LatAmNRG Prospector: Week 9 2019

LATAMNRG PROSPECTOR VOL 9 2019 Central Puerto Acquires Plant From IEASA Coal Conference Of The Americas: Cartagena Petrobras Approves Dividends KBR Awarded PreFEED Study Contract For Pacific Coast LNG Project

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THE LATAM PROSPECTOR 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

ARGENTINA Central Puerto Acquires Plant From IEASA (Compelo, 28.Feb.2019) — Central Puerto has acquired the Brigadier Lopez plant, a gas-fired power plant in Santa Fe, Argentina from state-owned IEASA for a total sum of $326m. The Brigadier Lopez plant, which currently has a capacity of 280MW through a single gas turbine, is on the verge of expansion to generate 420MW of power.

BRAZIL Petrobras Approves Dividends (Petrobras, 27.Feb.2019) — Petrobras informs that its Board of Directors, at a meeting held today, approved dividends to shareholders who own non-voting shares, in the amount of R$ 106,678,312.41, corresponding to R$ 0.019043 per outstanding preferred share, based on the 2018 annual results, in order to meet the minimum dividend guaranteed to this class of shares provided for in article 5, paragraph 2 of the company’s Bylaws.

Petrobras Updates On Bank Debt Pre-payments (Petrobras, 27.Feb.2019) — Petrobras informs that, in February, it pre-paid bank debts totaling R$ 5,9 billion and US$ 1 billion, according to the table below: Table: pre-payment operations (in million)

Pampa, Tecpetrol Eye Unconventional Potential (S&P Global Platts, 27.Feb.2019) — Pampa Energia and Tecpetrol, two of the largest energy companies in Argentina, plan to launch the first exploration for unconventional oil and natural gas in the northern province of Salta, expanding on their fracking in the huge Vaca Muerta shale play in the southwest, a provincial source said Wednesday.

The transactions are in line with the company’s liability management strategy, which aims to improve the amortization profile and cost of debt considering the deleveraging goals under its 2019-2023 Business and Management Plan.

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Petrobras Studying Voluntary Layoff Programme In Sao Paulo (Reuters, 27.Feb.2019) — Brazilian state-run oil company Petroleo Brasileiro SA said on Tuesday that it is studying a voluntary layoff programme at its administrative headquarters in Sao Paulo to cut costs.

Brazil To Offer Areas With ‘Significant’ Oil

Energy Analytics Institute (EAI) is a Houston-based private organization focused on provided integrated services related to the Latin American and Caribbean upstream, downstream and midstream petroleum sectors.

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(Reuters, 28.Feb.2019) — The Brazilian government will offer in an auction in October production sharing contracts for companies to explore areas that it says hold “significant volumes of oil and gas”, the country’s energy council CNPE said on Thursday.

Shizen Energy Breaks Ground On 1.1-MW PV Plant In Brazil (Renewables Now, 28.Feb.2019) — Japan’s Shizen Energy Inc announced on Wedneday it has started construction on January 29 of a 1.1-MW direct current (DC) solar power plant in Brazil. The plant will be owned by local real estate development company Espaco Y and Shizen Brazil, a joint venture between the Japanese firm and Brazilian MS Consultoria e Suporte, says the press release.

Total Eyes Growth Shift From West Africa To Brazil (S&P Global Platts, 27.Feb.2019) — Total expects to see its market-leading oil and gas production growth driven by rising deepwater volumes from Brazil and the Gulf of Mexico over the coming years as output from its aging West African assets declines, the company's upstream head Arnaud Breuillac said Wednesday.

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COLOMBIA

Coal Conference Of The Americas

Ecopetrol 2018 Earnings Distribution Proposal (Ecopetrol, 27.Feb.2019) — Ecopetrol S.A. informs the 2018 earnings distribution proposal, approved by a majority of the members of its Board of Directors, which will be submitted for the consideration of the Shareholders Meeting (Asamblea de Accionistas) that will take place on March 29, 2019.

(IHS Markit, 28.Feb.2019) — IHS Markit announces the 26th Annual Coal Conference of the Americas on March 19-21, 2019 in Cartagena, Colombia. Held at the Hyatt Regency Cartagena Hotel, this 3-day event draws on the expertise of the McCloskey Coal Report, the industryleading source of benchmark pricing and market analysis for metallurgical and steam coal worldwide produced by IHS Markit.

Renewable Energy Projects Despite Appetite (Reuters, 27.Feb.2019) — Colombia on Feb. 26 failed to award 23 energy generation and commercialization contracts in its first renewable energy tender, because the results would have violated antitrust rules, the energy ministry said. The government received proposals from 27 local and international companies to participate in the auction, the Andean nation’s attempt to diversify and increase electricity supply with projects in solar, wind and biomass.

GUYANA Patterson Plays Up Guyana As Investment Destination (Stabroek News, 28.Feb.2019) — Speaking at an oil and gas forum on Tuesday in Houston, Texas, Minister of

ENERGY ANALYTICS INSTITUTE | LATAMNRG PROSPECTOR | HOUSTON • CARACAS

Public Infrastructure, David Patterson boasted of the numerous investment opportunities and called on airlines to invest in a direct flight from the city dubbed “the oil and gas capital of the U.S” to Guyana.

MEXICO

JAMAICA

KBR Awarded Pre-FEED Study Contract For LNG Project

Morgan Stanley Initiates Coverage of New Fortress

(KBR, 28.Feb.2019) — KBR, Inc. has been awarded a pre Front End Engineering Design (Pre-FEED) contract by Mexico Pacific Limited (MPL) for a midscale LNG liquefaction project in Puerto Libertad on the Pacific coast of Mexico. Under the terms of the contract, KBR will provide a Pre-FEED and cost estimate for the project. This work will be performed by KBR utilizing the ConocoPhillips Optimized Cascade® technology, leveraging the midscale LNG joint development work previously announced by KBR.

(Fairfield Current, Lisa Matthews, 28.Feb.2019) — Morgan Stanley started coverage on shares of New Fortress Energy (NASDAQ:NFE) in a research note released on Monday morning, Marketbeat.com reports.

The brokerage issued an overweight rating and a $19.00 target price on the stock.

Several other equities analysts also recently issued reports on the stock. Stifel Nicolaus started coverage on shares of New Fortress Energy in a research note on Monday. They set a buy rating and a $27.00 price target for the company. Wolfe Research started coverage on shares of New Fortress Energy in a research report on Thursday, February 21st. They set an outperform rating and a $20.00 price objective for the company. Citigroup started coverage on shares of New Fortress Energy in a research report on Monday.

They set a buy rating for the company. JMP Securities started coverage on shares of New Fortress Energy in a research report on Monday. They set a mkt outperform rating and a $18.00 price objective for the company.

Finally, Barclays started coverage on shares of New Fortress Energy in a research report on Monday. They set an equal weight rating and a $16.00 price objective for the company. Two investment analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. New Fortress Energy presently has a consensus rating of Buy and a consensus price target of $20.00.

“We are excited to be a part of this Mexico Pacific Limited LNG project and to deliver innovative LNG technology solutions for our customers,” said Farhan Mujib, KBR President Hydrocarbons Delivery Solutions. “We believe midscale LNG projects have an important part to play in the global LNG market.”

The engagement continues the progress towards commercialization for MPL. “We look forward to working with an LNG industry leader in KBR, and continuing our efforts to provide a world class project with best in class delivered pricing for our Asian buyers,” said Josh Loftus, President of MPL.

VENEZUELA Repsol’s New Oil Fields To Outweigh Venezuela, Libya Declines To 2020: CEO (S&P Global Platts, 28.Feb.2019) — Repsol expects output from around 10 of its new international plays to outweigh any possible declines from Libya and Venezuela and drive it towards its 750,000 b/d of oil equivalent production target for 2020.

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