LatAmNRG Prospector: Week 27 2019

LATAMNRG PROSPECTOR VOL 27 2019

Moody’s Assigns B2 Rating To Pampa Energia’s Notes

Petrobras Starts Teaser For Espirito Santo E&P Assets

Eco, Total, Tullow Spud Jethro-Lobe Offshore Guyana

Eni Starts Production Offshore Mexico At Area 1

Dozens Arrested For Murder, Extortion Of Petrobras Contractors

Trafigura Pte. To Export 340,000 Barrels Of VGO

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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LATAM HEARD ON THE STREET Moody’s Assigns B2 Rating To Pampa Energia’s Notes (Moody’s, 1.Jul.2019) — Moody’s Investors Service assigned a B2 rating to Pampa Energía S.A.’s proposed senior unsecured notes. The outlook is stable.

Net proceeds from the proposed issuance will be used for liability management, capital spending, working capital and/or make capital contributions to certain subsidiaries or affiliates.

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.

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The rating of the proposed notes assumes that the final transaction documents will not be materially different from draft legal documentation reviewed by Moody’s to date and assume that these agreements are legally valid, binding and enforceable.

Rating assigned: Issuer: Pampa Energía S.A. – Senior unsecured notes: B2

ENERGY ANALYTICS INSTITUTE | LATAMNRG PROSPECTOR | HOUSTON • CARACAS

RATINGS RATIONALE Pampa’s B2 ratings are supported by the company’s diversified portfolio of operations, with upside potential in the power industry in Argentina, a benign pricing framework for natural gas and power sectors in Argentina and good credit metrics for its rating category pro-forma for the proposed notes. The ratings are mainly constrained by Pampa´s exposure to Argentina’s volatile and highly-regulated environment in the power and gas industries. We expect Pampa’s capital spending on natural gas projects and power capacity expansions to add significant growth to operations in 2019-20.

Nevertheless, this could limit free cash flow growth in the period. Also, these factors are mitigated by the company’s strategy to focus on power generation projects with positive pricing outlooks, where the company is an integrated electricity producer, as it procures natural gas from its own upstream operations. At the same time, the company has moderate exposure to foreign exchange risk.

Pampa plans to spend $700 million on its investment plans in 2019, including expanding its power generation capacity by 13% or 504 megawatts (MW) to 4,375 MW by 2020, mainly through 383 MW additional thermal capacity at Genelba in 2019-20 worth $350 million and 106 MW in two wind farms worth $137 million in 2019-20 (Pepe II inaugurated in March 2019).

The company’s 3,871 MW power generation capacity as of March 2019 (3,977 MW today) represented about 11% of Argentina’s total. Around 75% natural gas from

Pampa’s upstream business is used to procure its own thermal power plants. Furthermore, the recent joint acquisition of Pampa and YPF S.A. of the Ensenada de Barragán Thermal Power Plant (CTEB) will further integrate Pampa’s gas and electricity segments. During the next 30 months CTEB will be converted into a combined cycle with 847 MW capacity, up from 567 MW today, with higher efficiency, as CTEB will generate 50% more electricity with the same fuel consumption (natural gas).

Around 35% of Pampa’s investments will support Exploration and Production operations. As of the firstquarter ended in March 2019, natural gas represented 89% of the company’s oil and gas production at 7.0 million cubic meters per day (MMm3/d), while oil’s was at 5.4 thousand barrels per day (Mbbl/d).

Its main natural gas projects are El Mangrullo and Sierra Chata, operated by Pampa, and Rio Neuquén and Rincon Mangrullo, operated by YPF S.A., which together comprise 200,000 in net acreage in the Neuquina basin for Pampa.

As of December 2018, the company had proved oil and gas reserves of 130 million barrels of oil equivalent (MMboe), equivalent to a reserve life of 7.9 years with a reserve replacement ratio of 131%.

Pampa’s liquidity profile is good and will improve pro forma the new notes issuance, with no significant maturities until 2023. As of March 2019, Pampa’s cash balance of $546 million was above $366 million in debt coming due in 2019-20 ($50 million in debt already redeemed since), mainly composed of bank debt. Around 89% of the company’s costs and 75% of capital spending are denominated or linked to the US dollar and, pro forma for the proposed notes issuance, around 94% of the company’s debt will be denominated in US dollars.

However, close to 90% of Pampa’s revenues are generated or linked to the US dollar, along with almost all of its cash holdings.

Since December 2017 Pampa has reduced its total reported debt by $1.3 billion, to $2.0 billion as of March 31, 2019, aided by its cash generation from operations but also by over $500 million in divestment of non-core assets. The company’s debt burden will not be materially increased pro forma the notes’ issuance and will lower as the company pays down debt maturities in the next 12-18 months.

ENERGY ANALYTICS INSTITUTE | LATAMNRG PROSPECTOR | HOUSTON • CARACAS

Accordingly, we estimate adjusted debt to EBITDA ratio will remain around 2.0x in fiscal year ending December 2019, up from 1.8x as of March 2019. Similarly, retained cash flow (cash from operations before working capital requirements but after dividends) to debt ratio was at 21% as of March 2019, and we expect it will remain around this levels in 2019-20. Moody’s expects the company’s adjusted EBITDA to interest expenses will remain above 3.0 times in 2019-20.

The stable outlook for Pampa’s ratings reflects our expectation that the company will maintain stable cash generation based on solid electricity tariffs and adequate natural gas prices. We believe that Pampa’s credit metrics relative to its debt burden and interest coverage will remain in line with its rating category within the next 12 to 18 months.

Pampa’s ratings could be upgraded (1) if retained cash

“The ratings could be downgraded (1) if Pampa materially increases its leverage, with retained cash flow to total debt lower than 10%; (2) if its interest coverage as measured by EBITDA to interest expense ratio declines below 2.0x; (3) if there is a deterioration in the company’s liquidity profile; (4) if the government of Argentina’s B2 rating is downgraded.”

Pampa is an energy company in Argentina, engaged in generation, distribution and transmission of electric power, as well as in oil and gas production, and petrochemicals and hydrocarbon commercialization and transportation. In the generation segment, the company has an installed capacity of 3,871 MW as of March 2019, and additional 504 MW under construction, which accounts for about 10% of Argentina’s installed capacity.

In the distribution segment, Pampa has a controlling interest in Edenor, the largest electricity distributor in Argentina, which has around three million customers and a concession area covering the northern and northwest part of Buenos Aires.

In the O&G segment, Pampa is one of the leading oil and natural gas producers in Argentina, with operations in 11 production areas and seven exploratory areas. Its main natural gas production blocks are located in the provinces of Neuquen and Rio Negro. In the petrochemicals segment, Pampa owns three high-complexity plants producing a wide variety of petrochemical products, including styrenics and synthetic rubber.

Finally, the company has a small participation through joint ventures in the electricity and gas transportation and distribution businesses

flow to total debt ratio is higher than 50%; (2) if EBITDA to interest expense ratio is above 5.0x on a sustained basis.

If there is an upgrade on the government of Argentina’s B2 rating this would not necessarily translate into an immediate upgrade of Pampa’s ratings.

ENERGY ANALYTICS INSTITUTE | LATAMNRG PROSPECTOR | HOUSTON • CARACAS

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ARGENTINA

Bolivia Eyes Gas Reserves Of 15 Tcf By 2025

Shale Helps Argentina Hit Oil, Natgas Output Record

(Energy Analytics Institute, Ian Silverman, 30.Jun.2019) — Over the next six years Bolivia estimates investment on various exploration and exploitation activities will reach $10 billion, and assist to boost the country’s natural gas reserves to at least 15 trillion cubic feet (Tcf) by 2025, reported online media La Razón, citing comments from Bolivia’s Hydrocarbons Minister Luis Alberto Sánchez during a broadcast by state media.

(Reuters, 2.Jul.2019) — Argentine oil and natural gas output hit a record high in May thanks to increased production from the country’s sprawling Vaca Muerta shale formation, the government said.

National gas production increased 7.6% in May compared with the same month last year, while oil production grew 4.2%.

BOLIVIA Bolivia Rec’d 67.4% of Hydrocarbon Revenues Between 2006-2018 (Energy Analytics Institute, Ian Silverman, 1.Jul.2019) — Between 2006 and 2018, approximately 67.4% of Bolivia’s total income generated by its hydrocarbon sector went to government coffers while the remaining 32.6% went to private oil companies, online media La Razón reported, citing comments from Bolivia’s Hydrocarbons Minister Luis Alberto Sánchez.

During the time frame, a total of $55.603 billion in income was generated, of which $37.479 billion or 67.4% went to Bolivia’s government and $18.125 billion or 32.6% went to operators. Of the latter amount, $7.907 billion related to projects and $10.218 billion to recoverable costs, Sánchez said.

In 2005, Bolivia had gas reserves of 9 Tcf, which rose to 9.9 Tcf in 2009, then 10.45 Tcf in 2013, and then 10.7 Tcf in 2018, the official said.

“We are going to invest close to $10 billion on exploration and exploitation in the next six years and $2 million to drill more than 30 exploratory wells located in 29 areas,” Sánchez said.

YPFB Starts Mangnetoteluric Study In Cochabamba (Energy Analytics Institute, Ian Silverman, 28.Jun.2019) — Bolivia’s state oil and gas entity YPFB began a mangnetoteluric and gravimetric study in the San Miguel and Isarzama exploratory areas located in the Entre Ríos municipality of Cochabamba.

Investments in the study will approximate $4 million, reported online media La Razón. Initial study results are expected in around 90 days.

Bolivian Economy Stable But Storm Clouds Loom (AP, Carlos Valdez, 1.Jul.2019) — Abraham Rodríguez’s small shoe store grew into a factory that employed more than a dozen workers during an economic boom in Bolivia when prices for the gas and minerals it produces soared.

Today, he can only employ one worker. He says the taxfree import of goods and the black market have affected his sales and have caused him to go into debt.

ENERGY ANALYTICS INSTITUTE | LATAMNRG PROSPECTOR | HOUSTON • CARACAS

BRAZIL

Petrobras Clarifies On Liquigás Divestment

Petrobras Chief Governance, Compliance Officer Resigns

(Petrobras, 5.Jul.2019) — Petrobras, in relation to the news published in the media, regarding the sale of Liquigás Distribuidora SA, clarifies that this divestment project is in the binding phase, as disclosed to the market in June 20, 2019.

(Petrobras, 5.Jul.2019) — Petrobras informs that its Chief Governance and Compliance Executive Officer, Rafael Mendes Gomes, presented his resignation from the position, for personal reasons.

Petrobras will initiate a selection process to choose the new Officer who, according to the company’s governance rules, must be elected by the Board of Directors, based on a triple list of Brazilian professionals, pre-selected through a process to be conducted by a specialized Human Resources company, who will seek professionals with acknowledged competence in the area.

The Chief Corporate Affairs Executive Officer, Eberaldo de Almeida Neto, shall temporarily accumulate the position until the election of the new Officer.

The company is grateful for the work of Rafael Mendes Gomes who has been in charge of this office since May 2018.

Petrobras Starts Teaser For Espirito Santo E&P Assets (Petrobras, 5.Jul.2019) — Petrobras started the opportunity disclosure stage (teaser), related to the sale of its entire working interest in Peroá and Cangoá production fields and in the concession BM-ES-21 (Malombe discovery appraisal plan), located in the Espírito anto Basin, including the shared outflow and production offshore facilities and the onshore gas pipeline up to the Cacimbas Gas Treatment Unit (UTGC).

Petrobras holds a 100% stake in the shallow water fields of Peroá and Cangoá, whose current production is around 900,000 m3/day of non-associated gas and 88.9% stake in the exploratory block BM-ES-21 in deepwaters where is located the Malombe discovery.

In the previous phase of the project, Petrobras received non-binding offers, qualifying a number of potential buyers for the binding phase, still in progress. This phase will only end with the receipt of binding offers, and it is not possible, at this very moment,to know the prices and not even the number of binding proposals related to this operation.

Petrobras Informs Of Capital Interest Payment (Petrobras, 5.Jul.2019) — Petrobras informs that in connection to the press released of May 7th, 2019 that it is paying today Interest on Capital (IOC), as defined in art.

9, sole paragraph of its Bylaws.

The gross value to be distributed, totaling R$ 1,304,420,126.10, corresponds to a gross amount of R$0.10 per common or preferred share, based on shareholding positions as of May 21st, 2019. The amount of R$ 0.10 per share related to the IOC will be subject to income tax, by applying the applicable tax rate, except for shareholders who are proven to be immune or exempt.

Petrobras Commences Cash Tender Offers (Petrobras, 1.Jul.2019) — Petrobras announces that its wholly-owned subsidiary, Petrobras Global Finance B.V. (PGF), has commenced cash tender offers to repurchase certain of its outstanding U.S. Dollar-, Euro-and Pound Sterling-denominated notes (the “Tender Offers”).

ENERGY ANALYTICS INSTITUTE | LATAMNRG PROSPECTOR | HOUSTON • CARACAS

Tender Offers PGF has commenced offers to purchase for cash:(1) any and all of its outstanding notes of the series set forth in the table below under the heading “Any and All Offers”(the “Any and All Notes” and such offers, the “Any and All Offers”), and (2) its outstanding notes of the series set forth in the table below under the heading “Waterfall Offers”(collectively, the “Waterfall Notes” and such offers, the “Waterfall Offers”) for an aggregate purchase price, excluding accrued and unpaid interest, not to exceed U.S.$3.0billion minus the aggregate amount, excluding accrued and unpaid interest, that holders of Any and All Notes are entitled to receive for Any and All Notes validly tendered and accepted for purchase pursuant to the Any and All Offers(the “Waterfall Tender Cap”).

The Tender Offers are being made pursuant to the terms and conditions set forth in the offer to purchase, dated July 1, 2019(the “Offer to Purchase” and, together with the accompanying notice of guaranteed delivery and related letter of transmittal, the “Tender Offer Documents”).

Any And All Offers The following table sets forth the series of notes subject to the Any and All Offers, and the consideration payable (the “Any and All Consideration”) for notes accepted for purchase in the Any and All Offers

Notes on or prior to the Any and All Expiration Date or (2)deliver a properly completed and duly executed notice of guaranteed delivery and other required documents pursuant to the guaranteed delivery procedures described in the Offer to Purchase, on or prior to the Any and All Expiration Date and tender their Any and All Notes on or prior to 5:00 p.m., New York City time, on July 10,2019(the “Guaranteed Delivery Date”),will be eligible to receive the Any and All Consideration indicated in the table above, as well as accrued and unpaid interest from, and including, the last interest payment date for the Any and All Notes to, but not including, the Any and All Settlement Date (as defined below).

The settlement date of Any and All Notes validly tendered and accepted for purchase is expected to occur promptly following the Any and All Expiration Date, on July 11,2019(the “Any and All Settlement Date”)

Petrobras To Divest Refinery Assets To Trim Leverage (Zacks, 1.Jul.2019) — In a bid to forge ahead with divestment goals, Petrobras has commenced the process of offloading four refineries namely Rnest, Rian, Repar and Refap. The move is part of a broader plan of the Brazilian oil giant to jettison eight of its refineries that constitute 50% of refining capacity in the country.

Former Petrobras CEO Appointed Nubank Member (Reuters, 1.Jul.2019) — Brazilian financial startup Nubank has appointed former Petroleo Brasileiro SA’s Chief Executive Ivan Monteiro as a member of its risk committee and finance consultant, it said on Monday in a statement.

The Any and All Offers will expire at 5:00 p.m., New York City time, on July 8, 2019, unless extended (such date and time, as the same may be extended, the “Any and All Expiration Date”). The Any and All Notes validly tendered may be withdrawn at any time prior to 5:00 p.m., New York City time, on July 8, 2019, unless extended, but not thereafter. Holders of Any and All Notes who (1) validly tender and do not validly withdraw their Any and All

Monteiro’s hiring comes at a time that Nubank is broadening its product offering beyond credit cards and also expanding from Brazil to Mexico and Argentina.

ENERGY ANALYTICS INSTITUTE | LATAMNRG PROSPECTOR | HOUSTON • CARACAS

Constellation Announces Updates Regarding RJ Plan

COLOMBIA

(Constellation, 2.Jul.2019) — Constellation Oil Services Holding S.A., filed an amended plan in its recuperação judicial (RJ) proceeding in Brazil on July 1, 2019. The Plan was approved by approximately 90% of its creditors in amount at the general meeting of creditors (the Assembleia Geral de Credores or “General Meeting”) held on June 28, 2019, and was approved by the judge presiding over the RJ on July 1, 2019.

Dozens Arrested For Murder, Extortion Of Petrobras Contractors (Reuters, Gram Slattery and Rodrigo Viga Gaier, 4.Jul.2019) — Police in Rio de Janeiro arrested more than 40 people for their alleged roles in a murderous gang that extorted companies working for state-run oil company Petrobras and established a secret cemetery to dispose of rivals.

CHILE Total Eclipse Wipes Out Half Of Chile’s Solar Power (Bloomberg, Laura Millan Lombrana, 2.Jul.2019) — The total eclipse that plunged South America into darkness for a short while also knocked out about half of Chile’s solar power.

Chilean solar farms, which can altogether produce about 2 gigawatts of electricity, saw their output slide by 1.2 gigawatts, according to the country’s energy ministry. The good news: The ministry had already anticipated a decline, and the country’s hydropower and natural gas resources were able to make up for the shortfall.

Frontera Announces 2Q:19 Peru And Colombia Update (Frontera, 3.Jul.2019) — Frontera Energy announces a second quarter 2019 operational update. All values in this news release and the Company’s financial disclosures are in United States dollars, unless otherwise noted.

Second Quarter Production and Average Oil Prices Frontera delivered estimated second quarter 2019 production of 74,285 boe/d, representing quarterly production growth of 9.3%. Production was weighted over 96% to Brent exposed oil prices which averaged $68.47/bbl with Colombia production receiving Vasconia prices, which averaged $2.03/bbl discount to Brent during the second quarter of 2019. This compares to an average Brent oil price in the first quarter of 2019 of $63.83/bbl and a Vasconia discount of $3.43/bbl. Year to date 2019 estimated production is 71,190 boe/d.

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Colombia Update Colombia production averaged an estimated 64,315 boe/d in the second quarter of 2019 a decrease of 2.1% compared to the first quarter of 2019 reflecting the impact of the managed decline from the Cadelilla-7 well on the Guatiquia block.

The Company drilled 42 wells during the second quarter of 2019, including 39 development wells and three exploration wells. At Quifa, 32 development wells were drilled, two more than planned, as the Company increases the efficiency at which it is drilling wells. The increased efficiency has led the Company to relinquish one of its drilling rigs at Quifa, as the development drilling plan for 2019 will be completed sooner than expected. At CPE-6 on the Hamaca field, four development wells were drilled along with one exploration well as the Company plans to increase production later this year once additional facilities are in place to process the oil and produced water. Two development wells were drilled on the Copa field in the Cubiro block as production gradually increases from additional development drilling and water injection wells for pressure maintenance. On the Guatiquia block, one development well was drilled at Coralillo-6, the results of which have been previously disclosed.

Additional Coralillo locations are currently being permitted with an additional two wells expected before the end of 2019.

During the third quarter of 2019, Frontera expects to drill 28 wells including 27 development wells (20 at Quifa, three at Copa, three at CPE-6 and one at Guatiquia), and one exploration well at CPE-6. The La Belleza-1 exploration well on the VIM-1 block is expected to start drilling in mid-August with results by the end of October.

In May 2019, the Company began drilling the Amanecer-1 exploration well on the CPE-6 block. On May 21, 2019, the well reached a MD of 3,891 feet, encountering 21 feet of net oil pay in the Basal sands of the Carbonera formation.

The well was completed in the Basal sand formation with an electrical submersible pump. The well flow tested for 10 days in June 2019 at an average rate of 70 bbl/d of 11 degree API oil with an average water cut of 80% at a stabilized bottomhole pressure. Since discovery, the well has produced a total of 447 bbls. Amanecer-1 oil water contact is 35 feet structurally lower than previously defined, adding additional hydrocarbon column to the Hamaca field within the CPE-6 block.

In May 2019, the Company spudded Castaña-1 exploration well on the Mapache block. The well was drilled to a total depth of 8,589 feet MD reached on May 19, 2019. The well encountered 20 feet of net pay in the Ubaque sandstones. The well was completed in the Ubaque formation with an electrical submersible pump.

The well started testing on June 15, 2019 with 430 bbl/d of oil, 1% BSW of 15 degree API oil, confirming a new discovery in the area. A total of 1,315 bbls of oil were recovered over four days. The Castaña-1 well is currently being evaluated as part of the initial test period.

In June 2019, the Company began drilling the Copa A Sur2STH, a horizontal development well on the Copa trend within the Cubiro block. On June 18, 2019, the well reached a MD of 8,942 feet, encountering 1,126 feet of net oil pay in the Carbonera C7A formation, the main target, and 4.5 feet TVD in C5D2 formation, the secondary target. The well was completed in the C7A formation with an electrical submersible pump and gravel pack in the horizontal section. The well flow has been testing since June 26, 2019 at an average rate of 350 bbl/d of 40 degree API oil with an average water cut of 23% at a stabilized bottomhole pressure. Since the start of production, the well has produced a total of 956 bbls.

In June 2019, the Company began drilling the Hamaca35H, a horizontal development well on the CPE-6 block.

On June 14, 2019, the well reached a MD of 5,218 feet, encountering 650 feet of net oil pay in the Basal sands of the Carbonera formation. The well was completed in the Basal sand formation with an electrical submersible pump. The well flow tested for 12 days at an average rate of 260 bbl/d of 11 degree API oil with an average water cut of 70% at a stabilized bottomhole pressure. Since the start of production, the well has produced a total of 2,000 bbls. The Hamaca-35H well confirms the oil production potential of the reservoir in the Hamaca field within the CPE-6 block.

“The first half of 2019 has been very strong for Frontera operationally, with second quarter production up 9.3% quarter over quarter, and near field development and exploration proceeding moderately ahead of our 2019 plans with successes at Cubiro, CPE-6, and Mapache. We continue to execute on our longer-term growth initiatives with the ratification of our blocks in Ecuador during the quarter and the award of the Llanos 99 block in Colombia last week. We also continue to demonstrate our commitment to enhancing

ENERGY ANALYTICS INSTITUTE | LATAMNRG PROSPECTOR | HOUSTON • CARACAS

shareholder returns with a 20% increase to the quarterly dividend payment to $15.0 million from $12.5 million previously announced.” — Richard Herbert, Chief Executive Officer of Frontera Peru Update Peru production averaged an estimated 9,970 bbl/d in the second quarter of 2019 an increase of 339% compared to the first quarter of 2019 reflecting consistent production from Block 192 during the majority of the quarter.

Ps.1,250,000,000,000. Capitalized terms not defined herein shall have the meaning ascribed to them in the Offer to Purchase.

ECUADOR

On June 18, 2019, the Company was notified by Petroperú S.A., the operator of the NorPeruano pipeline, of a force majeure event affecting a portion of the pipeline as a result of an attack at Kilometer 237 near pump station 5 of the North Branch Pipeline located in the Manseriche district. The pipeline has been repaired but as part of an ongoing community dispute local residents are not permitting Petroperú to conduct activities necessary to resume pumping oil through the pipeline. Effective July 1, 2019, Frontera has started to shut down production from Block 192, located over 200 kilometers from the site of the incident, while the authorities work to resolve the dispute and provide Petroperú access to the pipeline for repairs.

It is expected that once access is granted to Petroperú, any remaining repairs and testing will be completed in a short time. Recent production from Block 192 has been approximately 9,500 bbl/d prior to the force majeure event. As a result of the shut down on Block 192, staffing levels will be reduced to those required to protect and monitor the infrastructure and equipment.

EPM Commences Tender Offer 8.375% Notes Due 2021 (EPM, 2.Jul.2019) — Empresas Públicas de Medellín E.S.P. (EPM) its offer to purchase for cash any and all of its outstanding 8.375% Notes due 2021 (CUSIP No.: 29246B AB4 (144A) / P9379R AB3 (Reg S) / ISIN No.: US29246BAB45 (144A) / USP9379RAB35 (Reg S)) (the “Notes”), from beneficial owners thereof (each, a “Holder” and collectively, the “Holders”), at the price set forth below, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated July 2, 2019 (as it may be amended or supplemented from time to time, the “Offer to Purchase”) (the “Offer”). As of July 1, 2019, the aggregate principal amount of Notes outstanding was

Trafigura Pte. To Export 340,000 Barrels Of VGO (Energy Analytics Institute, Piero Stewart, 4.Jul.2019) — Trafigura Pte. Ltd. was awarded a deal by EP Petroecuador for the export of 340,000 barrels ± 3% of Vacuum Gas Oil (VGO).

The deal will be completed with two shipments comprised of 170,000 bbls ± each, EP PetroEcuador announced 4 July in an official statement.

The first shipment sets sail 20-22 July, the state entity said.

ENERGY ANALYTICS INSTITUTE | LATAMNRG PROSPECTOR | HOUSTON • CARACAS

GUYANA

Guyana To Boost Royalties On Future Oil Licenses

Eco, Total, Tullow Spud JethroLobe Offshore Guyana

(Reuters, 3.Jul.2019) — Guyana is preparing to raise the take of the government in future oil licences, the director of the South American country’s Department of Energy said.

(Eco, 5.Jul.2019) — Eco (Atlantic) Oil & Gas Ltd. announced that drilling operations have commenced offshore Guyana with the spudding of the first exploration well on its Jethro-Lobe prospect on the Orinduik Block.

Jethro-Lobe was spud at 22:45hrs (Local Guyana time) on Thursday 4th July 2019 using the Stena Forth drillship.

U.S. energy giant Exxon, French group Total and Britain’s Tullow Oil are drilling wells offshore Guyana, where Exxon has discovered over 4 billion barrels of oil, a major global find.

Eco and its partners on the Orinduik Block, Tullow Guyana B.V. (Operator, 60% Working Interest (“WI”)) and Total E&P Guyana B.V. (25% WI), estimate the well will take up to 40 days to drill.

MEXICO

Jethro Lobe is the first prospect to be drilled as part of a two-well programme and will be immediately followed by the drilling of an exploration well on the Joe prospect.

Eco is fully funded for its share of up to six potential exploration or development wells on the Orinduik Block in addition to the Jethro Lobe and Joe exploration wells, as announced on 10 June 2019.

“Today Eco Atlantic’s first Guyana well has been spud, three years ahead of our Petroleum Agreement commitment. This is the start of a hugely exciting time for the Company. Jethro Lobe will test the Lower Tertiary aged turbidites, as well drilling down into the Cretaceous. As such, we await the well results with great anticipation, as they will give us an even greater understanding of the geological plays. The huge success which ExxonMobil has had on the neighbouring Stabroek Block, has aided our geological assessment of the many similar channel systems in our Orinduik Block. With fifteen leads and prospects identified on the Orinduik Block, and funding to drill six potential exploration wells beyond the two currently planned, this is only the start of a fascinating and potentially transformational time for the Company.” — Eco Atlantic CEO Gil Holzman

Eni Starts Production Offshore Mexico At Area 1 (Eni, 2.Jul.2019) — Eni started the early production phase from the Miztón field in Area 1, located in the Campeche Bay offshore Mexico. This is the first step in the development of Area 1, estimated to hold 2.1 billion of oil equivalent in place (90% oil) in the Amoca, Miztón and Tecoalli fields. Eni acquired Area 1 in a competitive bid round in September 2015.

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Production from the Miztón field platform, located in 34 meters of water depth, is sent through a multiphase sealine to Eni’s Onshore Receiving Facility (ORF) in Sanchez Magallanes, State of Tabasco. After separation at ORF, production is delivered to Pemex’s San Ramón plant for treatment. Production has started from the Mitzón 2 well that has shown a very good productivity index; the early production phase now is expected to produce up to 15,000 barrels of oil per day. Full field production will start in early 2021 utilizing a Floating Production, Storage and Offloading facility (FPSO) and reaching a plateau of 100,000 barrels of oil equivalent per day. The Plan of Development for Area 1 also includes two additional platforms on the Amoca field and one on the Tecoalli field.

Arrest Warrant Issued For Former Pemex CEO

Eni Chief Executive Officer Claudio Descalzi commented: “We have achieved production startup in less than two and half years after Eni started its first well in Area 1 and in less than one year from the approval of the Plan of Development. This is in line with the expectations of the Mexican Government to increase the country’s overall production. Eni is the first international company to start offshore production in Mexico after the Energy Reform, and we look forward to continue working with the Mexican authorities”.

Building LNG-powered Ships Along U.S./Mexico Border

The production startup from Area 1 further confirms Eni’s distinctive fast track approach to efficient upstream development projects.

In May 2019, Eni signed with the Tabasco State Government a Memorandum of Understanding aimed at identifying and developing educational, health and socioeconomic projects, in order to cooperate and contribute to the government plans of improving the conditions of the more disadvantaged communities in the Tabasco State.

Eni is present in Mexico since 2006 and established its wholly owned subsidiary Eni Mexico S. de R. L. de C. V. in 2015. Currently Eni holds rights and is Operator in six exploration and production blocks in the Sureste Basin. In addition, in October 2018 Eni agreed to an interest swap with Lukoil to acquire a non-operated participation in another block in Mexico.

(Reuters, 5.Jul.2019) — Mexico’s attorney general’s office said a judge issued arrest warrants for the former chief executive of state oil firm Pemex, Emilio Lozoya, three of his family members and one other person, in a graft case involving Brazilian builder Odebrecht.

The Finance Ministry said in May that it presented the attorney general’s office with three charges against Lozoya related to “acts of corruption” committed when he was at the helm of Pemex from 2012 to 2016.

(Chron.com, Sergio Chapa, 1.Jul.2019) — Keppel AmFELS has built offshore drilling rigs and platforms here for decades. But the last few years have not been particulary kind to the offshore energy companies, which in the face of low oil prices and competition from shale, has delayed, canceled and scaled back projects.

Now, Keppel AmFELS is entering a new line of business: shipbuilding. At the company’s facility about 14 miles from the U.S.-Mexico border, crew are constructing two 775-foot-long container ships that will be powered by liquefied natural gas and carry cargo from the West Coast to Hawaii.

VENEZUELA Venezuela To Blend Oil To Keep Exports Afloat: OilMin (Reuters, 2.Jul.2019) — Venezuela will stick to its plan of blending domestic and foreign crude to maintain and even increase oil production and exports in the face of sanctions prohibiting U.S. companies from buying the country’s oil, oil minister Manuel Quevedo said on Tuesday.

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State-run oil company PDVSA in June began tests to focus exports almost entirely on the crude grade preferred by some Asian markets, Merey heavy crude, after shipments of oil and refined products fell in May following U.S. sanctions, according to internal documents seen by Reuters.

Chevron Seeks Relief From Trump’s Venezuela Oil Sanctions (Bloomberg, Fabiola Zerpa, Peter Millard and Kevin Crowley, 2.Jul.2019) — Chevron Corp. is lobbying the U.S. for sanctions relief so it can continue doing business in oilrich Venezuela where President Donald Trump has been pushing for regime change.

Chevron executives have been telling local staff that the company expects waivers that expire on July 27 to be extended, allowing it to remain in Venezuela, said three people familiar with the company’s operations. Another person said Chevron is actively lobbying for an extension and wants the U.S. to make a decision by mid-June so it can notify suppliers in advance.

2017, to increase the contribution of clean energy in the total energy mix from 25% to 50% by 2050 while reducing the carbon footprint of power generation by 70%. This is in line with the sectors transformation strategy by providing alternative sources of energy that can help us improve the sustainability of the water and electricity sector.”

Othman Jumaa Al Ali, EWEC’s CEO, added: “Noor Abu Dhabi will generate renewable energy and will enable us to improve the use of our natural resources. The fact that a project of such scale has been successfully completed on time and on budget highlights our commitment to ensuring sustainable energy for the future and it is a true testament of the Emirate’s delivery capabilities to execute world-class energy projects.”

In line with the Year of Tolerance in the UAE, the project – a venture between international companies, managed and constructed by a multi-national team – signifies the multi-cultural essence of the Company and its ability to integrate resource and top partners from around the world.

INT’L JinkoSolar Commissions Solar Project In Abu Dhabi (JinkoSolar, 1.Jul.2019) — JinkoSolar Holding Co., Ltd. announced that the world’s largest [1] solar plant of 1,177MWp, which was jointly developed by the Company, Japan’s Marubeni Corp. and Emirates Water and Electricity Company (EWEC), has recently started commercial operations as scheduled at Sweihan in Abu Dhabi.

The AED3.2 billion project, which uses all JinkoSolar’s high efficient mono panels, features another record at the time of bid submission, attracting the world’s most competitive tariff of 2.42 cents per kilowatt hour.

Mohammad Hassan Al Suwaidi, Chairman of EWEC said: “The completion of the project marks a significant milestone in the UAE’s Energy Strategy 2050, launched in

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