LatAmNRG Prospector: Week 30 2019

LATAMNRG PROSPECTOR VOL 30 2019

PM Keith Rowley Visits TOFCO With BPTT

McDermott Awarded Pre-FEED Deal By YPF

Constellation Reports New Contract Awards In Brazil 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 McDermott Awarded Pre-FEED Deal By YPF (McDermott, 19.Jul.2019) — McDermott International, Inc. has been awarded a sizeable* contract by Argentinabased YPF, S.A. to provide pre-front-end engineering design (Pre-FEED) services for a five million tonnes per annum (MTPA) LNG Liquefaction Facility, with a potential expansion to 10 MTPA, at the Vaca Muerta Shale field in Argentina.

Highlights: — McDermott to provide Pre-FEED services for a five MTPA liquefication facility project at Vaca Muerta LNG in Argentina — Award is a continuation of the previous study developed for the LNG Export Facility in Argentina

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.

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— Project will promote Vaca Muerta Shale field development in The Neuquen region of Argentina The scope of work is a continuation of a previous conceptual study developed for the YPF LNG Export Facility in Argentina under a contract in 2018.

McDermott’s London office will provide engineering services while the Houston office will perform project management and estimation services.

“Our experience as the EPC contractor for the Peru LNG Facility in which YPF was involved were key factors that made us uniquely qualified to win and execute this contract,” said McDermott’s Senior VP for North, Central and South America Mark Coscio.

The project will promote the development of the Vaca Muerta Shale field in The Neuquen region Argentina.

Work on the project will begin immediately, and the contract award will be reflected in McDermott’s second quarter 2019 backlog. * – McDermott defines a sizeable contract as between USD $1 million and USD $50 million.

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BRAZIL

assets, focused on Latin America and Africa. The company has financial support from the Warburg Pincus Fund.

Petrobras Signs Shallow Water Deals For $1.5bn

The transaction amount is US$ 665 million, to be paid in two installments: (i) US$ 49.9 million today, upon contract signature; and (ii) US$ 615.1 million, before adjustments, on the closing date.

(Petrobras, 24.Jul.2019) — Petrobras signed two contracts for the sale of upstream assets in shallow waters in Campos and Santos Basins, in the total amount of US$ 1.5 billion (about R$ 5.7 billion).

The transactions refer to: (i) the sale of 100% of its interest in the Pampo and Enchova clusters, located in shallow waters in the Campos Basin, to Trident Energy do Brasil LTDA, a subsidiary of Trident Energy L.P.; and (ii) the sale of 100% of its interest in the Baúna field (awarded area BM-S-40), located in shallow waters in the Santos Basin, to Karoon Petróleo & Gás Ltda., a subsidiary of Karoon Energy Ltd; Transaction closing is subject to the fulfillment of precedent conditions, such as the approval by the National Agency of Petroleum, Natural Gas and Biofuels (ANP).

Sale of Pampo and Enchova clusters The transaction amount is US$ 851 million, to be paid in two installments: (i) US$ 53.2 million today, upon signing of the contract; and (ii) US$ 797.8 million, before adjustments, on the closing date. The contract also provides for the additional payment of contingent amounts of up to US$ 200 million, depending on future oil prices.

The so-called Pampo and Enchova Hubs are located in the Campos Basin, off the coast of Rio de Janeiro, and include the Enchova, Enchova Oeste, Marimbá, Piraúna, Bicudo, Bonito, Pampo, Trilha, Linguado and Badejo fields. Current total oil and gas production from these fields is about 25.5 thousand barrels per day through the PPM-1, PCE-1, P-8 and P-65 platforms. With this transaction, Trident will be the operator of these concessions with 100% stake.

Sale of the Bauna field

The Baúna field, located in the Santos Basin off the coast of the state of São Paulo, started its operations in February 2013 and has a current output of about 20,000 barrels of oil per day through the FPSO Cidade de Itajaí.

With this transaction, Karoon will become the operator with 100% stake.

Constellation Reports New Contract Awards (Constellation, 22.Jul.2019) — Constellation Oil Services Holding S.A. announced three of the Company’s ultradeepwater (UDW) rigs, Alpha Star, Gold Star, and Lone Star, have been awarded new firm contracts with Petrobras S.A. for two years. The drilling activities will be performed offshore of Brazil and operations under each contract is expected to commence by January 2020.

Alpha Star and Gold Star are ultra-deepwater DP semisubmersible drilling rigs that started operations in July 2011 and February 2010, respectively. The drilling rigs are capable of drilling in water depths of up to 9,000 feet and have a drilling depth capacity of up to 30,000 feet.

Lone Star is an ultra-deepwater DP semi-submersible drilling rig that started its operations in April 2011. The rig is capable of drilling in water depths of up to 7,900 feet and has a drilling depth capacity of up to 30,000 feet.

BP And Bunge To Create Bioenergy Company (Bunge, 22.Jul.2019) — Bunge Limited announced an agreement with BP plc to form a 50:50 joint venture that will create a leading bioenergy company (the “joint venture”) in Brazil, one of the world’s largest fast-growing markets for biofuels.

Trident Energy is an oil and gas company incorporated in 2016, specialized in the operation of mature upstream

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Bunge will receive cash proceeds of $775 million in the transaction, comprising $700 million in respect of nonrecourse Bunge debt to be assumed by the joint venture at closing, and $75 million from BP, subject to customary closing adjustments. The proceeds will be used to reduce outstanding indebtedness under the company’s credit facilities, resulting in a stronger balance sheet and greater financial flexibility.

practices, optimised technologies and operational capabilities across all the assets of the new business.

The deal progresses Bunge’s strategy to optimize its portfolio. Gregory A. Heckman, Bunge’s Chief Executive Officer, said, “This partnership with BP represents a major portfolio optimization milestone for Bunge which allows us to reduce our current exposure to sugar milling, strengthen our balance sheet and focus on our core businesses. We have a strong, committed partner in BP, as well as flexibility in the medium and long term for further monetization, with full exit potential via an IPO or other strategic route.”

CHILE

The joint venture, to be called BP Bunge Bioenergia, will operate on a stand-alone basis, with a total of 11 mills located across the Southeast, North and Midwest regions of Brazil. With 32 million metric tonnes of combined crushing capacity per year, the joint venture will have the flexibility to produce a mix of ethanol and sugar. It will also generate renewable electricity – fuelled by waste biomass from the sugar cane – through its cogeneration facilities to power all its sites and sell surplus electricity to the Brazilian power grid. BP and Bunge’s assets are largely complementary, with sites in five Brazilian states including three in the key region of São Paulo. The combined business will be ranked the second largest player in the industry in Brazil by effective crushing capacity.

Dev Sanyal, chief executive of BP Alternative Energy, said: “Biofuels have a key role to play in the energy transition and Brazil is leading the way by developing this industry at scale. In one step, this agreement will allow BP to significantly grow the size, efficiency and flexibility of our biofuels business in one of the world’s major growth markets. With our shared commitment to safety and sustainability, the combination of BP and Bunge’s assets and expertise will allow us to improve performance, develop options for growth and generate real value. BP Bunge Bioenergia will be well-placed to play a significant part in meeting Brazil’s growing demand for both biofuels and biopower.”

Following completion, the aim is for BP Bunge Bioenergia to generate significant operational and financial synergies, including through scale efficiencies and by applying best

The new business is expected to be headquartered in Sao Paulo. Mario Lindenhayn from BP will be Executive Chairman, Geovane Consul from Bunge, will be Chief Executive Officer (CEO). BP and Bunge will have equal representation on the Board of Directors.

Atacama Bio Launches Algae Astaxanthin (Atacama Bio, July 24, 2019) — Iquique, Chile-based Atacama Bio Natural Products announced the introduction of NatAxtin™ branded natural astaxanthin available as biomass, oleoresin oil and powder for use in food, to the North American dietary supplement marketplace. Atacama Bio has manufactured natural Astaxanthin derived from Haematococcus pluvialis globally since 2003 with primary markets in Europe, India and Japan. Today’s announcement expands distribution of the branded ingredient to North America and underscores Atacama Bio’s commitment to be a global supplier of natural astaxanthin.

Atacama Bio uses the pristine environment offered by the Atacama Desert to produce one of the highest quality astaxanthin products offered in the world. Source: Atacama Bio Atacama Bio uses the pristine environment offered by the Atacama Desert to produce one of the highest quality astaxanthin products offered in the world. The Atacama Desert offers air so clean and clear that more astronomical observatories are located in this desert than anywhere else in the world. The creation of this natural

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astaxanthin is supported by clean water received directly from the Andes Mountains to provide the most natural production of astaxanthin possible. The Atacama Bio facility is located in the Atacama Desert in the Andes mountains at an altitude of over 3,500 feet.

TRINIDAD PM Keith Rowley Visits TOFCO With BPTT (T&T Newsday, Carla Bridglal, 22.Jul.2019) — Prime Minister Dr Keith Rowley visited the TOFCO fabrication yard in La Brea on Friday with BPTT team, led by regional president Claire Fitzpatrick, to view fabrication of the jacket and bridge landing for the company’s Cassia C project.

the Greater Cassia Area, maximising recovery from these existing resources, the company said in a release.

Petrotrin Lies Will End Keith Rowley’s Reign As PM (T&T Newsday, Yvonne Webb, 23.Jul.2019) — President General of the Oilfield Workers Trade Union (OWTU) Ancel Roget is predicting that the many lies told about the closure of Petrotrin would mark the end of the reign of Prime Minister Dr Rowley’s administration. Just as the “campaign of lies and deceit” has exposed Brexit, it would do the same to Rowley and his Cabinet, Roget said at the OWTU’s 80th annual Conference of Delegates at the union’s Paramount Building, San Fernando headquarters.

VENEZUELA Gov’t Says Blackouts Caused By ‘Electromagnetic Attack’ (Reuters, 22.Jul.2019) — More than half of Venezuela’s 23 states lost power, according to Reuters witnesses and reports on social media, a blackout the government blamed on an “electromagnetic attack.”

It was the first blackout to include the capital, Caracas, since March, when the government blamed the opposition and United States for a series of power outages that left millions of people without running water and telecommunications.

Prime Minister Dr Keith Rowley (centre left) tours the TOFCO compound with BPTT regional president Claire Fitzpatrick (centre right) to view fabrication of the company’s Cassia C jacket and bridge. Source: BPTT

Guaido Says To Protect Chevron Assets In Venezuela

Cassia C is BPTT’s next platform and part of the the Cassia Compression development, which will access one trillion cubic feet of hydrocarbon resources.

(Reuters, Luc Cohen) — Venezuelan opposition leader Juan Guaido said he would seek to protect Chevron Corp’s assets in the country if the U.S. does not renew a license allowing the company to operate despite sanctions on the OPEC nation’s oil sector. Venezuelan opposition leader Juan Guaido, who many nations have recognised as the country’s rightful interim ruler, waves as he arrives to a session of Venezuela’s National Assembly at a public square in Caracas, Venezuela July 23, 2019.

The jacket and bridge are currently being fabricated at TOFCO while the topsides and bridge link are being constructed in Altamira, Mexico. The Cassia Compression development will enable BPTT to access and produce low pressure gas reserves from currently-producing fields in

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