LATINPETROLEUM LATAM NRGbrief
1Q:15
APCO Shareholders Approve Merger Agreement With Pluspetrol
Petrobras Announces New Campos Basin Discovery
Venezuela holds "Fucking Fracking Forum" in Caracas Response To The Ministry Of Foreign Affairs Of Venezuela's Communication To Exxon Mobil
LATAM RIG COUNTS HEARD ON THE STREET
IN THIS ISSUE 10.Apr.2015
SHORT 17-PG VERSION OF LATAM NRGPROSPECTOR ORIGINAL 41-PG VERSION AVAILABLE VIA SUBSCRIPTION ON THIS PAGE: ORIGINAL TABLE OF CONTENTS
5-6 ….. HEARD ON THE STREET Small group of Venezuelans interested in Pacific Rubiales, Venezuela to allow almost all petroleum companies to sell part of their dollars at the new Simadi Fx rate, Petronas released its 11 percent interest in the PetroCarabobo, former PDVSA President Rafael Ramírez wants to run for president, parliament elections in early December 2015.
6-28 ….. NRG REEL: VENEZUELA APCO Shareholders Approve Merger Agreement With Pluspetrol Petrobras Announces New Campos Basin Discovery Petrobras Offers Clarification About Okinawa Withdrawal Plan CGG Lands Anadarko's Contract For 3d Seismic Survey Off Colombia Financial Backer Of Fraudulent Ecuador Litigation Withdraws Support, Settles Response To The Ministry Of Foreign Affairs Of Venezuela's Communication To Exxon Mobil McDermott To Install Pemex's Ayatsil-A Drilling Platform Offshore Mexico BPZ Resources Inc. Elects Grace Period For Repayment Of Convertible Bond Principal And interest Caribbean Rex Finds Commercial Oil In Trinidad & Tobago's South Erin Block
Harvest Natural Resources Announces Withdrawal Of Request For International Arbitration Against Venezuela
28-29 ….. QUOTES 29 ….. COMPANY PROFILES Ecopetrol, Gran Tierra Energy Inc., Schlumberger, and Wood Group.
29-34 ….. NRG UPDATE: LATAM Countries covered: Argentina, Bolivia, Colombia, Peru, Uruguay and Venezuela.
34-38 ….. NRG SHORTS Argentina, Brazil, Bolivia, Colombia, Ecuador, Guyana, Mexico, Peru, Trinidad and Tobago, Uruguay, and Venezuela.
38 ….. DIVESTMENT TRACKER 38 ….. EQUITY/DEBT TRACKER 38 ….. M&A TRACKER 39-40 ….. ROTARY RIG TRACKER LatAm oil, gas and misc. breakdown LatAm land (onshore) and offshore breakdown
ON THE COVER … Work activities at the Castoro-10 ship offshore Venezuela in Sucre state. Photo credit: Editores LatinPetroleum, C.A.
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
HEARD ON THE STREET Information in this section, provided by LatinPetroleum, is hearsay and thus should be treated as such. REGARDING COLOMBIA * A small group of Venezuelans are interested in acquiring an interest in Colombian oil company Pacific Rubiales. REGARDING VENEZUELA * To stimulate investments in the oil sector, Venezuela has allowed almost all of the companies sell part of their dollars at the new Simadi Fx rate, which most recently closed at 191 bolivars per dollar. * In 2014, Malaysa's Petronas released its 11 percent interest in the PetroCarabobo heavy oil joint venture back to the Venezuelan government. PDVSA has assumed the interest in the meantime. Partners in PetroCarabobo include: PDVSA, Spain's Repsol, and Indian companies ONGC, Oil India and Indian Oil Corp. * Former PDVSA President Rafael Ramírez supposedly wants to run for the presidency of Venezuela. * Venezuelan social programs are at risk unless there is an increase in the price of crude oil or there is a change by the Venezuelan government to reduce its reliance on oil income to sponsor its social programs. * Supply of dollars unable to satisfy dollar demand thus forcing government to reduce allocation of dollars to importers and other seeking dollars. * Russian president Vladimir Putin is expected to visit Venezuela soon to discuss bilateral trade between the countries. * After the longest oil sector boom period in recent history in Venezuela, the country has no money set aside in a strategic oil fund or others to weather the pull back in oil prices.
* Parliament elections could take place in early December 2015. REGARDING RECENT DISCUSSIONS BETWEEN AVHI, PDVSA AND VENEZUELA'S OIL MINISTRY Complaints from oil companies operating or contemplating operating and/or investing in Venezuela include, but are not limited to the following: * The need to access the new competitive foreign exchange rate for all investments (CAPEX) and costs and expenses (OPEX) required by the mixed enterprises, licenses and PDVSA. * The need for diluents for the projects in the Orinoco Heavy Oil Belt or Faja; application of the proposed extension to the Special Contributions Law. * The need to be granted fiscal incentives (royalties, income taxes, etc.) according to results from basic engineering studies; the need to revise the payment of LCE over royalty volumes; the need to revise natural gas royalty payments for re-injected volumes; and the need to define a mechanism for CERTs. In response to these stated issues, Venezuela's Oil Ministry Asdrubal Chávez responded as such: * We recognize this is a difficult situation and we want to work together with AVHI more intensely to find solutions to the problems. * We acknowledge the effects of the foreign exchange system over production costs; progress has been made to solve this issue (i.e. Sicad I and Sicad II), but we need to make proposals to the government to reach a solution. * Vice-Minister Angel González has been designating with this assignment to determine a reasonable value for a foregin exchange rate applicable to the petroleum industry. * We are going to continue granting autonomy to the mixed enterprises or joint ventures. * We need to work together to improve production costs, and become more efficient; it's critical to adjust service companies' costs.
* We want to form joint AVHI-oil ministry-PDVSA executive working groups, tasked with maintaining more regular meetings and studying proposals to solve issues of common interest. * We are working in the oil ministry to solve the issues related to production of diluted crude oil mixed with naphtha. In response to these stated issues, PDVSA's President Eulogio Del Pino responded as such: * Within our competences, we have been taking measures to solve issues discussed in the AVHI-oil ministry-PDVSA institutionalized dialogue mechanism. * In terms of the agenda presented by AVHI, we recognize the critical issues of the foreign exchange regime and the decline in oil prices and their impact over the economic viability of the oil industry.
Some of the possible fiscal incentives applicable to the projects are: accelerated depreciation, carry-over of ten-years of losses (for income tax calculations), shadow tax exemption, royalty reduction to twenty percent, and petroleum exports exchanged at the Sicad II rate. * We need to improve our communication with our partners; we want to enhance cooperation and use the capabilities and best practices of AVHI member companies. * One of our main objectives is to regulate all of the activities and contracts with mixed enterprises. * We want to maintain and reinforce this institutionalized dialogue mechanism with AVHI: we support the proposal of a joint workgroup that can agree on proposals and present them at our quarterly meetings. [LatinPetroleum.com, 30.Mar.2015]
* We can advance information regarding the new foreign exchange system announced by President Nicolas Maduro and we plan to announce that new investments and exports from these investments will be exchanged at the new floating, market rate.
NRG REEL
* All the resources stemming from financing and from exports from new projects will be exchanged at a new floating rate (new foreign agreement to be announced soon).
GRAN TIERRA ENERGY ANNOUNCES 2014 YEAR-END RESERVES Gran Tierra Energy Inc. announced the results of an independent reserve evaluation of the company's reserves by Gran Tierra Energy's qualified reserve evaluator GLJ Petroleum Consultants Ltd. (GLJ) effective 31 December 2014. Through continued strong reservoir management and appraisal drilling in Colombia and Brazil in 2014, Gran Tierra Energy was able to replace production and add reserves. However in Peru, negative well results after year-end will result in reserves being revised downward. The results of the company's development program in the Moqueta field in Colombia have been encouraging, adding approximately 14% to it's existing Proved (1P) company interest reserves in that country. Reservoir performance and additional development drilling contributed to positive 1P reserves technical adjustments at Costayaco. [Gran Tierra Energy Inc., 2 Feb.2015]
* Reviewing the previous meetings' minutes of the AVHI-oil ministry-PDVSA dialogue, we have progressed in most of the issues discussed: increasing financial authorization levels, adapting the mixed enterprises' structure to develop major projects, a mixed payments scheme for natural gas licenses (agreement with YPERGAS), drilling rigs and personnel managed by mixed enterprises, delegation of procurement activities to mixed enterprises, diluent availability to Faja's new developments, internal auditing process of our HSSE policies and activities, payments of dividends to partners. * In the Faja's Boyacรก division, we are proposing the creation of a National Strategic Development Zone aimed at the development of exploration and production activities: the objective will be to provide incentives to improve the economic viability of the projects.
TOP PETROLEUM
GRAN TIERRA ENERGY INC. COMMENTS ON PRODUCTION IN SOUTH AMERICA Gran Tierra Energy Inc. said crude oil and natural gas production from continuing operations averaged approximately 25,200 barrels of oil equivalent per day (BOEPD) gross working interest (WI) in 2014, or approximately 19,300 BOEPD net after royalties (NAR) before adjustment for inventory changes and losses, or approximately 18,500 BOEPD NAR adjusted for inventory changes and losses. Approximately 99% of the 2014 production is oil, with the balance consisting of natural gas. [Gran Tierra Energy Inc., 20.Jan.2015] HARVEST NATURAL RESOURCES RECEIVES CONTINUED NOTICE LISTING FROM NYSE Harvest Natural Resources, Inc. announced that on February 13, 2015, the company received notification from the New York Stock Exchange (NYSE) that it had fallen below the NYSE's continued listing standard, which requires a minimum average closing price of $1 per share over 30 consecutive trading days. [Harvest Natural Resources, Inc., 18.Feb.2015]
ARGENTINA APCO OBTAINS CONCESSION EXTENSION IN ARGENTINA Apco Oil and Gas International Inc. announced that the Argentine province of Rio Negro has agreed to extend the concession term for the company's operation in the Entre Lomas concession for 10 years. The Entre Lomas concession is extended to Jan. 21, 2026. [Apco Oil and Gas International Inc., 6.Jan.2015] APCO SHAREHOLDERS APPROVE MERGER AGREEMENT WITH PLUSPETROL Apco Oil and Gas International Inc. announced that its shareholders, at an extraordinary general meeting held on January 26, 2015, approved the proposal to adopt the previously announced merger agreement, dated October 2, 2014, pursuant to which Pluspetrol Resources Corporation will acquire Apco. [Apco Oil and Gas International Inc., 26.Jan.2015]
APCO COMPLETES $470 MILLION MERGER Apco Oil and Gas International Inc. completed its merger with Pluspetrol Black River Corporation, a wholly-owned subsidiary of Pluspetrol Resources Corporation, in an all-cash transaction with an equity value of approximately $427 million. [Apco Oil and Gas International Inc., 29.Jan.2015] WPX COMPLETES EXIT OF INTERNATIONAL INTERESTS WPX Energy (WPX) announced it has completed the disposition of its international interests upon the successful merger of Apco Oil and Gas International (APAGF) with a subsidiary of privately held Pluspetrol Resources Corporation. WPX is receiving approximately $294 million. [WPX Energy Inc., 29.Jan.2015]
BRAZIL DOWNGRADE TO PETROBRAS' CREDIT RATING Regarding the downgrade to Petrobras' debt rating announced on February 24, 2015 by Moody's, the company emphasizes that it is working to guarantee the transparent and accurate disclosure of its 2014 financial results as soon as possible. [Petrobras, 27.Feb.2015] PETROBRAS: NEW CEO AND EXECUTIVE OFFICERS Petrobras informs that its Board of Directors, in a meeting, has approved with majority vote the election of Aldemir Bendine as CEO of Petrobras replacing the current CEO, Maria das Graรงas Silva Foster. [Petrobras, 6.Feb.2015] PETROBRAS: CONTRACT WITH INDEPENDENT AUDITOR FOR 2015/2016 Petrobras announces that its Board of Directors, on a meeting on February 27, has approved a contract with PricewaterhouseCoopers Auditores Independentes for the provision of accounting audit services for the years 2015 and 2016. [Petrobras, 2.Mar.2015] TECHNIP WINS LULA ALTO CONTRACT Technip was awarded a major contract from Tupi BV, a consortium composed of Petrobras Netherland BV (PNBV, 65% WI), BG (25% WI) and Galp (10% WI), for the ongoing development of the Lula Alto field, located in the Santos Basin pre-salt area, Brazil. [Technip S.A., 2.Mar.2015]
OLINDA STAR SEMISUB TO DRILL KANGAROO WEST1 WELL IN SANTOS BASIN SOON Karoon Gas Australia Ltd. 's disclosed that the Kangaroo-2 appraisal well, located in exploration Block S-M-1165, confirmed a 820 foot (250 meter) gross or 443 foot (135 metre) net oil column in Paleocene and Maastrichtian aged reservoirs, announced November 26, 2014. Karoon is the operator and has a 65 percent interest in the jointly held Block S-M-1165, Santos Basin, Brazil. [Karoon Gas Australia Ltd., 20.Mar.2015] PETROBRAS ANNOUNCES LIBRA CONSORTIUM FINISHES DRILLING SECOND EXTENSION WELL The Libra consortium has finished drilling extension well 3-BRSA-1267-RJS/3-BRSA-1267A-RJS (3-RJS-735/735A). The drilling results confirmed the presence of a hydrocarbon column approximately 200 meters deep in reservoirs with good permeability and porosity characteristics. [Petrobras, 24.Mar.2015] PETROBRAS REVEALS DIVESTMENT PLAN REVIEW Petrobras announced that its Executive Board, on a meeting on February 26, 2015, has approved the company’s two-year (2015/2016) divestment plan. Divestitures total $13.7 billion, and include Exploration & Production assets in Brazil and abroad (30%), as well as assets in the Downstream (30%) and Gas & Energy (40%) segments. [Petrobras, 2.Mar.2015] LUCIANO COUTINHO TAKES OVER FROM GUIDO MANTEGA AS PRESIDENT OF PETROBRAS' BOARD OF DIRECTORS Economist Guido Mantega resigned on March 23, 2015 from the Petrobras' Board of Directors, leaving his position as President. The Board approved by majority vote the election of Luciano Galvão Coutinho as the new President. [Petrobras, 22.Mar.2015] PETROBRAS OFFERS CLARIFICATION ABOUT OKINAWA WITHDRAWAL PLAN Petrobras has decided to initiate its plan for withdrawing from Okinawa, Japan. The plan involves closing down the refining activities of the Nansei Sekiyu refinery (NSS). [Petrobras, 27.Mar.2015]
COLOMBIA ECOPETROL´S BOARD OF DIRECTORS APPOINTS JUAN CARLOS ECHEVERRY AS NEW CEO Ecopetrol announces that its Board of Directors appointed Mr. Juan Carlos Echeverry as the new CEO of the company, effective April 6, 2015. With extensive knowledge of economics, the ability to lead processes of change, experience in public administration and prior experience as member of the Board of the company, Mr. Echeverry meets all the conditions to carry out the reforms that the current price environment demands and execute the institutional strategy re-alignment in which the company has been engaged in recent months. [Ecopetrol, 6.Mar.2015] ECOPETROL ANNOUNCES ITS RESULTS FOR THE FOURTH QUARTER OF 2014 AND FULL YEAR 2014 - Net proven reserves of crude oil, condensate and natural gas owned by the company, including its interest in affiliates and subsidiaries, as of December 31, 2014, were 2,084 million barrels of oil equivalent (mmboe), a 5.7% increase compared to 1,972 mmboe in 2013. The reserve replacement ratio in 2014 was 146%, up from the 139% reported in 2013. The reserves/production ratio increased to 8.6 years. [Ecopetrol S.A., 2.Mar.2015] PACIFIC RUBIALES AND ECOPETROL DECIDE NOT TO EXTEND RUBIALES FIELD CONTRACT Pacific Rubiales Energy Corp. and Ecopetrol, S.A. have agreed not to extend the Rubiales and Pirirí Field Association Contracts, expiring in June 2016 . Ecopetrol will evaluate different alternatives for the operation of the Rubiales Field. Meanwhile, Pacific Rubiales will consider submitting a new proposal to operate the field after the contract expiry. The companies have expressed interest in developing further business opportunities for the benefit of both parties and the country. [Pacific Rubiales Energy Corp, 14.Mar.2015] CGG LANDS ANADARKO'S CONTRACT FOR 3D SEISMIC SURVEY OFF COLOMBIA France's CGG has been awarded a contract by a subsidiary of Anadarko Petroleum Corporation to acquire and process a 6,299-square mile (16,314square kilometers) 3D seismic survey on the Caribbean coast offshore Colombia. [CGG, 19.Mar.2015]
ECOPETROL NOTICE ON THE APPROVAL OF AMENDED RULES AND PROCEDURES FOR SHAREHOLDERS' MEETING Ecopetrol S.A. hereby reports that, at the shareholders' meeting held on March 26, 2015 , the following amendments to the rules and procedures governing our shareholders' meetings were approved in order to implement the corporate governance practices recommended by the Superintendence of Finance in the New Code of Corporate Best Practices of Colombia. [Ecopetrol S.A., 28.Mar.2015] GRAN TIERRA ENERGY INC. PROVIDES AN OPERATIONS UPDATE ON ITS ACTIVITIES IN COLOMBIA Chaza Block, Putumayo Basin (100% WI and Operator) The Eslab贸n Sur exploration well reached a true vertical depth of 9,708 feet. Mud log and electric log data acquired during and after drilling indicate only non-commercial hydrocarbons present in the primary Caballos Reservoir. [Gran Tierra Energy Inc., 20.Jan.2015 and 12.Mar.2015]
ECUADOR FINANCIAL BACKER OF FRAUDULENT ECUADOR LITIGATION WITHDRAWS SUPPORT, SETTLES Chevron Corporation reached a settlement agreement with James Russell DeLeon, the principal funder of the fraudulent lawsuit against Chevron in Ecuador. Chevron brought claims against DeLeon in Gibraltar, where DeLeon maintains a residence, for his role in funding and advancing the fraudulent lawsuit. In the settlement, DeLeon has resolved those claims by withdrawing financial support from the Ecuador litigation and assigning his interests in the litigation to Chevron. Chevron, in turn, has agreed to release all claims against DeLeon. [Chevron, 6.Feb.2015]
GUYANA RESPONSE TO THE MINISTRY OF FOREIGN AFFAIRS OF VENEZUELA'S COMMUNICATION TO EXXON MOBIL Guyana's Ministry of Foreign Affairs wishes to inform that consequent upon a communication being sent from the Venezuelan Foreign Minister to the Country Manager of Esso Exploration and Production Guyana Limited objecting to the despatch of a rig to proceed with the exploration of an oil well in the concession granted by the Government of Guyana, the Government of Guyana has despatched a Note Verbale to the Venezuelan Foreign Ministry. [Guyana Foreign Affairs Ministry, 28.Feb.2015]
MEXICO MEXICO SWEETENS TAX TERMS TO ENTICE ENERGY DEVELOPMENT As First Titan Corp. targets undervalued energy assets across North America for acquisition and development, Mexico is sweetening its tax terms to help attract energy companies south of the border. The Financial Times reported this month that the country is holding its first competitive tender for contracts to explore and develop its hydrocarbons. [First Titan Corp., 26.Mar.2015] MCDERMOTT TO INSTALL PEMEX'S AYATSIL-A DRILLING PLATFORM OFFSHORE MEXICO McDermott International, Inc. has been awarded a contract to install the offshore jacket, deck and piles for the Ayatsil-A drilling platform for PEMEX Exploracion y Produccion (PEMEX) in the Bay of Campeche Ayatsil field offshore Mexico. [McDermott International, Inc., 6.Jan.2015]
PERU BPZ ENERGY ANNOUNCES NEW PRODUCTION FROM ALBACORA A-27D WELL BPZ Energy provided initial production rates from the Albacora A-27D development well at offshore Block Z-1. The company holds a 51% participation in Block Z-1. [BPZ Resources, Inc., 22.Jan.2015]
BPZ RESOURCES INC. BEGINS VOLUNTARY CHAPTER 11 PROCEEDING BPZ Resources, Inc. announced that it has filed a voluntary petition in the United States Bankruptcy Court for the Southern District of Texas (the "Bankruptcy Court") seeking relief under the provisions of Chapter 11 of Title 11 of the United States Bankruptcy Code (the "Bankruptcy Code"). None of the company's direct or indirect subsidiaries has filed for reorganization under Chapter 11. [BPZ Resources, Inc., 2.Mar.2015]
TRINIDAD AND TOBAGO CARIBBEAN REX FINDS COMMERCIAL OIL IN TRINIDAD & TOBAGO'S SOUTH ERIN BLOCK Rex International Holding Limited (Rex International Holding or the Company, and together with its subsidiaries, the Group), one of the largest companies listed on the Catalist of the Singapore Exchange Securities Trading Limited, announced that its 98.4 percent-owned license-holding company Caribbean Rex Limited (Caribbean Rex), has completed the drilling of three wells in the South Erin Block in Trinidad & Tobago. [Rex International Holding Ltd., 21.Jan.2015]
VENEZUELA O-I PREVAILS IN INTERNATIONAL ARBITRATION AGAINST VENEZUELA Owens-Illinois, Inc. reported that its Dutch subsidiary, OI European Group B.V. (OIEG), has prevailed in an international arbitration against Venezuela. OIEG has been awarded more than $455 million for Venezuela's unlawful expropriation of OIEG's majority interest in two plants in Venezuela. [Owens-Illinois, Inc., 12.Mar.2015] HARVEST NATURAL RESOURCES ANNOUNCES WITHDRAWAL OF REQUEST FOR INTERNATIONAL ARBITRATION AGAINST VENEZUELA Harvest Natural Resources, Inc. and its affiliates, HNR Finance B.V. (Harvest BV) and Harvest Vinccler S.C.A. (HVSCA), have withdrawn without prejudice a Request for Arbitration against Venezuela before the International Centre for Settlement of Investment Disputes (ICSID) regarding Harvest BV's interest in Venezuela and violations by Venezuela of the Netherlands - Venezuela Bilateral Investment Treaty. [Harvest Natural Resources, 29.Jan.2015]
HARVEST NATURAL RESOURCES ANNOUNCES FILING OF REQUEST FOR INTERNATIONAL ARBITRATION AGAINST VENEZUELA Harvest Natural Resources, Inc. announced that its affiliates, HNR Finance B.V. (Harvest BV) and Harvest Vinccler S.C.A. (HVSCA), submitted a Request for Arbitration against the Government of the Bolivarian Republic of Venezuela before the International Centre for Settlement of Investment Disputes (ICSID) regarding Harvest BV's interest in Venezuela and violations by the Government ofVenezuela of the Netherlands - Venezuela Bilateral Investment Treaty. [Harvest Natural Resources, 16.Jan.2015]
QUOTES VENEZUELA'S OIL MINISTER ASDRÚBAL CHÁVEZ ON COUNTRY DIVERSIFYING OIL MARKETS "PDVSA has completely diversified its oil markets, conquering spaces in Asia, India, Europe and South America, among others, and with a great presence and possibilities to grow." --- Venezuela's Oil Minister Asdrúbal Chávez [El Universal, 20.Mar.2015] VENEZUELAN ECONOMIST VICTOR ALVAREZ ON COUNTRY'S CURRENCY CONTROLS "The exchange controls don't have an economic justification and is used only as a form of political dominacion" --- Quinto Día reports, citing Victor Alvarez. VENEZUELA OPENING UP OIL OPPORTUNITIES TO NICARAGUA AND CARIBBEAN "We are advancing with Nicaragua and opening up possibilities to the rest of the Caribbean," said Venezuela's Oil Minister Asdrubal Chavez on state television, referring to Nicaragua and other Petrocaribe member countries participating in activities in Venezuela's Orinoco heavy oil belt or Faja. --- Venezuela's Oil Minister Asdrubal Chavez [LatinPetroleum.com, 9.Mar.2015]
NRG BRIEFS ARGENTINA (ARG) ARGENTINA REQUESTING IMPORTS OF 200 MEGAWATTS OF BOLIVIAN ENERGY Argentina is considering importing 200 megawatts of energy from Bolivia in 2015, announced Bolivia's President Evo Morales. The official also announced Brazil was also requesting more energy, without providing details. [La Razón 24.Mar.2015]
BOLIVIA (BOL) BOLIVIA EYES BRAZIL AND PERU AS POTENTIAL EXPORT MARKETS FOR ITS EXCESS ELECTRIC ENERGY Bolivia is also considering exporting energy to Brazil and Peru, announced National Electricity Company (ENDE Corporación) National and Export Development Stratgies Manager Roberto Peredo. [La Razón 24.Mar.2015]
COLOMBIA (COL) COLOMBIA INAUGURATES ELECTRONIC CAR CHARGING STATION Colombia inaugurated its first electronic car charging station in Bogotá. The station will be located in the Unicentro Mall and will offer service 24 hours a day, 7 days a week. [Portafolio.co, 10.Mar.2015]
PERU (PER) PETROPERÚ WILL NOT PARTICIPATE IN THE LICENSES CONTRACTS FOR LOTES III AD IV Petroperú will not participate in the licenses contracts for the exploitation of hydrocarbons in Lotes III and IV. [La Republica.pe, 28.Mar.2015
URUGUAY (URY) ANCAP CONFIRMS IT WILL NOT REDUCE FUEL PRICES IN APRIL ANCAP will not reduce fuel prices in April due to the appreciation of the dollar. According to analysts, ANCAP has a margin of 8 percent in terms of the price of fuels since they are referenced to the price of crude oil. [La Red 21, 1.Apr.2015] MONTEVIDEO LNG REGASIFICATION PLANT READY BY YEAR-END 2016 The LNG regasification plant (called "GNL del Plata" in Spanish) in Montevideo, Uruguay is expected to be ready in November of 2016. [El Pais, 23.Mar.2015] WORRIES EXPRESSED ABOUT DELAYS WITH LNG REGASIFACTION PROJECT Officials in Uruguay are worried about difficulties that have translated into delays at the Montevideo LNG regasification plant. "Its a very sgnificant project for the country. We continue to advance but we are worried about the difficulties that have arisen, as the delays could eventually affect energy generation costs," reported the daily newspaper El Pais, citing National Party Director Elena Baldoira. [El Pais, 24.Mar.2015]
ECOPETROL TO PAY 4.8 BILLION DIVIDEND TO SHAREHOLDERS Ecopetrol's shareholder assembly approved a dividend equivalent to 70 percent of the 7.81 billion peso profit obtained in 2014. [El Tiempo, 26.Mar.2015]
VENEZUELA (VEN)
ECOPETROL REPORTS AVERAGE PRODUCTION OF 725 MB/D IN FIRST TWO MONTHS OF 2015 During the first two months of 2015 Ecopetrol's production remained around 725 Mb/d primarily due to record production at the Castilla and Chichimene fields located in El Meta, and in the La Cira Infantas field located in Middle Magdalena Medio. This average represents an increase of 20 Mb/d compared to the average of 705 Mb/d registered in the first two months of 2014. [El Espectador, 25.Mar.2015]
VENEZUELA SPENDS MORE THAN $444 MILLION ON THREE ELECTRIC SECTOR PROJECTS IN 2014 Venezuela's electric energy sector incurred investments of $444 million and 518 million Venezuelan bolivars in 2014 on three projects in Venezuela's western region, the country's electric energy minister Jesse Chacón said in Caracas on January 30, 2015 during an electric sector conference at Corpoelec's headquarters. [LatinPetroleum.com, 2.Mar.2015]
COMMANDO GROUP ATTACKS CRUDE PUMPING STATION IN MONAGAS PDVSA announced an armed commando group attacked its Tejero Operating Center installations located in the Punta de Mata Eastern Executive Division in Monagas. [PDVSA, 29.Mar.2015] VENEZUELA AND SAN CRISTOBAL AND NIEVES OFFICIALS DISCUSS ENERGY MATTERS Venezuela's foriegn minister Delcy Rodríguez met with San Cristobal and Nieves Prime Minister Timothy Harris to discuss bilateral relations and review agreements signed between both countries and advances in the energy sector related to alternative energies, infrastructure, and housing. The officials also inspected the areas where diesel storage tanks are being installed through an agreement with PDV Caribe. [31.Mar.2015, PDVSA] VENEZUELA TO CONTINUE SUPPLYING OIL TO THE USA Venezuela will continue to supply the USA with its oil despite a decree recently signed by US President Barrack Obama against seven military officials, reported Venezuelan state news agency AVN, citing Venezuela's Oil Minister Asdrúbal Chávez. "We are prepared to confront whatever decision that is taken by the USA," saidChávez. [El Universal, 20.Mar.2015] PETROCARIBE IMPORTANT INSTRUMENT FOR VENEZUELA Petrocaribe is an important instrument that has allowed our Caribbean brothers to overcome their problems, reported Venezuelan state news agency AVN, citing Venezuela's Oil Minister Asdrúbal Chávez. "Its a true integration initiative for the people that is not aimed at exploiting them, but to integrate them and improve the quality of life on the regional level," said Chávez. [El Universal, 20.Mar.2015] VENEZUELA TO CONTINUE DEFENDING OIL PRICE STRATEGY Venezuela plans to continue defending a strategy within OPEC that favors higher oil prices versus a strategy based on volumetric production, reported Venezuelan state new agency AVN, citing Venezuela's Oil Minister Asdrúbal Chávez. [El Universal, 20.Mar.2015]
THE USA DOWNPLAYS REDUCING PURCHASES OF VENEZUELAN OIL The USA is not contemplating applying any measures against Venezuela's petroleum sector, according daily newspaper El Universal, citing an U.S. official who requested anonymity. "The sanctions against the military officials does not have an impact on the Venezuelan economy nor the petroleum sector. With respect to energy, it’s the U.S. energy companies that buy the oil and they are the ones that will decide whether or not to buy it," said the U.S. official. [El Universal, 13.Mar.2015] VENEZUELA ANNOUNCES FINANCING SCHEME FOR OIL SHIPMENTS TO URUGUAY Venezuela announced a financing scheme for oil shipments to Uruguay, according to a decree revealed on March 2, 2015 in Venezuela's Official Gazette newspaper. [LatinPetroleum.com, 2.Mar.2015] VENEZUELA AND ANTIGUA AND BARBUDA OFFICIALS MEET ABOUT ENERGY MATTERS Venezuela's Foriegn Minister Delcy Rodríguez met with Antigua and Barbuda Prime Minister Gaston Browne to discuss bilateral trade and energy matters. [31.Mar.2015, PDVSA] VENEZUELAN AND RUSSIAN OIL MINISTERS MEET AGAIN IN MOSCOW Venezuela's Oil Minister Asdrúbal Chávez met with his Russian counterpart Alexander Novak in Moscow to discuss bilateral projects and evaluate the progress of such developments. [26.Mar.2015, El Universal] VENEZUELA LOOKS FOR DISQUALIFICATION OF JUDGES SELECTED FOR CONOCOPHILLIPS CASE Venezuela presented a letter to the ICSID court requesting the dismisal of judge Kenneth Keith, the president of arbitrational tribunal in the case brought to the court by ConocoPhillips in its wrongful expropriation case against the government of Venezuela which nationalized the Houston-based company's assets in the Orinoco Heavy Oil Belt. Venezuela is also seeking the dismisal of another judge in the case, Yves Fortier. [26.Mar.2015, AVN]
PETROVIETNAM EVALUATES ITS EXIT FROM VENEZUELA Vietnam's state oil company PetroVietnam is evaluating its exit from a Venezuelan heavy oil project where it is partnered with its Venezuelan counterpart PDVSA, according to an official with PDVSA who requested his identity be withheld, according to Reuters. [Reuters, 25.Mar.2015]
* Enercana S.A. at risk of getting pushed out of Vaca Muerta (Parva Negra) in ARG as energy secretary challenges co.'s registration fee. [Clarin]
VENEZUELAN OIL SALES TO THE USA ROSE 8 PERCENT IN FEBRUARY The sale of Venezuelan oil to the USA rose 8 percent in February of 2015 to 796,000 barrels per day, driven by more exports of diluted crude. The USA received a total of 42 cargoes from Venezuela's state oil company PDVSA, flat with January of 2015. [El Universal, 13.Mar.2015]
* ARG expects renewable energies to generate 8% of country's energy by 2016; today they just generate 2%, according to KPMG. [La Nacion]
NRG SHORTS
* Estimated investments of $10 bln in 2015 destined for Neuquén (Vaca Muerta) could be affected as labor unions demand bonuses. [Clarin]
* ENARSA plans to invest $1.8 bln to build Northeastern Argentine Gas Pipeline (GNEA). [La Razón] * YPF to issue $750 mln in bonds; interest rate: 8.75%; maturity: 2024; book runners: JP Morgan, Citibank and Itaú. [La Nacion]
TOP PETROLEUM * Gran Tierra Energy Inc. says its reserves in Peru to be adjusted downward following negative well results after year-end; oil reserves in Colombia and Brazil increase after producing 9.1 MMbbl oil in 2014. * USA oil imports from VEN fall 10% month-overmonth to 668k b/d in Jan. 2015 vs 743k b/d in Dec. 2014: U.S. Energy Information reports. * Quarterly, total LatAm oil supply to avg. 4.87 Mb/d, 4.93 Mb/d, 5.11 Mb/d and 5.22 Mb/d, respectively, in 2015; LatAm oil supply grew by 0.25 Mb/d, y-o-y to average 5.03 Mb/d in 2014; LatAm oil demand expected to grow by 0.20 Mb/d in 2015, similar to 2014 levels. [OPEC; Feb.2015 Report] ARGENTINA (ARG) * Apco shareholders to receive $14.50 in cash per share in merger transaction equity value of $427 mln * CHN to participate in construction of 2 nuclear plants in ARG which will require an investment of $16 bln. [El Espectador]
* YPF and Sinopec sign agreement (similar to Chevron's and Petronas' deal) to operate in the Vaca Muerta in ARG. [Clarin] BOLIVIA (BOL) * Germany and Sweden interested in bi-oceanic train. [La Razón] * BOL's Energy Minister Luis Alberto inspects La Ventolera wind project in Tarija; project could generate 48 MW of energy. [La Razón] * Repsol wants to pull out of Margarita 8 well after reaching drilling depth of 2,000 meters of planned 5,000 meter projected TD. [La Razón] * YPFB Chaco S.A. and YPFB Andina S.A. to invest $250 mln in three different gas areas (Carohuaycho 8A, Carohuaycho 8B and Oriental) through 2020; the three areas have estimated reserves of 1 Tcf of natural gas. [La Razón] * BOL's Pres. Evo Morales asks private cos. to invest $3 bln in 2015. [La Razón]
* BOL's national statistical institute (INE) reports that gas sales fell to $380.70 mln in Jan.2015 vs. $541.49 mln in Jan.2014. [La Razón] * BOL seeks assistance from CRI to produce geothermal energy. [La Razón] * BOL Pres. Evo Morales and VP Alvaro Garcia attend funeral of former YPFB Pres. Carlos Villegas. [El Diario] * Petrobras invested $1 mln in 2014 on 15 social projects in BOL that benefited 2,850 families. [La Razón] * LPG canister explosion in BOL leaves two injured and material damages. [La Razón] * BOL reports discovery of three gold deposits in Cochabamba department. [La Razón] * BOL says success of Repsol's Margarita 8 exploration well highlights 300 Bcm gas reservoir. [La Razón] * BOL's government says Repsol finds natural gas at Margarita 8 exploration well in Santa Rosa formation in Tarija department; Margarita 8 exploration well has production potential of 2 MMcm/d of natural gas. [El Diario] * Officials from BOL and France discuss nuclear energy cooperation agreements. [El Diario] BRAZIL (BRA) * Moody's downgrades Petrobras' notes to 'junk level'. [El Comercio.pe] * Ex-pres. of BRA's Central Bank, Henrique Meirelles, candidate to head Petrobras. [Efe] * Petrobras shares fall after co. reports quarterly results. [Clarin]
COLOMBIA (COL) * Ecopetrol shareholders to receive dividend of 4.8 billion pesos in four payments through October of 2015 and March of 2016. [El Espectador, 26.Mar.2015] * COL oil production averaged 1 MMb/d in Feb.2015, COL's oil minister Tomás González Estrada says. [El Tiempo] * COL gas production averaged 1.074 Bcf/d in Feb.2015 vs 1.059 Bcf/d in Feb.2014, COL's oil minister Tomás González Estrada says. [El Tiempo] * Ecopetrol lost out on producing 64 Mb/d in 2014 due to external issues including 28 Mb/d due to community protests; 13 Mb/d due terrorist attacks, 9 Mb/d due to a lack off or delays in obtaining environmental permits. [El Espectador] * Juan Carlos Echeverry officially takes over as the new president of Ecopetrol. [El Espectador] * Ecopetrol profits fell 41.5% in 2014 to 7.81 bln Colombian pesos vs 13.35 bln Colombian pesos in 2013; Ecopetrol dividend falls more than profits. [El Tiempo] * COL says base selling price for Isagen is $5.2 bln Colombian pesos. [El Tiempo] * Govt reactivates plan to divest of 57.6% interest in Isagen for at least $2 bln. [El Tiempo] * Amid a low oil price environment S&P's maintains Ecopetrol's International Ratings at BBB with Stable Outlook. [LatinPetroleum.com] * Ecopetrol announces its results for the fourth quarter of 2014 and full year 2014 [EIA] * Ecopetrol's P1 reserves rise 5.7% to 2,084 MMboe in 2014 vs. MMboe 1,972 in 2013; co. reports reserve replacement rates of 146% in 2014 vs. 139% in 2013; Ecopetrol's reserve-to-production or R/P ratio was 8.6 times or years in 2014. [El Espectador] * France's CGG awarded contract by Anadarko Petroleum to evaluate petroleum potential of COL's Caribbean region. [El Tiempo]
ECUADOR (ECU) * ECU's oil export revenues in Jan.2015 were $619 mln vs. $1,076 mln in Jan.2014, ECU's Central Bank reports. [El Universo] * ECU to receive $2 bln from CHN through in coming months to finance various public projects. [Reuters] * Two workers die due to landslide at El Topo hydroelectric project. [El Universo]
* TTO PM Kamla Persad-Bissessar proposes swap of TTO commodities such as toilet/tissue paper in exchange for oil and bitumen from VEN. [LatinPetroleum.com] URUGUAY (URY) * LNG regasification plant in Montevideo expected to be ready in Nov.2016. [El Pais]
GUYANA (GUY)
* ANCAP worried about delays related to regasification plant due to potential problems with constructors from BRA. [El Pais]
* ExxonMobil commences operations offshore GUY in waters disputed by VEN [Globovision]
* URY to continue purchasing BOL's LPG, says URY's ambassador in BOL Carlos Flanagan. [La Razón]
MEXICO (MEX)
VENEZUELA (VEN)
* Ecopetrol and Pacific Rubiales sign up to take part in first round of bidding (Ronda Uno) for E&P activities in MEX; winners to be announced on 15.Jul.2015; exploration contracts will be for 5-yrs and development for up to 20-yrs; estimated investments over next 5-yrs could approach $17 bln; bids will be for 14 blocks in an area of 4,222 km2 in front of the coasts of Campeche, Tabasco and Veracruz [El Tiempo]
* VEN holds Fucking Fracking Forum in Caracas to discuss the damage this technique is doing to the environment. [LatinPetroleum.com]
PERU (PER) * Petroperú plans to invest $2.7 billion in coming years on the PMRT or Talara Refinery Modernization Project. [La Republica.pe, 28.Mar.2015] * Lotes III and IV have estimated proved reserves of 55 MMbbls. [El Comercio] * Petro-Peru will wait to finish risk studies before deciding whether or not to enter as a partner in Lotes III and IV in PER. [El Comercio] TRINIDAD AND TOBAGO (TTO) * TTO is the largest supplier of LNG to the USA, and the 6th largest exporter in the world after Qatar, Malaysia, Australia, Nigeria and Indonesia, according to International Gas Union data. [LatinPetroleum.com]
* VEN loses bid to reduce interest on ExxonMobil arbitration award. [LatinPetroleum.com] * VEN's oil production increasing and approaching 3 Mb/d, VEN Oil Minister Asdrubal Chavez says. [LatinPetroleum.com] * VEN oil minister Asdrúbal Chávez, PDVSA Pres. Eulogio Del Pino commemorate the 2-yr anniversary of Hugo Chavez' death. [LatinPetroleum.com] * USA District Court enters default against VEN In proceedings to confirm $740 mln award instituted by Gold Reserve. [LatinPetroleum.com] * VEN files proposal for disqualification of arbitrator Kenneth Keith, further observations on proposed disqualification of arbitrator L. Yves Fortier; original ICSID filing relates to ConocoPhillips wrongful expropriation cases against VEN. [LatinPetroleum.com] * VEN begins to prepare for a potential earthquake and subsequent tidal waves which could damage already fragile oil installations. [LatinPetroleum.com] * PetroVietnam said to be evaluating an exit from VEN's oil sector and Petromacareo JV w/ PDVSA, Reuters says.
* VEN's oil minister AsdrĂşbal ChĂĄvez says the USA wants to control VEN's oil. [Panorama]
* VEN's oil/product exports reach 2.33 MMb/d in 2014 vs 2.43 MMb/d in 2013, Reuters says citing VEN oil minister Asdrubal Chavez. [ElUniversal]
* VEN wants ICSID to revisit recent awarding of $46 mln to Tidewater in VEN expropriation case. [Reuters]
* Fire reported at PDVSA's El Palito refinery in Carabobo state. [UltimasNoticias]
* Despite recent rise in political tension w/ VEN, the USA says in has no plans to stop buying VEN's oil. [El Universal]
* Harvest Natural Resources announces filing of request for international arbitration against Venezuela. [LatinPetroleum.com]
* VEN's Asdrubal Chavez says country opening up opportunities for NIC and Caribbean to participate in Orinoco heavy oil belt. [PDVSA]
* Shares of Harvest Natural plunge nearly 50% on 2.Jan.2015 as co.'s plans to sell its 20.4% interest in Petrodelta fail to materialize. [LatinPetroleum.com]
* VEN's Lake Maracaibo region has proved reserves of 10 bln bbls, PDVSA Pres. Eulogio Del Pino says. [PDVSA]
* Harvest Natural Resources announces termination of agreement to sell remaining interests in Venezuela. [LatinPetroleum.com]
* VEN producing 400 Mb/d in Lake Maracaibo despite obsolete infrastructure, PDVSA Pres. Eulogio Del Pino says [PDVSA]
* VEN's Pres. Nicolas Maduro calls for rational use of energy resources. [El Universal]
* As VEN coffee production falls the country interchanges oil for coffee with NIC. [Reuters] * VEN's oil reserves rose by 2.6 bln bbls in 2014 to reach 299.9 bln bbls at YE:14, VP Jorge Arreaza says [AVN] * PDVSA's 146 Mb/d capacity El Palito refinery still down after issues w/ air compressor halts operations; PDVSA's 645 Mb/d capacity Amuay refinery processing 370 Mb/d as problems w/ flexicoker persist; and PDVSA's 310 Mb/d capacity Cardon refinery processing 110 Mb/d due to problems w/ two distillation and one naphtha reforming unit, oil union official Ivan Freites says. [LatinPetroleum.com] * VEN says statements from GUY govt that it's trying to block activities that will lead to the development of GUY and its people, are unacceptable. [VEN Foreign Ministry] * USA oil imports from VEN fell to 743 Mb/d in Dec.2014 vs. 847 Mb/d in Dec.2013 and 800 Mb/d in Nov.2014. [EIA] * USA refined products exports to VEN rose to 150 Mb/d in Dec.2014 vs. 64 Mb/d in Dec.2013 and 87 Mb/d in Nov.2014. [EIA]
* VEN's Pres. Nicolas Maduro to visit TTO PersadBissessar and TTO Energy Minister Kevin Ramnarine to discuss bilateral issues. [Trinidad Govt] * In the short-term aftermath of the departure of Rafael Ramirez from the helm at PDVSA, LatinPetroleum.com expects more Ramirez appointees will follow suit. [LatinPetroleum.com] * Foreign exchange house say third market in VEN could be functioning next week. [LatinPetroleum.com] * VEN's Sebin intelligence police on 2.Feb.2015 detained PDVSA Western Region Director Jose Luis Parada for administrative irregularities related to contracting of fuel distribution companies, VEN's public prosecutor's office says. [LatinPetroleum.com] * VEN to spend $4.9 bln on 5 large electric projects, $795 mln on symbolic projects, VEN's Electric Energy Minister Jesse Chacon says [LatinPetroleum.com] * VEN's Electric Energy Ministry Vice-Minister Franco Silva talks in Caracas during 'Strategic Sessions' 2630.Jan.2015. [LatinPetroleum.com]
DIVESTMENT TRACKER SELLER
AMOUNT ($)
SUMMARY
COL govt Ecopetrol
$2.6 bln --
Sale of interest in hydroelectric co. postponed until 2015-2016 Ecopetrol to divest of 6.87% stock interest in Empresa de Energía de Bogotá S.A. [El Tiempo]
EQUITY/DEBT TRACKER COMPANY
AMOUNT ($)
SUMMARY
Trecsa
$$87 mln
Terpel
--
Pemex
$2.5 bln
Empresa de Energía de Bogotá (EEB) affiliate Trecsa obtains credit for electric transmission project. [El Tiempo] Terpel stock offering came in at 14,740 Colombian pesos or $7.71/share. [El Tiempo] Co. issues bonds. [Pemex]
M&A TRACKER BUYER
TARGET
AMOUNT ($ MLN)
SUMMARY
Pluspetrol Black River Corporation
Apco Oil and Gas International Inc. CGE
$470 mln
An all-cash transaction
$3.3 bln
Harvest Natural Resources
$400 mln
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 ARG’s Pluspetrol agreed to buy Harvest's Petrodelta stake for $400 mln in two cash transactions: $125 mln (Dec.2013) and $275 mln (pending). [Harvest Natural Resources]
Grupo Gas Natural Fenosa (GNF)
Pluspetrol
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