LatinPetroleum LatAm NRGProspector 2Q16 Full

LATAM NRG PROSPECTOR

LATINPETROLEUM

Since 2000

2Q:16

Petrobras Issues $6.75 Billion in Global Notes YPFB to Sign Five Exploration Contracts with YPF and Petrobras Ecopetrol Offers 20 Production Assets to Oil and Gas Companies PetroEcuador Reports 79% Decline In EBITDA In 2015 Vs 2014 IFC, China-Mexico Fund Invests $200 Million E&P Firm Citla Energy Paraguay Says No Need To Issue Bonds To Pay PDVSA Debt PDVSA Reports 46% Drop in Hydrocarbon Income LATAM RIG COUNTS

DIVESTMENT TRACKER

IN THIS ISSUE …

15.July.2016

MEXICO AND CARIBBEAN REGIONS 5-12 ….. MEXICO Pemex to Make 30 Billion Peso Payment to Suppliers

13-14 ….. ARUBA CITGO Aruba and the Aruban Government Finalize Deal to Re-open San Nicolas Refinery

ANDEAN REGION 15-25 ….. BOLIVIA Shell Announces Return to Bolivia, Exploration and Exploitation Investment Plans

26-41 ….. COLOMBIA Ecopetrol Offers 20 Production Assets to Oil and Gas Companies

42-56 ….. ECUADOR EP PetroEcuador to Export 950,000 barrels of No. 6 Fuel Oil in July

57-74 ….. VENEZUELA Venezuela and Trinidad and Tobago Sign Two Energy-Related Deals in Port of Spain

97-98 ….. PARAGUAY 99 ….. URUGUAY For subscription details write us at: webmaster08@latinpetroleum.com

TRACKER TABLES 100-102 …..

DIVESTMENT/M&A 103 ….. EQUITY/DEBT ISSUANCES 104-106 ….. ROTARY RIG TRACKER LatAm oil, gas and misc., and onshore and offshore.

107 ….. ECUADOR EXPORT PRICE 108 ….. VENEZUELA EXPORT PRICE VS WTI AND BRENT

SOUTHERN CONE REGION ON THE COVER …

75-80 ….. ARGENTINA YPF Announces Divestment Plans for 20 Areas in Río Negro and Chubut

81-95 ….. BRAZIL New Well in Libra Confirms Extension of Oil Discovery

96 ….. CHILE

Venezuelan oil workers march in Caracas in support of President Nicolas Maduro.

Photo credit: PDVSA

MISC. TABLES (21)

ABBREVIATIONS HYDROCARBON SECTOR B/d: Barrels per day Bbls: Barrels Bcf: Billion cubic feet Bcfe: Billion cubic feet equivalent Bcm: Billion cubic meters Bln: Billion Boe/d: Barrels per day equivalent EHCO: Extra heavy crude oil E&P: Exploration and Production Faja: Venezuela’s Orinoco heavy oil belt Ft: Feet JV: Joint venture LNG: Liquefied natural gas LPG: Liquefied petroleum gas M3: Cubic meters M2: Square meters M: Meters Mbbls: Thousands of barrels Mcf: Thousand cubic feet Mcfe: Thousand cubic feet equivalent MMbbls: Millions of barrels MMBtu: Millions of British thermal units MMcm: Million cubic meters MMcf: Million cubic feet MMcfe: Million cubic feet equivalent Mscf: Thousands of standard cubic feet MMscf: Millions of standard cubic feet MMscf/d: Millions of standard cubic feet per day MTPA: Million tons per annum MTPY: Million tons per year NGLs: Natural gas liquids PPM: Parts per million Tcf: Trillion cubic feet Tcfe: Trillion cubic feet equivalent Tcm: Trillion cubic meters WTI: West Texas Intermediate Note: All monetary figures are in USA dollars unless stated otherwise.

FINANCIAL CAPEX: Capital expenditures DD&A: Depreciation, deletion and amortization LOI: Letter of Intent MOU: Memoranda of Understanding YE: Year end WI: Working interest

STATE OIL ENTITIES (COUNTRY) ANCAP: Administración Nacional de Combustibles, Alcoholes y Portland (Uruguay) Cupet: Cubapetróleo (Cuba) Ecopetrol: Empresa Colombiana de Petróleos S.A. (Colombia) ENAP: Empresa Nacional de Petróleo (Chile) Eni SpA: Ente Nazionale Idrocarburi (Italy) PDVSA: Petróleos de Venezuela S.A. (Venezuela) PEMEX: Petróleos Mexicanos (Mexico) Petrobras: Petróleo Brasileiro S.A. (Brazil) PetroEcuador: Ecuador PetroPeru: Peru Petrotrin: Petroleum Co. of Trinidad & Tobago Ltd. YPFB: Yacimientos Petrolíferos Fiscales Bolivianos (Bolivia)

OTHER OIL & GAS ORGANIZATIONS API: American Petroleum Institute EIA: Energy Information Administration MEEI: Ministry of Energy and Energy Industries (Trinidad and Tobago) MENPET: Ministry of Energy and Petroleum (Venezuela) OPEC: Organization of Petroleum Exporting Countries

REGIONAL INITIATIVES ALBA: Bolivarian Alternative for America CELAC: Community of Latin America and Caribbean states Petrocaribe: Petrocaribe oil initiative

LATAM/CARIBBEAN COUNTRIES ARG: Argentina ARW: Aruba BHS: Bahamas BRB: Barbados BLZ: Belize BOL: Bolivia BRA: Brazil CYM: Cayman Islands CHL: Chile COL: Colombia CRI: Costa Rica CUB: Cuba DMA: Dominica DOM: Dominican Republic ECU: Ecuador FLK: Falkland Islands (Malvinas) GUF: French Guiana GLP: Guadeloupe GTM: Guatemala GUY: Guyana HTI: Haiti HND: Honduras JAM: Jamaica MTQ: Martinique MEX: Mexico NIC: Nicaragua PAN: Panama PRY: Paraguay PER: Peru PRI: Puerto Rico KNA: Saint Kitts and Nevis LCA: Saint Lucia VCT: Saint Vincent and the Grenadines SUR: Suriname TTO: Trinidad and Tobago URY: Uruguay VEN: Venezuela

VGB: Virgin Islands (British) VIR: Virgin Islands (USA)

ALL OTHER COUNTRIES AGO: Angola CAN: Canada CHN: China EGY: Egypt ESP: Spain IND: India IRQ: Iraq IRN: Iran JPN: Japan LBY: Libya NGA: Nigeria RUS: Russian Federation SYR: Syria USA: United States of America

LATINPETROLEUM www.latinpetroleum.com In the USA LatinPetroleum, Inc., dba LatinPetroleum.com 2825 Wilcrest Drive, Suite 540 Houston, Texas 77042 Texas Charter No.: 800624190 EIN: 26-0435194 In Venezuela (Representative Office) Editores LatinPetroleum, C.A. Avenida Francisco de Miranda Edificio Galerias Venezias, Local 3 Municipio Chacao Caracas, Venezuela For subcription details: webmaster08@latinpetroleum.com Contact: webmaster08@latinpetroleum.com Venezuelan RIF.: J-31464958-2 Venezuelan NIT.: 0493462636 Copyright © 2000-2016. All rights reserved.

MEXICO

Pemex’s CEO José Antonio González Anaya (center) speaks during JP Morgan event. Source: Pemex

Pemex to Make 30 Billion Peso Payment to Suppliers

By Fidencio Casillas, LatinPetroleum Pemex is preparing to make payments of nearly 30 billion Mexican pesos to its providers, announced a company executive.

The Mexico City-based oil company paid 95 billion Mexican pesos to providers in late May 2016, reported the daily newspaper LaJornada, citing Pemex General Manager Antonio González Anaya.

"The debt with the providers was inherited from last year and will soon no longer be a problem," said Anaya on the sidelines of a BBVA Bancomer national council meeting. [6.Jun.2016] LP

Consumption of Premium Grade Gasoline At 22% of Total Vs. 8% in 2011

By Fidencio Casillas, LatinPetroleum The consumption of premium gasoline in Mexico has evolved favorably over the last six years with the Premium grade gaining territory on the Magna grade.

Between 2011 and 2016, the consumption of Pemex's Premium grade gasoline within the Mexican border increased to 22 percent as of April 2016 compared to 8 percent in 2011, reported Pemex in a twitter post.

Conversely, the consumption of the Magna grade gasoline was decreased to 78 percent compared to 92 percent.

TABLE 1: CONSUMPTION OF PREMIUM AND MAGNA GASOLINE IN MEXICO (% OF TOTAL)

2011 2012 2013 2014 2015 2016 (1)

Premium

Magna

8% 11% 15% 18% 20% 22%

92% 89% 85% 82% 80% 78%

Note 1: Data for 2016 through April.

Source: Pemex

[5.Jun.2016] LP

Pemex To Boost Crude Exports to Clients in Japan

By Fidencio Casillas, LatinPetroleum Pemex plans to boost its shipments of crude oil to Japan after reaching agreements with clients including Cosmo Oil, JX Holdings and TonenGenera, reported Reuters citing an anonymous company contact and commercial data.

‌ Mexico Gasoline Consumption (2011-2015) ‌

Pemex normally sends close to 1 million barrels per month of Maya crude to Cosmo Oil under an existing supply contract. However, the company plans to send various extra export shipments in May and June of 2016, said the contact.

Shipments of Maya crude were destined to arrive to Japan in mid-to-late May 2016 after loading at the Dos Bocas and Salina Cruz terminals in Mexico, according to the data. [11.May.2016] LP

Pemex and Mexichem Regret To Inform the Loss of 13 Workers’ Lives

By Pemex Pemex’s CEO, José Antonio González Anaya; Civil Protection National Coordinator from the Ministry of the Interior, Luis Felipe Puente, and Mexichem’s CEO, Antonio Carrillo, covered the Clorados 3 Plant of Petroquímica Mexicana de Vinilo (PMV) located in Coatzacoalcos, which is operated by Mexichem and co-owned by Pemex.

Unfortunately, 13 workers lost their lives during the incident. As of this moment, 88 people remain hospitalized at Pemex and at the Mexican Social Security Institute facilities, 13 of which are in critical condition.

Once the affected equipment cooled down, the executives verified safety conditions. After this, they visited hospital units to supervise that injured are receiving the appropriate care.

Expert parties have begun investigations to determine what caused the accident.

Moreover, air quality continues to be monitored in order to determine the existence of toxic substances that could endanger health, which continue to be ruled out. [21.Apr.2016] LP

Pemex: PMV Plant in Coatzacoalcos Under Control and Clear of Risk

By Pemex The current situation in the Clorados 3 Plant of Petroquímica Mexicana de Vinilo’s (PMV) in Coatzacoalcos, is under control and presents no risk to the population.

This was pointed out during a press conference by Pemex CEO José Antonio González Anaya; the Governor of Veracruz, Javier Duarte; the National Coordinator of Civil Protection of the Ministry of the Interior, Luis Felipe Puente, and Mexichem CEO Antonio Carrillo. Mexichem operates the plant in partnership with Pemex.

In total, 136 injured workers were admitted to different Pemex and IMSS hospitals, of which 48 have already been discharged and 88 remain hospitalized.

Immediately after the explosion, safety protocols were activated, shutting down all pipes and valves, and proceeding to the evacuation of the plant.

In addition, the air quality was monitored to determine the existence of any substance that could represent a health risk, which was ruled out.

Medical care for the affected was established in close coordination between Pemex, the IMSS and the Ministry of Health, as well as between federal and state authorities.

Governor Duarte acknowledged the professionalism and quick response from security crews and civil protection systems, as well as Pemex brigades.

In turn, the National Coordinator of Civil Protection said that 2,000 people were evacuated from surrounding areas, which have already returned to their homes, and highlighted the support of the Army, Navy, Federal Police and state and municipal police who cordoned off and secured the area. [20.Apr.2016] LP

Wood Group Mustang and Grupo Diavaz Form Engineering Joint Venture

By Wood Group Wood Group Mustang and Grupo Diavaz, a Mexican oil & gas operator and services company, created a joint venture engineering business to capitalize on Mexico's energy reform. MUSTANG DIAVAZ is based in Mexico City and will provide engineering, procurement and construction management services to onshore and offshore facilities, and pipelines for the upstream and midstream oil & gas markets in Mexico.

"We are making a long-term commitment to Mexico that includes investing in its people, growing our local project expertise and sharing our global knowledge to form a Center of Engineering Excellence," said Wood Group Mustang CEO Michele McNichol. "Grupo Diavaz's knowledge of the Mexican oil & gas industry combined with Wood Group Mustang's global engineering experience will enable MUSTANG DIAVAZ to provide unmatched expertise to companies operating in Mexico."

"MUSTANG DIAVAZ is also committed to leveraging our extensive experience and expertise to provide customers with predictable project delivery and industry-recognized safety records," said Grupo Diavaz Chairman and CEO Luis Vazquez. "We intend to deliver exceptional services that meet or exceed our customers' strategic objectives, providing value without sacrificing safety or quality." [9.Jun.2016] LP

Keppel FELS Delivers Another Two Rigs

By Keppel FELS Limited Keppel FELS Limited (Keppel FELS), a wholly owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), delivered two jackup rigs to Mexican company, Grupo R. Built to Keppel's proprietary KFELS B Class design, the rigs, CANTARELL I and CANTARELL II, will be chartered to PEMEX, Mexico's national oil company, for operations in the Cantarell oil field in offshore Mexico. They are the first two of five jackup rigs that Keppel FELS is building for Grupo R.

"Despite the current low oil price environment, the market continues to prefer safe and efficient rigs with a proven track record like our KFELS B Class," said Keppel O&M (Offshore) and Keppel FELS Managing Director Wong Kok Seng.

With the two rigs delivered, there will be 10 KFELS B Class rigs working in Mexico, two of which are directly owned by Pemex. It is the dominant rig design in the region, with those already in operation turning out robust, efficient and economical, performances for Mexico.

The KFELS B Class jackup is designed to operate in water depths of up to 400 feet and drill to depths of 30,000 feet. Developed by Keppel's Offshore Technology Development (OTD), the KFELS B Class jackup is equipped with an advanced and fully-automated high capacity rack and pinion jacking system, and Self-Positioning Fixation System. It has accommodation with full amenities for 150 persons.

Keppel has delivered projects to Mexico since 2004 when it was awarded a contract to build two accommodation modules. Besides building new jackup rigs for Mexico, Keppel has also repaired and serviced a total of 18 rigs that have been deployed in Mexico.

With the deliveries, Keppel FELS has delivered three rigs in 2016 to-date. [27.Mar.2016] LP

IFC, China-Mexico Fund Invests $200 Million E&P Firm Citla Energy

By International Finance Corp.

International Finance Corp. (IFC), a member of the World Bank Group, and the ChinaMexico Fund (CMF), a $1.2 billion private equity fund managed by the IFC Asset Management Company (AMC), will invest $200 million in Citla Energy, SAPI de CV (Citla or Citla Energy), a Mexican independent oil exploration and production (E&P) company sponsored and controlled by affiliates of ACON Investments, L.L.C. (ACON).

IFC will commit an equity investment of $60 million and CMF will commit $140 million. The $200 million investment is IFC’s and the CMF's first investment in Citla Energy as part of a greater equity financing package provided by ACON, which includes capital from Mexican pension funds through a CKD managed locally by ACON. Founded by ACON in 2015, Citla is actively building a portfolio of selected E&P assets in Mexico, both independently and in partnership with other industry participants.

Mexico is one of the leading oil and gas producers in the world, yet faces a consistent decline in output due primarily to underinvestment. A groundbreaking constitutional reform passed in 2013 aims to promote private sector involvement in the Mexican oil industry through an unprecedented market liberalization coupled with the mobilization of resources by Pemex, among other measures. This investment is a result of the attractive economic conditions fostered by the reform.

Citla is uniquely positioned to develop a balanced portfolio of oil and gas assets, thereby opening up new hydrocarbon discoveries in the region, spurring broader participation of local companies and triggering economic stimulus and growth for the country. Citla’s portfolio expansion and growth will be achieved through bidding awards, acquisitions, farm-ins and partnerships with other operators.

"This investment reinforces Citla’s position as an independent and institutional platform with resources to access carefully selected opportunities of the Mexican Energy Reform," said Citla CEO Alberto Galvis.

As Mexico opens its oil and gas sector to private competition, IFC's goal is to support new players that combine strong sector expertise, local and global know-how, and adequate capitalization, and Citla Energy reflects all them. With this investment, IFC, AMC, Citla Energy and ACON send a strong signal of confidence in the Mexican Energy Reform agenda, said IFC Mexico Country Manager Ary Naim.

IFC's strategy in Mexico focuses on supporting private sector investment to accelerate growth, improve competitiveness, foster social inclusion, and reduce poverty. As of Fiscal Year 2015, IFC's portfolio in Mexico totaled $1.4 billion representing investments in 57 companies. Mexico ranks seventh for IFC in terms of investment volume in a single country. [21.Apr.2016] LP

Searcher Working on South Campeche 3D Seismic Reprocessing Project

By Searcher Seismic Pty Ltd. Searcher Seismic announced the South Campeche Ultracube 3D seismic reprocessing project offshore Mexico.

The seismic project, totaling approximately 6,834 square miles (17,700 square kilometers), is a merge of three existing surveys. The Holok Alvardo 3D (2003), the Cequi 3D (2010) and the Boloi Norte-Balche-Xulum 3D (2003).

Rachel Masters, global sales manager for Searcher, said the project is located in one of Mexico’s most prominent offshore exploration areas, with several proven oil and gas discoveries.

"The new 3D Ultracube extends over 162 miles (260 kilometers) in the southern part of the Campeche Bay area and will provide new depth imaging of the Southern Campeche -- Sigsbee Basin and also parts of the offshore Comalcalco Basin," said Masters. "The southern part of Mexican Ridges in the Veracruz Basin are also covered by the new South Campeche Ultracube.

An important factor to note, in this low oil-price environment, is 75 percent of the South Campeche Ultracube is located in waters less than 3,281 feet (1,000 meters) in depth; with the shallowest water depth being approximately 98 feet (30 meters)."

The South Campeche Ultracube includes coverage of areas in Rounds 2 and 3 and is competitively priced for oil companies to utilize in their exploration efforts.

The project incorporates a very thorough pre-stack imaging and post-stack processing sequence staged in two parts.

Firstly, the pre-processing produces high S/N ratio, broadband data and secondly, imaging using TTI Kirchhoff and RTM technologies to properly image the subsurface, often with extensive salt pillows and diapirs.

ARES B approval has been granted and processing of the project will commence shortly.

Fast track products are expected to be available in approximately 6 months and final volumes will be available in second quarter of 2017. [7.Apr.2016] LP

… Searcher Seismic announced the South Campeche Ultracube 3D seismic reprocessing project offshore Mexico …

… Wood Group Mustang and Grupo Diavaz created a joint venture engineering business to capitalize on Mexico's energy reform.

Finance Ministry, Public Credit Support Pemex as a State-Owned Productive Company

By Pemex Given the difficult situation of global low oil prices, Pemex faced a liquidity problem, while not a solvency one. In this context, Pemex continues to focus on two main courses: the adjustment of its cost structure and the implementation of a business strategy based on the Energy Reform’s new instruments to attract investment.

In this context, the Federal Government, through the Ministry of Finance and Public Credit (SHCP), announced the following mechanisms to support the company: 1) The injection of liquid instruments by 73.5 billion comes at an opportune time for the company given the difficult situation being experienced by the global oil industry.

Pending authorization by its Board of Directors, Pemex has committed to use said support for the following: -- In this and subsequent fiscal years, reduce and regularize payments to suppliers and contractors to maintain an adequate current liabilities level given the company’s operations.

-- And coupled to the 15 billion pesos credit obtained from Mexican development banks, fulfill the company’s 2015 pending accounts payable to suppliers, based on the agreed payment schedule.

2) Reduction of the fiscal burden by approximately 50 billion pesos to diminish the company’s financial deficit, which will allow to reduce the funding needs in the same amount, improve liquidity indicators by strengthening the cash balance and the company’s capital structure, in addition to improving the debt trajectory for the year.

The budget adjustment plan approved by the Board of Directors and undertaken by the company last February, combined with the support measures recently announced by the Federal Government, set the ground for the company’s profitability and enable it to fully meet its obligations and decrease its future liabilities.

All of these actions strengthen Pemex’ outlook and consolidate it as an attractive and reliable partner to develop the national energy industry. [13.Apr.2016] LP

Heads of Finance Ministry and Pemex Meet With Investors, Financial Institution Executive

By Pemex The Minister of Finance and Public Credit, Luis Videgaray, and the Pemex CEO José Antonio González Anaya, met in New York with investors, analysts, and executives of financial institutions to emphasize the economic prospects of the company and investment opportunities that resulted from the implementation of the Energy Reform.

During his two day visit, González Anaya also held meetings with executives of Standard and Poor's, Moody's and Fitch rating agencies, as well as financial institutions Goldman Sachs and JP Morgan, where he stressed the relevance of Pemex for the country’s economic development.

Additionally, he shared that alongside the attained budget announcement, Pemex works in the design and implementation of a broad strategy of alliances and associations that will increase the profitability of the company in view of the fall of crude oil prices worldwide.

During the second day of the visit, Pemex’s CEO and Minister Videgaray held two meetings with investors focused on Latin America, during which they reassured the financial support of the Federal Government to Pemex through the injection of liquidity to the company for a total amount of 73.5 billion pesos, and a reduction of its fiscal burden by up to 50 billion pesos for 2016.

During the meetings, investors displayed interest in the measures taken to address the current environment of the oil industry and the possibilities of alliance with the State Productive Company.

González Anaya highlighted that these encounters are a reflection of the high level of interest and trust that the financial community has in Mexico and Pemex. [19.Apr.2016] LP

ARUBA CITGO Aruba and the Aruban Government Finalize Deal to Re-open San Nicolas Refinery

By Pietro Donatello Pitts, Special Contributor to LatinPetroleum Authorities from the governments of Aruba, the Bolivarian Republic of Venezuela, and officials from Venezuela's state oil company Petróleos de Venezuela, S.A. (PDVSA) and CITGO Aruba, gathered in Caracas, Venezuela to take part in the execution of a commercial agreement between CITGO Aruba and the Aruban government to reopen a 209,000 barrel per day refinery located in San Nicolas, Aruba.

Officials in attendance at the gathering included: Venezuela's President Nicolás Maduro, Venezuela's Oil Minister Eulogio del Pino, Aruba's Primer Minister Mike Eman; Aruba's Economy, Communication, Energy and Environment Minister Mike de Meza, and CITGO Petroleum Corporation President and CEO Nelson P. Martínez, reported CITGO in an official statement on its website.

Following several months of negotiations, officials from the Aruban government and CITGO Aruba, announced plans to reactivate operations -- which had been idled since 2012 -- through a refining facilities 15-year lease agreement, with a 10-year extension option. CITGO Aruba, a group of operating companies under PDV Holding (a PDVSA subsidiary), will operate the facility with CITGO providing services to the group.

"This project will transform the refinery into an upgrader for Venezuelan extra-heavy crude within 18 months to two years. This process -- which will require an investment ranging from $450 million to $650 million, to be obtained from external financing sources -- can be compared to a large turnaround. This is an area in which CITGO is well positioned to provide technical expertise and services," Martínez said, adding that with these changes, the refinery would become a successful economic venture for all parties.

"This has been a very well thought-out process which involved the participation of the best available technical consultants from CITGO and PDVSA, as well as the input of several leading international refining industry consulting firms, such as KBC Advanced Technologies, KBR of

Germany and others that assessed the project's technical and financial viability," Martínez added.

Once the adaptation process has concluded, the facility will upgrade extra-heavy crude from the Venezuela's Orinoco Heavy Oil Belt or Faja, transforming it into intermediate crude, which in turn will be sent on to the CITGO refining network in the United States of America for further processing, Martínez explained. At the same time, naphtha will be sold to PDVSA for use as diluent for its extra-heavy crude.

A complementary project under consideration would allow the utilization of excess natural gas available in the Paraguaná region of Venezuela. Besides the significant energy cost savings in operations that this would generate, using natural gas would substantially reduce refinery emissions and contribute to environmental protection efforts in the region, the CITGO CEO said, adding that the construction of a gas pipeline linking the coasts of Venezuela and Aruba, which are just 17 miles apart, is being evaluated towards this end.

"This is a very strong project from both the technical and financial perspective. It is a strategic partnership that will benefit CITGO Aruba, PDVSA, Venezuela and Aruba through operations that reduce costs in terms of transportation, energy and storage needs, fully utilize existing infrastructure and maximize the benefit of extra-heavy crude oil production from the Orinoco Oil Belt, the largest oil reservoir in the world," Martínez concluded. [11.Jun.2016] LP

… Venezuela and Aruba continue to evaluate the possible construction of a natural gas pipeline that would link the two countries which are just 17 miles apart …

BOLIVIA

Coroico LNG regasification plant in Bolivia. Source: YPFB

Shell Announces Return to Bolivia, Exploration and Exploitation Investment Plans

By Jared Yamin, LatinPetroleum Royal Dutch Shell -- which ceased to operate in Bolivia in June of 2008 -- has laid out exploration and exploitation plans for the small land-locked South American country. Shell, via BG Bolivia, announced plans to invest millions to focus on exploration activities at the Huacareta field located in Tarija department and exploitation activitities the Caipipendi block in the Margarita-Huacaya department between the Chuquisaca and Tarija departments, reported the daily newspaper La Razรณn. Exact amounts to be invested were not revealed.

Bolivia contains large resources and has legal security, which makes it attractive for companies such as Shell to work with the country, reported the daily, citing Bolivia's Hydrocarbon and Energy Minister Luis Sรกnchez.

"The principal objective of Shell in Bolivia is to continue with exploration activities in the Huacareta area," reported the daily, citing Shell Executive Vice President De la Rey Venter.

"The presence and return of Shell to Bolivia justifies" what minister Sánchez has said about Bolivia, said Venter. [8.Jun.2016] LP

YPFB to Sign Five Exploration Contracts with YPF and Petrobras in July

By Jared Yamin, LatinPetroleum YPFB plans to sign exploration contracts with its Argentine and Brazilian counterparts in July.

YPFB will sign exploration agreements with its Argentine counterpart YPF for the Charagua, Abapó and Yuchan areas and agreements with its Brazilian counterpart Petrobras for the San Telmo and Astillero áreas, reported the daily newspaper La Razón, citing YPFB President Guillermo Achá.

The San Telmo and Astilleros areas cover an extension of close to 210 hectares, reported the daily. [7.Jun.2016] LP

Brazil Lawmaker Wants Investigation into Contracts with Bolivia Under Lula

By Jared Yamin, LatinPetroleum Brazil's Vice President of Foreign Affairs and Deputy in the Brazil National Defense Chamber of Brazil Luis Carlos Auli announced he wants an investigation into contracts signed between Bolivia and Brazil's Working Party under presidents Luis Inácio Lula Da Silva and Dilma Rousseff.

The lawmaker also wants an investigation into former Bolivian Senator Roger Pinto, reported the daily newspaper El Diario. [23.May.2016] LP

Enarsa Signs Deal to Import Gas From Chile at Costly Markup

By Jared Yamin, LatinPetroleum Argentina's state oil company Enarsa signed a contract to purchase natural gas from Chile at a price 53 percent higher than the LNG that arrives to Chile on tankers and 128 percent higher than what is pays for imports from Bolivia, reported the daily El Diario.

"Bolivia sends gas to Brazil and Argentina but does not have any more," reported the daily La Razón, citing Energy Minister Juan José Aranguren. "Today, Argentina imports gas from Bolivia at $3/MMbtu, but will import gas from Chile at $7/MMbtu."

The purchase of gas from Chile at $7/MMbtu will allow Argentina to save $46 million through the displacement of gasoil that it would have to buy at $10/MMbtu to generate electricity, said the minister.

Argentina will commence importing gas from Chile using the same gas pipelines that it used until 2006 to export gas to Chile, reported La Raz贸n.

"We are replacing a product that costs us $10/MMbtu with another that costs us $7/MMbtu," said Aranguren. "Obviously it is more than $3/MMbtu but there is not enough (Bolivian) gas."

[23.May.2016] LP

Bolivia Has Capacity to Generate 40,000 Megawatts from Hydroelectric Projects

By Jared Yamin, LatinPetroleum Bolivia has capacity to generate 40,000 megawatts of energy from hydroelectric projects.

"According to studies from international organizations Bolivia has capacity to generate 40,000 megawatts of energy from its hydroelectric plants," reported the daily La Raz贸n, citing Bolivia's President Evo Morales.

Bolivia plans investments of $21.350 billion to generate 8,575 megawatts of hydroelectric energy through 2025. The country expects to have an excess of 10,000 megawatts that can be destined for export markets, according to Morales. [5.Jun.2016] LP

Bolivia's Central Bank Approves Funding for propylene and polypropylene Plant in Yacuiba

By Jared Yamin, LatinPetroleum Bolivia's Central Bank approved a credit for YPFB for 12,858.26 million Bolivian bolivianos to finance construction of a propylene and polypropylene plant in Yacuiba in Tarija department, reported the daily newspaper La Raz贸n. [7.Jun.2016] LP

YPFB and Gazprom Sign Deal To Evaluate Potential of Three Areas

By Jared Yamin, LatinPetroleum YPFB and Gazprom signed an agreement for the evaluation of the hydrocarbon potential of three areas reserved for YPFB. The agreement was signed by YPFB President Guillermo Acha and GP Exploration and Production S.L. legal representative Andrey Stepanovich Fick for the Vitiacua, La Ceiba and Madidi areas, reported the daily newspaper La Raz贸n.

Gazprom, YPFB and Bolivia's Hydrocarbon and Energy Ministry signed an Action Plan on February 18, 2016 in which the entities agreed to evaluate the hydrocarbon potential of areas reserved for YPFB. Gazprom E&P plans to invest an estimated $370 million to develop the areas in the case a discovery has commercial potential.

Vitiacua is located between Santa Cruz and Chuquisaca departments and covers an extension of 73,875 hectares. La Ceiba has an extension of 47,500 hectares and is located in Tarija department. Both areas are located in what are known as a traditional area. Madidi covers an extension of 690,000 hectares in a non-traditional area in the La Paz department. [17.Jun.2016] LP

Bolivia to Send Energy From Santa Cruz to Beni

By Jared Yamin, LatinPetroleum Bolivia's National Electricity Company plans to send energy from Santa Cruz to Marbán del Beni to benefit communities in the area.

Energy from Santa Cruz will benefit 15 communities such as Remanso del Paraíso, San Pedro, San Isidro, 15 de Octubre, among others.

The long-term plan is to provide energy to more communities in the future, reported the daily La Razón, citing Socialist Movement lawmaker Walter Roque. [23.May.2016] LP

Ende and Siemens Sign $397.5 Million Contract in Bolivia

By Jared Yamin, LatinPetroleum Bolivia's National Electricity Company signed a contract with Siemens AG for $397.5 million to boost energy production in Termoeléctrica del Sur to 480 megawatts from 160 megawatts.

The project includes purchase of four gas turbines and four steam turbines with the addition of an estimated 320 megawatts with the idea to reach 480 megawatts at completion, reported the daily newspaper La Razón.

Recently, ENDE and Siemens signed a contract on May 5, 2016 for the Entre Ríos thermoelectric plant with the idea to boost output from 100 megawatts to 480 megawatts over two years with an investment of $378 million.

On April 28, 2016, ENDE and Siemens signed a contract for $392.5 million to boost output at the Warnes thermoelectric plant from 200 megawatts to 480 megawatts over two years.

Bolivia has announced plans to boost output at three thermoelectric plants --- Termoeléctrica del Sur, Entre Ríos and Warnes – with an anticipated investment of $1.168 billion to produce 1,440 megawatts of energy.

9.May.2016

YPFB to Boost LPG Supply by 21% during Winter Period

By Jared Yamin, LatinPetroleum YPFB will increase the supply of LPG cylinders to an average 158,000 per day from 130,000 per day to guarantee supply of the product during the winter period which runs through August and potentially September.

The priority is to supply the internal market first, reported the daily newspaper La Razón, citing YPFB President Guillermo Achá.

… Bolivia's Margarita field producing 20 MMcm/d of natural gas …

… Bolivia's National Electricity Company signed a contract with Siemens AG for $397.5 mln to boost energy production in Termoeléctrica del Sur to 480 megawatts from 160 megawatts …

YPFB plans to supply LPG to the following regions: La Paz (45,000 per day), Cochabamba (29,000), Santa Cruz (48,000), Oruro (8,100), Potosí (8,000), Chuquisaca (8,000), Tarija (7,500), Beni (3,500) and Pando (900). [25.May.2016] LP

YPFB Offers 8,000 LPG Cylinders to Guarantee Supply in Santa Cruz

By Jared Yamin, LatinPetroleum YPFB plans to increase the number of LPG cylinders in Santa Cruz to 45,000 per day from 37,000 per day in order to satisfy demand in Santa Cruz, reported the daily newspaper La Razón, citing YPFB President Guillermo Achá.

"During the colder months demand increases, this is normal," said Achá. "That is why we are taking precautions with the increase in LPG cylinders to 45,000 from 37,000 per day." [2.Jun.2016] LP

YPFB, PetroPar and Paraguayan LPG Distributors Meet to Discuss LPG Contracts

By Jared Yamin, LatinPetroleum Officials from YPFB and its Paraguayan counterpart PetroPar meet with LPG distributors in Paraguay to evaluate the expansion of sales and purchase agreements.

"Actually, YPFB has contracts with Paraguayan LPG distributors that expire in August," reported the daily newspaper La Razón, citing YPFB President Guillermo Achá. "The contracts guarantee 100 percent of the demand for the fuel in this country through production which comes from Bolivia's Río Grande Separation Plant and the Gran Chaco Plant."

Bolivia uses Mont Belvieu as its benchmark for establishing the price of its LPG, said Achá.

YPFB and PetroPar executives established a two-month work timetable -- starting July 1, 2016 -in which to establish topographic work in four cities in Paraguay, establish a final design for a gas network and supply Bolivian LPG to Paraguay for use among domestic and industrial users.

[11.Jun.2016] LP

Bolivia's Margarita Field Producing 20 MMcm/d of Natural Gas

By Jared Yamin, LatinPetroleum Bolivia's Margarita field is producing 20 million cubic meters per day of gas, reported the daily newspaper La Razón, citing Bolivia's Hydrocarbon Minister Luis Alberto Sánchez. [9.May.2016] LP

YPFB Has Capacity to Produce 61 MMcm/d of Natural Gas

By Jared Yamin, LatinPetroleum Bolivia has the capacity to produce 61 million cubic meters per day of natural gas to cover demand in the internal market and for export.

Natural gas supply to cover demand in Bolivia as well as agreements with Brazil and Argentina totals 56 million cubic meters per day, reported the daily La Razón, citing Bolivia Hydrocarbon and Energy Minister Luis Alberto Sánchez.

Supply to Brazil is actually 24 million cubic meters per day -- the minimum established under a gas supply agreement between Bolivia and Brazil -- while supply to Argentina is 19.9, reported the daily, citing YPFB President Guillermo Achá.

"We could reach 60 or 61 million cubic meters per day to supply our two export markets as well as domestic demand,"said Achá. "We are trying to optimize the supply to Argentina, considering the transport capacity that the country has." [6.Jun.2016] LP

Bolivia Exported 24 MMcm/d to Brazil, 19 MMcm/d to Argentina

By Jared Yamin, LatinPetroleum Bolivian exports to Brazil reached 24 million cubic meters per day on May 12, 2016 compared to 30 million cubic meters per day on May 8, 2016 while exports to Argentina reached 19 million cubic meters per day, up compared to 14 million cubic meters per day, respectively, reported the daily newspaper El Diario. [19.May.2016]

YPFB President Says Issues Affecting Rousseff Will Not Affect Gas Deals

By Jared Yamin, LatinPetroleum The political situation that is affecting Brazil with the suspension of its President Dilma Rousseff will not affect negotiations with Bolivia regarding a natural gas sales and purchase agreement.

"Brazil has a need to supply its market with Bolivian gas and over time it's foreseeable that we will maintain our agreements," reported the daily newspaper La Razón, citing YPFB President Guillermo Achá.

Bolivia is concentrating efforts on additional exploration projects to continue fulfilling its contracts with Argentina and Brazil after fulfilling demand in the domestic market, said Achá.

A sales and purchase agreement -- which expires in 2019 – establishes that Bolivia supply up to 31.5 million cubic meters per day of natural gas to Brazil. [18.May.2016] LP

Value of Bolivian Gas Exports Up 867 Percent during 2003-2015 Timeframe

By Jared Yamin, LatinPetroleum Bolivia's natural gas exports reached $3.771 billion in 2015, up 867 percent compared to just $390 million in 2003, reported the daily newspaper El Diario, citing data from a report published

by Bolivia's Foreign Commerce Institute (IBCE by is Spanish acronym).

Gas export revenues – principally to Brazil and Argentina -- reached a peak value of $6.113 billion in 2013, up 1,567 percent compared to 2003, according to the daily. Exports to Brazil have represented an average 79 percent of the total exports during 2003-2015, with the remaining 21 percent belonging to Argentina. [23.May.2016] LP

Total to Boost Gas Output in Bolivia By 6.7 MMcm/d Aquio Incahuasi

By Jared Yamin, LatinPetroleum France's Total plans to boost natural gas production by 6.7 million cubic meters per day at Aquio Incahuasi. The company also plans to take part in the second phase of activities at the field whereby it plans to boost output there by another 6.7 million cubic meters per day, reported the daily newspaper La Razón, citing Bolivia's Hydrocarbon Minister Luis Alberto Sánchez.

[9.May.2016] LP

Repsol President Visits Bolivia to Discuss Investments with YPFB

By Jared Yamin, LatinPetroleum Repsol President Antonio Brufau visited Bolivia to discuss overall investments in the small landlocked country with officials from YPFB and investments in three areas with similar potential as that in the Margarita field.

The three areas include Boyuy, Ipaguazu and Boycobo and contain an estimated 4 Tcf of natural gas, reported the daily newspaper La Razón, citing Bolivia's Hydrocarbon Minister Luis Alberto Sánchez. [9.May.2016] LP

Bolivia to Invest $21.4 Billion in Hydro-Electric Projects

By Jared Yamin, LatinPetroleum Bolivia plans investments of $21.350 billion on hydroelectric projects that have potential to generate an estimated 8,575 megawatts of energy.

Bolivia is living an "energy revolution," reported the daily newspaper La Razón, citing the country's Hydrocarbons and Energy Minister Luis Sánchez. The investments will be carried out

by Bolivia's National Electricity Company (ENDE by its Spanish acronym), including basic studies, construction, studies and the final design of hydrocarbon projects, said Sánchez.

Some of the projects include, but are not limited to: Misicuni (120 megawatts; $139 million investment); Miguillas (200 megawatts, $447 millon investment); San José (124 megawatts); Rositas (400 megawatts); Ivirizu (253 megawatts); Banda Azul (93 megawatts); Huacata (6 megawatts); Carrizal (347 megawatts); and Molineros (132 megawatts).

Additionally, projects in the basic study phase and with potential to generate 1,500 megawatts include: Icona; Ambrosía; El Pescado; Aguas Calientes II; El Bala; the Río Grande Hydroelectric Complex; and Binacional with Brasil Río Madera. [7.Jun.2016] LP

Bolivia Plans Hydrocarbon Sector Investments of $12.681 Billion during 20162020

By Jared Yamin, LatinPetroleum

… Bolivia plans hydrocarbon sector investments of $12.681 billion during 20162020 under its Economic and Social Development Plan (PDES by its Spanish acronym) …

With oil prices below $50 per barrel, YPFB plans investments of $12.681 billion during 2016-2020 under its Economic and Social Development Plan (PDES by its Spanish acronym) with assistance from private operators.

The majority of the investments, $7.2 billion or 57 percent of the total, will be destined for exploration and production activities in a move to boost production, reported the daily newspaper La Razón, citing an interview the daily conduced with YPFB President Guillermo Achá.

Potential "Bolivia has important reserve potential with more than 60 Tcf of natural gas," said Achá.

TABLE 2: BOLIVIA HYDROCARBON SECTOR INVESTMENTS 2006-2015 ($MILLIONS) YEAR

INVESTMENT

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$273 $299 $384 $612 $782 $1,292 $1,593 $1,835 $2,111 $1,945

Source: YPFB

Bolivia's earnings in the hydrocarbon sector are based on operating contracts whereby the state's take away is an average 75-80 percent with the remaining 20-25 percent going to private companies, said the official.

"In many contracts that average is above 80 percent for the state," said Achá. [4.May.2016] LP

YPFB Corporation Reports 72% Drop in Profits in 2015 to $364.1 Million

By Jared Yamin, LatinPetroleum YPFB Corporation reported profits of $364.1 million in 2015, down 72 percent compared to $1,299.5 million in 2014, reported the daily newspaper La Razón, citing YPFB data.

TABLE 3: YPFB CORPORATION PROFITS 2016-2020 ($MILLIONS) YEAR

PROFITS

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$214.8 $419.2 $1,062.4 $521.0 $771.8 $858.8 $1,212.5 $1,373.2 $1,299.5 $364.1

… During 20062015, YPFB profits peaked at $1,373.2 million in 2013 and reached a low of $214.8 million in 2006, according to the data …

Source: YPFB

During 2006-2015, YPFB profits peaked at $1,373.2 million in 2013 and reached a low of $214.8 million in 2006, according to the data. [4.May.2016] LP

YPF to Participate In Two Areas in Bolivia

By Jared Yamin, LatinPetroleum YPF has plans to participate in the Boyuibe and Ibibobo areas in Bolivia, reported the daily newspaper La Razón, citing Bolivia's Hydrocarbon Minister Luis Alberto Sánchez. The company is close to closing deals related to these activities. [9.May.2016] LP

… Bolivia's National Electricity Company plans to send energy from Santa Cruz to Marbán del Beni to benefit communities in the area …

Bolivia Planning Investments in 86 Projects with an Investment of $2.4 Billion

By Jared Yamin, LatinPetroleum

… Bolivia plans investments of $21.350 billion on hydroelectric projects that have potential to generate an estimated 8,575 megawatts of energy.

… France's Total plans to boost natural gas production by 6.7 million cubic meters per day at Aquio Incahuasi …

YPFB is planning activities in 86 exploration projects in 63 areas which will require an estimated investment of $2.4 billion, reported the daily newspaper La Razón, citing Bolivia's Hydrocarbon Minister Luis Alberto Sánchez. [9.May.2016] LP

Resilience: Actions of the Gas and Oil Industry The 6th version of the congress will take place from July 12-13, 2016 at the Los Tajibos Hotel in Santa Cruz de la Sierra, Bolivia and include the following themes: 1) global perspectives and hydrocarbon strategies in the current scenario, 2) current and future challenges for the gas, oil and petrochemical industry. [4.May.2016] LP

COLOMBIA

Colombia Needs Investments of $7 Billion A Year for 10 Years

By Jared Yamin, LatinPetroleum Colombia needs to invest an estimated $7 billion per year over a ten-year period or under to remain self-sufficient in the production of petroleum.

The outlook for Colombia's petroleum sector in terms of self-sufficient is 'reserved,' reported the daily newspaper El Tiempo, citing Colombia's Petroleum Association (ACP by its Spanish acronym) President Francisco JosĂŠ Lloreda.

Expected investments of $3.82 billion on exploration and production activities may not materialize, announced the official, adding that no seismic has been shot in 2016.

"If the tendency does not change, by the year 2022 production could fall below an average of 400,000 barrels per day," said Lloreda. "This would be when that it would be necessary to import crude for the Cartagena and Barrancabermeja refineries."

We require a competitive fiscal regime, said Lloreda, referring to what is needed to attract investments. [1.Jun.2016] LP

Colombia Needs To Reinforce Existing Regulation to Improve Energy Efficiency

By Jared Yamin, LatinPetroleum Colombia needs to reinforce existing regulations to stimulate public and private sector investments in sustainable energy projects and improve its energy efficiency, announced CAF during the Seventh Energy Efficiency Seminar held on April 21, 2016 in Bogota, Colombia.

Colombia has potential to invest $30 million related to projects to improve energy efficiency on projects ranging from replacement of industrial furnaces with more efficient models to the installation of air condition sensors in hotels throughout the country, said CAF. [11.May.2016] LP

Alfa Assumes $1 Billion Loss in Pacific Exploration & Production

By Jared Yamin, LatinPetroleum Mexican conglomerate Alfa considers its entire $1 billion in investment in Pacific Exploration & Production -- the Canadian oil company with operations in Colombia -- as a total loss after the oil company announced plans to restructure its debt with a private fund, reported Reuters, citing an unnamed company executive.

In April of 2016, Pacific reached an agreement with its creditors and Catalyst Capital Group investment fund related to its financial restructuring. The deal, expected to conclude during the third quarter of 2016, left Alfa out of the process.

The agreement with creditors practically made them owners of Pacific by diluting the stockholder's participation down to zero, said Alfa General Director Ă lvaro FernĂĄndez.

Alfa's investment in Pacific fell to $38 million in the first quarter of 2016 due to the fall in oil prices. Alfa invested $1 billion in the Pacific in 2014 to acquire a 19 percent interest in the company. [21.May.2016] LP

EIG Global Energy Partners Proposes $250 Million Injection in Pacific

By Jared Yamin, LatinPetroleum EIG Global Energy Partners has proposed a $250 million capital injection in ailing oil producers Pacific Exploration & Production Corp. as part of its restructuring, reported Reuters.

[10.May.2016] LP

Fuel Demand in Colombia Increases with Closing of Venezuelan Border

By Jared Yamin, LatinPetroleum Demand for fuels in Colombia increased 11 percent due to the closing of the border with Venezuela, wrote Colombia's Energy Vice Minister in a twitter post. The public policy is the assure the continous supply of liquids, and even better when there is a sudden increase in demand. [15.Jun.2016] LP

Ecopetrol Continues the Implementation of Hedge Accounting Policy

By Ecopetrol S.A. Ecopetrol S.A. announced that its Board of Directors, in a session held on June 6, 2016, approved the implementation of "Hedge of a net investment in a foreign operation" accounting as established under the International Accounting Standard IAS 39 (paragraph 102) and Decrees 2420 and 2496 of 2015 regarding International Financial Reporting Standards (IFRS). The decision seeks to reduce the volatility within the nonoperational results of the company due to the effects of fluctuations in foreign exchange rates.

The net investment hedge will apply to a portion of the foreign currency investments that the Company owns and whose functional currency is the U.S. dollar, with the hedging instrument being the portion of our dollardenominated debt that generated a net liability position by the end of May. As from the adoption of net investment hedge accounting, the effect of fluctuations in the foreign exchange rate on the hedged instrument will be recognized as Other Comprehensive Income (OCI) in Equity, where currently the foreign exchange effect on subsidiaries which have the U.S. dollar as their functional currency is recorded when accounted under the equity method. This policy is subject to a test of effectiveness and the ineffective portion will be recognized in profit or loss.

‌ Adjustments to Ecopetrol's 2016 Investment Plan are part of measures taken by the company to navigate the low crude oil price environment, ensure capital discipline and focus on cash generation and the financial sustainability of the Ecopetrol Group ‌

The amounts recognized in OCI will be taken into profit and loss only if and at such time the investments designated for purposes of the net investment hedge are sold. In the meantime such fluctuations will remain in Equity, even after debt payments are made.

The net investment hedge will be applied prospectively from June 7, 2016. This accounting change will be treated alike for both Colombian IFRS and IFRS as issued by the IASB. [7.Jun.2016] LP

Fitch Rates Reopening of Ecopetrol's 5.875% Notes Due 2023 'BBB'

By Fitch Ratings Fitch Ratings rates the $500 million reopening of Ecopetrol S.A.'s 5.875% notes due in 2023 'BBB'. The company expects to use the proceeds from the proposed reopening for general corporate purposes, including capital expenditures.

Fitch's Foreign and Local Currency Issuer Default Ratings (IDRs) for Ecopetrol are 'BBB' and 'BBB+', respectively, with a Stable Outlook. The company's ratings reflect the close linkage with the Republic of Colombia (FC/LC IDRs 'BBB'/'BBB+'), which currently owns 88.5 percent of the company. Ecopetrol's ratings also reflect its strong financial profile and improving production levels. Ecopetrol's recently revised growth strategy and associated CAPEX plan are considered adequate for the company's credit quality and cash flow generation ability. Ecopetrol is expected to maintain a financial and credit profile consistent with the assigned rating. [8.Jun.2016]

Moody's Confirms Ecopetrol S.A.'s Investment Grade Credit Rating Ecopetrol S.A. Ecopetrol S.A. announced that Moody's Investors Service has maintained Ecopetrol's credit rating at Baa3.

This confirmation means that the company will retain its investment grade rating, which had been assigned to it by Moody's on January 18, 2016, and concludes the ratings review initiated on January 16, 2016.

In its report, Moody's highlighted the company's adjustment to its investment plan to protect its liquidity, the increase in refining capacity due to the start-up of the Cartagena Refinery, and favorable results in the midstream segment. It also noted the efficiency program, which has enabled Ecopetrol to successfully face the challenging low crude oil price environment.

Moody's also established the company's outlook as negative, due to the impact that low international crude oil prices may have on the exploration and production segments.

[10.May.2016] LP

Ecopetrol Group Announces Its Results for the First Quarter of 2016

By Ecopetrol S.A. Ecopetrol S.A. announced Ecopetrol Group's financial results for the first quarter of 2016, prepared and filed in Colombian pesos (COP$) and under International Financial Reporting Standards (IFRS) applicable in Colombia.

-- Amid the lowest Brent price of the last 12 years, in the first quarter of 2016 the Group achieved a net income attributable to shareholders of Ecopetrol of COP$363 billion.

-- Net income attributable to shareholders of Ecopetrol, increased 127 percent as compared to the first quarter of 2015.

-- Solid cash flow generation with an Ebitda margin of 39.5 percent, resulting in an Ebitda of COP$4.1 trillion for the first quarter of 2016.

-- Group's savings amounted COP$421 billion during the first quarter of 2016. The company continues to demonstrate its capacity to adapt under an adverse price scenario.

TABLE 4: ECOPETROL SUMMARY FINANCIAL RESULTS (COP$ BILLION)

1Q:16 *

1Q:15 *

CHANGE %

Total sales Operating profit Net Income Consolidated Non-controlling interest Net (loss) income attributable to owners of Ecopetrol ** Other comprehensive income attributable to Owners of Ecopetrol ** EBITDA EBITDA Margin

10,485 1,599 611 (248)

12,301 2,357 356 (196)

(14.8%) (32.2%) 71.6% 26.5%

363

160

126.9%

(416) 4,137 39.5%

1,097 4,782 38.9%

(137.9%) (13.5%)

NOTES: * These figures are included for illustration purposes only. Unaudited. ** According to IAS-1, "Presentation of financial statements", paragraph 83, the company must include in the statement of comprehensive results, the results attributable to non-controlling interest (minority interest) and the results attributable to shareholders of the controlling company.

Source: Ecopetrol

Ecopetrol S.A. President Juan Carlos Echeverry G. commented on the results: "The price environment in the first quarter of 2016 continued to defy the oil industry, which saw the value of crude reach $28/barrel, a 12 year record low. Ecopetrol, however, managed to generate profits amid this challenging environment, focusing its efforts on reducing costs, increasing efficiency, producing profitable barrels and prioritizing cash generation.

During the first quarter of 2016 the price of Ecopetrol's crude basket fell 43 percent and its refining margin fell 24 percent in comparison to those of the same period of 2015. The actions undertaken to operate more efficiently and with lower costs, coupled with the positive impact of the devaluation of the exchange rate over our revenues and the recording of a lower financial net loss allowed to register a growth of 127 percent in net profit attributable to shareholders and to improve the EBITDA margin compared to those of the first quarter of 2015. Additionally, the company maintained its operating margins and EBITDA at approximately COP$4,000 billion compared to the same quarter.

Savings in costs and expenses contributed to the obtained results, these amounted to COP$421 billion in the first quarter of the year, against a target of COP$1,600 billion for all 2016. The efficiencies are mainly due to the optimization of purchasing and contracting plans, better procurement strategies and renegotiation of contracts.

The reduction of the lifting cost, cash cost of refining and transportation costs, reported in the first quarter of 2016, compared to the same period last year, are a result of the progress made by the company pursuant to the Transformation Plan, the devaluation of the COP/USD exchange rate and austerity and activity reduction measures implemented in all business segments. Ecopetrol is working so that the obtained efficiencies become structural even in an environment of increasing prices in order to ensure profitable operations and financial sustainability.

The adjustments in CAPEX and OPEX implemented since 2015, in line with lower oil prices and the strategic prioritization of value over volume led to programmed lower activity and lower production in the first quarter of 2016, which came to 737 thousand barrels equivalent per day, compared to 773 thousand in the first quarter of 2015. This fall also reflects the natural decline and the temporary closure of some fields caused by low profitability or judicial decisions. Once market conditions and cash availability improve, the company expects to increase levels of investment in exploration and production and give way to investments that have been postponed in this low crude oil price environment.

In exploration, the deep water appraisal well Leon 2 in the Gulf of Mexico of the United States was completed. This one is operated by Repsol, which holds a 60 percent stake. The remaining 40 percent belongs to Ecopetrol America Inc. The company is awaiting the results of the evaluation of the information provided by the well, located in one of the regions with the greatest potential for hydrocarbons in deep waters in the world.

Between the first quarter of 2015 and 2016 the gross margin of the refining segment decreased by $4.5 per barrel mainly as a result of market conditions marked by lower spreads between prices of middle distillates and the price of oil.

The Cartagena refinery continued its boot and stabilization process, obtaining a regular operation of the delayed coking, catalytic cracking and diesel hydro-treaters units. As of March 31, 28 units of a total of 34 were operational. It is expected that all units in the complex will be in full operation by the second half of 2016. Additionally, loads of crude up to 140 thousand barrels of oil a day have been achieved.

Test of high viscosity crude transportation were started in February 2016. Satisfactory results were obtained moving oil with a viscosity of 405 centistokes (cSt). This project, along with the expansion of capacity in Ocensa (P-135) will reduce the cost of dilution which is key to the production of heavy crudes, which today represent about 58 percent of the total production of the Group.

In December 2015 the company imposed a significant cut on its 2016 investments compared to the levels of previous years with the approval of a budget of $4,800 million. The need to preserve the financial sustainability of the company with the low oil prices environment prompted a further cut in the investment plan for 2016, which now will range between $3,000 and $3,400 million.

The expected production was adjusted to this new reality from 755 thousand barrels per day to approximately 715 thousand barrels of oil equivalent per day.

2016 is a transition year for the Ecopetrol Group during which the cycle of investments in Midstream and Downstream will conclude with some transport projects and the startup of the Cartagena refinery. From 2017 on the company will devote a greater proportion of its investments to Upstream.

Financing needs for this year are in the $1,500 - $1,900 million range, without taking into account the resources that may be obtained from the company's divestment plan. To date, $475 million has already been obtained through credit facilities with local and international banks.

Cash flow was also leveraged by the results of the auction of Ecopetrol´s stake in ISA held in April 2016, which allowed allotting shares in the amount of COP$377 billion.

Shareholders also contributed to the financial strengthening of the company with the decision not to distribute dividends in 2016, which was made during the last general meeting of shareholders.

Operational excellence, focus on capital discipline, rationalization of investments and rotation of the portfolio of assets to generate cash flow have enabled Ecopetrol to successfully navigate the current price environment.

Ecopetrol continues to position itself for the future by strengthening its portfolio of exploration and production in order to seize opportunities that may be generated in the next cycle of higher crude oil prices. In this way we can ensure growth in the long term, financial sustainability and value creation for Ecopetrol." [3.May.2016] LP

Ecopetrol Offers 20 Production Assets to Oil and Gas Companies

By Ecopetrol S.A. Ecopetrol S.A. announced that it launched 'Ronda Campos 2016,' a public and competitive bidding process, the objective of which is to offer to oil and gas companies Ecopetrol's stake and interests in 20 production assets located in the regions of Catatumbo, the Magdalena Middle and Upper Valley, Llanos and Putumayo.

'Ronda Campos 2016' is part of Ecopetrol's new strategy for 2015-2020, which is based on creating sustainable value and more efficient operation of assets. One of the objectives of the 'Ronda Campos 2016' is the rotation of Ecopetrol's portfolio in search of the greatest profitability for its shareholders.

The business opportunities offered have development potential in primary recovery and improved recovery. The fields are located near logistical facilities, which are an added attraction for small- and medium-sized oil and gas companies.

The process, which was presented to industry representatives, is a public bidding process addressed to national and international companies that would like to strengthen their position in Colombia or that seek to expand their operations in the country. [24.Jun.2016] LP

Ecopetrol's Equity Divestment Plan for its Shares in Empresa de Energía de Bogotá (EEB)

By Ecopetrol S.A. Ecopetrol S.A. announced that on June 1, 2016, through the X-STREAM trading system of the Colombian Stock Exchange (Bolsa de Valores de Colombia S.A.), the second auction was held for the second stage of the program to divest and sell 278,225,586 of Ecopetrol's shares of the company Empresa de Energía de Bogotá S.A. E.S.P. (EEB). The results were as follows: TABLE 5: ECOPETROL EQUITY DIVESTMENT PLAN Auction closing price Number of shares offered Number of shares awarded at closing price Total amount awarded Settlement date

COP $1,815 278,225,586 191,639,698 COP $ 347,826,051,870 June 7, 2016

Source: Ecopetrol

The equity divestment plan was approved by the National Government of Colombia through Decree 2305 of 2014. As all of the shares offered in the second auction were purchased, Ecopetrol has the option of holding up to two additional auctions for the remaining number of shares, 86,585,888, in the time and manner indicated in the offering notice. [2.Jun.2016] LP

Ecopetrol Adjusts its 2016 Investment Plan

By Ecopetrol S.A. Ecopetrol S.A. announced that in light of the current low crude oil price environment, and with the aim of protecting the company's cash flow and financial sustainability, its Board of Directors approved an adjustment to the 2016 Investment Plan, from $4.8 billion, as approved on December 2015, to a range between $3 and $3.4 billion.

2016 is a year of transition for the Ecopetrol Group, during which investments will be made to finish transportation projects and complete the start up the new Cartagena Refinery. Starting in 2017, the company will dedicate a larger portion of its investments to the exploration and production segments.

In exploration and production, resources will be allocated to the development of principal fields and the assessment of exploratory findings. 93 percent of funds will be invested in Colombia and the rest overseas.

Investments by segment are as follows: TABLE 6: ECOPETROL 2016 INVESTMENT PLAN AREA

AMOUNT (US$ MILLIONS)

Exploration Production Transportation Refining and Petrochemicals Other Total

$282 $1,116 $433 $1,135 $34 $3,000

Source: Ecopetrol

The resources required for the investment plan will be obtained from internal cash generation, divestment of non-strategic assets and financing. Financing needs for 2016 remain within the range of $1.5 billion and $1.9 billion for the Ecopetrol Group. [27.Apr.2016] LP

Ecopetrol Successfully Prices International Bond for $500 Million

By Ecopetrol S.A. Ecopetrol S.A. reports that, on June 8, 2016, based on the authorization granted by the Ministry of Finance and Public Credit (Resolution 1657 of June 7, 2016) to subscribe, issue and place External Public Debt Bonds in the international capital markets, it reopened its 2023 Bond for $500 million, with the following results: TABLE 7: ECOPETROL $500 MILLON BOND ISSUE Maturity Date Total Amount Issued Offering Date Settlement Date

September 18, 2023 $500 million June 8, 2016 June 15, 2016

Credit Rating Moody's Investors Service Standard & Poor's Ratings Services Fitch Ratings

Baa3 BBB BBB

Amortization of Principal Reopening Price Reopening Yield Coupon Rate Interest Payment Dates

Source: Ecopetrol

Upon maturity $101.612 5.600% 5.875% September 18 and March 18, beginning on September 18, 2016

The offering had an order book of $1.7 billion or 3.4 times the amount offered and participation of more than 130 institutional investors from the U.S.A., Europe, Asia and Latin America. This transaction ratifies investors' confidence in the decisions that have been made to face the pricing environment and Ecopetrol's future.

The resources obtained will be used for general corporate purposes, including the company's investment plan for the current year. With this operation, the company has achieved financing for 2016 in an amount totaling approximately $1.27 billion, covers most of the company's projected financing needs for 2016.

… In 2016, Ecopetrol capital expenditures will be between $3 and $3.4 billion …

This offering was made pursuant to a shelf registration statement on Form F-3 that was filed with and declared effective by the Securities and Exchange Commission (SEC). [10.Jun.2016] LP

Moody's Affirms Ocensa's Baa3 Ratings; Changes Outlook to Negative

By Moody's

… With this level of investment, the Ecopetrol Group expects to produce 715 thousand barrels of petroleum equivalent per day during 2016 …

Moody's affirmed Oleoducto Central, S.A.'s (Ocensa) Baa3 senior unsecured ratings. The rating outlook was changed to negative from positive.

Ratings Rationale "The equalization of Ocensa's ratings and outlook to those of Ecopetrol, S.A. (Ecopetrol, Baa3 negative) reflects Moody's view that Ocensa is not insulated from the credit quality of its main shareholder and controlling entity," said Nymia Almeida, a Senior Credit Officer in Moody's. "The change in outlook to negative from positive also incorporates the negative oil production growth trend in Colombia, offset by our expectation that Ocensa will remain the transportation of choice in the country."

Ocensa's Baa3 rating reflects its leading industry position in Colombia and strategic importance to Ecopetrol as well as favorable industry dynamics in Colombia in terms of transportation demand for pipelines.

The company's ratings also incorporate its tariff and contract structure that supports solid margins and predictable cash flow as well as a moderate financial leverage profile. These factors help offset its exposure as a single-asset pipeline, its relatively small scale within the midstream peer group, and a high dividend payout policy.

The company is close to completing its latest major growth project, which will increase its transportation capacity to 745,000 b/d from 610,000 b/d. In addition, the last tariff revision, in late 2015 and valid for the next four years, kept the prevailing tariffs unchanged. Both events will increase Ocensa's cash generation, which will further strengthen its credit metrics starting in mid2016.

Although political and guerilla risk in Colombia is a lingering concern, Ocensa has not directly experienced any problems in recent years and its 100 percent underground pipeline system gives the company a competitive advantage.

Ocensa has adequate liquidity, with operating cash needs of about $50 million versus the company's policies to maintain a minimum of $100 million in cash at all times as a cushion.

Starting this year, CAPEX will be small and limited to maintenance only. In addition, the company's next major debt payment is due in 2021. However, Ocensa pays out 100 percent of net profit in dividends, which is detrimental to bondholders. The company has no committed bank facilities but has close relations with Colombian banks.

Although Moody's expects that Ocensa's credit profile and cash flow generation will remain strong given its predictable tariff structure and high capacity utilization, the negative outlook reflects Ocensa's strong ties with Ecopetrol, its controlling shareholder and main off-taker.

Large projects or acquisitions that increase financial leverage could trigger a negative rating action, although Moody's believes that Ocensa's management and Ecopetrol are aligned in a desire to maintain modest leverage at the pipeline. A downgrade of Ecopetrol's or Colombia's sovereign rating could result in a rating downgrade for Ocensa.

For Moody's to consider a ratings upgrade, Ocensa would have to sustain current credit metrics but show lower vulnerability to Ecopetrol's financial profile and have a dividend policy more aligned with the interests of bondholders. An upgrade of Ecopetrol could also result in a upgrade of Ocensa's ratings. A rating upgrade of Colombia's sovereign rating would not necessarily trigger a rating upgrade of Ocensa. [4.May.2016]

Company Profile: Oleoducto Central S.A. (Ocensa)

By Moody's Oleoducto Central S.A. (Ocensa) is the largest crude oil pipeline and the only public-use pipeline in Colombia. Its pipeline is ~845 km in length with 745,000 b/d of capacity starting in mid-2016. Ocensa connects the country's largest crude producing fields in the Llanos Basin at El Porvenir to export facilities at Covenas on the Caribbean coast.

The company is owned 72.65 percent by Ecopetrol through its wholly-owned midstream subsidiary, Cenit SAS. The remaining stakes are owned 22.35 percent by Advent International and 5 percent by Darby Overseas (a subsidiary of Franklin Templeton), both private equity firms. Advent purchased its stake in December 2013 from long-time owner/shippers Total SA, Repsol Oil & Gas Canada Inc. formerly Talisman Energy Inc., and CEPSA, a Spanish refining subsidiary of IPIC, an investment fund of the government of Abu Dhabi. [4.May.2016]

Gran Tierra Energy Announces Closing of $100 Million Convertible Senior Notes Offering

By Gran Tierra Energy Inc. Gran Tierra Energy Inc. announced that it has completed its previously announced offering of $100 million aggregate principal amount of 5.0% Convertible Senior Notes due 2021 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, in the United States and pursuant to certain prospectus exemptions in Canada. Gran Tierra has also granted the initial purchasers a 30-day right to purchase up to an additional $15 million aggregate principal amount of Convertible Notes.

The Convertible Notes will pay interest semi-annually at a rate of 5 percent per annum, and will mature on April 1, 2021, unless earlier redeemed, repurchased or converted in accordance with their terms. The Convertible Notes will be convertible into shares of Gran Tierra common stock, initially at a rate of 311.4295 shares of common stock per $1,000 principal amount of Convertible Notes. This represents an initial effective conversion price of approximately $3.21 per share of common stock. The initial conversion price represents an approximately 30 percent premium to the $2.47 per share closing price of Gran Tierra's common stock on the NYSE MKT on March 31, 2016. The Convertible Notes will be convertible at the option of the holder at any time prior to the close of business on the business day immediately preceding the maturity date. Gran Tierra will be required to offer to repurchase the Convertible Notes if a fundamental change, as defined in the indenture relating to the Convertible Notes, occurs. In addition, the conversion rate will be increased with respect to Convertible Notes converted in connection with specified fundamental change transactions.

The net proceeds from the offering were approximately $95.4 million, after deducting the initial purchasers' discount and the offering expenses payable by Gran Tierra. Gran Tierra intends to use the net proceeds from this sale of the Convertible Notes for general corporate purposes, which may include acquisitions and/or capital expenditures. [6.Apr.2016] LP

Gran Tierra Energy Announces Colombian Peso Hedging Program

By Gran Tierra Energy Inc. Gran Tierra Energy Inc. announced, through one of its wholly owned subsidiaries, recently transacted Colombian peso (COP) hedges with two banks, providing additional stability to forecasted cash outflows for approximately 110 billion COP or $36 million from June 2016 to May 2017. To complement the recently announced commodity hedges for forecasted production which cover the same period, Gran Tierra has hedged certain forecasted COP denominated costs, with multiple underlying contracts to provide downside protection from an appreciation in COP at foreign exchange rates below 3,000 COP per USD to December 31, 2016 and 3,100 COP per USD to May 31, 2017, but also allow upside participation in a depreciation of the COP at foreign exchange rates up to 3,265 COP per USD and ranging as high as 3,370 COP per USD. Gran Tierra management believes that the added protection from fluctuations in these USD equivalent costs is prudent and the recent weakening of COP rates provides an opportunity to stabilize cash flows.

The following table summarizes the foreign exchange contracts recently completed: TABLE 8: ECOPETROL FX CONTRACTS PERIOD HEDGED

REF.

TYPE

AMOUNT HEDGED

COP CALL

COP PUT LOW

COP PUT HIGH

1.Jun. to 31.Dec.2016

Col Peso

Collar

$18.7 mln

3,000

3,265

3,330

1.Jan. to 31.May.2017

Col Peso

Collar

$17.5 mln

3,100

3,300

3,370

Source: Ecopetrol

[31.May.2016] LP

Gran Tierra Energy Announces Increase in 2016 Exploration Capital Budget

By Gran Tierra Energy Inc. Gran Tierra is increasing its base 2016 capital budget by $33 million to $43 million to a revised total of $140 million to $150 million. The company's previously announced base capital budget was $107 million.

The increased capital investment will be entirely directed at exploration in Colombia and will allow the drilling of two additional, 100 percent working interest exploration wells, including one additional N-Sands exploration well in the Putumayo Basin. The increased budget will also allow for the acquisition of additional 2D seismic in the Sinu Basin, and accelerated lease construction and environmental impact assessment work in preparation for the company's 2017 Colombian exploration drilling program.

Gran Tierra's 2016 production guidance remains unchanged. The 2016 average working interest production before royalties from the company's assets in Colombia and Brazil is expected to average approximately 27,500 to 29,000 barrels of oil equivalent per day (boe/d), representing an increase of 20 percent over our 2015 average production of 23,400 boe/d. The 2016 production guidance includes 900 to 1,000 boe/d of production from the company's assets in Brazil.

Hedging Program To provide downside oil price protection for the next 12 months, Gran Tierra has transacted Brent oil hedges as follows (US$/bbl): TABLE 9: GRAN TIERRA HEDGING PROGRAM

TERM

VOLUME B/D

SOLD PUT

BOUGHT PUT

SOLD CALL

PREMIUM

Jun.1.2016-May.31.2017

10,000

$35

$45

$65

$1.25

Source: Gran Tierra

Credit Facilities Update The committed borrowing base under Gran Tierra's credit facility has been modestly reduced from the previous $200 million to $185 million, with $160 million readily available and $25 million subject to the consent of all lenders. Recognizing the challenging commodity price environment and the impacts on the estimated value of producing reserves, Gran Tierra management is pleased with the continued support of the lending banks to maintain liquidity which complements operating cash flow and supports future growth. The credit facility is currently undrawn and the maturity date remains the same at September 21, 2018.

Operations Update Drilling lease construction is underway for the Cumplidor-1 exploration well in the PUT-7 block, which the company continues to expect to spud in early third quarter 2016. This well is expected to be followed immediately by the Alpha-1 exploration well from the same drilling pad. These wells are the first to test the N-Sands exploration play in PUT-7 in the Putumayo Basin, which Gran Tierra believes is highly prospective and expects to lead to long term reserve and production growth.

The Moqueta-22 development well has been successfully drilled and completed and over a combined test period of 24 hours to 23:00 Bogota time on May 30, 2016, the well produced on pump an average of 438 barrels of oil per day, 205 barrels of water per day and 654 thousand standard cubic feet per day from the Caballos and T Sand formations. Clean up and running of the final completion equipment for this well continue. The Moqueta and Costayaco 2016 development drilling programs have now concluded. Both oil fields are expected to provide significant free cash flow starting in the second half of 2016, which would allow Gran Tierra to fully fund its multi-year exploration program in Colombia.

"We are pleased to be in a position to accelerate our exciting Colombian exploration program.

We are expecting regulatory approvals for several key exploration prospects over the next few months," said Gran Tierra President and Chief Executive Officer Gary Guidry. "The substantial recovery in the Brent oil price since its multi-year low in January 2016 also gives Gran Tierra an opportunity to accelerate some key exploration drilling and seismic activities in Colombia while continuing to pursue opportunities to expand the Company's portfolio in an effort to increase net asset value per share for shareholders. " Guidry continued: "We are also pleased with the result of the May 2016 redetermination of the borrowing base for our credit facility. Our credit facility provides a solid foundation and readily accessible financial resources for growth in Colombia. The ongoing support we received from the lending banks demonstrates the underlying confidence in our producing assets, our team and the business environment in Colombia. Our new hedging position provides us with downside oil price protection as we increase our exploration spending in today's volatile commodity price environment. With $81 million of working capital at March 31, 2016, $109 million of net proceeds from our convertible senior notes offering in April 2016, strong cash flow, $160 million of available borrowings under our undrawn credit facility and, subject to lender consent, an additional $25 million available under our credit facility, we continue to be well positioned to allocate capital to explore, develop and grow reserves and add value through acquisitions. Our team is focused on emerging from this low oil price environment as one of the strongest intermediate international exploration and production companies." [31.May.2016] LP

Gran Tierra Announces Chaza Contract Arbitration Final Resolution

By Gran Tierra Energy Inc. Gran Tierra Energy Inc. announced the receipt of a positive decision from the Chamber of Commerce of Bogotรก Center for Arbitration and Conciliation tribunal relating to its dispute with the Agencia Nacional de Hidrocarburos (National Hydrocarbons Agency) of Colombia (ANH) with respect to whether all production from the Moqueta Exploitation Area of the Chaza Block exploration and production contract (Chaza Contract) was subject to an additional royalty (the HPR Royalty).

In its decision, the Tribunal found that the HPR Royalty under the Chaza Contract was only payable when the accumulated oil production from the Moqueta Exploitation Area exceeded five million barrels. That production threshold was reached on April 30, 2015, and since that time the Company has been paying the HPR Royalty on production from the Moqueta Exploitation Area.

"Gran Tierra values the cooperative relationship that it has with the ANH and we are pleased that this issue has been resolved," said Gran Tierra President and Chief Executive Officer Gary Guidry. [8.Jun.2016] LP

GeoPark Initiates Drilling Campaign in Colombia

By GeoPark Limited GeoPark Limited announced the start-up of its drilling program in the Llanos 34 Block (GeoPark operated with a 45 percent working interest) in Colombia.

GeoPark’s 2016 drilling program in the Llanos 34 Block commenced the second week of June with the spudding of the Jacana 3 appraisal well and is expected to continue with the drilling of the Jacana 4 well. The Jacana oil field, discovered in September 2015, is currently producing approximately 5,700 b/d gross from two wells and is located south-west and on trend with the large Tigana oil field.

In Colombia, GeoPark is targeting to drill approximately 6 wells (including 1-2 exploration wells) in the Llanos 34 Block during 2016 to continue the company’s low cost economic production growth. This block became a leading geological and economic success story, providing multiple oil field discoveries year after year since it was started-up by GeoPark in early 2012.

These activities are part of the company’s risk balanced, fully funded and modular 2016 work program that can be rapidly adjusted based on different oil price scenarios to preserve cash or to accelerate growth. [8.Jun.2016] LP

ECUADOR

Workers from PetroEcuador assisnt in cleanup activities in Daule River in Ecuador: Source: PetroEcuador.

PetroEcuador Helps to Control Fuel Oil Spill in Daule River, Turns Over Work to Balsasud

By Clifford Fingers III, LatinPetroleum EP PetroEcuador turned over formal activities related to the containment, cleaning and monitoring along the Daule river, kilometer 24 in the Merced sector of Guayaquil to the company Balsasud Balsera Sudamericana, reported the state oil company in an official statement on its website.

On June 21, 2016 PetroEcuador announced that it had lent a helping hand to water company Interagua and Citizens Security Committee to control a fuel spill in the Daule River.

The spill of Fuel Oil No. 4 occurred when the fuel was being transported by a private tanker owned by Balsasud Balsera Sudamericana.

PetroEcuador assisted by sending technical personnel from its Security, Health and Environment department along with others from other departments to assist with the cleanup process.

[24.Jun.2016] LP

EP PetroEcuador Lays Out Goals for 2016

By Clifford Fingers III, LatinPetroleum EP PetroEcuador revealed some of its goals for 2016, reported the state company in an official statement.

The goals for 2016 include, but are not limited to the following: -- Operation of product pipeline Pascuales Cuenca, -- Company restructuring, -- Construction of new building for EP PetroEcuador in the city of Guayaquil, -- Civil-mechanical remediation at the Gas de Bajo Alto Plant, -- Modernization of coastal oil and product pipelines, -- 100 percent operation of the Esmeraldas refinery (Editor's note: goal achieved in 2015), -- Implementatio of KBC best practices, -- Overhall of the La Libertad refinery, -- Environmental overhaul of 76,000 cubic meters of soil, -- Laboratory certifications ISO 17025, -- Social compensation programs, -- Environmental auditing processes, -- Improvement in the quality of fuels, -- Optimization of the new Monteverde terminal (sanitary and chemicals), -- Remodeling and certification of all service stations, -- Port faciliities – entrance of 40,000 metric-ton ship in Tres Bocas, -- Supply of ECOPAIS gasoline in more regions of the country (Machala, Los Ríos and Azuay), and -- Construction of the portable water projects. [27.Jun.2016] LP

EP PetroEcuador to Export 950,000 barrels of No. 6 Fuel Oil in July

By Clifford Fingers III, LatinPetroleum Trafigura PTE LTD won a bid by EP PetroEcuador whereby the former will export 950,000 barrels of No. 6 Fuel Oil, announced EP PetroEcuador in an official statement on its website.

The winning bid had a $1.49 per barrel discount.

The shipments from Ecuador will be processed in 5 shipments of 190,000 barrels each. The first shipments could leave the country during July 11-13, 2016.

The state oil company had invited 33 companies -- qualified to offer No. 6 Fuel Oil -- to bid for the exportation of the product, announced the state oil company in an official statement on its website.

The companies -- Arkham S.A, B.B Energy (Asia), PTE LTD, Citizens Resources LLC, Glencore LTD, Novum Energy Trading Corp, Trafigura PTE LTD and Vitol INC -- presented their offers on June 23, 2016. PetroEcuador announced that 7 offers were received as well as 8 excuses. Due to a tie related to two offers, the said companies had another 24 hours to present their new offers. [27.Jun.2016] LP

Ecuador's SOTE Celebrates 44 Years of Operation

By Clifford Fingers III, LatinPetroleum The TranEcuadorian Oil Pipeline (SOTE by its Spanish acronym) was inaugurated on June 26, 1972 with a capacity to transport 250,000 barrels per day. During its active life, the pipeline has transported 4,750 million barrels of oil, EP PetroEcuador announced in an official statement on its website.

Later work on the pipeline allowed the company to expand the pipeline's capacity from 250,000 barrels per day to 300,000 barrels per day in 1987; to 325,000 barrels per day in 1992; and 360,000 barrels per day in 2000, reported the company, citiing PetroEcuador General Manager Pedro Merizalde Pavรณn.

The pipeline starts at Lago Agrio in the eastern region of Ecuador and spans 497 kilometers to the Balao Maritime terminal in the Esmeraldas province. The pipeline is under constant surveillance by PetroEcuador via its SCADA system and an estimated 381 technicians, all of them from Ecuador, work to maintain the pipeline in operation and perform maintenance when necessary.

Recent earthquakes have not affected the pipeline's terminals or transport infrastructure, according to PetroEcuador. [27.Jun.2016] LP

Ecuador Reports Oil Output of 556 Mb/d in May 2016, Up from 555 Mb/d M-O-M

By Clifford Fingers III, LatinPetroleum Ecuador's oil output reached 556,000 barrels per day in May of 2016, up sequentially from 555,000 barrels per day in April of 2016, reported the Organization of Petroleum Exporting Countries (OPEC) in its June 2016 Monthly Oil Market Report (MOMR), citing data from direct communications with the Andean nation. [21.Jun.2016] LP

Ecuador Produced an Average 542 Mb/d in the First Quarter of 2016

By Clifford Fingers III, LatinPetroleum Ecuador, the smallest country within the Organization of Petroleum Exporting Countries or OPEC, exported an average 542,000 barrels per day in the first quarter of 2016, down slightly from 543,000 barrels per day produced in the first quarter of 2015, reported the news agency AFP. Ecuador, which is confronting economic difficulties due to collapse in oil prices, exported an estimated 416,000 barrels per day in 2015 at an average price of $41.88 per barrel, which translated into total revenues or $6.355 billion, according to the agency. [9.May.2016] LP

Ecuador Again Permits the Sale of Alcoholic Beverages at its Service Stations

By Clifford Fingers III, LatinPetroleum Ecuador has decided it will allow its service stations to again distribute alcoholic beverages.

The distribution of alcoholic beverages at the stations will have some restrictions, reported the daily El Universo, citing Ecuador's Interior Vice-Minister Diego Fuentes. The beverages cannot be consumed internally and products should have a 'moderate alcoholic content. ' The government will also allow alcoholic beverages to be sold on Sundays. The sale of such beverages was restricted in 2010 as the Ecuadorian government sought to reduce the indices of violence and other insecurities while also trying to promote family union. The government also restricted the sale of alcoholic beverages between Monday and Saturday at so-called fun parks.

The move to sell alcoholic beverages on Sundays will allow Ecuador to "reactivate tourism and commerce in the country," said Fuentes. [21.Jun.2016] LP

San Mateo Petrol Station Starts Operations

By Clifford Fingers III, LatinPetroleum The artisanal fishing and ship vessel diesel station in San Mateo, located in the province of ManabĂ­, started operations on May 19, 2016 and will benefit an estimated 1,106 artisanal fishers in the area, reported EP PetroEcuador in an official statement on its website.

The station has capacity to store 12,000 gallons of artisanal fishing fuels and 12,000 gallons of ship vessel diesel. [25.May.2016] LP

PetroEcuador Reports 79% Decline In EBITDA In 2015 Compared To 2014

By Clifford Fingers III, LatinPetroleum EP PetroEcuador reported operational revenues of $9.284 billion in 2015, down $6.458 billion or 41 percent compared to $15.742 billion in 2014 due to variations in international oil prices, reported the state company in an official statement.

Operational expenses were $8.209 billion in 2015, down $2.441 billion or 23 percent compared to $10.650 billion in 2014 due to the price of hydrocarbon imports. As a result, EBITDA in 2015 fell $4.017 billion or 79 percent to $1.075 billion compared to $5.092 billion, respectively.

After taking into account Depreciation, Depletion & Amortization (DD&A) and other operational expenses, PetroEcuador reported EBIT of $0.971 billion in 2015 compared to $4.999 billion in 2014. After taking into account non-operational results of ($0.219) billion in 2015 and ($0.192) billion in 2014, the company reported net results of $0.752 billion in 2015, down $4.055 billion or 84 percent compared to $4.807 billion in 2014.

TABLE 10: EP PETROECUADOR FINANCIAL RESULTS ($ BILLIONS) 2014

2015

Operational revenues Operational expenses EBITDA DD&A, operations Operating results (EBIT)

$15.742 ($10.650) $5.092 ($0.093) $4.999

$9.284 ($8.209) $1.075 ($0.104) $0.971

Non-operational revenues Non-operational expenses Non-operational results

$0.018 ($0.210) ($0.192)

$0.057 ($0.276) ($0.219)

NET RESULTS

$4.807

$0.752

Source: EP PetroEcuador

[5.Apr.2016] LP

Ecuador's SOTE Pipeline Spans 503 Kilometers From The Amazon To Esmeraldas

By Clifford Fingers III, LatinPetroleum Ecuador's SOTE pipeline spans 503 kilometers from the pumping station Lago Agrio No. 1 in the Amazon to the Balao Maritime Terminal in the province of Esmeraldas, announced EP PetroEcuador in an official statement on its website. [27.Jun.2016] LP

Petroecuador Reports Increase In Shareholder Equity

By Clifford Fingers III, LatinPetroleum EP PetroEcuador announced its Shareholder's Equity rose to $5.659 billion in 2015 compared to $3.914 billion in 2014, reported the state company in an official statement.

The company's total assets rose to $9.662 billion in 2015 compared to $8.604 billion in 2014.

TABLE 11: EP PETROECUADOR SHORT BALANCE SHEET ($ BILLIONS) 2014

2015

Current assets Non-current assets Other assets Total Assets

$3.023 $2.900 $2.681 $8.604

$2.794 $4.830 $2.038 $9.662

Current liabilities Non-current liabilities Total Liabilities

$2.502 $2.188 $4.690

$2.059 $1.944 $4.003

Shareholder's Equity

$3.914

$5.659

Liabilities + S. Equity

$8.604

$9.662

Source: EP PetroEcuador

[5.Apr.2016] LP

PetroEcuador Reports Investments of $663 Million In 2015

By Clifford Fingers III, LatinPetroleum EP PetroEcuador reported total investments of $662.7 million between January and December 2015, the state company in an official statement.

TABLE 12: EP PETROECUADOR INVESTMENTS JAN.-DEC. 2015 AREA

($ MILLIONS)

Refining Transport National commercialization Security, health, environment Administrative support TOTAL EP PETROECUADOR

$399.471 $249.127 $5.014 $0.556 $8.545 $662.713

Source: EP PetroEcuador

The company also reported costs of $1,109.6 million for the same time frame.

TABLE 13: EP PETROECUADOR COST AND EXPENSES JAN.-DEC. 2015 AREA

($ MILLIONS)

Refining Transport National commercialization International commercialization Security, health, environment Administrative support Logistics and supply Basic industrial unit TOTAL EP PETROECUADOR

$390.403 $173.182 $163.785 $92.275 $17.314 $166.140 $81.932 $24.551 $1,109.582

Source: EP PetroEcuador

[5.Apr.2016] LP

EP PetroEcuador Says Sales Tax Increase Will Not Affect Fuel Prices

By Clifford Fingers III, LatinPetroleum The price of Extra Gasoline, Extra Gasoline with Ethanol, Diesel 1, Diesel 2, Premium Diesel and LPG will not be affected by a temporary 2 percent increase in the sales tax to 14 percent from 12 percent, reported EP PetroEcuador in an official statement on its website.

The increase in the sales tax will not affect the following, as stated: the prices of Extra Gasoline, Extra Gasoline with Ethanol, and gasoline for artisanal fishing; Diesel 1, Diesel 2 and Premium Diesel for the automobile, artisanal fishing and national fishing and shrimping sectors; the price of LPG for domestic use and use by an taxis legally organized by Fedotaxis as well as for drying agriculture products such as corn, rice and soya.

The government of Ecuador decided to temporarily increase the sales tax in the country to be destined to activities related to the reconstruction and reactivation of areas affected by the earthquake reported on 16 April 2016. [1.Jun.2016] LP

The La Libertad Refinery Starts Preventative Maintenance

By Clifford Fingers III, LatinPetroleum The La Libertad Refinery started preventative maintenance on May 15, 2016, reported EP PetroEcuador in an official statement on its website. [11.May.2016] LP

PetroEcuador Has Gasoline Network Comprised Of 276 Service Stations

By Clifford Fingers III, LatinPetroleum EP PetroEcuador has a gasoline network comprising 276 service stations, reported the state company in an official statement.

… EP PetroEcuador has a gasoline network comprising 276 service stations, reported the state company in an official statement …

…At year-end 2015, EP PetroEcuador had the following infrastructure in Ecuador: 10 product pipelines, 8 fuel terminals and 5 maritime terminals …

PetroEcuador affiliates operated 215 of the service stations while PetroEcuador operated 7 alone. The state oil company also has 12 artisanal fishery stations as well as 42 service stations located along the Ecuadorian borders.

TABLE 14: EP PETROECUADOR GASOLINE STATIONS IN ECUADOR SERVICE STATIONS

UNITS

EP PetroEcuador affiliated EP PetroEcuador Border service stations Artisanal fisheries TOTAL NETWORK

215 7 42 12 276

LPG deposits

5

Source: EP PetroEcuador

PetroEcuador Provides Infrastructure Update

By Clifford Fingers III, LatinPetroleum At year-end 2015, EP PetroEcuador had the following infrastructure in Ecuador: 10 product pipelines, 8 fuel terminals and 5 maritime terminals, reported the state company in an official statement.

TABLE 15: ECUADOR PRODUCTS PIPELINE Shushufindi – Quito Esmeraldas – Quito – Pascuales Quito – Ambato Libertad – Manta – Pascuales Tres Bocas – Salitral Tres Bocas – Fuel Oil Tres Bocas – Pascuales Ambato – Riobamba Pascuales – Cuenca Esmeraldas – Sto. Domingo – Quito Source: EP PetroEcuador

TABLE 16: ECUADOR FUEL TERMINALS El Beaterio (Quito) Sto. Domingo de Los Colorados Ambato Riobamba Cuenca Pascuales (Guayas) Chorrillo (Guayas) Barbasquillo (Manta) Source: EP PetroEcuador

TABLE 17: ECUADOR MARTIME TERMINALS Tres Bocas La Libertad Monteverde Maritimo Balo Baltra Source: EP PetroEcuador

[5.Apr.2016] LP

… EP PetroEcuador reported crude exports of 131.4 MMbbls in 2015, which generated revenue of $5,477 million, reported the state company in an official statement …

…Derivative sales in the Ecuadorian domestic market were 92.7 MMbbls, which generated revenues of $3,440 million …

PetroEcuador Crude Exports Reached 131.4 MMbbls in 2015

By Clifford Fingers III, LatinPetroleum EP PetroEcuador reported crude exports of 131.4 million barrels (MMbbls) in 2015, which generated revenues of $5,477 million, reported the state company in an official statement.

… EP PetroEcuador reported crude exports of 131.4 MMbbls in 2015 …

… Ecuador starting exploitation activities at the Tiputin field, part of the Yasuní ITT block in July 2016 …

Derivative sales in the Ecuadorian domestic market were 92.7 MMbbls, which generated revenues of $3,440 million.

Ecuador was a net importer of derivatives in 2015, importing 56.3 MMbbls and exporting just 5.6 MMbbls.

TABLE 18: ECUADOR DATA 2015

Crude exports Derivative sales (internal) Derivative exports Derivative imports

MMBBLS

$MLNS

131.4 92.7 5.6 56.3

$5,477 $3,440 $256 $3,698

Source: EP PetroEcuador

[5.Apr.2016] LP

Ecuador Starts Exploitation Activities Related to the Tiputini Field in July 2016

By Clifford Fingers III, LatinPetroleum Ecuador starting exploitation activities at the Tiputin field, part of the Yasuní ITT block in July 2016, reported the news agency AFP, citing a statement from the country's Hydrocarbon Ministry.

The Tiputini 04 well in Block 43 has estimated potential to produce up to 5,000 barrels per day, said Hydrocarbon Minister José Icaza Romero during a visit to the block.

A total of 40 wells are planned to recuperate an estimated 166 million barrels of reserves with an estimated investment of $2.6 million per well.

"Initial production is expected in July 2016," said Romero. "It is estimated that by December 2016 average production will reach 20,000 barrels per day."

The Tiputini field -- which is located outside of the YasunĂ­ -- forms part of the ITT Block with estimated 920 million barrels of crude, and represents 20 percent of Ecuador's total oil reserves.

[9.May.2016] LP

Ecuador Continues to Seek Foreign Investors for Pacific Refinery

By Clifford Fingers III, LatinPetroleum Ecuador's President Rafael Correa named Horacio YĂŠpez Maldonado as the country's new ambassador to seek financing for the Pacific Refinery with the assistance of foreign investors.

Correa signed Decree 1063 on May 31, 2016 which stipulated that Maldonado seek financing for the project from potential investors in China, South Korea, India, European countries and others suggested by the country's Foreign Relations Minister, reported the daily El Universo.

[1.Jun.2016] LP

Ecuador Still Considers Venezuela as a Partner in Pacific Refinery Project

By Clifford Fingers III, LatinPetroleum While Ecuador continues to seek financing from foreign investors looking to invest in the estimated $13 billion Pacific Refinery project, the country continues to reserve an interest for Venezuela.

"Venezuela is part of the project and is a strategic partner that will have an approximate 30 percent interest in the project," reported the daily newspaper El Universo, citing Strategic Sector Coordinating Minister Rafael Poveda.

"To-date, Venezuela has made the necessary contributions as required," said Poveda. In the future when the project advances to the construction phase it is expected that Venezuela will continue to contribute its allocated contributions to the project, he said. [30.Mar.2016] LP

Three Companies Interested in Esmeraldas Refinery Overhaul Salvage

By Clifford Fingers III, LatinPetroleum Three companies -- Adelca, Novacero and Practipower -- presented their bids to buy an estimated 6,500 tons of salvage left over from the Esmeraldas Refinery overhaul.

A total of 29 companies from Ecuador were qualified to present bids for salvage from the Esmeraldas Refinery such as electronic equipment, furnaces, bulbs, reactors and other pieces that were replaced during the recent overhaul of the refinery, reported EP PetroEcuador in an official statement on its website.

The bids will be analyzed and a winner will be announced within 48 hours, said Omar Quijano, an EP PetroEcuador executive with the law division within the state oil company. [16.Jun.2016] LP

El Aromo Area Considered Seismic Zone By Specialist Hugo Yepes

By Clifford Fingers III, LatinPetroleum The El Aromo area, where the Pacific Refinery will be located, near Manta in Manabí is considered a seismic zone by Seismologist and Volcanologist Hugo Yepes.

"This is a seismic zone with a history as noted and demonstrated with a large earthquake in 1906," reported the daily newspaper El Diario, citing the specialist. "The areas around the El Aromo could encounter important seismic activities," Yepes said without providing details.

[30.May.2016] LP

Fire at La Libertad Refinery Controlled With No Injuries to Workers or the Community

By Clifford Fingers III, LatinPetroleum A fire at the Parson plant of the La Libertad refinery, located in the Santa Elena province, was controlled within five minutes.

The fire was caused by a leak at a cargo pump which caught fire when it contacted a hot surface, reported EP PetroEcuador in an official statement on its website.

Operations at the Universal plant were suspended as part of preventative measures, according to the state oil company. [11.May.2106] LP

Ecuador to Investigate Three Public Officials for Possible Fraud

By Clifford Fingers III, LatinPetroleum A number of public officials are under investigation for irregularities related to declaration of goods and links with companies created in tax havens.

The officials being investigated include: PetroEcuador's former General Manager Álex Bravo Panchano, current PetroEcuador General Manager Pedro Merizalde and Ecuador's former Hydrocarbons Minister Carlos Pareja Yannuzelli, reported the daily El Universo, citing comments from Ecuador's Treasurer Carlos Pólit in Ecuavisa.

"We have detected the omission of certain information in the asset declarations of former PetroEcuador officials, and possibly some officials currently with the company," said Pรณlit. As a result, we will review the public administrative information from the past seven years, he said.

[11.May.2016] LP

Esmeraldas Overhaul Will Reduce Ecuador's Fuel and Derivative Imports by Nearly $355 Million

By Clifford Fingers III, LatinPetroleum Ecuador will benefit financial from the recently completed overhaul of the Esmeraldas refinery.

The country will save more than an estimated $1 million per day due to the decrease in fuel and derivative imports which will translate into an annual savings of around $355 million, reported EP PetroEcuador in an official statement on its website, citing company General Manager Pedro Merizalde Pavรณn.

"The refinery is now operating at 100 percent of its capacity," said EP PetroEcuador Refining Manager Diego Tapia.

Overhaul Summary The overhaul of the refinery required an investment of $1.2 billion and allowed EP PetroEcuador to recuperate the mechanical integrity of the plant and return to its 110,000 barrel-per-day operating capacity.

An estimated 7,000 workers participated in overhaul activities, of which 6,400 were local hires.

The overhaul will translate into an annual savings of nearly $355 million due to the reduction of fuel and petroleum derivative imports.

As part of the overhaul, close to 5,300 tons of toxic waste was also shipped outside of Ecuador for proper treatment. Additionally, $137 million was invested in social projects especially in the area of education, health, sanitation, as well as road related activities. [8.Jun.2016] LP

EP PetroEcuador Updates on Benefits of Esmeraldas Refinery Workover

By Clifford Fingers III, LatinPetroleum EP PetroEcuador stands to gain the most from the recent workover to the Esmeraldas Refinery, reported the state company in an official statement.

The primary benefit includes recuperating the 110,000 barrel-per-day capacity as well as increasing processing capacity, efficiency, and continuity while reducing the refining costs associated with the importation of refined products.

Other benefits to the workover include:

-- Increasing the capacity of the FCC unit to 20,000 barrels per day from 18,000 barrels per day, thus boosting production of LPG and gasolines; -- Producing diesel with a lower sulfur content, resulting in a positive environmental impact and benefits to the health of citizens nearby; -- Save $305 million due to the reduction in derivative imports; -- Increase in the production of LPG by 250 tons/day, and gasoline by 5,600 barrels per day.

[Apr.2016] LP

PetroEcuador Says $578.2 Million PascualesCuena Product Pipeline Online In May 2016

By Clifford Fingers III, LatinPetroleum Construction of the Pascuales-Cuenca product pipeline will allow EP PetroEcuador to develop a LPG transport and distribution system to supply the southern region of the country, reported the state company in an official statement.

Construction of the pipeline will also allow the company to reduce risk related to constant use of roadways and CO2 emissions due to the reduced use of transport trucks.

Additionally, construction of the pipeline will allow PetroEcuador to eliminate product transport via transport trucks in the southern region of the country; thus, further reducing depreciation of the country's roadways as well as vehicle congestion in the region.

The total budget for the project is $578.2 million, of which $541.9 million was invested in 2015.

As of year-end 2015 the project had reached a completion status of 97.2 percent. It was estimated that the pipeline was to be online and completely operational by May 31, 2016.

The first part of the pipeline will include a 10-inch pipeline spanning 103 kilometers and will connect the Pascuales station with the La Troncal terminal and be able to transport 46,500 barrels per day.

The second part of the pipeline will include an 8-inch pipeline spanning 112 kilometers and will connect the La Troncal terminal with the Cuenca terminal and be able to transport 30,800 barrels per day. [5.Apr.2016] LP

PetroEcuador's Three Refineries with Capacity to Process 175 Mb/d at Year End 2015

By Clifford Fingers III, LatinPetroleum EP PetroEcuador's three refineries -- Esmeraldas, La Libertad and Shushufindi -- had a combined processing capacity of 175,000 barrels per day at year end 2015, reported the state company in an official statement.

The largest refinery is Esmeraldas, with a 110,000 barrel-per-day processing capacity. Followed thereafter

by La Libertad (45,000 barrels per day) and finally Shushufindi (20,000 barrels per day).

TABLE 19: EP PETROECUADOR REFINERIES IN ECUADOR (B/D) REFINERY

PROCESSING CAPACITY

Esmeraldas La Libertad Shushufindi TOTAL CAPACITY

110,000 45,000 20,000 175,000

Source: EP PetroEcuador

[5.Apr.2016] LP

… EP PetroEcuador's three refineries - Esmeraldas, La Libertad and Shushufindi -had a combined processing capacity of 175,000 barrels per day at year end 2015 …

…Ecuador's largest refinery is Esmeraldas, with a 110,000 barrel-per-day processing capacity …

VENEZUELA

PDVSA President Eulogio Del Pino speaks during interview broadcast via Televen. Source: PDVSA

Venezuela Producing 3.8 MMboe/d, PDVSA President Says

By Piero Stewart, LatinPetroleum Venezuela is producing 3.8 million barrels of oil equivalent per day, PDVSA President Eulogio Del Pino said during an interview on the television program JosĂŠ Vicente Hoy, which is produced

by Televen.

"These days they are saying our production is falling. These are figures that are completely irresponsible and that relate to an attack that is also financial because what they do is disqualify us financially," said Del Pino, referring to articles and other media reports about Venezuela's oil production figures and other key economic data such as inflation, gross domestic product, produce scarcity and international reserves, among others. [4.Jul.2016] LP

Venezuela and Trinidad and Tobago Sign Two Energy-Related Deals in Port of Spain

By Pietro D. Pitts, Special to LatinPetroleum Venezuela's President Nicolas Maduro and Trinidad and Tobago's Prime Minister Keith Rowley were both present during an energy-related signing ceremony in Port of Spain between the two countries.

Trinidad's Minister of Energy and Energy Industries Nicole Olivierre signed the agreements for her country while Venezuela's Oil Minister Eulogio Del Pino signed on behalf of Venezuela, reported PDVSA in an official statement on its website.

The first agreement relates to a Functional and Governability Structure for the Loran-Manatee maritime gas field, including evaluation, development, exploitation, production and disposition of hydrocarbons.

The second agreement relates to a Memorandum of Understanding (MOU) between both countries revolved around technical and commercial studies related to the supply of Venezuelan natural gas located in the north and south eastern offshore platform regions of the OPEC member country to its Caribbean neighbor Trinidad and Tobago. The MOU also includes details related to the evaluation of a development feasibility study related to the interconnection of gas between Venezuela and Trinidad and Tobago.

During the meeting, Maduro also announced creation of a $50 million credit fund that would allow Venezuela to acquire foodstuff from Trinidad and Tobago.

Venezuela -- the OPEC member country with the world's largest crude oil and eighth largest natural gas reserves, according to this year's BP Statistical Review of World Energy – continues to reel in an economic crisis brought about by currency and price controls, widespread corruption and mismanagement of resources generated by its oil sector which produces 95 percent of the country's dollar export earnings.

Besides bilateral issues, the countries also discussed matters related to drug and security issues, among others. [23.May.2016] LP

Maduro Holds Meeting with Citizens Energy Corporation Founder Joseph Kennedy

By Piero Stewart, LatinPetroleum Venezuela's President Nicolas Maduro held a meeting with Citizens Energy Corporation founder Joseph Kennedy in Caracas to discuss matters related to the U.S.-based non-profit organization, reported Venezuela's new agency AVN. Citizens Energy is a non-profit company that receives and distributes Venezuela heating oil to U.S. citizens in need across various states in the U.S.A. [2.Jul.2016]

Venezuela Sends Two Fuel Tankers to Singapore

By Piero Stewart, LatinPetroleum Venezuela sent two fuel tankers at full capacity to Singapore, reported Reuters.

The tankers, New Dream, rented by PetroChina and Britanis, rented by Trafigura, are en route to Singapore with 270,000 tons of fuel, reported the news agency. [25.Jun.2016] LP

PDVSA Says Drilling Rig Inventory at 311 Units in May 2016

By Piero Stewart, LatinPetroleum PDVSA's inventory of drilling rigs in Venezuela at the end of May 2016 reached 311 units, of which 156 were owned by the company and 155 were owned by third parties, the state oil company announced in an official statement on its website. [25.Jun.2016] LP

Venezuela Soon to Initiate Gas Shipments to Colombia

By Piero Stewart, LatinPetroleum Venezuela soon plans to initiate shipments of natural gas to Colombia, reported Venezuela's new agency AVN, citing the country's Oil Minister Eulogio Del Pino.

The gas comes from the Cardรณn field offshore which forms part of the Mariscal Sucre natural gas project.

"We are producing 600 million cubic feet per day of natural gas, sufficient to export and satisfy domestic needs," said Del Pino, who also serves as the president of the state oil company PDVSA. [4.Jul.2016] LP

PDVSA and Inpex Invest $350 Million to Boost Gas Output in Guarico State

By Piero Stewart, LatinPetroleum PDVSA and Japan's Inpex invested $350 million to improve gas compression operations at the Copa Macoya plant in Guarico state and boost gas output by an additional 48 million cubic feet per day of natural gas.

The investment also included construction of a mechanical refrigeration plant that will allow for the recuperation of 1,000 barrels of 54-degree API condensate, reported Venezuela's oil ministry in an official statement on its website.

The gas is destined for the domestic market to assist the country reduce imports of costly diesel to generate electricity. [15.Jun.2016] LP

Venezuela Looks to Boost Domestic Gas Supply with Reduced Flaring

By Piero Stewart, LatinPetroleum Latin American oil producer Venezuela plans to increase the supply of natural gas in its domestic market by reducing flaring and using the once wasted resource as a raw material to supply its ailing petrochemical sector.

Venezuela plans to increase domestic gas supply by 700 million cubic feet per day over two years by reducing flaring in the northern areas of Monagas. The gas will be used to supply the country's petrochemical sector in the western region, especially the José Antonio Anzoátegui Industrial Condominium Complex, which manufactures fertilizers and methanol, reported Venezuela's oil ministry in an official statement on its website.

Gas previously flared in northern Monagas will leverage construction of new plants, and represent 220 million cubic feet per day as well as fertilizer and methanol production of 3 million tons per year, the ministry said.

… "The Petroleum workers have always been present in the most important moments in our history and today we are here to show our support to our constitutional president." -PDVSA President Eulogio Del Pino said during a march in Caracas, Venezuela in June …

Existing plants will increase their production to 1 million tons per year. Both measures are estimated to generate annual revenues of nearly $1.2 billion, according to the ministry.

[15.Jun.2016] LP

Rosneft to Partner with PDVSA in Mariscal Sucre Gas Project, Consider LNG Project

By Piero Stewart, LatinPetroleum Russia's Rosneft OAO and PDVSA signed an agreement for joint development of production, treatment and sale of natural gas from the Mariscal Sucre project offshore.

Rosneft and PDVSA will each hold a 50 percent interest in the venture which includes the fields Patao, Mejillones and potentially Rio Caribe, according to the Rosneft statement.

The three fields comprise part of the Mariscal Sucre natural gas project off the eastern coast of Venezuela. Another offshore field, Dragon, is also part of Mariscal Sucre but apparently not covered by the agreement. Activities at the Mariscal Sucre project are just 20 percent complete, announced PDVSA, as the Caracas-based company is known, in a statement on its website.

Rosneft has announced production from the three fields could potentially reach 25 million cubic meters (883 million cubic feet) per day, which could be shipped by pipeline or as liquefied natural gas, also known as LNG. [1.Apr.2016] LP

Luis Motta Domínguez Says El Niño Pulling Down Country's Water Reserves

By Piero Stewart, LatinPetroleum Venezuela, which relies on hydroelectric energy to generate 62 percent of its electricity, could be overcome by power outages in coming months as water levels at many of its dams, including the large Guri, are at dangerously low levels.

Water levels at Guri dropped to 249 meters above sea level on March 2, said Luis Motta Domínguez, Venezuela's Electric Energy Minister in a statement on the ministry's website. The situation is 'critical' since the water intake values are located at 238 meters above sea level, said the minister.

Venezuela's Electric Energy Ministry reported that El Niño has failed to produce rains and severely reduced the country's water levels, according to the statement.

The ministry's immediate solution to the problem has been to suggest that electricity users reduce their consumption. The suggestion from the minister aims to reduce energy consumption across Venezuela by 30 percent. [1.Apr.2016] LP

Venezuela Turns to Gold Rush to Prevent Economic Collapse

By Piero Stewart, LatinPetroleum Venezuela plans to immediately focus efforts on the exploitation and export of its massive gold resources located in Bolivar state in an attempt to avoid a financial default on its international obligations later this year.

Resource-rich Venezuela's Bolivar state contains estimated gold reserves of 7 million tons worth an estimated $280 billion, reported the country's Oil and Mining Ministry in a statement on its website, citing ministry head Eulogio Del Pino.

Plans to produce 20,000 tons per year of gold in 2016-2017 and eventually 100,000 tons per year will allow Venezuela to diversify its foreign income base and reduce its dependency of the oil rentier model, said Del Pino.

"The only thing they are exporting is corruption," said Venezuelan National Assembly congressman, AmĂŠrico De Grazia in an interview with LatinPetroleum in Caracas. [1.Apr.2016] LP

Venezuela Will Not Hold Its Premier LAPS Oil Event in 2016 Due to Financial Issues

By Pietro D. Pitts, Special to LatinPetroleum Venezuela will not hold its annual Latin American Petroleum Show (LAPS) this year due to financial constraints that render PDVSA unable to provide major hosting support and payment issues with international service providers who aren't yet willing to assume additional debts sponsoring the event amid mounting unpaid debts with the country's state oil company, said Venezuela's Petroleum Chamber president elect Alexis Medina P. in an exclusive interview with LatinPetroleum in Caracas. [4.Jul.2016] LP

Venezuela Still Reigns as the Country with the Largest Crude Oil Reserves

By Pietro D. Pitts, Special to LatinPetroleum Venezuela -- the resource-rich South American country known for its chocolates, Caribbean beaches, lively citizens and beauty queens -- still reigns as the country with the largest crude oil reserves, according to the BP Statistical Review of World Energy (June 2016).

Venezuela had proved oil reserves of 300.9 billion barrels at year-end 2015 and a reserves-toproduction ratio of 313.9 times based on production of 2.626 million barrels per day in 2015, according to the review. Said another way, Venezuela has enough crude oil reserves to last it for 313.9 years. [14.Jun.2016] LP

U.S. President Barack Obama Insists Venezuela Respect Democratic Process

By Piero Stewart, LatinPetroleum U.S. President Barack Obama insists that the Venezuelan government respect the democratic process regarding calls for a recall referendum against Venezuelan President Nicolas Maduro, reported the daily El Universal. "Political prisoners should be freed," said Obama during a speech in Ottawa, Canada. [25.Jun.2016] LP

Venezuela Oil Revenues Reach $100 Million in March 2016

By Piero Stewart, LatinPetroleum Venezuela, the country with the largest oil reserves, reported oil revenues of $100 million in March 2016, announced Venezuela's President Nicolas Maduro during a speech on national television. [9.Apr.2016] LP

Maduro Says Venezuela to Boost Oil Output Over Next Six Months

By Piero Stewart, LatinPetroleum Venezuela's President Nicolas Maduro said his country needs to boost its crude oil output over the next six months in accordance with the quotas assigned by OPEC and reduce production costs to optimize investments.

Maduro's comments came during a rally staged by hydrocarbon and petrochemical sector workers in Caracas to show their support for the president as he faces continued pressures from abroad about a recall referendum that could potentially remove him from office.

Venezuela isn't tied to any dogma of reducing production, said the country's Oil and Mining Minister Eulogio Del Pino during the rally. "We are seeking new plans that will take us to balanced pricing, which justifies the sustainability of investments." [14.Jun.2016] LP

Venezuela in Talks with China Regarding 1-Year Grace Period to Make Payments

By Piero Stewart, LatinPetroleum Venezuela continues to discuss matters with China regarding a grace period for the South American country to pay back loans to the Asian country, reported Reuters, citing three sources familiar with the discussions.

During the period Venezuela would pay back only the interest associated with the loans it receives, in exchange for crude shipments to China and not the principal on the loans.

[14.Jun.2016] LP

PDVSA Still Seeks Friendly Settlement with PetroPar

By Piero Stewart, LatinPetroleum PDVSA continues to seek a friendly settlement with PetroPar in regards amounts it is owed by its Paraguayan counterpart, announced PDVSA in an official statement posted on Twitter.

PDVSA is requesting that PetroPar pay its debt to Venezuela without additional delays and says it is willing to take necessary actions under the law and contracts signed by both companies. [11.Jun.2016] LP

Venezuela Needs to Learn to Live with $40-$45/Barrel Oil

By Piero Stewart, LatinPetroleum Venezuela has to learn how to live with oil prices between $40 per barrel and $45 per barrel in order to stop its oil rentier model, announced Venezuela's President Nicolas Maduro during a broadcast on national television from Miraflores Presidential Palace in Caracas.

Venezuela should learn to generate new sources of wealth via exports, said Maduro. [16.Jun.2016] LP

PDVSA President Del Pino Orders Audit of State Oil Company

By Piero Stewart, LatinPetroleum PDVSA President Eulogio Del Pino has ordered the investigation into presumed acts of corruption and bribery within the state oil company, reported the daily newspaper El Universal. [23.Jun.2016] LP

… PDVSA continues to seek a friendly settlement with PetroPar in regards amounts it is owed by its Paraguayan counterpart … … Venezuela has to learn how to live with oil prices between $40 per barrel and $45 per barrel in order to stop its oil rentier model, announced Venezuela's President Nicolas Maduro …

PDVSA Personnel Completes Directional Work on 70th Well in Maracaibo

By Piero Stewart, LatinPetroleum PDVSA's Western Petroleum Services division has performed services on a total of 70 drilling wells with the recent completion of work on a directional drilling well located in Lake Maracaibo.

Work at the LB-2963-ST well where the PDV-142 rig is located, was completed with equipment and personnel from Venezuela. In previous years these services were performed by international companies, announced PDVSA in an official statement on its website.

PDVSA's Western Petroleum Services division owns 12 directional drilling rigs which were acquired from China under agreements initially signed by late Venezuelan President Hugo Chávez. PDVSA completed 29 percent of its activities in the Western region of the country with these Chinese rigs and estimates this figure could increase to 50 percent in 2016. [20.Jun.2016] LP

Gas Stations in Táchira State Sell Venezuela's 91 Grade Gasoline for Bs. 200/Liter

By Piero Stewart, LatinPetroleum Ten gasoline stations -- which form part of Venezuela's Exclusive and Special Service stations – are selling PDVSA's 91 grade gasoline for 200 Venezuelan bolivars per liter and diesel for 170 Venezuelan bolivars per liter, reported the daily newspaper El Carabobeño.

The service stations are located in Boca de Grita, La Fría, El Piñal, Rubio, San Antonio and Ureña, reported the daily. [1.May.2016] LP

Gasoline Chip Reaches 84 Percent of Venezuelan Auto Park in Maracaibo

By Piero Stewart, LatinPetroleum An estimated 84 percent of Venezuela's auto park in Maracaibo contains the special TAG gasoline chip, reported the daily Panorama, citing Infrastructure Secretary Jairo Ramírez.

"We will continue installing the chips. The idea is to reach the 100 percent mark." said Ramírez.

The chip system is being installed at the following locations in Maracaibo: Ana María Campos (Pequiven) dock, Rafael Urdaneta (Baru) air base, the San Francisco police station, as well as installation locations in La Villa and Santa Bárbara. [13.May.2016] LP

PDVSA Increases Recovery Factor to 35% from 20 Percent in South Junín District

By Piero Stewart, LatinPetroleum PDVSA has increased the recovery factor to 35 percent from 20 percent in the South Junín district of the Orinoco Heavy Oil Belt or the Faja using various technologies.

Said technologies could establish a base or floor recovery factor in the Faja of 40 percent, reported the daily newspaper El Universal, citing petroleum expert Fernando Travieso. Assuming such a base recovery factor, Venezuela could register certified reserves of close to 513 billion barrels, said the expert.

Details of the recovery techniques used to achieve the 35 percent recovery factor were not revealed. [21.Jun.2016] LP

PDVSA and Schlumberger Maintain Operational Relationship in Venezuela

By Piero Stewart, LatinPetroleum PDVSA and oil field services giant Schlumberger continue to maintain their operational relationship, reported PDVSA in an official statement, citing a Schlumberger legal representative.

Schlumberger and PDVSA are working to maintain and increase joint business activities, said Schlumberger Venezuela Operations Vice President Roy Ayllón.

The executive classified information reported recently by Platts as 'false.' [10.Jun.2016] LP

Schlumberger Rigs to Operate Under Different Financial Scheme

By Piero Stewart, LatinPetroleum Schlumberger's 14 drilling rigs in Venezuela will soon commence to operate under a different financial scheme, reported PDVSA in an official statement on its website.

"There are 14 Schlumberger rigs that will soon operate under different financings schemes," reported PDVSA, citing its president Eulogio Del Pino. "In Lake Maracaibo we will also arrive at an agreement for a different type of operation," he said without providing details.

Schlumberger has reduced operations in some areas while boosting them in others, said Del Pino, referring to news that the oil service giant had completely halted its operations in Venezuela.

In 2013, Schlumberger announced it had established a $1 billion credit line with Venezuela.

[11.Jun.2016] LP

Venezuela Publishes Details about Companies Keeping Foreign Currency in Country

By Piero Stewart, LatinPetroleum Venezuela published details in its Official Gazette No. 40,913 which establishes that private, national and foreign companies that transport and distribute gas for collective consumption can maintain their foreign currency in banking institutions or similar entities.

The private gas companies "don't have the right to obtain currency via Venezuela's Central Bank to cover obligations or payments in foreign currency and are subjected to the regime established in this publication," according to the gazette. [31.May.2016] LP

Venezuela Proposes Appointment of Alí Rodríguez Araque as OPEC Secretary-General

By Piero Stewart, LatinPetroleum Venezuela proposed to OPEC the appointment of Alí Rodríguez Araque as secretary-general for the organization, reported PDVSA in an official statement on its website.

Araque is the actual Venezuelan ambassador in Cuba and was the OPEC Secretary-General from January 2001 until June 2002. [1.Jun.2016] LP

PDVSA Increases Food Card Stipend to Bs. 38,000 per Month

By Piero Stewart, LatinPetroleum PDVSA increased the food card stipend to its workers by 100 percent to 38,000 Venezuelan bolivars per month, reported the daily newspaper Panorama, citing Futpv oil union President Wills Rangel.

The card, which benefits some 100,000 oil sector workers, was retro-active as of April 1, 2016.

[14.May.2016] LP

PDVSA Workers Banned From Company for Corruption

By Piero Stewart, LatinPetroleum A number of PDVSA workers have been banned from the company for corruption and more are under investigation for the same, announced the country's comptroller-general Manuel Galindo during an interview with television station Globovision.

"Since 2002 a total of 2,000 cases have been sent to the country's District Attorney's office including 8 emblematic cases which affect: Industrias Diana, PDVSA affiliates, Conviasa, among others," said Galindo during the interview. [14.Apr.2016] LP

Venezuela Proposes Production Band Again to OPEC

By Piero Stewart, LatinPetroleum Venezuela again proposed establishment of a production band during the 169th OPEC meeting in Vienna.

The band system consists of minimum and maximum production levels for each country which will allow the organization to balance the market when certain countries have problems and have lower production and others are at the other extreme, reported PDVSA in an official statement on its website, citing PDVSA President and Venezuela's Oil Minister Eulogio Del Pino. [2.Jun.2016] LP

PetroCaribe Evaluates Creation of JV Company to Distribute Gas

By Piero Stewart, LatinPetroleum PetroCaribe member countries evaluated the creation of a joint-venture company that would distribute Venezuelan gas to them, reported Venezuela's news agency AVN, citing PDVSA President Eulogio Del Pino.

"The proposal – after looking at the quantity of reserves that we have in the Caribbean – is that we will establish a network, just like and how President Chávez visualized the Great South American Gas Pipeline," said Del Pino.

It is possible that PetroCaribe members will need to increase their participation in the project, added Del Pino, without providing financial or operational details. [27.May.2016] LP

Companies Visit Petro San Félix to Study Swapping Green for Calcined Coke

By Piero Stewart, LatinPetroleum A number of international and national coke processing companies visited the Petro San Félix solids terminal located in the José Antonio Anzoátegui Industrial Complex (CIJAA by its Spanish acronym) with the intention to study the potential to swap green coke for calcined coke.

Via the swapping, PDVSA aims to fulfill the second and commercial phase of the project utilizing Venezuelan coke.

Companies visiting the terminal included representatives from Japan's Mitsubishi, China's Chalieco and Printemps Limited, USA's Aminco Resources Inc. and Premier Trading Supply Llc, Switzerland’s ICARE, as well as Venezuela's Alcasa and PDVSA Intevep, reported PDVSA in an official statement on its website.

The visit allowed for the interchange of information and potentially formation of sustainable projects in the future in accordance with desires by the Venezuelan government to provide solutions that permit the development of investment plans in the country, said ICARE representative Andrew Loken. [18.May.2016] LP

PDVSA Installs Sour Water Stripper Unit at Puerto La Cruz Refinery

By Pietro D. Pitts, Special to LatinPetroleum PDVSA successfully installed a separator or Sour Water Stripper Unit, also known as Unit 84, at the Puerto La Cruz refinery in Anzoátegui state. The unit is part of the deep conversion project at the refinery, reported PDVSA in an official statement on its website.

The D-8406 NH3 stripper unit weighs 341 tons, has a diameter of 9 meters and rises 52 meters into the air. The unit is designed to process 1,881 gallons per minute of sour water and generate 1,802 gallons per minute of stripped water, 19,095 pounds per hour of hydrogen sulfide and permit the controlled burning of 9,450 pounds per hour of ammonia. The objective of the unit is to remove diluted hydrogen sulfide and ammonia from the currents of the sour water that come from the following units: Vacuum Distillation (VDU), Sequential Hydro-Processing (SHP), Residual Processing (RWU), Amine Regeneration (ARU), Sulfur Recovery and Tail Gas Treatment (SRU), Hydrogen Recovery (HRU) and Gas Recovery (GRU).

Work at Unit 84 is classified as 21.50 percent complete, according to PDVSA. Electric Sub-Station Unit 52 The principal electric sub-station which corresponds to Unit 52 is classified as 40.08 percent complete. Work at the unit includes installation of the heavy equipment and installation of four principal transformers (230/34.5 kilowatts) and with potential of up to 150 megavolt amperes (MVA) each.

The deep conversion project will require demand of 200 to 220 MVA. The sub-station will have an installed capacity of 600 megawatts, according to PDVSA. [28.May.2016] LP

PDVSA Moves Forward with Plants at Petrolera Sinovensa and Petrocarabobo

By Piero Stewart, LatinPetroleum PDVSA has started work on the heavy oil treatment plants at the joint-venture companies Petrolera Sinovensa and Petrocarabobo, located in the south of Monagas and Anzoátegui states, respectively.

Investments in the Petrolera Sinovensa plant are expected to total $40 million plus an additional 600 million Venezuelan bolivars. Construction of the plant will generate 220 direct and 600 indirect employment opportunities, reported PDVSA in an official statement on its website, citing PDVSA Exploration and Production Vice President Orlando Chacín. The project contemplates the construction of 12 plants with 100,000 barrels per day of capacity over the next five years.

Sinovensa partners PDVSA with a 60 percent majority interest and the China National Petroleum Corporation with the remaining 40 percent interest.

Petrocarabobo The Petrocarabobo joint venture has estimated proved reserves of 13.500 billion barrels and anticipates construction of a 400,000 barrel per day heavy oil upgrader that will convert 8.5 degree API oil into a lighter 32 degree API oil, said PDVSA New Orinoco Oil Projects Executive Director RubĂŠn Figuera.

The processing module will have an initial capacity to process 50,000 barrels per day.

Investments in the Petrocarabobo plant are expected to total $65 million plus an additional 180 million Venezuelan bolivars.

"The project includes development of two additional modules that will allow for the expansion of the plant to 90,000 barrels per day over the short term," said Figuera.

The Petrocarabobo treatment plant partners Repsol YPF (Spain) with an 11 percent interest, ONGC (India) with an 11 percent interest, Indian Oil (India) with a 3.5 percent interest, Oil India Limited (India) with a 3.5 percent interest and PDVSA as the majority owner in the project with a 71 percent interest. [28.Apr.2016] LP

Harvest Natural Resources Receives Continued Notice Listing From NYSE

By Harvest Natural Resources, Inc. Harvest Natural Resources, Inc. announced that, on April 25, 2016, the New York Stock Exchange (NYSE) notified the company that it had fallen below the NYSE's continued listing standards, which provide that an NYSE-listed company is not in compliance if its average global market capitalization over a consecutive 30 trading-day period is less than $50 million and, at the same time, its stockholders' equity is less than $50 million.

Prices for LPG in Venezuela

As required by NYSE rules, the company has notified the NYSE that, within 45 days of receipt of the NYSE's notice, the company will submit a business plan that demonstrates its ability to regain compliance within 18 months. The NYSE will either accept the business plan, at which time the company will be subject to quarterly monitoring for compliance with the plan, or will not accept the plan. If the company fails to comply with the business plan or the NYSE does not accept the plan, the NYSE may commence suspension and delisting procedures.

The company's business operations, securities reporting requirements and debt obligations are unaffected by the NYSE's notice. [29.Apr.2016] LP

Harvest Natural Resources Announces 2016 First Quarter Results

By Harvest Natural Resources, Inc. Harvest Natural Resources, Inc. announced 2016 first quarter earnings and provided an operational update.

Harvest reported a first quarter net loss of approximately $14.1 million, or $0.27 per diluted share, compared with a net loss of $5.6 million, or $0.13 per diluted share, for the same period last year. The first quarter results include exploration charges of $0.7 million, or $0.01 pre-tax per diluted share, and non-recurring items related to a loss on the change in fair value of warrant liabilities of $4.1 million, or $.08 pre-tax per diluted share and $5.2 million to fully reserve a note receivable from a related party, or $0.10 pre-tax per diluted share. Adjusted for exploration charges and the non-recurring items Harvest would have posted a first quarter net loss of approximately $4.1 million, or $0.08 per diluted share, before any adjustment for income taxes.

During the three months ended March 31, 2016, Petrodelta sold approximately 3.96 MMbbls for a daily average of 43,507 b/d, an increase of nine percent over the same period in 2015 and 3 percent lower than the previous quarter. Petrodelta sold 0.57 billion cubic feet (Bcf) of natural gas for a daily average of 6.2 million cubic feet per day (MMcf/d), decreasing 41 percent over the same period in 2015, and decreasing 31 percent over the previous quarter. Petrodelta's current production rate is approximately 41,445 b/d.

During the first quarter of 2016, Petrodelta drilled and completed six development wells, five in the El Salto field and one in the Temblador field. Currently, Petrodelta is operating four drilling rigs and one workover rig and is continuing with infrastructure enhancement projects in the El Salto and Temblador fields.

Petrodelta's production target for 2016 is projected to be approximately 42,965 b/d. The 2016 Petrodelta capital expenditures are expected to be approximately $242.8 million. Petrodelta expects to drill 19 oil wells during 2016.

Corporate On January 4, 2016, HNR Finance provided a loan to CT Energia in the amount of $5.2 million under an 11.0 percent promissory note due 2019 (the CT Energia Note). The purpose of the loan is to provide CT Energia with collateral to obtain funds for one or more loans to Petrodelta that is 40 percent owned by HNR Finance and through which Harvest's Venezuelan oil and natural gas interests are held. The loans to Petrodelta are to assist Petrodelta in satisfying its working capital needs and discharging its obligations. Interest on the CT Energia Note is due and payable on the first of each January and July, commencing July 1, 2016. The full amount outstanding, including any unpaid accrued interest, is due on January 4, 2019; however, HNR Finance's sole recourse for payment of the principal amount of the loan is the payments of principal and interest from loans that CT Energia has made to Petrodelta. If and when CT Energia receives payments of principal or interest from loans it has made to Petrodelta, then those proceeds must be used to pay unpaid interest and principal under the CT Energia Note. All payments made by CT Energia to HNR Finance under the CT Energia Note must be made in U.S. Dollars.

The source of funds for HNR Finance's $5.2 million loan to CT Energia was a capital contribution from Harvest Holding, which, in return, received the same aggregate amount of capital contributions from its shareholders, pro rata according to their equity interests in Harvest Holding. Of that aggregate amount of capital contributions, HNR Energia contributed $2.6 million, which was a capital contribution from Harvest. The management agreement the Company entered into with CT Energia also makes CT Energia a related party. During the three months ended March 31, 2016 we incurred $5.2 million to fully reserve the note receivable from CT Energia due to concerns related to the continuing deteriorating economic conditions in Venezuela.

On and effective April 1, 2016, the company and CT Energy executed a Second Amendment to the 15 percent Note. The second amendment eliminates the $1 million interest payment that would have been due and payable on April 1, 2016, and converts such amount, less applicable withholding tax, into additional principal, such that the new principal amount of the 15 percent Note was $27.0 million as of April 1, 2016.

On May 3, 2016, the company and CT Energy Holding executed and delivered a Third Amendment to the 15 percent Note. The Third Amendment increased the principal amount of the 15 percent Note to $30 million to reflect an additional loan of $3 million by CT Energy Holding to Harvest. Additionally, the Third Amendment converts the $1.1 million interest payment that would have been due and payable on July 1, 2016 less applicable withholding tax, into additional principal, such that the new principal amount of the 15 percent Note will be $31 million effective as of July 1, 2016. [17.May.2016] LP

PDVSA Pays Interest to 2022 Bondholders

By PDVSA PDVSA announced that payment of interest was made on April 28, 2016 to all holders of PDVSA Bonds maturing 2022 with an interest rate of 6 percent, according to the preset conditions on paper issued October 2014. [29.Apr.2016] LP

PDVSA Reports 46% Drop in Hydrocarbon Income, 80% Drop in Integral Net Income

By Pietro D. Pitts, LatinPetroleum.com Venezuela's state oil company Petróleos de Venezuela (PDVSA) reported disappointing financial data for 2015 as oil and gas revenues fell 46 percent and integral net income fell 80 percent.

… Production of oil and NGLs averaged 2.863 million barrels per day in 2015 while exports averaged 2.425 million barrels per day …

… Despite lower oil prices and lower hydrocarbon revenues, social expenses rose 73 percent in 2015 to $9.2 billion compared to $5.3 billion in 2014 …

Caracas-based PDVSA reported hydrocarbon revenues of $55.3 billion in 2015, down 46 percent compared to $101.6 billion in 2014. Production of oil and NGLs averaged 2.863 million barrels per day in 2015 while exports averaged 2.425 million barrels per day. Oil prices averaged $44.65 per barrel, according to a financial report posted on the company's website (see table below).

PDVSA reported financial revenues of $16.8 billion in 2015 compared to $20.3 billion in 2014 and total combined revenues of $72.2 billion in 2015, down 41 percent compared to $121.9 billion in 2014.

Total costs were $61.5 billion in 2015, down 39 percent compared to $100.3 billion in 2014. As a result, PDVSA reported operating profit of $10.7 billion, down 51 percent compared to $21.6 billion in 2014.

Despite lower oil prices and lower hydrocarbon revenues, social expenses rose 73 percent in 2015 to $9.2 billion compared to $5.3 billion last year. As a result, PDVSA's pre-tax profit was $1.5 billion in 2015, down 91 percent compared to $16.3 billion in 2014.

PDVSA reported a positive tax benefit of $3.7 billion in 2015 compared to an expense of $5.1 billion in 2014. As a result, the company's net income from continued operations was $5.2 billion in 2015, down 54 percent compared to $11.2 billion in 2014. Net income fell further to $2.6 billion in 2015, after taking into account employee benefits, down 80 percent compared to $12.5 billion in 2014.

Additionally, PDVSA reported total assets fell to $201.9 billion in 2015, down 11 percent compared to $226.8 billion in 2014. Property plant and equipment and inventories both showed declines in 2015 compared to 2014.

PDVSA's combined long- and short-term debt was $43.7 billion in 2015 compared to $45.7 billion in 2014 while the amounts the company owed to service providers was $19.1 billion in 2015, down slightly from $20.9 billion in 2014.

TABLE 20: PDVSA FINANCIAL RESULTS 2013-2015 ($000) 2015

2014

2013

Oil revenues Financial revenues Total Revenues

$55,339 $16,830 $72,169

$101,552 $20,343 $121,895

$110,719 $9,316 $120,035

Oil purchases Operating costs Exploration costs Depreciation (DD&A) Royalties Financial costs Other costs Total Costs

$22,965 $16,828 $50 $8,995 $6,294 $2,393 $3,986 $61,511

$37,266 $27,400 $76 $8,038 $13,466 $4,065 $9,946 $100,257

$36,754 $23,733 $140 $8,096 $19,262 $2,880 $4,239 $95,104

Operating Profit Social expenses Pre-Tax Profit

$10,658 $9,189 $1,469

$21,638 $5,321 $16,317

$24,931 $13,023 $11,908

Current taxes Deferred taxes Total Taxes

$3,172 ($6,889) ($3,717)

$9,715 ($4,609) $5,106

$12,280 ($5,094) $7,186

Net Income from Continued Ops. Discontinued operations Employee benefits Conversion differences TOTAL INTEGRAL NET INCOME

$5,186 $2,159 ($4,998) $241 $2,588

$11,211 ($2,137) $1,390 $2,001 $12,465

$4,722 $11,113 ($3,824) $896 $12,907

Source: PDVSA

ARGENTINA

Argentina Starts to Import Gas from Chile Under Two Contracts

By Jared Yamin, LatinPetroleum Argentina started to import natural gas from Chile and will continue over an estimated threemonth period in order to cover increased demand during the winter period.

On May 11, 2016 Argentina initiated import of an estimated 5 million cubic meters per day of gas from Chile under two contracts: the first with France's GDF Suez and the second with Chile's Enap, reported the daily newspaper La Razรณn.

The contract with GDF Suez is for an estimated $73.4 million with a price of $7.20/MMBtu while the contract with Enap is for $22 million with a price of $6.90/MMBtu. [7.May.2016] LP

Argentina Establishes Ceiling for Subsidized Gas between 400-500 Percent

By Jared Yamin, LatinPetroleum Argentina established a ceiling for subsidized gas invoices at 400 percent for private entities and 500 percent for business entities.

The prices will be in effect for the remainder of 2016, reported Efe, citing a resolution published in an official bulletin. [7.Jun.2016] LP

YPF and Enap Sipetrol to Invest $165 Million to Boost Output in Magallanes

By Jared Yamin, LatinPetroleum YPF and Enap Sipetrol plan to invest $165 million to boost production in the Magallanes field offshore.

The companies plan to increase natural gas production by 60 percent to 4 million cubic meters per dayfrom 2.4 million cubic meters per day and petroleum production by 25 percent to 1,000 million cubic meters per day, reported the daily newspaper iEco. [3.Jun.2016] LP

YPF Announces Divestment Plans for 20 Areas in Río Negro and Chubut

By Jared Yamin, LatinPetroleum YPF plans to divest of as many as 20 areas in Argentina where the company has a partial interest or where the areas do not offer important earnings.

YPF has put up on the market 6 areas in Río Negro, including some with good returns, reported the daily newspaper iEco.

… A group of Argentina businessmen plan to buy the assets of Petrolera del Cono Sur, a subsidiary of PDVSA in Argentina …

In Chubut, the company has already identified 20 areas it plans to divest, according to the daily.

The company plans to follow a similar strategy in Neuquén and Santa Cruz, although details about these areas have yet to be revealed publicly.

In Neuquén in the Vaca Muerta there are plans in discussions regarding 20 rigs. According to industry data, activities in the area are estimated to fall by 30 percent and by as much as 50 percent in the reservoir exploited by YPF and Chevron. [3.Jun.2016] LP

ExxonMobil Plans to Invest $10 Billion in Vaca Muerta

By Jared Yamin, LatinPetroleum U.S.-based ExxonMobil plans to invest $10 billion over the next 20 years in the Vaca Muerta area in Argentina.

The announcement was made by ExxonMobil President Rex Tillerson during a visit the Vaca Muerta area in Neuquén with Argentine President Mauricio Macri, reported the daily newspaper iEco. Exxon has already spent $200 million on exploration drilling activities in the area.

"Depending on the success of the program, we will determine if it is possible to advance with the complete development of the project," said Tillerson.

ExxonMobil Exploration Argentina -- together with XTO Energy in association with Gas y Petróleo from the Neuquén region -- plans to start a pilot project in the Bajo del Choique-La Invernada area. The project could commence in coming months with an estimated investment of nearly $250 million.

"I am very optimistic with the changes that have taken place here in Argentina with the new government. Clearly the investment climate is improving as well as the functioning of foreign trade," said Tillerson who added that Argentina was an important area for his company.

[3.Jun.2016] LP

PDVSA to Divest of Holding in Petrolera del Cono Sur In Argentina

By Jared Yamin, LatinPetroleum A group of Argentina businessmen plan to buy the assets of Petrolera del Cono Sur, a subsidiary of PDVSA in Argentina.

The assets include 95 service stations as well as storage tanks in the Dock Sud, reported the daily newspaper La Nación.

The group, denominated GMM, is headed by Emilio González Moreno, a former shareholder in Banco Patagonia and one of the owners of Grupo Fip, a company dedicated to the distribution of fuels in Argentina.

PDVSA Argentina currently holds a 95 percent interest in Petrolera del Cono Sur while the remaining 5 percent interest in the company was controlled by investors via stocks emitted on the Argentine stock market.

The offer to buy the assets is expected to be completed over 14 to 18 months. During this time, the company plans to import fuels and reduce the monthly deficit -- estimated at around $880,000 per month. The name PDV Sur will not be removed from the service stations, at least not yet, reported the daily. [23.May.2016] LP

Saesa Says 15 Wind Park Projects Ready For Construction

By Jared Yamin, LatinPetroleum Energy company Saesa announced there are at least 15 wind park projects ready to be built in Argentina which represents nearly 900 megawatts of energy.

There are also another 17 projects in the advanced approval stages which have potential to add 1,000 megawatts of energy, reported the daily newspaper La Nacion.

The most advanced projects are located in Buenos Aires, Chubut, CĂłrdoba, La Pampa, La Rioja, NeuquĂŠn and Santa Cruz. There are nearly 70 wind projects that have been announced that have potential to add close to 7,000 megawatts of energy, reported the daily. [31.May.2016] LP

Argentina Launches RenovAr Plan to Add 1000 Megawatts from Wind, Solar Projects

By Jared Yamin, LatinPetroleum The Argentine government launched its so-called National Renewable Energies Plan or RenovAr, which contemplates installing nearly 1,000 megawatts of energy from various wind, solar and other projects.

The plan could attract project investments on the order of $2 billion in the first stage, reported the daily newspaper La Nacion. [31.May.2016] LP

Enargas Mandates Productive Complexes To Temporarily Reduce Gas Demand to Zero

By Jared Yamin, LatinPetroleum Union protests in Tierra del Fuego as well as climatic conditions have made it impossible to bring in LNG ships into the Buenos Aires province and forced the Argentina government to take steps to reduce demand for gas.

An emergency committee meeting proposed by Enargas concluded that the only alternative was to order the major productive complexes to reduce their consumption of the resources down to zero, reported the daily newspaper La Nacion. [1.June.2016] LP

Argentina to Pay Galuccio $72 Million to Leave YPF

By Jared Yamin, LatinPetroleum The government of President Mauricio Macri will pay 72 million Argentine pesos to Miguel Galuccio as part of offer for the executive to depart the company.

Board of Director members with YPF, controlled 51 percent by the government, came to agreement at the April 29, 2016 assembly meeting in Argentina.

… Petrobras announced that its Board of Directors approved the sale of its entire 67.19 percent interest in Petrobras Argentina (PESA), owned

by Petrobras Participaciones S.L. (PPSL), to Pampa …

"The compensation for all of his functions and other concepts as CEO of the company will total 72,000,000 and include an agreement for him to leave the company," reported by the daily newspaper iEco, citing an official statement from the company. [5.May.2016] LP

Executive Profile: YPF New CEO Ricardo Darré

By Jared Yamin, LatinPetroleum Ricardo Darré will assume the position as CEO of YPF on July 1, 2016, taking over the helm from the interim CEO. Darré graduated from the Buenos Aires Technology Institute (ITBA by its Spanish acronym) with a specialization in mechanical and industrial engineering, reported the daily newspaper La Nacion.

After finishing the university he worked for Schlumberger in Angola, Zaire in the Neuquén basin.

In 1987, he began work with Total, where he has worked until now. With Total he worked in Tierra del Fuego, France and Thailand in various roles related to offshore exploration.

From 1998, he started to assume roles related to operations in Norway, Russia, the United Kingdom, France and the United States.

Currently, he continues to work as managing director of Exploration and Production with Total in Houston, Texas. [6.June.2016] LP

Moody's upgrades Argentine corporate issuers

By Moody's Moody's Investors Service upgraded ratings of several companies with operations in Argentina, with the outlook changed to stable from positive.

The rating actions on the companies' global scale ratings follow Moody's upgrade on April 15, 2016 of Argentina's government bond rating to B3 from Caa1, with the outlook changed to stable from positive. [21.Apr.2016] LP

Moody's affirms YPF's B3 rating

By Moody's Moody's affirmed YPF Sociedad Anonima's (YPF) B3 issuer rating. YPF's B3 BCA (Baseline Credit Assessment) and its Baa1.ar national scale rating remained unchanged.

The outlook on the ratings is stable. [2.Jun.2016] LP

Approval of Sale of Petrobras Argentina

By Jared Yamin, LatinPetroleum Petrobras announced that its Board of Directors approved the sale of its entire 67.19 percent interest in Petrobras Argentina (PESA), owned by Petrobras Participaciones S.L. (PPSL), to Pampa EnergĂ­a.

The transaction base price is $892 million, equivalent to the value of $1,327 million for 100 percent of PESA. The transaction also included an agreement for subsequent transactions to acquire 33.6 percent of the concession of Rio Neuquen, Argentina, and 100 percent of Colpa Caranda asset in Bolivia for a total amount of $52 million.

The Rio Neuquen and Colpa Caranda assets have strategic value for Petrobras since they represent good potential for natural gas production in the NeuquĂŠn Basin, where Petrobras estimates to have large unconventional natural gas reserves (tight gas). It is noteworthy that the subsequent transactions relating to these assets are subject to approval by the appropriate deliberating bodies of PESA and the relevant regulatory agencies.

The completion of the transaction is subject to certain typical conditions, including the approval by the relevant regulatory agencies. [13.May.2016] LP

BRAZIL

Darcy Ribeiro tanker. Source: Petrobras

Lawmaker’s Suggests Resignation of Planning Minister Linked to Petrobras Scandal

By Jared Yamin, LatinPetroleum Brazilian lawmaker Pauderney Avelino, from Brazil's lower chamber, said Planning Minister Romero Jucá under the interim government of Michel Temer should resign due to his being linked to the Petrobras corruption scandal.

"He should be an example and leave the government and then explain the situation," Avelino said, member of the DEM party, in an interview with BandNews, reported the news agency Efe. "By remaining in his position he could generate a very complicated situation."

Temer replaces Brazilian President Dilma Rousseff, who was suspended from her functions, and could head up the interim government for at least 180 days.

Jucá belongs to the Brazilian Democratic Movement Party of (PMDB by its Portuguese acronym). [23.May.2016] LP

Dilma Warns Interim Government Wants to Privatize Brazilian Reserves

By Jared Yamin, LatinPetroleum Brazil President Rousseff Dilma -- suspended from her duties for six months -- claims that the country's interim president Michel Temer plans to privatize the country's pre-salt reserves and leave Petrobras out of the picture.

"We know where the petroleum is located, we know its quality and they want to privatize it," reported the daily newspaper LaRed21, citing announcements by Dilma via social media.

Any change in the current petroleum model will affect funds destined for education in Brazil, said Dilma. [26.May.2016] LP

Former Minister Under Lula Sentenced to 23 Years in Jail in Petrobras Case

By Jared Yamin, LatinPetroleum Former Brazilan Minister José Dirceu was sentenced to a 23-year, 3-month prison term due to his presumed involvement in the Petrobras coruption scandal.

Dirceu, who served as the President of the Workers Party (PT by its Portguese acronym), was one of the most influencial men under the government of former Brazilian President Luiz Inácio Lula da Silva during 2003-2005, reported the daily newspaper La Razón, citing Efe. The judge responsible for investigation irregularities in the Petrobras case, Sergio Moro, said Direu was passively and actively involed in money laundering activities. [18.May.2016] LP

New Well in Libra Confirms Extension of Oil Discovery

By Petrobras The Libra Consortium has concluded the drilling and evaluation of the seventh well in the block, located in the pre-salt of the Santos Basin. The well found the thickest oil net pay column ever encountered in Libra, reaching 410 meters. This column overcomes the last found (301 meters), announced in March this year.

The new well, located in the northwest portion of the block and 180 kilometers off the Rio de Janeiro state coast, confirmed the discovery of good quality oil (27-degree API) in reservoirs with excellent productivity.

The well, named 3-BRSA-1339A-RJS (3-RJS-742A) and informally known as NW2, is located 10.3 kilometers south of the discovery well 2-ANP-2A-RJS. This drilling is part of the Discovery Evaluation Plan of the 2-ANP-2A-RJS, approved by the National Oil, Natural Gas and Biofuels Agency (ANP), on February 26, 2016.

To date, seven wells have been drilled in Libra (six by the Consortium) and the eighth well (3RJS-743-A), also in the northwest area of the block, is being drilled. The area of Libra was the first award under the production sharing regime.

The Libra Consortium is composed of Petrobras (operator, with 40 percent WI), Shell (20 percent WI), Total (20%), CNPC (10 percent WI) and CNOOC (10 percent WI), and the Production Sharing Contract manager is Pré-Sal Petróleo S.A. (PPSA). [15.Jun.2016] LP

Petrobras Starts Competitive Process to Sell Liquigás

By Petrobras Petrobras started the competitive process to sell Liquigás Distribuidora S.A., a wholly-owned, privately-held subsidiary operating in the bottling, distribution and selling of liquefied petroleum gas (LPG).

Liquigás has a presence in almost all Brazilian states, with 23 operating centers, 19 deposits, 1 storage and road-rail loading base, and a network of around 4,800 authorized resellers, with a market share of 23 percent.

So far, there has been no signed agreement confirming that the transaction has been completed or deliberation by the Petrobras Executive Board or Board of Directors. [15.Jun.2016] LP

Petrobras Class Action in the United States

By Petrobras Petrobras informed the United States Court of Appeals for the Second Circuit issued an order granting Petrobras’s petition to permit an appeal from the order of the District Court in which the District Court certified classes in the securities litigation.

The District Court’s order was disclosed in a Petrobras press release dated February 3, 2016.

The Court of Appeals is expected to review whether it was appropriate for the District Court to certify classes of securities purchasers. The Court of Appeals did not provide any indication of the date by which it will render a decision on the appeal. [15.Jun.2016] LP

Nelson Silva Appointed Petrobras' Senior Strategy Consultant

By Petrobras Nelson Silva has been appointed senior consultant to Petrobras' board of executives. Invited by CEO Pedro Parente, he will coordinate the company's strategic review process and help to evaluate and redesign its management systems.

"We want to speed up changes in these departments. To achieve the results we need in the shortest possible timeframes, strategy and management go hand in hand," said Parente.

Silva will report directly to the CEO, and he will be responsible for coordination work in the Strategy and Organization Executive Area, which will continue to be led by Carlos Alberto de Oliveira.

He will make changes to the management system to enable strategic goals determined in partnership with the Board of Directors to be detailed down to the lowest possible level of execution, so that any deviation from the plan can be quickly detected and corrected.

Silva has extensive experience in the oil and gas market and at other commodity companies. He was the CEO of BG in Brazil until the company's recent acquisition by Shell. [6.Jun.2016] LP

Petrobras Announces New CEO and Changes to Management

By Petrobras Petrobras received Mr. Aldemir Bendine's letter of resignation from the positions of Member of the Board of Petrobras and CEO. Bendine also resigned from the position of Member of the Board of Petrobras Distribuidora – BR. In light of the resignation, the Board of Directors held an extraordinary meeting, at which the engineer Mr. Pedro Pullen Parente was elected as Member of the Board of Petrobras. The Board, at the same meeting, also elected Parente to the position of CEO of the company as of May 31, 2016 and appointed the Human Resources, HSE and Services Officer Hugo Repsold Júnior to act as interim CEO. Petrobras also announces that has received a letter of resignation from Luciano Galvão Coutinho, Member of the Board, and the position will remain vacant until a new Member of the Board is elected.

Parente began his public service career at Banco do Brasil in 1971 and was transferred to the Central Bank in 1973, in both cases following a competitive civil-service examination. He was a consultant for the International Monetary Fund and for public institutions in Brazil, including several State Departments and the National Constituent Assembly of 1988, and has served in various government positions in the economics department. He was Minister of State between 1999 and 2002, and led the transition team between President Fernando Henrique Cardoso's government and President Lula’s government.

During this period, he played an important role as President of the Energy Crisis Management Chamber. He was a member of the Board of Directors of Petrobras between March 24, 1999 and December 31, 2002 and Chairman of the Board as of March 25, 2002. He was Chief Operating Officer of RBS Group between 2003-2009 and President and CEO of Bunge Brasil from 20102014. He is currently a member of the Board of Directors of SBR-Global, as well as an Executive Partner of the Prada group of consulting and financial advisory companies. He has also been Chairman of the Board of Directors of the BM&FBOVESPA – Securities, Commodities and Futures Exchange since March 2015. [30.May.2016] LP

Petrobras Issues $6.75 Billion in Global Notes

By Petrobras Petrobras issued $6.75 billion of 5 and 10 year Global Notes through its wholly-owned subsidiary Petrobras Global Finance B.V. (PGF). The transaction was priced on May 17, 2016 and the terms of the notes issued are as follows: TABLE 21: PETROBRAS $6.75 BILLION OFFERING

Amount Coupon Issue Price Yield to Investors Due Date st

1 Interest Payment Date Interest Payment Dates Ratings Joint Bookrunners

2021 Notes

2026 Notes

$5 billion 8.375% 99.002% 8.625% May 23, 2021

$1.75 billion 8.750% 98.374% 9.000% May 23, 2026

November 23, 2016 May 23 and November 23 of each year B3 (Moody's) / B+ (S&P) / BB (Fitch) BB Securities Ltd.; J.P. Morgan Securities LLC; Merrill Lynch, Pierce, Fenner & Smith Incorporated and Santander Investment Securities Inc.

Source: Petrobras

The order book was 2.75x and 3.0x oversubscribed in the 5 year and 10 year tranches respectively, with 629 investors from the United States, Europe, Asia and Latin America participating.

Petrobras intends to use the net proceeds from the sale of the notes to repurchase notes validly tendered, as previously announced, and for general corporate purposes. [17.May.2016] LP

Petrobras Signs Extension of Concession Contracts for Marlim and Voador Fields

By Petrobras Petrobras signed an extension of the concession contracts for the Marlim and Voador fields with the National Petroleum Agency (ANP) until 2052. The Production Phase of the field was extended in line with Resolution 2/2016 issued by the National Energy Policy Council (CNPE), which authorized the Agency to extend the concession agreements entered into in Round Zero, in 1998. The contracts were originally due to expire in 2025.

The purpose of Petrobras with this extension is to ensure the maximum use of existing reserves using revitalization projects in these fields that provide for the installation of two new platforms, along with expanding the water injection and fluid processing capacity and by drilling ten new wells.

In March, the Marlim and Voador fields produced 150,000 barrels of oil and 2 million cubic meters of gas per day. [17.May.2016] LP

Petrobras launches new Program to Encourage Voluntary Severance

By Petrobras Petrobras launched a new Program to Encourage Voluntary Severance (PIDV), which will be open to all employees, regardless of their age or length of service at the company. The goal is to adjust its workforce to the needs of the Business and Management Plan, optimizing productivity and reducing costs, while focusing on achieving the plan’s targets.

The 2016 PIDV was developed based on the principles of preserving the workforce needed for the company's operational continuity, and adjusting personnel in all areas. The program applies to the Petrobras parent company, which currently has 57,046 employees.

The company now has around 12,000 employees eligible for retirement. Based on this estimated participation figure, the expected cost of implementing the program is R$4.4 billion, and the forecast savings are R$33 billion by 2020. Applications will be open from April 11 to August 31, 2016.

The first edition of PIDV was launched in January 2014 and it led to 6,254 terminations. Another 1,055 employees who applied for the 2014 PIDV are expected to leave the company by May 2017. [1.Apr.2016] LP

Petrobras Says Oil and Natural Gas Production Up 5% in May

By Petrobras Petrobras' total oil and natural gas production in May reached 2.83 million barrels of oil equivalent per day (MMboe/d), up 5 percent compared to April (2.69 MMboe/d) and up 2 percent compared to May 2015, of which 2.64 MMboe/d were produced in Brazil and 190,000 boe/d were produced abroad.

Average oil production in May was 2.24 million barrels per day (MMb/d), up 6 percent compared to the previous month, which was 2.12 MMb/d, and 1 percent higher than the volume produced in May 2015. Of this total, 2.16 MMb/d were produced in Brazil and 85,000 b/d were produced abroad.

The volume produced in Brazil in the month of May was the fifth biggest monthly average production ever recorded by Petrobras. This growth was mainly due to record pre-salt production, with the entry of new wells connected to the FPSO Cidade de MaricĂĄ in the Lula field, and to the resumption of operations on platforms after scheduled and corrective maintenance in April.

The production of oil and gas by Petrobras in the pre-salt layer in May increased 15 percent month-over-month and achieved a new monthly record, with a volume of 1.15 MMboe/d.

Petrobras' oil production in May from the fields it operates also attained a record level, up 16 percent compared to the previous month, at an average of 928,000 b/d.

Last May 8, oil production from the pre-salt layer exceeded 1 MMb/d for the first time, only ten years after the discovery of these deposits and less than two years after reaching the 500,000 b/d mark, with 52 production wells in seven large production systems in the Santos Basin, and eight production systems in the Campos Basin.

Average production volume per well in the Santos Basin pre-salt layer is 25,000 b/d. The Lula field is the most productive, with average output of 36,000 b/d of oil.

The average cost of extraction in the pre-salt was under $8 per boe and has followed gradually.

Average well completion time reached 89 days.

The high productivity of the pre-salt reservoirs, resulting in fewer wells per production system, and the improved efficiency in the construction of wells have significantly reduced investment in projects under way, and increased profitability.

Natural gas production Domestic natural gas production (excluding LNG) stood at 76.4 million cubic meters per day (MMcm/d), up 4 percent compared to the previous month’s figure (73.5 MMcm/d).

Non-domestic average natural gas production stood at 17.9 MMcm/d, up 3 percent compared to the previous month’s figure (17.3 MMcm/d). [8.Jun.2016] LP

Petrobras Updates on Oil and Natural Gas Production in April

By Petrobras Petrobras' total oil and natural gas production in April amounted to 2.69 MMboe/d, of which 2.50 MMboe/d were produced in Brazil and 190,000 boe/d abroad.

The average oil production in April was 2.12 MMb/d, up 5 percent compared to the previous month, which was 2.02 MMb/d. In this production, 2.03 MMb/d were produced in Brazil and 89,000 b/d abroad.

The recovery of production compared to previous month's levels was mainly due to the return to operation of platforms that were in corrective maintenance in March, especially P-31(Albacora field) and P-48 (Caratinga field).

Pre-salt oil production Petrobras-operated oil and gas production in the pre-salt layer in April was 994,000 boe/d, 9.9 percent lower than the previous month. Petrobras–operated oil output was also 9.4 percent lowered when compared to the previous month to an average of 801,000 b/d. This reduction was mainly due to the scheduled shutdown in FPSO Cidade de Angra dos Reis and FPSO Cidade de Paraty.

Natural gas production Petrobras' natural gas production in Brazil, excluding liquefied volume, was 73.5 MMcm/d, up 8.5 percent compared to the previous months (67.8 MMcm/d).

The average production abroad was 17.3 MMcm/d, up 5.5 percent compared to 16.4 MMcm/d reached in the previous month. [9.May.2016] LP

Petrobras Says Oil and Natural Gas Production Reached 2.55 MMBoe/d in March

By Petrobras Petrobras' oil and natural gas output in March reached 2.55 MMboe/d, including 2.36 MMboe/d produced in Brazil and 183,000 boe/d abroad.

Average oil production in March was 2.02 MMb/d, down 3 percent compared to 2.09 MMb/d in the previous month. Domestic average output stood at 1.94 MMb/d, and average output abroad was 86,000 b/d.

Output compared to the previous month was changed mainly due to lengthy shutdowns on large production units, corrective maintenance on the P-31 which resumed production on March 28, 2016, and a fire aboard the P-48 which resumed normal operation on April 16, 2016.

Average domestic oil output for the first quarter fell to 1.98 MMb/d, due to scheduled production shutdowns during this period, which accounted for 5 percent of output. Scheduled shutdowns are expected to result in 2.5 percent of average output for this year.

Pre-salt oil production In March, Petrobras-operated oil and gas output from pre-salt fields grew 1.2 percent month-over-month to 1.104 MMboe/d, a new monthly record exceeding February’s record output figure of 1.091 MMboe/d.

… Petrobras' oil and natural gas output in March reached 2.55 million barrels of oil equivalent per day (MMboe/d), including 2.36 MMboe/d produced in Brazil and 183,000 boe/d abroad …

Average Petrobras-operated oil output also grew 1.2 percent compared to the previous month, with a figure of 884,000 b/d. This also sets a new monthly record (February average of 874,000 b/d).

Natural gas production Petrobras’ average natural gas output in Brazil (excluding liquefied gas) stood at 67.8 MMcm/d, down 10 percent compared to the February figure of 75.4 MMcm/d. Average production abroad was 16.4 MMcm/d, up 2.4 percent compared to the previous month’s figure of 16 MMcm/d.

Annual Production Target With the startup of FPSOs Cidade de Saquarema (Lula Central field) and Cidade de Caraguatatuba (Lapa field) and the lower number of shutdowns scheduled for the second half of the year, Petrobras is set to meet its annual oil output target in Brazil, set at 2.145 MMb/d.

[20.May.2016] LP

Petrobras Comments on Divestment of Gaspetro Shares

By Petrobras Petrobras declared that the new injunction granted by the Rio Federal Court has not suspended the sale of 49 percent of its interest in Gaspetro, but determined that the buyer may not dispose of the shares acquired.

Petrobras is analyzing the appropriate legal measures in regard to this decision and, as announced on December 28, 2015, reiterates the divestment transaction was absolutely legal, having been entered into following all the necessary authorizations.

It is worth emphasizing that the sale of these shares was part of a competitive process carried out with the help of Itaú BBA Bank, in which several national and foreign companies took part, Mitsui having presented the best proposal. The operation had three fairness opinions issued by recognized financial institutions attesting that the transaction price was a fair one. It had also been approved by Petrobras’ Board of Directors.

The Gaspetro shares were transferred to Mitsui on December 28, 2015, upon payment of the contractually established amount.

The Bahia Federal Court injunction remains in effect, with appeals pending judgment.

[26.Apr.2016] LP

Petrobras Updates on Sale of Nova Transportadora do Sudeste

By Petrobras Petrobras, further to the notice published on February 26, 2016 regarding the sale of Nova Transportadora do Sudeste (NTS), announced the company's Executive Board has approved exclusive negotiations with the company Brookfield for 60 days, which may be extended for another 30 days.

This transaction is subject to the approval of the terms and conditions by the Petrobras Executive Board and the Board of Directors, as well as by the relevant regulatory agencies. [13.May.2016] LP

Petrobras Signs Credit Facility with China Exim Bank

By Petrobras Petrobras signed a term sheet with China Exim Bank (Export-Import Bank of China) containing the main terms and conditions for a $1 billion loan. The final loan agreement is already being negotiated, anticipating the funding planned for 2017.

The agreement is related to supply contracts for equipment and goods that Petrobras has already signed with Chinese companies to meet the company’s projects that are included in the 2015-19 Business and Management Plan.

This transaction is part of Petrobras' financial strategy to diversify its sources of funding.

[9.May.2016] LP

Clarification on Estimated Returns on Petrobras Projects

By Petrobras Petrobras said it periodically analyzes the economic performance of its projects. The results are consolidated in a corporate document entitled Post-EVTE Study (Post Economic and Technical Feasibility Study), which details the integrated economic impact of the company’s projects, using well-defined assumptions and methodological guidelines.

This process aims to assess the economic effectiveness of the project portfolio, assessing and improving the estimates for time and costs by measuring their variances, which contributes to capital discipline while identifying and organizing lessons learned.

The Post-EVTE assessment tool aims to continuously improve the project management process and has contributed to:

-- improving of the Corporate Investment Project Systematics, a document establishing the rules governing project planning, approval, monitoring and reassessment, incorporating best management practices; -- adopting sensitivity analyses and scenarios to assess the robustness of the projects under less favorable conditions; -- improving cost and deadline contingencies.

Any significant variances in the manageable variables do not necessarily mean that project planning is overly optimistic, since these variables are influenced by external factors, such as the capacity of the supply chain to meet deadlines, quality and expected costs with regard to the required domestic content, the training of the available manpower, and the greater complexity of the environments in which the projects are carried out, among others.

It is worth noting that the 2014 World Economic Forum (WEF) addressed the complexities of investment in the Exploration & Production segment worldwide and found the following factors were seen from a sample of 100 projects implemented by 35 companies in 28 countries: -- 82 percent of the projects went over budget, with an average variance of 52 percent; -- 56 percent went over deadlines, with an average delay of 39.5 percent.

Also, regarding possible variation in project investment, Petrobras adopts the criteria issued by the American National Standards Institute – ANSI Standard Z94.0 and the Association for the Advancement of Cost Engineering – AACE International Recommended Practice in the basic project approval phase, in which errors in the estimates typically vary between -5 percent and +15 percent after applying contingencies.

It should be noted the same Post-EVTE study indicated an overall 135 percent increase in the Net Present Value (NPV) of the project analyzed, or $36.9 billion (from $ 27.2 billion to $ 64.1 billion) considering all the variation factors, showing that the added value was higher than expected when the projects were approved.

Petrobras has faced complexities relating to the implementation of oil and gas projects, and is always looking to improve the project management while acting with social and environmental responsibility and with capital discipline.

Finally, it is worth clarifying that economic performance analysis of the company's projects is a normal part of the management activity. [8.May.2016] LP

Petrobras Updates on Extension of Negotiations For the Sale of Petrobras Argentina

By Petrobras Petrobras, regarding the sale of its stake in Petrobras Argentina, as disclosed in the Material Fact on February 3, 2016, would like to announce that negotiations with Pampa Energia are ongoing, extending the period of exclusivity for another 30 days to complete negotiations.

Petrobras reiterates that this transaction is still subject to its final terms and conditions being approved by the Petrobras Executive Board and Board of Directors as well as the appropriate regulatory agencies. [8.May.2016] LP

Sembcorp Marine's Unit EJA Completes First Repair Job at its Brazil Yard

By Sembcorp Marine Ltd. Singapore's Sembcorp Marine Ltd. announced that its wholly-owned Brazilian subsidiary Estaleiro Jurong Aracruz (EJA) has marked a key operational milestone with the successful completion of the yard’s first vessel repair project.

The Olympic Gemini, a bulk carrier managed by the Company, left EJA May 12, 2016 after a week of repair renewal works on the main deck supporting foundations.

Flagged in Marshall Islands, the 2006-built vessel measures 751 feet (228.99 meters) by 106 feet (32.26 meters) by 65 feet (19.90 meters) and has a deadweight of 82,992 metric tons.

EJA is well-positioned to provide integrated marine and offshore engineering solutions to customers in the South Atlantic, in particular Brazil and Latin America, Gulf of Mexico and West Africa markets. Spanning 203.9 acres (82.5 hectares), the integrated yard features a 1 mile (1.6 kilometer) quay with ample berthage and deepwaters of minus 52.5 feet (16 meters) that enable deep-draft vessels and rigs to berth with ease.

EJA is well-equipped with warehouse facilities, mechanical, piping and electrical workshops, a highly automated steel fabrication facility, as well as painting, blasting, pre-treatment and subassembly capabilities."

Supporting the yard's operation is a Brazil-flagged giant floating crane with a lifting capacity of 3,600 tons that is capable of modules integratin and heavy lifting operations. Upon full completion, the yard will also have a new floating dock with a lifting capacity of 85,000 tons.

In addition to marine and offshore repairs, modification and upgrading, EJA has capabilities to undertake the construction of drillships, semisubmersibles and jackups, platforms and supply vessels; as well as FPSO integration and topside modules fabrication. [May 18, 2016] LP

Helix Finalizes Contract Negotiations With Petrobras

By Helix Energy Solutions Group Helix Energy Solutions Group, Inc. has completed its contract renegotiations with Petrobras and entered into amendments to its well intervention services contracts for its two chartered vessels, the Siem Helix 1 and the Siem Helix 2, offshore Brazil. The contract for the Siem Helix 1, originally scheduled to begin no later than July 22, 2016, was amended to commence between July 22, 2016 and October 21, 2016, and the day rate under the contract has been reduced to a level acceptable to both parties.

The contract for the Siem Helix 2, originally scheduled to begin no later than January 21, 2017, was amended to commence between October 1, 2017 and December 31, 2017; the day rate under this contract was not changed.

"We are glad to finalize this process in a manner that makes sense for both companies, and look forward to a long and productive working relationship," said Helix President and Chief Executive Officer Owen Kratz. [2.Jun.2016] LP

Wood Group Awarded Engineering and Procurement Contract for Statoil’s Peregrino field

By Wood Group Wood Group was awarded a multimillion dollar contract to provide detailed engineering and design, and procurement services to South Atlantic Holding (owned by Statoil and partner Sinochem) for the development of the Peregrino field wellhead platform C, offshore Brazil.

Wood Group Mustang will perform the work for Kiewit Offshore Services (KOS), a leading fabricator for the oil & gas industry. Wood Group Mustang completed the front-end engineering and design for wellhead platform C in 2015 and previously designed wellhead platforms A and B. This contract adds to Wood Group’s portfolio of services provided to Statoil. The two companies recently signed a master services agreement for Wood Group to support the lifecycles of Statoil’s onshore and offshore facilities. Wood Group Mustang is currently delivering maintenance and modification services to four Statoil installations on the Norwegian continental Shelf (NCS).

Wood Group PSN is also supporting the Peregrino field, providing operations, maintenance and modification services for the existing wellhead platforms, and modification services for the floating production storage and offloading facility. [28.Jun.2016] LP

Keppel's Unit BrasFELS Signs $141 Million FPSO Contract from MODEC

By Keppel Corporation Ltd. Singapore's Keppel Corp. Ltd. announced that its unit Keppel Offshore & Marine Ltd. (Keppel O&M), through its subsidiary, Keppel FELS Brasil SA's BrasFELS shipyard has been awarded a Floating Production Storage and Offloading (FPSO) module fabrication and integration project by its repeat customer MODEC Offshore Production Systems (Singapore) Pte. Ltd., a MODEC, Inc. group (MODEC) company, for a contract value of over $141 million (BRL 500 million or SGD190 million).

BrasFELS' work scope for this project comprises the fabrication and integration of 9 topside production modules for the FPSO Cidade de Campos dos Goytacazes MV29. The vessel is expected to arrive at the shipyard by the first quarter of 2017 for the integration phase.

The most established offshore shipyard in the Latin American region, BrasFELS has successfully completed a range of construction, integration, upgrading and repair projects over the years.

"Having delivered a number of milestone offshore and marine projects for the country, BrasFELS has built up a strong track record and established itself as a provider of offshore solutions with strong local content.

Our yard is committed to deliver all of our projects with Keppel's hallmark executional excellence," said Keppel FELS Brasil CEO and President Kwok Kai Choong.

When completed, the FPSO Cidade de Campos dos Goytacazes MV29 will have the capacity to process 150,000 barrels of oil per day (bopd) and 176.6 million cubic feet (5 million cubic meters) of gas per day. The unit's storage capacity is 1.6 million barrels of oil.

Slated to depart the shipyard in the third quarter of 2017, the FPSO will be deployed at Tartaruga Verde and Tartaruga Mestica Fields, in the Campos Basin, off the coast of Rio de Janeiro.

"Three units, which have been completed safely and ahead of schedule, are operating successfully in their respective fields," said MODEC, Inc. Executive Managing Officer Sateesh Dev. BrasFELS' current job for MODEC is the integration and commissioning of the FPSO Cidade de Caraguatatuba MV27. The FPSO is expected to arrive at BrasFELS in the second quarter of 2016, and will be deployed in the Lapa Field, Santos Basin, Brazil.

The FPSO Cidade de Itaguai MV26, which was delivered by BrasFELS to MODEC in mid-2015, achieved first oil production four months ahead of the schedule, in the Iracema Norte Area of Lula Field in Brazil.

In the past five years, BrasFELS delivered five FPSO projects safely and ahead of schedule, of which three were for MODEC. The above contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year. [7.Apr.2016] LP

‌ Wood Group was awarded a multimillion dollar contract to provide detailed engineering and design, and procurement services to South Atlantic Holding (owned by Statoil and partner Sinochem) for the development of the Peregrino field wellhead platform C, offshore Brazil. ‌

Karoon Says PEPC's Restructuring Not Likely to Impact Brazil Work Program

By Karoon Gas Australia Ltd. Karoon Gas Australia Ltd. provided an update on recent events relating to its 65 percent owned Santos Basin Blocks S-M-1037, 1101, 1102, 1165 & 1166 offshore Brazil.

‌ Karoon's 35% joint venture partner, Pacific Exploration and Production Corp. (Pacific) announced April 27, 2016 that it and certain of its direct and indirect subsidiaries filed an application for protection under the companies' Creditors Arrangement Act with the Superior Court of Justice in Ontario, Canada ‌

Karoon's 35 percent joint venture partner, Pacific Exploration and Production Corp. (Pacific) announced April 27, 2016 that it and certain of its direct and indirect subsidiaries filed an application for protection under the companies' Creditors Arrangement Act with the Superior Court of Justice in Ontario, Canada. The application for protection allows Pacific the opportunity to proceed with a comprehensive financial restructuring agreement (restructuring transaction) with The Catalyst Capital Group Inc., certain senior unsecured noteholders and certain lenders under its credit facilities.

Pacific has announced: "All operations of the company's subsidiaries (the Pacific Group) are expected to continue as normal throughout this process. Importantly, the company expects regular payments will be made to all of the Pacific Group's suppliers, trade partners, and contractors across the jurisdictions in which it operates in accordance with local regulations. Additionally, employees will continue to be paid throughout this process, without disruption."

An initial order has been obtained by Pacific from the Superior Court of Justice which: authorizes Pacific to commence a Court-supervised restructuring process provides protection to allow normal operations to continue; and approves $500 million debtor-inpossession financing facility and a $134 million letter of credit facility Karoon's Managing Director, Robert Hosking said "while it is unfortunate the depressed oil price environment has forced the parent company of our JV partner into this situation, at this stage Karoon has no reason to believe our current JV work program in the Santos Basin, Brazil will be impacted." [28.Apr.2016] LP

CHILE Petrobras Updates on Sale of Distribution Assets in Chile

By Petrobras Petrobras has completed negotiations with the Southern Cross Group on the main terms and conditions for the sale of 100 percent of Petrobras Chile Distribuciรณn Ltda. (PCD), owned through Petrobras Caribe Ltd. Southern Cross Group is a private equity fund, founded in 1988, with $2.9 billion of assets under management and focuses on investments in Latin America, in companies in the manufacturing, services, logistics and consumer goods sectors.

PCD is the distribution company of Petrobras in Chile and has 279 service stations and 8 fuel distribution terminals, operations at 11 airports, a stake in 2 logistics companies and 1 lubricant plant.

The final value of the deal, after price adjustments agreed between the parties, is estimated to be $490 million.

This transaction, carried out through a competitive process, is part of the Divestment Program planned for in the 2015-2019 Business and Management Plan and is still subject to the deliberation and approval of its final terms and conditions by the Executive Board and Board of Directors of Petrobras and the Executive Committee of Southern Cross as well as getting the applicable regulatory approvals. [4.May.2016] LP

PARAGUAY Paraguay Minister Says No Need To Issue Bonds To Pay PDVSA Debt

By Aaron Simonsky, LatinPetroleum Paraguay does not need to issue bonds to pay off an outstanding debt with Venezuela's state oil company PDVSA, according Paraguay's Finance Ministers, Santiago Peña.

"We have tried to come closer regarding payment of the debt," reported the daily newspaper UltimaHora, citing Peña. "Other countries have benefitted from reduced debt payments but we have not yet had any luck."

Who will pay is PetroPar, said Peña referring the Paraguay's state oil company Petróleos Paraguayos. [8.June.2016] LP

Paraguay Plans to Pay Back $287 Million Debt With PDVSA in 2023

By Aaron Simonsky, LatinPetroleum Paraguay plans to pay back its $287 million debt with PDVSA in 2023, reported the daily newspaper Noticias24, citing Paraguayan Industry and Commerce Minister Gustavo Leite.

The agreements between Paraguay and Venezuela were intially signed in 2008 and established that debts accumulated by Paraguay to acquire Venezuela oil could be paid back in 15 years with a 2-year grace period and an annual interest rate of just 2 percent. [8.Jun.2016] LP

Petropar Says PDVSA Claims Are Not Valid Related to $287 Million Debt

By Aaron Simonsky, LatinPetroleum Plans announced by PDVSA to sue its Paraguayan counterpart Petropar are not valid and go against international agreements.

Caracas-based PDVSA announced it would take legal actions against Petropar if the company failed to pay a debt of $287 million by June, 10, 2016, reported Efe. PDVSA and Petropar signed agreements in 2014 in Caracas whereby the former would send refined oil from Venezuela to Paraguay.

Under the agreements, Venezuela accepted a financing scheme of 15 years with a 2-year grace period and an annual interest rate of 2 percent.

In an official statement issued by Paraguay's presidential office, the government of the South American country announced that the international agreements stipulated that under possible discrepancies or controversy that the governments would settle the problems in a friendly manner through direct negotiations and a common agreement.

Paraguay maintains its posture to fulfill its promises under agreements signed with Venezuela.

[6.Jun.2016] LP

URUGUAY Argentina Still Interested in Acquiring Excess Gas From Punta De Sayago

By Aaron Simonsky, LatinPetroleum The government of Uruguay continues to move forward with agreements to secure markets for natural gas to come from its proposed regasification plant in Punta de Sayago.

Uruguay's President TabarĂŠ VĂĄzquez and Industry, Energy and Mining Minister Carolina Cosse, signed a decree that will authorize the approval of a pre-agreement between Uruguay and Argentina for the purchase-and-sale of natural gas produced in Uruguay, reported the daily newspaper LaRed21.

In recent months officails from Argentina have continued to reiterated the country's interested in acquiring gas from its neighbor Uruguay.

An Interconnection Commission will be formed within 30 days once the countries finally reach an agreement.

The time frame for the purchase of the gas will be 10 years after the regasification plant starts operations. "It is estimated to start working in the second half of 2017, if Uruguay decides to realize the investment," reported the daily, citing Cosse. [11.May.2016] LP

M&A AND DIVESTMENT TRACKER BUYER

TARGET

AMOUNT ($ MLN) --

--

Liquigás Distribuidora S.A.

International Finance Corp. and China Mexico Fund

Citla Energy, SAPI de CV

$200 mln (IFC will commit $60 mln and CMF $140 mln)

Southern Cross Group

Petrobras Chile Distribución Ltda. (PCD)

$490 mln

Compañia General de Combustibles S.A. (CGC)

Petrobras Argentina (PESA)

$101 mln

SUMMARY Petrobras started competitive process to sell Liquigás, a wholly-owned, privately-held subsidiary operating in the bottling, distribution and selling of LPG. Liquigás has a presence in almost all Brazilian states, with 23 operating centers, 19 deposits, 1 storage and road-rail loading base, and a network of around 4,800 authorized resellers, with a market share of 23 percent.

International Finance Corp.

(IFC) and China-Mexico Fund (CMF) to invest in Citla Energy, SAPI de CV. a Mexican independent oil E&P company sponsored and controlled by affiliates of ACON Investments, L.L.C. (ACON).

Petrobras and Southern Cross Group agreed to terms for the sale of 100% of Petrobras Chile Distribución Ltda. (PCD), owned through Petrobras Caribe Ltd. PCD is the distribution company of Petrobras in Chile and has 279 service stations and 8 fuel distribution terminals, operations at 11 airports, a stake in 2 logistics companies and 1 lubricant plant.

Sale of all of Petrobras Argentina (PESA) assets in Austral Basin (province of Santa Cruz) to Compañia General de Combustibles S.A. (CGC).

BUYER

TARGET

AMOUNT ($ MLN) $892 mln

Pampa Energía

Petrobras Argentina (PESA)

Group of Argentine businessmen

PDVSA

--

PetroRio S.A:

Petrobras

$25 mln

Unclosed

Propilco S. A.

1.5 bln Colombian pesos

--

Ecopetrol

--

Gran Tierra Energy Inc.

PetroGranada Ltd

$19 mln

PBF Energy Inc.

Chalmette Refining, LLC

$322 mln

SUMMARY Petrobras to sale 67.19% interest in Petrobras Argentina (PESA), owned by Petrobras Participaciones S.L. (PPSL), to Pampa Energía.PESA is valued at $1,327 mln. The transaction also included a deal for subsequent transactions to buy 33.6% of the concession of Rio Neuquen, Argentina, and 100% of Colpa Caranda asset in Bolivia for a total amount of $52 mln.

Group to buy assets of Petrolera del Cono Sur, a subsidiary of PDVSA in Argentina. Assets include 95 service stations as well as storage tanks in the Dock Sud. Petrobras to sale of 20% of its interest in concessions of Bijupirá and Salema fields, currently operated by Shell.

Ecopetrol to sale it's 100% interest in Polipropileno del Caribe S. A. (Propilco S. A.).

Ecopetrol to divest of 6.87% stock interest in Empresa de Energía de Bogotá S.A. Gran Tierra to acquire all issued and outstanding shares of PetroGranada Colombia Limited (PGC), which holds a full 50% undivided working interest in the E&P contract for the Putumayo-7 block, in the Putumayo Basin of Colombia.

ExxonMobil and PDVSA reached an agreement with PBF Energy Inc. for the sale and purchase of their 100% in Chalmette Refining, LLC in Chalmette, Louisiana.

BUYER

TARGET

Pluspetrol Black River Corporation

Apco Oil and Gas International Inc. CGE

Grupo Gas Natural Fenosa (GNF)

AMOUNT ($ MLN) $470 mln

SUMMARY

$3.3 bln

GNF is an indirect owner of Electricarine, among other companies while CGE, via Gasco, controls 20.5% of Colombia's LPG market.

On 16.Dec.2013 Pluspetrol agreed to buy Harvest's Petrodelta stake for $400 mln in two cash transactions: $125 mln (Dec.2013) and $275 mln (pending).

Petrobras's Executive Board has approved exclusive negotiations with Brookfield for 60 days, which may be extended for another 30 days.

Pluspetrol

Harvest Natural Resources

$400 mln

Brookfield

Nova Transportadora do Sudeste (NTS)

--

An all-cash transaction

EQUITY/DEBT TRACKER COMPANY Petrobras

AMOUNT ($) $5 bln

Petrobras

$1.75 bln

Ecopetrol

$500 mln

Gran Tierra

$100 mln

Pemex

$750 mln

Pemex

$1,250 mln

Pemex

$3,000 mln

Pemex

€0.900 bln

Pemex

€1.350 bln

Pemex

5 bln pesos

YPFB Transierra S.A.

$76.35 mln

Phoenix Park Gas Processors Ltd.

--

Trecsa

$87 mln

Terpel

--

Pemex

$2.5 bln

SUMMARY Coupon: 8.375%; Issue price: 99.002%; Yield to investors: 8.625%; Due date: May 23, 2021 Coupon: 8.750%; Issue price: 98.374%; Yield to investors: 9%; Due date: May 23, 2026 Bond matures Sep. 18, 2023; offering Date: June 8, 2016; Settlement Date: June 15, 2016 Gran Tierra Energy Inc. completes previously announced offering of $100 mln aggregate principal amount of 5% Convertible Senior Notes due 2021.

Bond matures in Feb.2019 and offers a return (yield) of 5.50%.

Bond matures in Feb.2021 and offers a return (yield) of 6.375%.

Bond matures in Feb.2026 and offers return (yield) of 6.90%.

Bond matures in Mar.2023, offers return (yield) of 5.213% and coupon of 5.125%.

Bond matures in Mar.2019, offers return (yield) of 3.808% and coupon of 3.75%.

Pemex issued stock certificates, which mature in Oct.2019 and pay coupon of TIIE28 + 135 points.

YPFB Transierra S.A., a subsidy of YPFB, issued bonds on Bolivian stock exchange.

IPO of the shares held by the National Gas Company (NGC) of Trinidad & Tobago in Phoenix Park Gas Processors Ltd. Empresa de Energía de Bogotá (EEB) affiliate Trecsa obtains credit for electric transmission project.

Terpel stock offering came in at 14,740 Colombian pesos or $7.71/share.

Co. issues bonds.

LATIN AMERICA RIG COUNT TRACKER LATAM ROTARY RIG COUNT Oil

Gas

Misc.

LatAm

Land

O⁄S

LatAm

Dec.2012 Dec.2013 Dec.2014

352 364 329

57 49 40

5 4 0

414 417 369

341 341 287

73 76 82

414 417 369

Jan.2015 Feb.2015 Mar.2015

319 307 315

31 26 34

1 22 2

351 355 351

272 283 284

79 72 67

351 355 351

Apr.2015 May.2015 Jun.2015

296 302 288

26 23 25

3 2 1

325 327 314

261 258 252

64 69 62

325 327 314

Jul.2015 Aug.2015 Sep.2015

289 297 294

23 20 24

1 2 3

313 319 321

259 266 265

54 53 55

313 319 321

Oct.2015 Nov.2015 Dec.2015

272 260 242

20 23 25

2 1 3

294 284 270

239 232 213

55 52 57

294 284 270

Jan.2016 Feb.2016 Mar.2016

216 209 195

24 24 20

3 4 3

243 237 218

192 187 178

51 50 40

243 237 218

Apr.2016 May.2016 Jun.2016

181 164 151

19 21 24

3 3 3

203 188 178

167 158 147

36 30 31

203 188 178

Source: Baker Hughes

LATAM ROTARY RIG COUNT (LAND, OFFSHORE)

Argentina Bolivia Brazil Chile Colombia Costa Rica Ecuador Mexico Peru Trinidad Venezuela Other Total LatAm Source: Baker Hughes

Jun.2016 Land O⁄S

May.2016 Land O⁄S

Apr.2016 Land O⁄S

Mar.2016 Land O⁄S

62 6 5 4 7 0 5 6 1 2 49 0 147

70 5 6 3 5 0 2 8 0 2 57 0 158

72 5 7 3 2 0 3 7 1 2 65 0 167

67 5 15 2 4 0 3 10 1 2 67 2 178

1 0 9 0 0 0 0 14 0 3 4 0 31

1 0 9 0 0 0 0 14 0 3 3 0 30

1 0 12 0 0 0 0 16 0 3 4 0 36

1 0 13 0 0 0 0 17 0 5 4 0 40

LATAM ROTARY RIG COUNT (OIL, GAS, MISC.)

Argentina Bolivia Brazil Chile Colombia Costa Rica Ecuador Mexico Peru Trinidad Venezuela Other Total LatAm

Oil

Jun.2016 Gas Misc.

LatAm

Oil

May.2016 Gas Misc.

LatAm

56 1 13 0 7 0 5 15 0 2 52 0 151

7 5 1 4 0 0 0 2 1 3 1 0 24

63 6 14 4 7 0 5 20 1 5 53 0 178

63 1 14 0 5 0 2 18 0 2 59 0 164

8 4 1 3 0 0 0 1 0 3 1 0 21

71 5 15 3 5 0 2 22 0 5 60 0 188

LatAm 68 5 28 2 4 0 3 27 1 7 71 2 218

0 0 0 0 0 0 0 3 0 0 0 0 3

0 0 0 0 0 0 0 3 0 0 0 0 3

Source: Baker Hughes

LATAM ROTARY RIG COUNT (OIL, GAS, MISC.)

Argentina Bolivia Brazil Chile Colombia Costa Rica Ecuador Mexico Peru Trinidad Venezuela Other Total LatAm Source: Baker Hughes

Oil

Apr.2016 Gas Misc.

LatAm

Oil

Mar.2016 Gas Misc.

66 2 18 0 2 0 3 19 0 2 69 0 181

7 3 1 3 0 0 0 1 1 3 0 0 19

73 5 19 3 2 0 3 23 1 5 69 0 203

61 3 26 0 3 0 3 23 0 3 71 2 195

7 2 2 2 1 0 0 1 1 4 0 0 20

0 0 0 0 0 0 0 3 0 0 0 0 3

0 0 0 0 0 0 0 3 0 0 0 0 3

EP PETROECUADOR EXPORT OIL PRICE EP PETROECUADOR EXPORT OIL PRICE ($/BBL) Month

2014

2015

2016

January February March

$91.63 $98.36 $96.56

$41.53 $41.57 $42.92

$21.74 e $22.48 e $27.78 e

April May June

$98.24 $95.97 $99.23

$55.32 $56.67 $53.60

July August September

$91.08 $86.27 $83.50

$41.45 $36.71 $40.12

October November December

$73.25 $61.45 $45.05

$37.85 $31.14 $27.07

Source: EP PetroEcuador Note: E: = Estimates

VENEZUELA OIL PRICE VS WTI AND BRENT VENEZUELA EXPORT OIL PRICE VS WTI AND BRENT ($/BBL) Venezuela

WTI

Brent

AVG.2014

$88.42

$93.06

$99.61

Jan.2015 Feb.2015 Mar.2015

$40.30 $47.77 $47.09

$47.63 $50.78 $47.99

$49.99 $58.32 $57.30

Apr.2015 May.2015 Jun.2015

$50.50 $56.35 $56.35

$53.89 $59.39 $59.87

$60.46 $65.67 $63.90

Jul.2015 Aug.2015 Sep.2015

$49.38 $40.22 $41.10

$51.73 $42.80 $45.68

$57.23 $48.12 $48.85

Oct.2015 Nov.2015 Dec.2015 AVG.2015

$40.39 $36.53 $30.33 $44.65

$46.26 $43.24 $37.55 $48.86

$49.29 $46.21 $39.21 $53.66

Jan.2016 Feb.2016 Mar.2016

$24.33 $24.25 $29.72

$31.65 $30.65 $37.83

$31.77 $33.53 $39.65

Apr.2016 May.2016

$31.60 $36.83

$40.84 $46.77

$42.97 $47.54

Source: Venezuela Petroleum and Mining Ministry

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