LatinPetroleum LatAm NRGProspector 3Q15 Sampler

LATINPETROLEUM LATAM NRGProspector

3Q:15

Harvest In Strategic Relationship With CT Energy, CT Energia Holding SBM Completes $1.55 Billion Financing Of FPSO Cidade De Saquarema Pemex Will Supply Isthmus Crude To Japan

Geopark Announces New Light Oil Field Discovery In Colombia

Venezuela's Oil Minister Says OPEC, Non-OPEC Producers Must Overcome Differences PetroEcuador's $1.2 Billion Esmeraldas Rehabilitation Work Near Complete Rosneft Drills a Record Breaking Well in Venezuela

LATAM RIG COUNTS

IN THIS ISSUE 5.October.2015

SHORT 15-PG VERSION OF LATAM NRGPROSPECTOR ORIGINAL 38-PG VERSION AVAILABLE VIA SUBSCRIPTION ON THIS PAGE: ORIGINAL TABLE OF CONTENTS

5 ….. EXECUTIVE SUITE Petrobras Announces Board President Takes Leave

5 ….. COMPANY BRIEFS AES Corporation, Brasa, Ecopetrol and GeoPark Limited

ECUADOR: PetroEcuador's $1.2 Billion Esmeraldas Rehabilitation Work Near Complete GUYANA: Cabinet Briefed on Arrangements for Management of Petroleum Sector MEXICO: Pemex and Santander Agree to Provide Banking Services to Gas Station Network in Mexico; Pemex Looks to Improve Diesel, Gasoline Production PANAMA: AES Awarded Panama's First Natural GasFired Generation Plant PERU: No End in Sight to Largest Oil Block Woes

5 ….. QUOTES

TRINIDAD AND TOBAGO: EMAS AMC Signs Contract for Angostura Project Offshore

6 ….. HEARD ON THE STREET 6 ….. RATING UPDATES

VENEZUELA: Venezuela Able to Operate Oil Sector With $40/bbl: IDB; Harvest Says Petrodelta Generated $173.3 Million in Revenue During the 2Q:15

Moody's Withdraws Pan American Energy Llc, Argentine Branch's Aa1.Ar Rating

32-33 ….. NRG UPDATE: LATAM

7-32 ….. NRG REEL: LATAM TOP FINANCIAL: Harvest Enters Into Strategic Relationship with CT Energy and CT Energia Holding TOP PETROLEUM: Pemex to Supply Isthmus Crude To Japan; Venezuela's Oil Minister Says OPEC, Non-OPEC Producers Must Overcome Differences BOLIVIA: Bolivia Says Lliquimuni Well Results Ready

by November 2015 BRAZIL: Petrobras Oil and Natural Gas Production Sets Record In August; Petrobras Announces Naphtha Supply Contracts with Braskem; Statoil Awards Wood Group Contracts for Peregrino Project COLOMBIA: Geopark Announces New Light Oil Field Discovery; Ecopetrol Announces Important Hydrocarbon Discovery In Colombian Caribbean Ultra-Deepwater CUBA: MEO Australia Signs PSC with Cupet for Cuba Block 9

Countries covered: Guyana, Mexico and Venezuela.

34 ….. DIVESTMENT TRACKER 34 ….. EQUITY/DEBT TRACKER 35 ….. M&A TRACKER 36-37 ….. ROTARY RIG TRACKER LatAm oil, gas and misc. breakdown LatAm land (onshore) and offshore breakdown

ON THE COVER …

Evaluation of Dragon Field well DR11. Drillship PetroSaudi Saturn. Photo credit: PDVSA

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 Company 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

EXECUTIVE SUITE

QUOTES

PETROBRAS ANNOUNCES APPOINTMENT OF TEMPORARY CHAIRMAN OF THE BOARD OF DIRECTORS Petrobras' Board of Directors approved the appointment of Director Luiz Nelson Guedes de Carvalho at a meeting. He will chair this Board during Mr. Murilo Pinto de Oliveira Ferreira's leave of absence, which was granted by the Council until 30.Nov.2015. [Petrobras, 15.Sep.2015]

PDVSA Falsely Accusing Innocent Workers of Smuggling Fuel "By falsely accusing innocent PDVSA workers of smuggling diesel and gasoline, the Venezuelan government is trying to cover up the smuggling being carried out by military officials" -- Oil union official Ivan Freites says in phone interview.

[LatinPetroleum.com, 14.Sep.2015]

PETROBRAS ANNOUNCES BOARD PRESIDENT TAKES LEAVE Petrobras' Chair of the Board of Directors, Murilo Ferreira, has advised the Board that he will be on leave of absence until 30.Nov.2015. [Petrobras, 14.Sep.2015]

COMPANY BRIEFS AES CORPORATION AES Corporation provides energy to 18 countries through a diverse portfolio of distribution businesses as well as thermal and renewable generation facilities.

BRASA The fabrication shipyard Estaleiro Brasa -developed in 50:50 partnership between SBM Offshore and Synergy Energy -- has been operating since 2012 when construction for FPSO Cidade de Ilhabela’s modules commenced.

ECOPETROL Ecopetrol -- an integrated oil and gas company -- is the largest company in Colombia and among the top 40 oil companies in the world and among the top four oil companies in Latin America. Besides Colombia – where it generates over 60% of the national production – it has exploration and production activities in Brazil, Peru, and the USA (Gulf of Mexico).

GEOPARK LIMITED GeoPark Limited is a Latin American oil and gas explorer, operator and consolidator with operations in Chile, Colombia, Brazil, Argentina and Peru.

Venezuela President Nicolas Maduro on PetroCaribe.

Petrocaribe is our road of respect, solidarity, brotherhood, the union to march together. The Caribbean has to always be together. -- Nicolas Maduro says in broadcast on Venezuelan state television. [LatinPetroleum.com, 6.Mar.2015] In terms of decisions made by Venezuelan government "What is good for you is bad for everybody else, that's not a good position for Venezuela." -EnergyNomics President Carlos Rossi says in phone interview from Houston. [LatinPetroleum.com, 14.Sep.2015]

HEARD ON THE STREET REGARDING VENEZUELA * A default in Venezuela would verify what everyone is already suspecting, that the Venezuelan officials are incompetent since the country has the largest reserves in the world but is still going bankrupt.

"People don't like to lend money to incompetent people."

RATING UPDATES MOODY'S AFFIRMED PETROBRAS ARGENTINA'S NOTES AT BA2/AAA.AR; STABLE OUTLOOK Moody's Latin America Agente de Calificación de Riesgo affirmed the Ba2/Aaa.ar global scale rating and national scale rating on Petrobras Argentina S.A.'s $300 mln in guaranteed Series S notes (CUSIP 71646JAB5). [Moody's Investor Service, 14.Aug.2015]

MOODY'S WITHDRAWS PAN AMERICAN ENERGY LLC, ARGENTINE BRANCH'S AA1.AR RATING Moody's Latin America Agente de Calificación de Riesgo has withdrawn the Aa1.ar National Local Currency rating for the Senior Unsecured Bank Credit Facility of Pan American Energy LLC, Argentine Branch (PAE) for business reasons. However, the B2 Global Scale Rating remains unchanged. [Moody's Investor Service, 9.Sep.2015]

NRG REEL TOP FINANCIAL ECOPETROL'S EXTRAORDINARY SHAREHOLDERS' MEETING Due to the resignation of Mr. Gonzalo Restrepo Lopez and the election of his replacement, the CEO of Ecopetrol S.A. hereby calls on Shareholders to attend the extraordinary shareholders' meeting to be held on 4.Sep.2015, starting at 7:30 a.m. at Ecopetrol's auditorium located in Cra.13 No. 36 – 24, Bogota, Colombia. [Ecopetrol S.A., 14.Aug.2015] HARVEST ENTERS INTO STRATEGIC RELATIONSHIP WITH CT ENERGY AND CT ENERGIA HOLDING On 19.Jun.2015, Harvest Natural Resources, Inc. entered into a strategic relationship with CT Energy and CT Energia Holding, Ltd., an international energy trading firm, designed to maximize the long-term success and value of Harvest's Venezuelan operations and its 20.4% investment in Petrodelta. [Harvest Natural Resources, Inc., 19.Jun.2015] PETROBRAS UPDATES ON PAYMENT OF FINE TO CLOSE INVESTIGATIONS IN THE UNITED STATES Regarding media reports on the payment of a fine to U.S. authorities, Petrobras states there is nothing ongoing regarding any payment of a fine to close civil and criminal investigations into the violation of anticorruption legislation in the U.S. [Petrobras, 20.Aug.2015]

FILING FOR REGISTRATION OF IPO BY PETROBRAS DISTRIBUIDORA S.A. Petrobras announces that, in continuation of the studies for the initial public offering of shares by Petrobras Distribuidora (BR), disclosed in the Material Fact of 1.Jul.2015, its Board of Directors has authorized the filing of a formal request for registration of an initial public offering and for registration of Petrobras Distribuidora as a publiclyheld company with the CVM – Brazilian Securities and Exchange Commission. [Petrobras, 7.Aug.2015] SBM COMPLETES $1.55 BILLION FINANCING OF FPSO CIDADE DE SAQUAREMA SBM Offshore N.V. announced that on 27.Jul.2015 it completed the project financing of FPSO Cidade de Saquarema -- which will be deployed to the Lula field offshore Brazil upon completion -- for a total of $1.55 bln, which is the largest project financing in the company's history. [SBM Offshore N.V., 28.Jul.2015]

TOP PETROLEUM PEMEX WILL SUPPLY ISTHMUS CRUDE TO JAPAN Pemex, through P.M.I. Comercio Internacional (PMI), and the largest refining company in Japan, JX Nippon Oil & Energy Corporation, agreed to ship 6 MMbbls of Isthmus crude oil through 6 cargoes beginning in Aug.2015 and until Jan.2016, from the Salina Cruz maritime terminal located in the state of Oaxaca. [Pemex, 24Jul.2015] PBF ENERGY EXPECTS TO CLOSE CHALMETTE REFINING LLC ACQUISITION BY YEAR-END 2015 On 18.Jun.2015, PBF announced that its subsidiary signed a definitive agreement to purchase Chalmette Refining, LLC, consisting of the 189 Mb/d Chalmette Refinery and related logistics assets, from ExxonMobil and PDV Chalmette, LLC. The purchase price for the assets is $322 mln, plus working capital including inventory to be determined at closing. The transaction is expected to close prior to YE:15, subject to customary closing conditions and regulatory approvals. [PBF Energy, 30.Jul.2015] VENEZUELA'S OIL MINISTER SAYS OPEC, NON-OPEC PRODUCERS MUST OVERCOME DIFFERENCES "Let’s overcome our differences of opinion between OPEC and non OPEC producers to achieve consensus," according to a twitter post by Venezuela's oil ministry, citing oil minister Eulogio Del Pino. [LatinPetroleum.com, 10.Sep.2015]

EIA SURVEY: MORE COUNTRIES HOLD RECOVERABLE SHALE GAS The amount of unproved technically recoverable shale natural gas around the world has reached 7,576 Tcf, higher than previously estimated, according to a survey by the U.S.-based Energy Information Administration (EIA). [EIA, 25.Sep.2015]

PETROBRAS OFFERS CLARIFICATION: LEASING OF RIGS In regard to the news items carried by the press concerning the leasing of oil rigs, Petrobras cannot confirm that it is about to sign a 15-year lease covering 19 oil rigs, amounting to $40 bln.

[Petrobras, 15.Sept.2015]

BOLIVIA

PETROBRAS ANNOUNCES CONTRACTS FOR A TWOMONTH SUPPLY OF NAPHTHA SIGNED WITH BRASKEM S.A. Petrobras and Braskem have signed contracts to supply naphtha for 2-months, starting on 1.Sep.2015: one is for the Braskem Unit in São Paulo and the other is for the Bahia and Rio Grande do Sul units.

[Petrobras, 11.Sep.2015]

BOLIVIA ANNOUNCES START OF WARNES THERMOELECTRIC PLANT The Warnes Thermoelectric Plant, located in Bolivia's Santa Cruz department, will provide 200 MW of energy to the country's electric grid during its first phase of operations, according to a statement posted on Bolivia's Vice Presidency website.

[LatinPetroleum.com, 9.Oct.2015] BOLIVIA SAYS LLIQUIMUNI WELL RESULTS READY BY NOVEMBER 2015 Results from the Lliquimuni exploration well are expected to be ready in late-Oct. or early-Nov., reported daily newspaper El Diario, citing Bolivia's energy minister Luis Alberto Sánchez. [El Diario, 17.Sep.2015]

BRAZIL PETROBRAS OIL AND NATURAL GAS PRODUCTION IS UP AND SETS RECORD IN AUGUST Petrobras' oil and natural gas production in Brazil and abroad reached 2.88 MMboe/d in Aug.2015, a new record. It is up 0.8% on the previous record of 2.86 MMboe/d set in Dec.2014. This volume is also up 4.5% on Aug.2014 (2.76 MMboe/d). Oil and natural gas production was up 3.1% on the previous month (July) when 2.80 MMboe/d were produced.

[Petrobras, 16.Sept.2015] PETROBRAS UPDATES ON INCLUSION OF TAX DEBTS IN REFIS Petrobras has decided to include tax debts in the Special Installment Program – REFIS, introduced under Law 12996/2014 and regulated by the Joint Ordinance PGFN/RFB 1064/15 and the Regulatory Instruction RFB 1576/15, published on 3.Aug.2015.

[Petrobras, 14.Aug.2015]

PETROBRAS OFFERS CLARIFICATION ON CHARTERING DRILLING RIGS Currently, Petrobras has 28 contracts with Sete Brasil to charter drilling rigs. Charter contracts for 7 of the rigs were signed in Jun.2011 and the remaining 21 rigs were signed in Aug., totalling $89 bln. The 28 drilling rigs are scheduled to be delivered at different times: 5 rigs within 10-years; 21 rigs within 15-years and the remaining 2 rigs within 20-years. [Petrobras, 10.Sep.2015] PETROBRAS UPDATES ON PUBLIC OFFERING OF DEBENTURES Petrobras has submitted to the Brazilian Financial and Capital Markets Association (ANBIMA) a request for the preliminary analysis of registration for the public offer of simple debentures, not convertible into shares, unsecured, in up to 3 series, to be held in accordance with the procedures of CVM Instruction 400, of 29.Dec.2003 and CVM Instruction 471, of 8.Aug.2008. [Petrobras, 26.Aug.2015] PETROBRAS OIL AND NATURAL GAS PRODUCTION UP IN JULY Petrobras sets new daily and monthly records for oil extraction in the pre-salt layer.

Petrobras' average oil and natural gas production rose 1.8% in Jul.2015 compared to the previous month and reached 2.796 MMboe/d. The company produced 2.746 MMboe/d in Jun.2015. Production is up 3.6% on Jul.2014 (2.699 MMboe/d). [Petrobras, 26.Aug.2015]

PETROBRAS POSTS NET EARNINGS OF R$5.9 BILLION IN FIRST HALF OF 2015 Petrobras made net earnings of R$5.9 bln in the 1H:15, down 43% from the 1H:14. This result mainly reflects an increase in net financial expenses and recognition of a Financial Operations Tax (IOF) expense involving loans between different Petrobras group companies. [Petrobras, 7.Aug.2015] FPSO CIDADE DE ITAGUAÍ BEGINS OPERATIONS IN THE SANTOS BASIN PRE-SALT On 31.Jul.2015, the Cidade de Itaguaí started up production to commence the operational phase of the Iracema Norte project. This area is located in the Lula oilfield off the coast of Rio de Janeiro, in the Santos Basin pre-salt. [Petrobras, 1.Aug.2015] STATOIL AWARDS WOOD GROUP CONTRACTS FOR BRAZIL'S OFFSHORE PEREGRINO PROJECT Norway's Statoil ASA, on behalf of the Peregrino license partners, has been awarding a contract to Wood Group to provide 4-year operations and maintenance for 2 wellhead platforms (Alpha and Bravo) and modification services for both units and the FPSO Peregrino in the Campos Basin, offshore Brazil. [Statoil ASA, 22.Sep.2015]

PETROBRAS CLARIFICATION: CONTRACT WITH BRASKEM In regard to the news published by the press on the Braskem contract, Petrobras would like to make it clear that the naphtha supply contract between Petrobras and Braskem was examined by an Internal Investigative Committee set up after the company had access to the state's evidence agreement signed

by Alberto Youssef and Paulo Roberto Costa.

[Petrobras, 22.Jul.2015] PETROBRAS CLARIFIES NEWS OF IPO Regarding reports in the press about an Initial Public Offering (IPO) for BR Distribuidora S.A., Petrobras clarifies that, as announced on 1.Jul.2015, the Executive Board authorized a study to be prepared analyzing strategic alternatives for its wholly-owned subsidiary Petrobras Distribuidora.

Among the possibilities to be explored, is attracting a strategic partner and a public offering, making this a subsidiary a listed company in a special segment of the BM&FBovespa stock market called Novo Mercado – New Market and is in compliance with the best corporate governance practices.

[Petrobras, 21.Jul.2015]

COLOMBIA

CUBA

GEOPARK ANNOUNCES NEW LIGHT OIL FIELD DISCOVERY IN COLOMBIA GeoPark Limited announces a new oil field discovery following drilling of exploration well Chachalaca 1, located on the Llanos 34 Block in Colombia. GeoPark operates and has a 45% working interest in the Llanos 34 Block.

GeoPark drilled and completed the Chachalaca 1 exploratory well to a total depth of 12,270 ft. A test conducted with an electrical submersible pump in the Mirador formation, at approximately 11,606 ft, resulted in a production rate of approximately 1,100 b/d of 30 degree API, with approximately 6% water cut. Further production history is required to determine stabilized flow rates of the well and the extent of the field. [GeoPark Limited, 27.Aug.2015]

MEO AUSTRALIA SIGNS PSC WITH CUPET FOR CUBA BLOCK 9 MEO Australia Limited executed the Cuba Block 9 Production Sharing Contract (PSC) with the national oil company Cuba Petroleo Union (CUPET) in a ceremony in Havana, Cuba. [MEO Australia Ltd., 3.Sep.2015]

ECOPETROL S.A.'S BOARD OF DIRECTORS AUTHORIZES CREATION OF NEW SUBSIDIARY ON FREE TRADE ZONE TO CONDUCT OFFSHORE OPERATIONS The Board of Directors of Ecopetrol S.A., in its meeting held on 14.Aug.2015, authorized the creation of a Colombian company indirectly wholly owned by Ecopetrol. [Ecopetrol S.A., 19.Aug.2015] ECOPETROL CORPORATE GROUP ANNOUNCES ITS 2Q:15 AND 1H:15 RESULTS Ecopetrol announced Ecopetrol Corporate Group's financial results for the 2Q:15 and the 1H:15, prepared and filed in Colombian pesos (COP$) and on the basis of International Financial Reporting Standards (IFRS). [Ecopetrol S.A., 5.Aug.2015] ECOPETROL ANNOUNCES IMPORTANT HYDROCARBON DISCOVERY IN COLOMBIAN CARIBBEAN ULTRA-DEEPWATER Ecopetrol informs that at a depth of 3720 meters, the Kronos-1 well verified the presence of hydrocarbons in ultra-deepwater of Colombian south Caribbean area. This discovery proves the geological model proposed for an unexplored area with high hydrocarbon potential.

Kronos-1 is located in block Fuerte Sur, 53 kilometers (33 miles) offshore, where partners Anadarko, operator, and Ecopetrol, each hold 50% interest. [Ecopetrol S.A., 28.Jul.2015]

ECUADOR PETROECUADOR'S $1.2 BILLION ESMERALDAS REHABILITATION WORK NEAR COMPLETE PetroEcuador says that overhaul work is being performed on processing units at the 110 Mb/d capacity Esmeraldas refinery that have deteriorated due to inadequate maintenance work, according to a statement posted to the state oil company's website.

[PetroEcuador, 18.Sep.2015] PETROECUADOR ESMERALDAS REFINERY RESTARTS FCC UNIT PetroEcuador says activities initiated on 11.Sep.2015 to restart the fluid catalytic cracker unit at the Esmeraldas refinery, according to a statement posted to the state oil company's website.

[PetroEcuador, 18.Sep.2015] H5 SETTLES WITH CHEVRON OVER ECUADORIAN LAWSUIT Chevron Corporation reached a settlement agreement with H5, a California-based e-discovery and litigation services firm. In the settlement, H5 has withdrawn its support from the litigation against Chevron in Ecuador and has assigned its 1.25% interest in the $9.5 bln Ecuadorian judgment to Chevron. In 2014, Chevron obtained court-ordered discovery from H5 for the company’s role in supporting and advancing the lawsuit led by Steven Donziger, which a federal judge found to be tainted by fraud. [Chevron Corporation, 3.Sep.2015]

GUYANA GOVERNMENT'S ROLE-ENSURING NO SHORTAGE OF FUEL-MINISTER HARMON AS OIL PURCHASE AGREEMENT MADE WITH TRINIDAD The government of Guyana believes that its responsibility and obligation are to ensure that there will be no shortage of fuel in Guyana, and so must do everything possible to keep the wheels of industry turning. This is according to Minister of State, Joseph Harmon, who stated that is against this background that the agreement to purchase fuel from Trinidad and Tobago was made. [Guyana Government Information Agency, 4.Sep.2015] CABINET BRIEFED ON ARRANGEMENTS FOR MANAGEMENT OF PETROLEUM SECTOR – MINISTER HARMON Minister of Governance, Raphael Trotman, has briefed Cabinet on the strategic, legislative, regulatory and institutional arrangements for the management of upstream activities in the Petroleum Sector. [Guyana Government Information Agency, 4.Sep.2015]

MEXICO PEMEX AND ITS UNION AGREE TO AN EXTENSION IN REVIEWING THE COLLECTIVE BARGAINING AGREEMENT Pemex and the Petroleum Workers Union of the Mexican Republic (STPRM) agreed to an extension in reviewing the Collective Bargaining Agreement (CBA) that will regulate the employment relationships in the biennium 2015-2017. [Pemex, 30.Jul.2015] PEMEX AND SEDATU SIGN A COOPERATION AGREEMENT Pemex and the Ministry of Agrarian, Land and Urban Development (SEDATU), through the Agrarian Attorney's Office (PA), signed a Cooperation Agreement to establish mechanisms for information, advice and training so that the hydrocarbon exploration, extraction and transportation projects are carried out according to the legal framework and in full compliance with the rights of agricultural subjects. [Pemex, 22.Jul.2015]

PEMEX AND OECD SIGN AGREEMENT TO PROMOTE BEST PRACTICES IN PROCUREMENT Pemex, through its Corporate Office of Procurement and Supply, signed an agreement with the Organization for Economic Cooperation and Development (OECD) that will enable Pemex to adopt the best international practices in procurement, and promote the efficient and transparent management in its processes. [Pemex, 20.Jul.2015] PEMEX AND SANTANDER AGREE TO PROVIDE BANKING SERVICES TO THE GAS STATION NETWORK IN MEXICO Pemex and Banco Santander signed a collaboration agreement to provide credit and banking services to gas stations comprising the network of service stations nationwide.

The agreement will provide Pemex franchisees access to banking services as Point of Sale (POS) systems, referenced deposits, electronic banking, payroll, transfer and management of securities.

[Pemex, 28.Jul.2015] PEMEX DISMANTLES GROUP WITH CONFLICT OF INTEREST IN CONTRACT Pemex dismantles group composed of companies and public officials that had a conflict of interest in million-dollar contract.

An investigation carried out by the Unit of Responsibilities of Pemex' Internal Control Unit, led to the identification and acknowledgement of the participation in unlawful acts of Pemex Exploration and Production (PEP) personnel. [Pemex, 6.Aug.2015] THE BOARD OF DIRECTORS OF PEMEX DRILLING AND SERVICES IS INSTALLED At the installation session of the Board of Directors of the new Productive State-owned Subsidiary (PSS) Pemex Drilling and Services (Pemex Perforación y Servicios), the organic statute containing its organization and functions was approved, and it will come into force once it is published in the Official Gazette of the Federation.

This is an important step in the approval process of new Productive State-owned subsidiaries of Pemex, which were established as business lines with the purpose of generating economic value. [Pemex, 11.Aug.2015]

PEMEX SAYS PIPELINE FIRE CAUSED BY CONTRACTOR'S EXTERNAL MACHINERY The fire registered today in the Escobedo-Santa Catarina pipeline, in the municipality of García in Nuevo León, was caused by a blow from machinery that belonged to a private company at a construction site outside Pemex.

Unfortunately, the death of 5 employees of the contractor has been confirmed. [Pemex, 11.Aug.2015] PEMEX AND THE STPRM AGREED TO AN EXTENSION IN THE REVIEW THE COLLECTIVE BARGAINING AGREEMENT Pemex and the Petroleum Workers Union of the Mexican Republic (STPRM, Sindicato de Trabajadores Petroleros de la República Mexicana) agreed to a 1-month extension for the review of the Collective Bargaining Agreement (CCT, Contrato Colectivo de Trabajo) that will regulate the employment relationships in the biennium 20152017; thus, the Joint Hiring Commission will continue in session. [Pemex, 11.Aug.2015] COURT GRANTS CONSTITUTIONAL APPEAL TO PEMEX The Second Joint Civil Court of the Third Circuit, based in the city of Guadalajara, granted the appeal filed by Pemex thus declaring the absence of damages claimed by the company Bardahl de México SA de C.V. [Pemex, 10.Aug.2015] PEMEX LOOKS TO IMPROVE DIESEL, GASOLINE PRODUCTION The exchange of light crude between the U.S. and Mexico will improve the production of diesel and gasoline in the country. [Pemex, 14.Aug.2015] LAUNCHING OF A FLOATEL FOR PEMEX The vessel will have the capacity to accommodate 700 platform workers.

The accommodation vessel (floatel, floating hotel) built to service Pemex’s platforms, was launched at Navantia’s shipyard in Ferrol, Galicia. It will be completed and delivered next year. [Pemex, 28.Aug.2015]

PEMEX RESPONDS TO MOODY’S PRESS RELEASE Moody's Investors Service placed Pemex's global foreign currency and global local currency A3 ratings under review for a possible downgrade. In this regard, Pemex makes the following remarks: Pemex, along the entire oil and gas industry has been affected by the substantial decline in international oil prices that began in Jun.2014.

[Pemex, 25.Aug.2015]

PANAMA AES AWARDED PANAMA'S FIRST NATURAL GASFIRED GENERATION PLANT AES Corporation announced that its subsidiary, Gas Natural Atlantico S. de R.L., won a competitive bid process conducted by the Electric Transmission Company, SA (ETESA), the state's electric transmission company, to supply 350 MW of new capacity. The project will include the construction of a 350 MW combined cycle natural gas-fired plant with a 10-year Power Purchase Agreement (PPA), and a 170,000 m3 LNG storage tank and regasification facility, to supply gas to the plant, as well as to potentially serve growing demand for natural gas in Central America. [AES Corporation, 11.Sep.2015]

PERU NO END IN SIGHT TO LARGEST OIL BLOCK WOES Indigenous groups occupied the installations of block 192, the largest oil field in the Amazon jungle, to force the government to listen to their economic and environmental demands. The Humala administration announced in Aug.2015 a 2-year contract with Canadian Pacific Exploration and Production (previously Pacific Rubiales) after an auction for a 30-year concession drew zero bids.

Amid protests, Congress later passed a law that allows state-owned Petroperu to operate the block, a setback for the government. [Maria Luisa Puig, Eurasia, 14.Sept.2015]

TRINIDAD AND TOBAGO EMAS AMC BAGS CONTRACT FOR ANGOSTURA PROJECT OFFSHORE TRINIDAD & TOBAGO Singapore's Ezra Holdings Limited (Ezra or the Group), a leading contractor and provider of integrated offshore solutions to the oil and gas industry, announced its subsea services division, EMAS AMC, finalized a contract with BHP Billiton for the Angostura phase 3 development offshore Trinidad and Tobago in the eastern Trinidadian sector of the Venezuela basin. [Ezra Holdings Ltd., 8.Sep.2015]

VENEZUELA VENEZUELA ABLE TO OPERATE OIL SECTOR WITH $40/BBL: IDB "A $40 per barrel oil price is not a low price for Venezuela," says Ramon Espinasa, oil economist at the Inter-American Development Bank (IDB), from Washington during an interview broadcast by Venezuelan radio station 99.9 FM. Venezuela's oil sector is able to maintain operations with an oil price lower than $40/bbl, but better efficiency is required, says Espinasa.

[LatinPetroleum.com, 15.Sep.2015] VENEZUELA AND SAUDI ARABIA CREATE FIRST HIGH LEVEL JOINT COMMISSION Venezuela's Foreign Minister and Vice President of International Affairs at PDVSA, Delcy Rodríguez, accompanied by Minister of Commerce and Industry of Saudi Arabia Tawfiq bin Fouzan Alrabiah, opened the First High Level Joint Commission VenezuelaSaudi Arabia at the Antonio Jose de Sucre Casa Amarilla, the seat of the Venezuelan Foreign Ministry in Caracas, according to statements released by Venezuela's Foreign Ministry. [LatinPetroleum.com, 15.Sep.2015]

PDVSA TO INITIATE PLANNED SHUTDOWN OF CARDON REFINERY FCC UNIT The Paraguana Refining Center (CRP) will initiate a preventive shutdown of the Cardon Refinery's Fluidized Catalytic Cracking Unit on 13.Aug.2015, according to a statement posted to PDVSA's website.

Mechanical work will be performed on the equipment that is part of the unit in order to ensure the operational reliability of this plant that produces high octane constituents used in fuel mixtures.

[LatinPetroleum.com, 11.Aug.2015] ROSNEFT DRILLS A RECORD-BREAKING WELL IN VENEZUELA Rosneft, as part of a PetroMiranda JV including PDVSA and Gazprom Neft, has drilled an unprecedented horizontal well GG1-14 at the Junin-6 block. The well is unique for the shallow depth, only 1,140 feet or about 347 meters, of the reservoir interval and the length of horizontal section 4,920 ft or 1,500 meters. The total length of the well is 6,059 ft (some 1,847 meters). [Rosneft, 8.Oct.2015] OPEC MUST BE STRONGER ON THE GEOPOLITICAL FRONT: OIL MINISTERY DEL PINO "OPEC should convert itself into a stronger actor in geopolitical, geoeconomics, and social areas as well in the permanent search for peace," PDVSA radio reports in weekly broadcast, citing Venezuela's energy minister and PDVSA President Eulogio Del Pino. [LatinPetroleum.com, 8.Oct.2015] ENERGY SHOULD BE THE KEY DRIVER FOR INTEGRATION: OIL MINISTER DEL PINO The World Energy Council (WEC) and the Union of South American Nations (UNASUR), with the support of the Ministry of Electricity and Renewable Energy (MEER) of Ecuador, hosted the South American Energy Council (CES) at the headquarters of UNASUR in the city of Quito. [PDVSA, 10.Sept.2015] GAS VICE MINISTER SAYS GAS TREATMENT PLANT IN TRIGUADARE OPERATING AFTER FIRE Venezuela's Gas Vice Minister José Gregorio Prieto says a gas treatment plant in the Triguadare sector of Paraguana peninsula in Falcon state is operating normally after a fire was reported there last week. [El Universal, 8.Sep.2015]

VENEZUELAN OFFICIALS TO VISIT WITH TRINIDAD PRIME MINISTER ROWLEY A Venezuela delegation is expected to visit with Trinidad and Tobago Prime Minister K. Rowley, Venezuela finance minister Rodolfo Marco Torres writes in twitter post.

The Venezuela delegation could be comprised of Torres, Foreign Minister Delcy Rodriguez, and Oil Minister Eulogio Del Pino [LatinPetroleum.com, 8.Oct.2015] HARVEST SAYS PETRODELTA GENERATED $173.3 MILLION IN REVENUE DURING THE 2Q:15 Harvest Natural Resources, Inc. announced 2Q:15 earnings and provided an operational update.

Harvest reported a 2Q:15 net loss of approximately $25.4 mln, or $0.60/share diluted, compared with a net loss of $1.7 mln, or $0.04/share diluted for the 2Q:14. The 2Q:15 results included a non-cash loss on issuance of debt, which is related to the CT Energy transaction, of $20.4 mln, or $0.48/share diluted. [Harvest Natural Resources, Inc., 7.Aug.2015]

NRG BRIEFS VENEZUELA (VEN) SMUGGLING OF VENEZUELAN GASOLINE TO ARUBA TO CONTINUE The smuggling of Venezuelan gasoline to Aruba and other countries will continue as long as a large gap between gasoline prices exists, said EnergyNomics President Carlos Rossi in an interview in Houston, Texas.

"Contraband is a way to keep the military happy and loyal. With the increase in government seizures, the smuggling business of smaller smugglers is being affected." [LatinPetroleum.com, 8.Oct.2015] VENEZUELA'S FINANCE MINISTER RODOLFO MARCO TORRES CORRECTED DURING NEW YORK INVESTOR MEETINGS Rumors have it that Venezuela's Finance Minister Rodolfo Marco Torres had to be corrected on a number of occasions while talking about the country's financial situation. [LatinPetroleum.com, 8.Oct.2015]

OIL PRICE COLLAPSE TO AFFECT COMPANY AND GOVERNMENT CASH FLOW Due to the fall in oil prices, all of the oil companies and governments have experienced a strong negative impact to their cash flow. As such, the investment capacity of all the actors has declined enormously and a lot of large projects are being canceled and new projects are not taking off, said Arnold Volkenborn, a petroleum engineer and Venezuela petroleum sector expert who currently sits on the Board of Directors at Siderurgica Venezolana S.A., during a forum at Fermin Toro Institute in Caracas, Venezuela. [LatinPetroleum.com, 8.Oct.2015] PETROCABIMAS TO DRILL CURAZAITO EXPLORATORY WELL IN DEC. 2015 This will be the first exploration well to search for and confirm the presence of oil and gas in Curazaito in Zulia state, PDVSA says in radio broadcast. The well will be located in the Cabimas block on the eastern coast of Lake Maracaibo. Oil from the well could be heavy-to-extra-heavy. [LatinPetroleum.com, 10.Sep.2015] VENEZUELA TO START MARISCAL SUCRE PROJECT BY YE:15 Venezuela will soon start offshore gas production at Mariscal Sucre project; production from Cardon IV block is currently at 300 MMcf/d and expected to reach 450 MMcf/d shortly, said PDVSA President Eulogio Del Pino during a conference in Cumana.

[LatinPetroleum.com, 1.Oct.2015] PDVSA PRODUCTION LEVELS LIKELY TO FALL DUE TO LACK OF INVESTMENT IN DEFAULT SCENARIO In terms of a much talked about default, PDVSA would continue to function but the levels of output will likely decline due to a lack of investment and could see an increase in accidents at the company, said EnergyNomics President Carlos Rossi in an interview in Houston, Texas. [LatinPetroleum.com, 14.Sep.2015] VENEZUELA RECORDS 4.5 MAGNITUDE QUAKE IN SUCRE STATE A 4.5 magnitude quake was reported in Venezuela's Sucre state (41km north of Guiria), Venezuelan Seismological Foundation (Funvisis) reported. [LatinPetroleum.com, 10.Sep.2015]

LATIN AMERICA RIG COUNT TRACKER 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 Apr.2015 May.2015 Jun.2015 July.2015 Aug.2015

319 307 315 296 302 288 289 297

31 26 34 26 23 25 23 20

1 22 2 3 2 1 1 2

351 355 351 325 327 314 313 319

272 283 284 261 258 252 259 266

79 72 67 64 69 62 54 53

351 355 351 325 327 314 313 319

Source: Baker Hughes

ROTARY RIG COUNT (LAND, OFFSHORE)

Argentina Bolivia Brazil Chile Colombia Costa Rica Ecuador Mexico Peru Trinidad Venezuela Other Total LatAm Source: Baker Hughes

Aug.2015 Land O⁄S

Jul.2015 Land O⁄S

Jun.2015 Land O⁄S

May.2015 Land O⁄S

107 2 19 3 29 0 14 19 1 4 66 2 266

106 2 19 3 24 0 12 20 1 4 66 2 259

105 4 18 4 25 0 15 20 1 2 58 0 252

103 5 18 3 23 0 15 28 1 2 60 0 258

1 0 20 0 1 0 0 22 1 2 6 0 53

0 0 18 0 1 0 0 25 2 4 4 0 54

0 0 19 0 1 0 0 31 2 1 8 0 62

1 0 25 0 1 0 0 32 1 1 8 0 69

ROTARY RIG COUNT (OIL, GAS, MISC.)

Argentina Bolivia Brazil Chile Colombia Costa Rica Ecuador Mexico Peru Trinidad Venezuela Other Total LatAm

Oil

Aug.2015 Gas Misc.

LatAm

98 0 37 0 30 0 14 37 2 5 72 2 297

10 2 2 3 0 0 0 2 0 1 0 0 20

108 2 39 3 30 0 14 41 2 6 72 2 319

0 0 0 0 0 0 0 2 0 0 0 0 2

Oil

Jul.2015 Gas Misc.

LatAm

96 0 35 0 25 0 12 42 3 4 70 2 289

10 2 2 3 0 0 0 2 0 4 0 0 23

106 2 37 3 25 0 12 45 3 8 70 2 313

LatAm 104 5 43 3 24 0 15 60 2 3 68 0 327

0 0 0 0 0 0 0 1 0 0 0 0 1

Source: Baker Hughes

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

Jun.2015 Gas Misc.

LatAm

Oil

May.2015 Gas Misc.

94 1 35 0 26 0 15 48 3 1 65 0 288

11 3 2 4 0 0 0 2 0 2 1 0 25

105 4 37 4 26 0 15 51 3 3 66 0 314

96 2 41 0 24 0 15 54 2 1 67 0 302

8 3 2 3 0 0 0 4 0 2 1 0 23

0 0 0 0 0 0 0 1 0 0 0 0 1

0 0 0 0 0 0 0 2 0 0 0 0 2

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