LatAmNRG Prospector: Week 25 2019

LATAMNRG PROSPECTOR VOL 25 2019

Imports Of Recycled Waste Reached $3.6 Million In 2018

Two Decades Of 21st Century Socialism In Venezuela

Gran Tierra Shuts Production In Putumayo

Quito Gasoline Prices Between $2.98-$3.19 Per Gallon

Petrobras Starts Liquigás Binding Divestment Phase

Ecuador Inaugurates El Inga – Tisaleo 500Kv Line

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

ABOUT US

GRAN TIERRA Gran Tierra Shuts Production In Putumayo (Gran Tierra, 19.Jun.2019) — Gran Tierra Energy Inc. announced an operations update regarding activities and results during second quarter 2019 to date. All dollar amounts are in United States (“U.S.”) dollars unless otherwise indicated. Production amounts are unaudited and on an average working interest before royalties (“WI”) basis unless otherwise indicated.

Key Highlights — The expansions of Acordionero’s central processing and water injection facilities, as well as the installation of gasto-power turbines (“Acordionero Projects”), are mechanically complete with commissioning expected during July 2019, which represents a significant milestone for the Company and its largest oil producing asset

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— Record drilling results achieved in Acordionero: the AC40 and AC-41 wells were drilled in 9.5 and 7.4 days respectively, each a consecutive record short drilling time for the field — Received the Global Environmental License for Acordionero on June 12, 2019 from the Autoridad Nacional de Licencias Ambientales, the Colombian environmental regulator; this license is expected to allow accelerated and optimized full field development of Acordionero — The Company believes the successful drilling and operations activities at both Acordionero and Suroriente to date will support increases in Proved (“1P”) and Probable (“2P”) reserves — Surpassed over six million person-hours without a lost time incident

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— Gran Tierra has preliminarily won two blocks in the recent Agencia Nacional de Hidrocarburos (“ANH”) bid round in Colombia; the Company believes these blocks may be highly prospective; as part of the bidding process, other companies can offer more than Gran Tierra’s proposed work commitment until June 26, 2019 in an attempt to win the blocks, but Gran Tierra has a right of first refusal in respect of such offers since the Company’s initial bid was the highest — Gran Tierra has officially signed contracts for our three exploration blocks in Ecuador; the Company is making progress and plans to drill its first exploration well in Ecuador in late 2019 or early 2020 — New personnel hired to improve operations: a new Vice President of Asset Management and a new Director of Completions both recently joined the Company — Gran Tierra is currently addressing some temporary operational issues which have impacted our production; the Company is taking the necessary steps to get production back on track and believes our oil reserves and values remain intact as these challenges represent deferral of production; the Company does not believe these issues are related to the underlying quality of the assets; further information is provided below: From April 1, 2019 to May 23, 2019, Company production averaged 37,700 barrels of oil per day equivalent (“BOEPD”), and was expected to meet our previously published full year 2019 guidance.

Starting in late May 2019, production decreased as a result of the following: – Acordionero: the Company proactively shut-in two oil producers with high gas-oil ratios (“GOR”); two other oil producers went off-line due to electric submersible pump (“ESP”) failures; total current, temporary impact to production is approximately 4,500 BOEPD – Suroriente and PUT-7: local farmers have set up blockades in the southern Putumayo region to protest against the Colombian national government; these protests are not directed at the oil industry or Gran Tierra; as a result of these blockades, Gran Tierra has had to shut in all production at both of these blocks; total current, temporary impact to production is approximately 4,500 BOEPD

– For second quarter to June 17, 2019 Company production has averaged approximately 36,200 BOEPD; for the five days up to and including June 17, 2019, the Company’s production was approximately 29,000 BOEPD – As a result of these events, Gran Tierra will be revisiting its guidance over the coming months and expects to revise its guidance once the impact of the blockades and the startup of the Acordionero Projects can be fully assessed — Gran Tierra is taking the following mitigation actions to address these temporary operational issues with production: – Acordionero: the planned full commissioning of the Acordionero Projects during July 2019 is expected to allow a rapid increase in water injection from approximately 16,000 barrels of water injected per day (“bwipd”) to 40,000 bwipd and the release three rental facilities which will reduce operating costs; this full implementation of the Acordionero waterflood is forecasted to repressure the reservoir over the next few months, which should reduce the field’s GOR, which in turn would allow the Company to increase oil production rates from several wells and to bring back online those wells which were temporarily shut-in; start-up of the 20 megawatt gas-topower project at the same time is expected to significantly improve power reliability, improve ESP reliability and significantly lower operating costs; all of these activities are expected to restore Acordionero’s production back to levels achieved in first quarter 2019 over the next few months and grow in 2020, despite the recent production decrease – Suroriente and PUT-7: Colombian government authorities are currently addressing farmers’ concerns and expect to restore normal conditions within the next several days; Gran Tierra is working closely with government officials to safely resume operations and production on these two blocks as soon as possible; the Company may continue to have short-term interruptions in the area which are difficult to predict; the Company expects to restore Suroriente’s and PUT-7’s oil production back to normal levels once the blockades are resolved – Costayaco: the Company is currently drilling the CYC-39 infill oil well which is expected to be on production in July 2019; in mid-July 2019, the Company expects to spud the first of two horizontal water injectors (one each for the T Sand and the Caballos Formation) to improve ultimate oil

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recovery; these actions are expected to improve Costayaco’s oil production performance – Ayombero: the Company expects to contract a snubbing unit (equipment capable of working with high pressures) to retrieve parted coiled tubing in both the AY-2 and 3 wells in order to continue with completion operations; the AY-1 well was recently successfully cleaned out and reperforated across the entire Galembo formation and is expected to be placed on long-term production test; we are very encouraged by the three Ayombero wells drilled to date which have confirmed similar lithologies, oil saturations and over-pressure in the Galembo Member of the La Luna Carbonate reservoir, suggesting reservoir and structural continuity; the Company’s estimates of oil in place and prospective resources are unchanged by these short-term issues “With the receipt of the Acordionero Global Environmental License and the planned commissioning of the Acordionero Projects, as well as the lifting of the blockades in the southern Putumayo, we believe we are capable of restoring our production back up to over 40,000 BOEPD. The timing of this forecasted production increase depends on the water injection response at Acordionero and the impacts of community blockades in the southern Putumayo. We believe the current production decrease is a deferral, not a loss of reserves, and that we are taking the necessary steps to get production back on track. Overall, while the delay in the Acordionero Projects has deferred production in the short term, we are very encouraged by the continuity and quality of the sands in Acordionero and the expected commissioning of these projects in July 2019 is a major milestone. Based on the drilling to date in Acordionero and the commissioning of the Acordionero Projects, we expect to increase the original oil in place and recovery factor which will increase both the 1P and 2P reserves in Acordionero.” — Gran Tierra President and Chief Executive Officer Gary Guidry

— This exploration commitment well was part of the Petroamerica acquisition in early 2016 and Gran Tierra was required to drill it in under the terms of the ANH contract — The one positive result is that Prosperidad-1 was successfully drilled to a depth of approximately 17,000 feet, which was the deepest well ever drilled by the Company and demonstrated the technical skills of Gran Tierra’s drilling team Putumayo Basin: Pomorroso, Almendrillo and Pecari Wells, PUT-7 Block — All three exploration wells have found producible oil in multiple zones (U Sand, A-Limestone and N Sand), at rates ranging from 100 to 300 BOEPD in each zone — We are encouraged about encountering oil in multiple wells and are currently determining the optimal completion and stimulation design; a go-forward plan is expected to be determined during July 2019 — The Company is currently working to seek approval to commingle several productive zones within a single wellbore (a production method used at the Costayaco and Moqueta fields) to further improve the ultimate recovery and enhance the economics of the wells — Currently, activity is ceased as a result of the blockades referenced above.

Exploration Update (All Projects 100% WI) Llanos Basin: Prosperidad-1 Well, El Porton Block — While sufficient oil shows and gas log response warranted testing the lower Gacheta Formation, only formation water was recovered; as a result Gran Tierra plans to abandon this well

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ARGENTINA “We Don’t Know Anything Yet” About The Power Outage, Lopetegui Says (Energy Analytics Institute, Aaron Simonsky, 17.Jun.2019) — Regarding a power outage that affected Argentina and Uruguay on 16 June, Argentina’s Energy Secretariat Gustavo Lopetegui said: “We don’t know anything yet.”

An investigation to take at least 15 days will assist Argentine authorities to find the causes of the blackout, reported online media La Nación, citing Lopetegui.

Related Story: Power Mostly Restored After Tens Of Millions Hit By Blackout In Argentina, Uruguay

Echo Completes Tapi Aike Seismic Acquisition (Echo, 19.Jun.2019) — Echo Energy plc announced completion of the 3D seismic survey across the western cube on its Tapi Aike licence in Argentina and that processing of the western cube data acquired has now commenced. Equipment is currently being demobilised out of the area by the seismic acquisition contractor UGA Seismic S.A. The timely completion of seismic acquisition at Tapi Aike prior to the end of H1 2019 is a key operational milestone for the company and one, which ensures that the pathway to drilling Tapi Aike remains on track – with spud currently anticipated to take place in Q4 2019. The company is working closely with its Argentinian partner, and operator of the Tapi Aike licence, Compañía General de Combustibles S.A. (CGC), to drill early in that window now that the seismic acquisition phase has completed.

Sesimic data acquired is now being processed by respected independent processing houses in Buenos Aires, with the processing of the eastern cube (Chiripa Oeste, 414 sq km) data by Wellfield Services LTDA nearing completion and the processing of western cube (Travesia de Arriba, 790 sq km) data being undertaken by Seismic Prospect S.R.L.

The acquisition and processing of 3D seismic at Tapi Aike builds on the previous interpretation of the large amount of historical 2D data that exists on the block (3,400 line km 2D with average line spacing of 4 km), which is guiding the processing priorities of the new 3D data.

BRAZIL Petrobras Updates On $700mn Vantage Payment (Petrobras, 21.Jun.2019) — Petrobras, following up on the release of May 17, 2019, hereby informs that its subsidiaries paid today the amount of approximately US$700 million related to the decision of the United States District Court for the Southern District of Texas that denied Petrobras’ motion to vacate and recognized the arbitral award rendered in the arbitration filed by Vantage Deepwater Company and Vantage Deepwater Drilling Inc. The payment ceases interest accrual, allows the lifting of the pre-judgement attachments of Petrobras’ and its subsidiaries’ assets in the Netherlands and avoids other legal constraints, but does not end the dispute. The company appealed the United States District Court decision on June 19, 2019, and will continue to take all measures to defend its interests.

As disclosed to the market on February 7, 2019, the company had already recognized a provision in connection with this case in the fourth quarter of 2018.

Petrobras Starts Liquigás Binding Divestment Phase (Petrobras, 20.Jun.2019) — Petrobras, following up on the release dated 05/10/2019, announces the beginning of the binding phase related to the sale of Liquigás Distribuidora S.A. At this stage of the project, process letters are issued to qualified interested parties with detailed instructions about the divestment process, including guidelines to conduct due diligence and submit binding proposals.

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This disclosure is in compliance with Petrobras’ divestment methodology, which is in line with the special regime for the divestment of assets by federal mixedcapital companies, provided for in Decree 9.188/2017.

Petrobras Clarifies Natgas Find In Sergipe Basin (Petrobras, 17.Jun.2019) — Petrobras, regarding the news published in the media, related the discovery of natural gas in the Sergipe Basin, clarifies that, in recent years, six deepwater discoveries have been confirmed in the Sergipe Basin: Cumbe, Barra, Farfan, Muriú, Moita Bonita and Poço Verde, as already disclosed to the market.

The 2019-2023 Business and Management Plan contemplates the budget for the installation of a production system, with studies on this project being in its initial phase.

During the month of June the price in the capital city has ranged between $2.98 per gallon and $3.19 per gallon, reported online media El Comercio.

Imports Of Recycled Waste Reached $3.6 Million In 2018 (Energy Analytics Institute, Piero Stewart, 21.Jun.2019) — Ecuador’s imports of plastic waste were equivalent to $3.6 million in 2018 compared to $1.7 million in 2017, online media El Universo reported.

These imports serve plastics and synthetic spinning industries and were mainly imported from the US, Mexico, the Dominican Republic, Colombia, and Panama.

Ecuador Inaugurates El Inga – Tisaleo 500Kv Line

The company is conducting the Discovery Assessment Plan for these areas to evaluate the productive potential of its oil and natural gas accumulations, and a long-term test in the Farfan area is planned for this year, with the objective of obtaining information which will support the studies for a better characterization of the reservoir rock and the fluids of this area.

This report on Form 6-K shall be deemed to be incorporated by reference into the Preliminary Prospectus Supplement, dated June 10, 2019, relating to the previously announced offer by Caixa Econômica Federal of common shares, including common shares represented by American depositary shares, of Petróleo Brasileiro S.A. (Petrobras).

ECUADOR

(Energy Analytics Institute, Piero Stewart, 13.Jun.2019) — Ecuador’s President Lenin Moreno inaugurated the 500 Kv transmission system with conclusion of the section of the El Inga – Tisaleo line, Ecuador’s Ministry of Energy and Non-Renewables Resources announced 13 June in an official statement.

Quito Gasoline Prices Between $2.98-$3.19 Per Gallon

The inauguration took place at the Las Esclusas electrical substation, located south of Guayaquil, a city that will receive power from the Coca Codo Sinclair Hydroelectric Power Plant, the ministry said.

(Energy Analytics Institute, Piero Stewart, 22.Jun.2019) — In Quito, Ecuador the price of gasoline varies from service station to service station.

ENERGY ANALYTICS INSTITUTE | LATAMNRG PROSPECTOR | HOUSTON • CARACAS

Russia’s Tyazhmash To Finish Work On Toachi Pilatón Project (Energy Analytics Institute, Piero Stewart, 21.Jun.2019) — Russian company Tyazhmash delivered the technical and faithful compliance guarantees, and signed a contract with Ecuador’s Electricity Corporation (CELEC EP) to finish construction of the Toachi Pilatón project. Work on the project has been paralyzed for more than two years, reported online media El Comercio.

GUYANA Guyana Election Heightens Political Risk For Operators (Energy Voice, 21.Jun.2019) — Guyana is due to hold a general election later this year that could have a significant bearing on the country’s emergence as a new oil frontier.

Guyanese President David Granger said on June 18 he would call an election after the Caribbean Court of Justice (CCJ) ruled that a vote of no confidence in his government on December 21 was valid.

MEXICO The End Of Mexico’s Rigorous Energy Reform (Oilprice.com, Tsvetana Paraskova, 22.Jun.2019) — Mexican President Andrés Manuel López Obrador has been a vocal critic of the energy reform of his predecessor Enrique Peña Nieto, who opened in 2013 Mexico’s oil and gas sector to private investment for the first time in seven decades.

companies for oil exploration and production in Mexico unless those companies show results, because currently they are not investing and not producing. Two weeks into office, López Obrador suspended in December 2018 new oil auctions for three years. Last week, Mexico’s energy regulator CNH also canceled an auction to pick foreign partners for Mexican state energy giant Pemex scheduled for October.

Pemex: New Refinery Environmentally Viable (Reuters, David Alire Garcia, 19.Jun.2019) — Mexican President Andres Manuel Lopez Obrador’s push to build a new oil refinery involves high risks of flooding and other environmental issues, according to government documents published late on Tuesday, but is described as otherwise viable.

The documents cover environmental impacts declared by state energy company Pemex and were made public by the oil industry environmental regulator known as ASEA. They conclude that while the development of the Dos Bocas refinery will moderately affect the environment, those impacts “will be controlled, mitigated or compensated.”

Mexico To Cut Pemex’s ProfitSharing Duty To 54% (Platts, Daniel Rodriguez, 21.Jun.2019) — The Mexican government will cut Pemex’s profit-sharing duty, known as DUC, to 54% by 2021 from the current 65%, the company’s financial director, Alberto Velazquez, said Thursday.

“Results from this plan might be huge, spectacular,” Velazquez said at a presentation at the Mexican Petroleum Congress. This is besides the $1.5 billion stimulus package President Andres Manuel Lopez Obrador already announced for Pemex this year.

Six months into office, the populist left-wing President López Obrador now blasts the energy reform as “a failure” and vows not to call new bidding rounds for foreign oil

ENERGY ANALYTICS INSTITUTE | LATAMNRG PROSPECTOR | HOUSTON • CARACAS

Matamoros Turbine Plant To Supply U.S., LatAm Projects

TRINIDAD

(Chron.com, Sergio Chapa, 17.Jun.2019) — Wind turbine blades that are now being made in the Mexican border town of Matamoros will soon find themselves installed in projects throughout the United States and Latin America.

TPHL Announces Extension Of Expiration Date

German wind turbine maker and wind farm developer Nordex Acciona recently began production at the company’s new Matamoros plant at Parque Industrial Las Ventanas off Highway 2 on the city’s far westside.

(TPHL, 20.Jun.2019) — Trinidad Petroleum Holdings Limited (TPHL) announced that the expiration date has been extended until 5:00 p.m., New York City time, on June 21, 2019, unless extended or earlier terminated (such time and date with respect to the Exchange Offers, as the same may be extended, the “Extended Expiration Date”), with respect to its previously announced offers to exchange any and all of its outstanding notes, originally issued by Petroleum Company of Trinidad and Tobago Limited (Petrotrin), for newly issued debt securities of TPHL (the “Exchange Offers”), upon the terms and subject to the conditions described in the Offering Memorandum, dated April 15, 2019 (as may be amended or supplemented from time to time, the “Offering Memorandum”), and the related letter of transmittal (as may be amended or supplemented from time to time, the “Letter of Transmittal”), and to its solicitation of consents to certain proposed amendments to the existing indentures (the “Consent Solicitations”). All other terms and conditions of the Exchange Offers remain the same.

Built in six months, the new plant employs 300 people in two production lines. Nordex is using the plant to make turbine blades that will be for turbines that generate between 4 and 4.5 megawatts of power as well as another model that generates between 3 and 3.4 megawatts of power.

PERU GeoPark Withdraws Request For Drilling Permit In Peru (Reuters, Maria Cervantes, 20.Jun.2019) — GeoPark has withdrawn its request for an environmental permit to begin drilling for crude in the Peruvian Amazon amid protests from indigenous tribes, the oil company said.

GeoPark said in a statement late that it wanted to incorporate more information into its environmental plan for tapping Block 64 in the remote jungle region of Loreto, and planned to coordinate with authorities to resubmit it at a later date.

As of 5:00 p.m., New York City time, on June 19, 2019, TPHL had received the valid tender, without subsequent withdrawal, of approximately U.S.$528.1 million aggregate principal amount of Existing Notes in the Exchange Offers. The breakdown of the principal amount of validly tendered 2019 Notes and 2022 Notes is as set forth in the table below.

Because the principal amount of New Notes to be issued will exceed U.S.$500 million, Holders of Existing Notes who tendered their notes on or after June 5, 2019 will not have the right to withdraw from the Exchange Offers pursuant to the press release dated June 5, 2019,

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announcing new terms to the Exchange Offers. Holders of Existing Notes who tendered prior to June 5, 2019 will also not have withdrawal rights.

Trinidad’s Atlantic Resumes LNG Production (Argus, 21.Jun.2019) — Trinidad and Tobago’s LNG producer Atlantic resumed operations at its four-train 14.8mn t/yr liquefaction facility after a five-day shutdown caused by a power cut.

The trains are being re-fired “progressively” and will eventually be brought up to full capacity, Atlantic told Argus, without indicating when optimum output will be achieved.

Atlantic said it is discussing with its customers changes to its shipping schedules because of the interruption.

VENEZUELA

Simply, P1 reserves rose 76%, oil production fell 53%, and Venezuela’s R/P ratio rose 275% to 548.9 years.

Venezuela’s R/P ratio should realistically be anywhere between 138.5 and 207.7 years considering production of 6 million barrels per day (MMb/d) or 4 MMb/d, respectively.

Looking forward, Venezuela’s R/P ratio is distorted by the ongoing collapse of oil production and currently settles in around 801.3 years using OPEC production data from direct communications. That figure swells to 1,082 years using data from second sources. Both figures are crazy and unrealistic, but reveal what they reveal.

A long story short, 21st Socialism under modern day dictators has robbed Venezuela of more than 1.9 MMb/d and many many more billions of dollars at the cost of ruining all of the country’s production systems, not just oil and oil-related.

U.S. Seeks Info From Guaido’s Ad-hoc Citgo Board

Two Decades Of 21st Century Socialism In Venezuela

(Reuters, 19.Jun.2019) — An ad-hoc board of directors for U.S. oil refiner Citgo, named by Venezuelan opposition leader Juan Guaido, said it has received a request for information from U.S. officials, who are probing its parent company PDVSA for alleged corruption.

(Energy Analytics Institute, Pietro D. Pitts, 22.Jun.2019) — New data from BP’s Statistical Review of World Energy (2019) provides two 10-year periods of study, which reveal the two-decade collapse of Venezuela’s once all mighty oil sector under Chavez-Maduro.

The board was named by Guaido, also the leader of Venezuela’s opposition-controlled National Assembly, earlier this year in part to protect overseas assets belonging to PDVSA, Venezuela’s state oil company.

ENERGY ANALYTICS INSTITUTE | LATAMNRG PROSPECTOR | HOUSTON • CARACAS

Fuel Crisis Denting PdV Upstream Operations (Argus, 18.Jun.2019) — Venezuela’s severe motor fuel deficit is starting to weigh on the Opec country’s crude production, as oil workers struggle to reach their jobs, and oil equipment and supplies fail to reach oil fields.

The fuel crisis could push output below the May average of around 750,000 b/d, two senior oil union officials warned yesterday.

Canada’s Gulf Coast Exports Up As Venezuela Gap Filled (Reuters, Collin Eaton, 18.Jun.2019) — Heavy crudes have poured into the United States this spring, offsetting the loss of Venezuelan oil and producing a mini-surplus, with Canadian heavy crude this month being exported from the U.S. Gulf Coast.

U.S. refiners have lined up larger supplies from Canada, Iraq and Colombia since Washington in January began choking off the flow of dollars to Venezuela’s socialist government by barring transactions with PDVSA, Venezuela’s state oil company and once among the top three providers of heavy crude to U.S. refiners. The United States went from importing 561,000 barrels per day (bpd) of Venezuelan oil in January to zero barrels in May.

INT’L JinkoSolar Supplies 351 MW To Asia Pacific PV Projects (JinkoSolar, 20.Jun.2019) — JinkoSolar Holding Co., Ltd. announced it has supplied Power Construction Corporation of China with 351MW of solar modules, which were installed at the Hồng Phong solar PV plant in Vietnam, one of the largest PV projects in the Asia Pacific region to date (the “Project”).

Located in Hồng Phong, Bình Thuận Province, Phase 1A and 1B of the Project were recently integrated into the

national grid and will generate an estimated annual supply of 520 million kWh of electricity from solar energy, saving 175,000 tons of standard coal and reducing carbon dioxide emissions by 439,000 tons annually.

Anadarko Announces Mozambique LNG FID (Anadarko, 18.Jun.2019) — Anadarko Petroleum Corporation and the co-venturers in Mozambique’s Offshore Area 1, today announced a Final Investment Decision (FID) on the Anadarko-led Area 1 Mozambique LNG project. This official declaration of FID confirms the Area 1 Plan of Development is now effective with notice provided to the Government of Mozambique that all conditions precedent have been fulfilled, and the project can now advance to the construction phase.

The official declaration of FID today was made at a sanctioning event in Maputo, Mozambique, attended by His Excellency the President of the Republic of Mozambique Filipe Nyusi, the Minister of Mineral Resources Ernesto Max Tonela, and Anadarko’s Chairman and CEO Al Walker, along with representatives from the Area 1 co-venturers and distinguished guests.

“This is a historic day for the people of Mozambique,” said His Excellency President Filipe Nyusi. “Today’s sanctioning of the Anadarko-led Area 1 Mozambique LNG project solidifies a path toward the creation of thousands of jobs for our people, significant economic growth for our nation, and the potential to be one of the world’s largest providers of cleaner energy for decades to come. It is truly one of the most important and transformational projects in our country’s history.”

“This is an exciting day for Mozambique and for our partnership, bringing us a step closer to making Mozambique’s first onshore LNG facility a reality,” said Anadarko Chairman and CEO, Al Walker. “The Anadarkoled Area 1 Mozambique LNG project has come a long way from our first discovery to FID for the construction of the initial two-train development project. I want to say a collective ‘thank you’ to the world-class LNG team we have assembled at Anadarko, our co-venturers, long-term foundation customers, lenders, the people of the Cabo Delgado region, and the Government of Mozambique. As the world increasingly seeks cleaner forms of energy, the Anadarko-led Area 1 Mozambique LNG project is ideally located to meet growing demand, particularly in expanding Asian and European markets. We look forward

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to safely executing the next phase of this project for the long-term benefit of Mozambique, its people, our partnership, and our customers.”

The Anadarko-led Area 1 Mozambique LNG project will be Mozambique’s first onshore LNG development, initially consisting of two LNG trains with total nameplate capacity of 12.88 million tonnes per annum (MTPA) to support the development of the Golfinho/Atum fields located entirely within Offshore Area 1. The project has successfully secured in aggregate 11.1 MTPA of long-term LNG sales (representing 86% of the plant’s nameplate capacity) with key LNG buyers in Asia and in Europe. Additionally, the project is expected to have a significant domestic gas component for in-country consumption to help fuel future economic development.

As previously announced, the Anadarko-led Area 1 Mozambique LNG project has been designated as “First Mover” by the Government of Mozambique, meaning Area 1 will also be responsible for constructing the support facilities to be shared between Area 1 and Area 4 projects, which will include the Materials Offloading Facility and the LNG Marine Terminal. In addition, Area 1 has approximately 5,000 workers on-site today progressing works associated with the construction of a resettlement village, camp expansion, airstrip, and PalmaAfungi Highway.

Following today’s ceremony, the project expects to soon issue Notices to Proceed under the terms of the previously executed engineering, construction, procurement and installation contracts and finalize financing.

CONTRACTOR SELECTIONS Company Provided Items (CPI) for the Subsea Gathering System: — TechnipFMC – through its subsidiary FMC Technologies, Inc. – Subsea Trees, Completion Workover Riser & Installation Workover Control System, Subsea Controls System, Subsea Connectors and Production Manifolds — TechnipFMC – through its subsidiary Technip Mozambique, Lda. – Aftermarket services in Mozambique — Oceaneering International, Inc. – Subsea Umbilicals and Distribution Hardware

— Oceaneering International GMBH – Aftermarket services in Mozambique — Advanced Technology Valve S.p.A. – Pipeline Subsea Ball and Subsea Gate Valves — Cameron Italy, S.R.L. – Subsea Chemical Injection Metering Valves Engineering, Procurement, Construction and Installation (EPCI) for the Offshore Subsea System: — TechnipFMC and VanOord – for the engineering, procurement, construction and installation (EPCI) of the offshore subsea system Engineering, Procurement and Construction (EPC) for the LNG Facility and Support Facilities: — A consortium consisting of McDermott, Chiyoda and Saipem (CCS JV) – the Engineering, Procurement and Construction (EPC) contracts for the Mozambique LNG liquefaction facility and support facilities.

Anadarko Moçambique Área 1, Lda, a wholly owned subsidiary of Anadarko Petroleum Corporation, operates Offshore Area 1 with a 26.5 percent working interest. Coventurers include ENH Rovuma Área Um, S.A. (15 percent), Mitsui E&P Mozambique Area1 Ltd. (20 percent), ONGC Videsh Ltd. (10 percent), Beas Rovuma Energy Mozambique Limited (10 percent), BPRL Ventures Mozambique B.V. (10 percent), and PTTEP Mozambique Area 1 Limited (8.5 percent).

Oceaneering Awarded Contract In Mozambique (Oceaneering, 18.Jun.2019) — Oceaneering International, Inc has been awarded a contract by Anadarko Moçambique Área 1, Lda, a wholly owned subsidiary of Anadarko Petroleum Corporation, to supply umbilicals, distribution hardware, and aftermarket services.

Manufacture of the umbilicals and distribution hardware is scheduled to occur at the Oceaneering facilities in Panama City, Florida and Houston, Texas; and is expected to commence in the third quarter of 2019 and be completed in the third quarter of 2021.

Related Story: Anadarko Announces Mozambique LNG Final Investment Decision

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