.2019) — One of the hottest topics at APPEA was how to use renewables to benefit an upstream business, rather than replace it.

At APPEA, Darwin LNG operator ConocoPhillips said it would be the first LNG facility globally to use batteries to run plant turbines.

Similarly, Woodside is installing a 1 MWh lithium-ion battery on its Goodwyn A platform offshore the North West Shelf (NWS) to reduce unused back-up generation capacity. It is also investigating using industrial-scale solar to power the NWS LNG plant.

This became a common theme throughout the conference – using new technologies to not only be greener, but also release valuable fuel gas for incremental sales volumes.

FMC Corp. Realigns Leadership Structure In The Americas (FMC, 11.Jun.2019) — FMC Corporation announced that it is realigning the leadership structure for its North America and Latin America regions.

including soybeans, especially in the U.S., Brazil and Argentina.”

Pereira is a highly respected crop protection industry veteran with broad commercial experience. He began his career at FMC in 1995 and has held a variety of marketing, business development and general management roles in Latin America and at the global level. He was appointed an FMC vice president in 2017.

“I want to acknowledge Amy O’Shea’s leadership of our North America region for the last three years and her many contributions to FMC. She has helped grow our business during her tenure and was instrumental in successfully integrating the U.S. and Canada commercial teams as part of the DuPont crop protection transaction.

We wish her continued success in her career,” Douglas said.

FMC has also announced that Marcelo Magurno, Brazil commercial director, north region, has been appointed business director, Brazil. His new, expanded responsibilities include oversight for all commercial strategies and resources in Brazil, including sales and marketing. Magurno brings more than 25 years of crop protection industry experience to this new role.

The Americas realignment and new executive leadership roles are effective July 1, 2019.

Ronaldo Pereira, president, FMC Latin America, has been appointed president of the company’s new Americas Region, which encompasses the U.S., Canada, Central America and South America.

Pereira will continue to report to Mark Douglas, FMC president and chief operating officer. Due to this leadership realignment, Amy O’Shea, vice president and business director for North America, will leave the organization to pursue other opportunities.

“The Americas Region includes two of FMC’s largest markets, the U.S. and Brazil,” said Douglas. “As our business continues to grow and expand throughout the Americas, there is an increasing need to align and focus our commercial organizations on key countries and customers. Common executive leadership will help drive stronger alignment and account management.” Douglas added, “Furthermore, we are seeing a greater need to align our strategies across certain large-volume crops,

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