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LatAm NRGProspector
1Q:16
IN THIS ISSUE
15.April.2016
8 .. QUOTES
Venezuela "exporting corruption."
TRACKER TABLES
64 .. DIVESTMENT/M&A
65 .. EQUITY/DEBT ISSUANCES
66-68 .. ROTARY RIG TRACKER
LatAm oil, gas and misc., and onshore and offshore.
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: Venezuelas 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: Administracin Nacional de Combustibles,
Alcoholes y Portland (Uruguay)
Cupet: Cubapetrleo (Cuba)
Ecopetrol: Empresa Colombiana de Petrleos S.A.
(Colombia)
ENAP: Empresa Nacional de Petrleo (Chile)
Eni SpA: Ente Nazionale Idrocarburi (Italy)
PDVSA: Petrleos de Venezuela S.A. (Venezuela)
PEMEX: Petrleos Mexicanos (Mexico)
Petrobras: Petrleo Brasileiro S.A. (Brazil)
PetroEcuador: Ecuador
PetroPeru: Peru
Petrotrin: Petroleum Company of Trinidad & Tobago
Ltd.
YPFB: Yacimientos Petrolferos 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)
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
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ECUADOR
* Ecuador issues $400 mln in bonds (20 yr maturity)
to partially financial budget, reports El Universo.
* EP PetroEcuador received the following average
export prices in 1Q:16. Napo: $19.44/bbl in Jan.2016;
$16.38/bbl in Feb.2016; and $25.12/bbl in Mar.2016.
Oriente: $23.25/bbl in Jan.2016; $24.98/bbl in
Feb.2016; and $29.52/bbl in Mar.2016, reported the
state oil company in an official statement.
MEXICO
* Pemex fires 139 engineers and 648 platform
workers, reported LaJornada.
VENEZUELA
General
* FOR SALE Venezuela: Strategic sectors
(petroleum, natural gas, mining/metals, among
others); Location: Northern South America
w/Caribbean Sea; Resources: Crude, natural gas,
gold, aluminum, steel, coal, and others, and great
hydroelectric potential); Condition: As-is (Buyer
beware: Country in war-torn state); Cash deals
preferred; Investors from China and Russia likely to
get better deals.
* Spain's Repsol looking for a way to export Cardon
IV gas offshore to Colombia so that it can later be
exported to other markets.
Energy Crisis
Inflation
Expropriations
Gasoline
Collective Contract
* PDVSA workers to march to Miraflores Presidential
Palace to sign a collective contract which will
represent a salary increase of around 143%.
* Venezuela to sign a Collective Contract w/ oil sector
workers on 7.Jan.2016 that will benefit more than
83,000 workers, PDVSA reports.
* Despite low oil prices, oil co. bankruptcies and mass
layoffs worldwide, Venezuela's President Nicolas
Maduro says PDVSA has yet to fire any workers
during a televised broadcast via VTV.
Refining
* Utilization rates at PDVSA's 955 Mb/d capacity
Paraguana refining complex down to 48% on
8.Jan.2016 vs 59% on 9.Dec.2015 as light oil supplies
fall, says oil union official Ivan Freites.
* Venezuela lawmaker Asdrubal Chavez openly
blamed oil union official Ivan Freites for the PDVSA
Amuay refinery accident in Aug.2012.
QUOTES
VENEZUELAN LAWMAKER AMERICO DE GRAZIA ON
VENEZUELAN GOVERNMENT'S PLAN TO EXPORT
GOLD
"The only thing they are exporting is corruption,"
said Venezuelan lawmaker Americo de Grazia and
member of Venezuela's National Assembly
Permanent Energy and Petroleum Commission,
referring to announcements by the government of
Venezuela to export gold and other precious
minerals. [LatinPetroleum, 26.Mar.2016]
NRG BRIEFS
TOP PETROLEUM
VENEZUELA OIL MINISTER DEL PINO SAYS 12
COUNTRIES TO ATTEND OIL MEETING IN DOHA
Venezuela's Petroleum and Mining Minister
Eulogio Del Pino said that nearly 12 countries have
confirmed their presence at the next oil producers
meeting scheduled for 17.Apr.2016 in Doha, the
capital of Qatar.
One of the goals of the meeting is to convince the
other countries to adhere to the agreement
announced on 15.Feb.2016 by Saudi Arabia, Qatar,
Russia and Venezuela to freeze production at
Jan.2016 levels while continuing to monitor
inventories and prices, reported Venezuela's
Petroleum and Mining Ministry in an official
statement, citing Del Pino. [LatinPetroleum.com,
2.Apr.2016]
WEATHERFORD UPDATES ON 4Q15 OPERATIONS IN
LATAM
Weatherford International plc reported 4Q:15
revenues of $376 mln were down $45 mln, or 11%
from 3Q:15, and down $288 mln, or 44%, compared
to 4Q:14. Operating income of $59 mln (15.2%
margin) in 4Q:15was down 23% sequentially, and
down 49% compared to 4Q:14. The shortfall in
revenue was driven primarily by a slowdown in
customer activity which was most prominent in
Brazil, Colombia, and Mexico, while self-imposed
reductions in activity in Venezuela and Ecuador
deepened the shortfall.
ARGENTINA (ARG)
BOLIVIA (BOL)
BOLIVIA EXPORT PRICE TO ARGENTINA AND BRAZIL
FALLS IN JANUARY 2016
The average price for Bolivia's natural gas exports
to Argentina fell to $3.88/MMBtu in Jan.2016, down
37.34% compared to $6.20/MMBtu in Jan.2015,
reported the daily La Razn, citing data from Bolivia's
Hydrocarbon and Energy Ministry.
The average natural gas export price to Brazil fell
to $3.61/MMBtu in Jan.2016, down 33.39%
compared to $5.42/MMBtu in Jan.2015, reported the
daily.
Bolivia uses West Texas Intermediate (WTI) as the
index price for its natural gas exports.
[LatinPetroleum.com, 27.Mar.2016]
BOLIVIA EXPORTED 14.13 MMCM/D TO ARGENTINA
IN EARLY MARCH 2016
Bolivia exported an average 14.13 MMcm/d of
natural gas to Argentina during 1-6.Mar.2016,
volumes below the minimum 16.4 MMcm/d
established by a Purchase and Sales Agreement (PSA)
between the two nations.
The PSA signed in 2006 between YPFB and Enarsa
is good for 21 years and covers the years 2007-2028,
reports the daily La Razn.
The first amendment to the contract was signed in
Mar.2010 and established that during the summer
months (1.Jan thru 30.Apr) that the minimum
volumes to be sent from Bolivia to Argentina would
be 16.4 MMcm/d while the maximum volumes would
be 23.4 MMcm/d. [LatinPetroleum.com,
11.Mar.2016]
ARGENTINE AMBASSADOR SAYS COUNTRY TO
CONTINUE BUYING BOLIVIAN NATURAL GAS
Argentina plans to continue buying natural gas
from Bolivia, reported the daily El Diario, citing
Normando lvarez Garca, the new Argentine
Ambassador to Bolivia.
Garca said Argentina was interested in
strengthening commercial ties with Bolivia and also
interested in buying electricity from its neighbor,
without providing details of volumes or dates.
[LatinPetroleum.com, 15.Mar.2016]
CAMC -- which sold the rigs and other equipment - is being investigated after journalist Carlos Valverde
reported on insider influences between the Bolivian
government the Chinese company due to a
sentimental relation between Bolivia's President Evo
Morales and Gabriela Zapata, a former CAMC
executive.
Closed contracts executed between CAMC and
Bolivia exceed $500 mln, reported the daily.
In 2014, the Chinese company provisionally turned
over the rigs to YPFB which after inspection by the
Bolivian state oil company were said to be lacking
other essential parts and materials. The penalties
applied for the missing parts and materials amounted
to $4.4 mln, reported the daily. [LatinPetroleum.com,
15.Mar.2016]
BOLIVIA LEGISLATORS INVESTIGATE CAMC DRILLING
RIGS
Five Bolivia's legislators verified the functioning of
a drilling rig acquired from the Asian company CAMC.
The legislators, who comprise an integrated
commission in charge of investigating contracts with
CAMC, have already verified the function ability of
the 1000 Hp rig at the YPF-38 well and also plan to
visit the ITG-X3 well, where the 1500 Hp rig is
located, reported the daily La Razn.
[LatinPetroleum.com, 12.Mar.2016]
BOLIVIA'S TARIJA DEPARTMENT REVENUES TO FALL
BY MORE THAN 20 PERCENT IN APRIL 2016
Natural gas export revenues from the Tarija
department in Apr.2016 are expected to fall by more
than 20% due to low oil prices, reported the daily La
Razn, citing Tarija Coordination Secretary Waldemar
Peralta.
The department's budget for 2016 was calculated
using an estimated oil price of $45/bbl, said Peralta.
Typically, the payment of royalties is delayed by
three months, said the official.
"That's why in April when we receive payments
deferred from January, we're going see more than a
20 percent reduction in revenues."
[LatinPetroleum.com, 15.Jan.2016]
BOLIVIA'S MORALES TO SEEK INTERNATIONAL
ASSISTANCE DUE TO LOW OIL PRICES
Bolivia's President Evo Morales announced he
would seek assistance from international
organizations to combat low oil prices.
BRAZIL (BRA)
Amount
Exploration
Exploitation, development
Refining
Transportation
Commercialization
Storage
Gas network
Industrialization
Minor investments
TOTAL INVESTMENTS
$4,587
$2,694
Source: La Razn
$254
$1,172
$117
$184
$871
$2,657
$145
$12,681
COLOMBIA (COL)
COLOMBIA PRESIDENT DOWNPLAYS NEED TO
RATION ENERGY
Colombia doesn't need to ration energy use at the
moment, announced the country's President Juan
Manuel Santos.
However, XM, an affiliate of ISA, has been
pressuring the government to decree energy
rationing for six weeks with the aim to reduce energy
demand by about 5%, reported the daily El
Espectador.
The measure would apply to all residential areas
of Colombia and could be extended to cover
industries. [LatinPetroleum.com, 8.Mar.2016]
VENEZUELAN NATURAL GAS AND QUIMBO AMONG
COLOMBIA'S ENERGY PROBLEMS
The inability of Venezuela to fulfill its natural gas
export obligations to supply Colombian
thermoelectric plants and delays at the Quimbo
hydroelectric plant due to a judicial order are two
factors Colombia must consider in dealing with its
energy crisis.
Colombia was counting on electricity from Quimbo
and 39 MMcf/d of natural gas from Venezuela before
the energy crisis began, reported the daily El Tiempo,
citing energy experts.
Quimbo has a capacity to generate 5% of the
country's electricity demand while the gas from
Venezuela assisted Colombia to cover 3% of its
demand for natural gas, according to the daily.
[LatinPetroleum.com, 4.Jan.2016]
COLOMBIA CHARGED EXCESSIVELY FOR REFICAR
REFINERY UPGRADE
A project to modernize and increase the refining
capacity of the Reficar refinery to 165 Mb/d from 80
Mb/d was part of a project to assist Colombia
achieve auto-sufficiency in the production of
combustibles. However, the project which initially
had an estimated cost of $3.993 bln ended up costing
the country $8 bln and was 27 months behind
schedule, reported the daily El Tiempo.
The company in charge of the project was
Chicago-based Chicago, Bridge and Iron (CB&I).
Information seized from the company's 37 hard
drives revealed that 440 of the 2,460 contracts
signed related to the refinery had markups of over
100% while 25 had markups that exceeded 1000%,
reported the daily.
Brief History
The Reficar refinery was inaugurated in 1957 by
International Petroleum Co.. In 1974 the refinery
changed hands and became a property of Ecopetrol.
In 2001, the idea of a project to increase its
productive capacity was floated within Colombia and
work towards this end commenced in 2006-2007
with the entrance of partner Glencore. In 2009,
Glencore pulled out of the project, citing economic
problems, and the company's interest was acquired
again by Ecopetrol.
Later, CB&I, a company specialized in the
construction of energy infrastructure projects,
entered the picture and commenced plans to move
forward with a project to increase the refinery's
capacity. [LatinPetroleum.com, 7.Feb.2016]
ECOPETROL TO SUE CB&I FOR WORK RELATED TO
CARTAGENA REFINERY
Ecopetrol will go to an international arbitration
court in an attempt to recuperate an estimated $2
bln from Chicago Bridge and Iron Company (CB&I)
which it claims overcharged for the construction of
the Cartagena refinery.
The costs overruns for the Engineering,
Procurement, and Construction Contract (EPC) were
reportedly over $4 bln, reported the daily, El
Espectador.
Ecopetrol is seeking compensation of at least $2
bln for the following reasons: 1) delays and nonreasonable costs in the engineering process, 2)
programmed work that was deficient and
inadequate, 3) low productivity in all jobs performed,
4) deficient handling of materials, 5) deficiencies in
the purchase of goods and equipment, 6) managerial
deficiencies with providers, 7) non-reasonable
fabrication module costs, 8) errors in negotiating,
administration, control and closing of sub-contracts
with CB&I, 9) inadequate handling of labor relations
associated with the project and 10) unjustified delays
in the mechanical termination of the project.
[LatinPetroleum.com, 15.Mar.2016]
REFICAR REFINERY EXPORTS COULD GENERATE $1.5
BILLION A YEAR IN REVENUEs
The export of products from Colombia's Reficar
refinery could generate annual revenues of nearly
$1.5 bln, reports the daily El Tiempo.
The Reficar refinery has the capacity to produce
light combustibles and products of use by the
petrochemical sector. [LatinPetroleum.com,
6.Mar.2016]
ECUADOR (ECU)
PETROECUADOR TO MODERNIZE INSTRUMENT
MAINTENANCE LABORATORY
PetroEcuador announced plans to modernize the
instrument maintenance laboratory at the Libertad
Refinery as well as improve the automatization of
measurement controls and controls related to the
storage tanks. [LatinPetroleum.com, 31.Mar.2016]
PETROAMAZONAS INITIATES ACTIVITIES TO
EXTRACT OIL FROM ITT
PetroAmazonas initiated activities to drill the first
well at the Ishpingo-Tambococha and Tiputini (ITT)
field or Block 43, part of which is located in the
Yasun National Park.
The company initiated initial development drilling
activities from the Tiputini C platform, reported the
daily El Comercio, citing PetroAmazonas Manager
Jos Icaza and Strategic Sectors Minister Rafael
Poveda.
Brief Chronology
Exploration work from Shell led to the discovery of
the Tiputini field in 1949. Much later, PetroEcuador
discovered the Ishpingo and Tambococha fields
between 1992-1993.
In 2007, Ecuador's President Rafael Correa
presented his plan, the Yasun-ITT Initiative, which
called for leaving the ITT crude in the ground in
exchange for compensation from international
companies or organizations.
In 2013, Correa called for an end to the Yasun-ITT
Initiative and announced that exploitation of oil in
the area would generate estimated revenues of $18
bln over 30 years.
Ecuador's Assembly declared petroleum extraction
in Blocks 31 and 43, both located in Yasun, a matter
of national interest. Plans to extract crude in Yasun
were announced by YE:15. [LatinPetroleum.com,
30.Mar.2016]
MEXICO (MEX)
BIG TRANSPARENCY ISSUES FACING PEMEX IN
PLATFORM LEASING CONTRACTS
The lack of transparency in platform leasing
contracts and modifications of clauses represent a
disadvantage for Pemex, reported the daily
LaJornada.
This year, Pemex Exploration and Production, or
PEP, contracted 63 platforms (54 jack ups and 9
submersible platforms) in order to increase
hydrocarbon reserve and production levels. Sixtynine percent of the platforms, or 44, were obtained
by a direct award while 19 were obtained by
international bidding process. [LatinPetroleum.com,
26.Mar.2016]
PEMEX SIGNS CONTRACT TO BOOST NITROGEN
ACQUISITONS
Pemex signed a nitrogen services and supply
contract with the aim to recuperate 800 MMbbls of
petroleum over the next 11 years through the
application of well pressure maintenance.
The contract was signed with Compaa Nitrgeno
de Cantarell S.A. de C.V., a company of The Linde
Group, reported the daily LaJornada.
Pemex, which has been conducting alternative
fluid studies of the Cantarell field since 1997, has
proved that nitrogen gas is the best injection material
to recuperate petroleum. [LatinPetroleum.com,
11.Jan.2016]
SEVEN COMPANIES TO INVEST $2.1 BILLION ON
SOLAR AND WIND ENERGY PROJECTS
Mexico's Federal Electricity Commission
(Comisin Federal de Electricidad or CFE by its
Spanish acronym) will buy solar and wind energy
from seven companies that won the first long-term
bid for clean energy and electric energy certificates.
The seven winning companies will invest around
$2.116 bln over the next 3-years to develop different
projects, reported the daily LaJornada.
The winning companies include: SunPower
Systems Mxico, Enel Green Power Mxico, Parque
Elico Reynosa III, Gestamp Wind Mxico, Recurrent
Energy Mxico, Alten Energas Renovables and
Energa Renovable del Istmo, announced Mexico's
Electricity Undersecretary Csar Hernndez and the
director of Mexico's National Energy Control Center
(Centro Nacional de Control de Energa or Cenace by
its Spanish acronym).
PERU (PER)
OIL OPERATORS WORRIED ABOUT CREATION OF
MARINE RESERVE IN NORTHERN PERU
A proposal by Sernanp to create a marine reserve
in northern Peru worries oil companies from Piura
and Tumbes which fear it may threaten their
exploration activities.
The companies include Karoon, BPZ (Alfa Energy),
Savia and Gold Oil; operator of five offshore lots,
reported the daily El Comercio.pe.
Creation of the marine reserve creates uncertainty
about the future of petroleum sector investments in
northern Peru, the daily reported, citing Peru
Hydrocarbon Society President Rolando Egsquiza.
Officials with the country's National Mining,
Petroleum and Energy Society shared similar
comments about the new marine reserve initiative.
The creation of the Pacific Tropical Sea Reserve
(Mar Pacfico Tropical, in Spanish) could interfere
with BPZ's exploration project in the south of Lot Z-1,
announced a representative with the company.
"We are working with an EIA rough draft to drill in
the area. However, the creation of a protected area
would affect the capacity of our parent company,
Alfa Energy, to compete with other projects
worldwide that don't have to encounter similar
problems," reported the daily, citing BPZ
representative Carmen Castellanos.
The marine reserve also threatens to affect
Australian company Karoon, which plans to drill some
of the deepest submarine wells in Peru in Lot Z-38,
reports the daily.
"The Sernanp administers eight protected areas
that belong to 12 petroleum lots and activities there
haven't been affected," reported the daily, citing
Sernanp Manager, Pedro Gamboa. "To the contrary,
we are working in harmony with the operators there.
This is the same thing that we want to do with
operators in the Pacific Tropical Sea Reserves."
URUGUAY (URY)
URUGUAY SENATE APPROVES MARTA JARA AS NEW
ANCAP PRESIDENT
The Senate of the Southern Cone nation Uruguay
approved the appointment of Marta Jara as the new
president of ANCAP.
The senate also approved on 8.Mar.2016 the
appointment of Juan Carlos Herrera as the company
Vice President and Laura Saldanha as a member of
the company's board of directors, reported the daily
LaRed21.
"It is important to see how we transform a crisis
into an opportunity," reported LaRed21, citing Jara.
"To be at the head of the company is an enormous
challenge and a large responsibility."
Executive profile
Marta Jara Otero was born in Montevideo in 1964.
She is married and has two children, reports the daily
LaRed21.
Jara is a chemical engineer graduated from the
Buenos Aires University. She has a Masters in
Strategic Financial Management obtained at
Kingston University. Jara has over 21 years of
international experience, having spent the last 15
years specializing in natural gas and liquefied natural
gas. She has participated in regasification terminal
projects in Mexico, including one in Altamira in 2004
and another at Ensenada in 2008 as well as having
worked in Argentina and Venezuela (Shell
Venezuela).
VENEZUELA (VEN)
LATAM ENERGY INVESTOR WATCH LIST BRIEF
Venezuela: LatAm Country With Most Attractive
Crude Oil and Natural Gas Reserves, and Production
Potential
Investment Considerations:
OPEC member country Venezuela holds the
world's largest crude oil reserves and consistently
ranks among the world's top 5 largest exporters of
crude oil to the USA.
Blessed with an immense hydrocarbon
(conventional and non-conventional crude oil
reserves and associated and non-associated natural
gas reserves) resource base, Venezuela has attracted
companies the world over to participate in the
development and expansion of the country's
hydrocarbon industry.
Under an ambitious business plan, Venezuela's
state oil company PDVSA aims to nearly double the
country's production of crude oil with a special focus
on production increases from the prolific Orinoco
Heavy Oil Belt or Faja. However, declines in light oil
production, and a shortage of diluent is creating
havoc on PDVSA's export strategy which includes
exports of the following blends: 1) upgraded or
syncrude from the countries' four upgraders, 2) a
diluted crude oil (DCO), a blend of Faja heavy oil plus
naphtha, 3) a blend of Faja heavy oil plus imported
light oil, and 4) a blend of Faja heavy oil plus
Venezuela light oil.
The country also has enormous natural gas
production potential offshore at the Rafael Urdaneta
project (Cardon IV) where natural gas production
commenced in 2015. Additional reserve and
production potential can be found at Mariscal Sucre
and Deltana projects offshore.
Investment Constraints
A takeover and nationalization trend that started
to take shape in 2005 under then President Hugo
Chvez is still a constant threat under President
Nicolas Maduro. The continued uncertainty that
surrounds the petroleum sector has effectively
spooked investors and is a constant concern, while
uncertainties regarding sanctity of contracts remain a
constant. Currency controls and multi-official
exchange rates also complicate the financial scenario
while cash constrained PDVSA doesn't have financial
or administrative capacity to move forward the
small-to-large projects. Rumors of widespread
corruption at PDVSA only help to feed doubt among
potential investors about their partner (potential
partner to be) and the host country in general.
Other considerations:
The pull back in oil prices has severely hampered
PDVSA's ability to maintain investment or attract
investments from JV partners. Yet, Venezuela is still
desperately reaching out to foreign oil companies
and countries such as Russia, China, India and others
for investment capital, technology and know-how.
The prolonged economic and political crises point to
a doubtful and pessimistic scenario for positive
progress in the country's petroleum sector in 2016. If
either crisis is extended, the outlook for the oil sector
will likely follow suit in coming years even with a
slight recovery in oil prices.
The upside potential across all energy sectors in
Venezuela is too hard for Big Oil to turn down.
However, the present day economic and political
scenarios, coupled with the low oil price scenario, is
forcing Big Oil to take an extended 'wait-and-see'
attitude in the only 'Middle Eastern' country, oil
resource speaking, in South America.
TABLE 2: TOP 5 INTERNATIONAL COMPANIES
TO WATCH IN VENEZUELA
CNPC (China)
Rosneft (Russia)
Repsol (Spain)
Chevron Corp. (USA)
Eni (Italy)
Source: LatinPetroleum
New Price
Old Price
95 Octane
91 Octane
6 bsf/liter
1 bsf/liter
0.097 bsf/liter
0.070 bsf/liter
[LatinPetroleum.com, 29.Feb.2016]
VENEZUELA PRODUCING 2.9 MMB/D OF CRUDE OIL
Venezuela is producing 2.9 MMb/d of crude oil, of
which 510 Mb/d is being consumed in the domestic
market, reported the daily Globovision, citing PDVSA
President Eulogio Del Pino. [LatinPetroleum.com,
29.Feb.2016]
PDVSA REFINING VP SAYS IT WAS NECESSARY TO
INCREASE GASOLINE PRICES
"It is very clear with the Venezuela citizens that
this was the moment to adjust the price of gasoline,"
reported PDVSA in an official statement, citing the
company's Vice President of Refining, Commerce and
Supply Jess Luongo.
PDVSA has to invest $370 mln to produce its 95
octane gasoline, said Luongo.
"An estimated 70 percent of the vehicle park
should use 91 octane gasoline," said the executive.
"It's necessary for drivers to read their car's manual
as many will find that their autos don't need the
higher octane gasoline." [LatinPetroleum.com,
18.Feb.2016]
VENEZUELA MAINTAINS PRICE OF ITS DIESEL FUEL
Venezuela increased the price of its 95 octane and
91 octane grade gasolines but did not increase the
price of its diesel fuel.
Diesel fuel is used by more than 250,000 vehicles
in Venezuela in the area of public transportation,
reported Venezuela's Petroleum and Mining
Ministry, citing the country's Energy Minister Eulogio
Del Pino.
2014
625
305
930
645
310
955
195
130
15
5
1,275
187
140
16
5
1,303
Source: PDVSA
2015
2014
$6,814
$36,937
$43,751
$5,865
$39,871
$45,736
2014
$30,153
$434
$171
$737
$4,503
$1
$35,999
$33,263
$420
$0
$1,177
$6,135
$1
$40,996
$2,160
$1,681
$241
$4,082
$742
$918
$247
$1,907
$0
$0
$0
$76
$1
$77
PDVSA Petrleo
Bonds
Credit facility
Total PDVSA Petrleo
$2
$1,950
$1,952
$2
$1,477
$1,479
CVP, S.A.
PetroAnzoategui bonds
PetroPiar credit facility
PetroCedeo credit facility
PetroWarao credit facility
PetroZamora credit facility
P. Sinovensa credit facility
PetroBoscn credit facility
PetroQuiriquire credit facility
PetroDelta loan
Total CVP
$4
$5
$56
$17
$73
$699
$461
$0
$20
$1,335
$5
$0
$40
$0
$8
$291
$297
$45
$0
$686
$110
$39
$148
$297
$124
$83
$173
$380
$0
$0
$86
$92
$16
$103
$43,751
$45,736
Exploration
Production
Refining
Commerce, Supply
PDVSA Gas
Non-petroleum sector
Electric projects
Other affiliates
TOTAL INVESTMENTS
2015
2014
$240
$8,785
$1,791
$110
$784
$1,768
$351
$656
$14,486
$198
$12,908
$1,364
$523
$4,349
$3,551
$652
$872
$24,418
2014
Operating cost
Other cost and expenses
Sub-Total Cost and Expenses
$34,437
$13,816
$48,253
$30,015
$23,636
$53,651
Investments
Social development
$14,486
$2,815
$24,418
$1,970
TOTAL
$65,554
$80,039
2014
Revenues
$88,554
$120,892
$23,429
$19,756
$9,099
$7,063
$4,650
($216)
$12,550
$76,331
$34,317
$27,116
$8,038
$13,466
$4,001
$94
$9,427
$96,459
$12,223
$3,559
$8,664
$24,433
$5,321
$19,112
Income taxes
After Tax Income
$1,717
$6,947
$5,177
$13,935
Discontinued operations
NET INCOME
$1,506
$8,453
($2,860)
$11,075
Employee benefits
TOTAL INTEGRAL INCOME
$0
$8,453
$1,390
$12,465
COMPANY BRIEFS
HELMERICH & PAYNE, INC.
Helmerich & Payne, Inc. is primarily a contract
drilling company. As of 28 January 2016, the
company's existing fleet includes 347 land rigs in the
USA, 38 international land rigs, and nine offshore
platform rigs. In addition, the company is scheduled
to deliver another three new H&P-designed and
operated FlexRigs*, all under long-term contracts
with customers. Upon completion of these
commitments, the company's global fleet is expected
to have a total of 388 land rigs, including 373 AC
drive FlexRigs.
ROWAN
Rowan is a global provider of contract drilling
services with a fleet of 31 mobile offshore drilling
units, composed of 27 self-elevating jack-up rigs and
four ultra-deepwater drillships. The company's fleet
operates worldwide, including the US Gulf of Mexico,
the United Kingdom and Norwegian sectors of the
North Sea, the Middle East, Southeast Asia and
Trinidad. The company's Class A Ordinary Shares are
traded on the New York Stock Exchange under the
symbol "RDC."
ECOPETROL, S.A.
Headquartered in Colombia, Ecopetrol is the
largest integrated oil and gas company in Colombia.
It is responsible for over 60 percent of total
Colombian oil production and has a proved
hydrocarbon reserve position of roughly two billion
barrels of oil equivalent at the end of 2014.
For the twelve months 30 September 2015, the
company generated revenues of $22.5 billion and it
had total assets of $59 billion through three business
segments, exploration and production (E&P, 51
percent of revenues and 56 percent of EBITDA for the
last 12-months ended 31 September 2015), refining
activities (34 percent of revenues and 5 percent of
EBITDA), and transportation and logistics (15 percent
of revenues and 39 percent of EBITDA), according to
Moody's. Its production averaged 740.9 Mboe/d in
the third quarter of 2015, 2 percent below that of the
year before.
BAKER HUGHES
Baker Hughes is a leading supplier of oilfield
services, products, technology and systems to the
worldwide oil and natural gas industry. The
company's 43,000 employees today work in more
than 80 countries helping customers find, evaluate,
drill, produce, transport and process hydrocarbon
resources.
PARKER DRILLING
Parker Drilling provides drilling services and rental
tools to the energy industry. The company's Drilling
Services business serves operators in the inland
waters of the US Gulf of Mexico utilizing Parker
Drilling's barge rig fleet and in select US and
international markets and harsh-environment
regions utilizing Parker-owned and customer-owned
equipment. The company's Rental Tools Services
business supplies premium equipment and well
services to operators on land and offshore in the US
and international markets.
RATING UPDATES
MOODY'S ASSIGNS CAA1 RATING TO YPF'S
PROPOSED USD 1 BILLION IN GLOBAL NOTES;
POSITIVE OUTLOOK
Moody's Investors Service (Moody's) assigned a
Caa1 global foreign currency rating to YPF Sociedad
Anonima's (YPF)'s proposed $1 billion in notes due in
2021. These notes will be issued in the global capital
markets. The proceeds of the notes will be used for
capital expenditure and working capital purposes.
The outlook on the ratings is positive.
RATINGS RATIONALE
Since YPF is majority owned and controlled by the
Argentine government, YPF's Caa1 rating reflects the
application of Moody's joint default rating
methodology for government-related issuers (GRIs).
YPF's Caa1 rating combines its underlying Baseline
Credit Assessment (BCA), which expresses a
company's intrinsic credit risk, of b3; the Caa1 local
currency rating and positive outlook of the Argentine
government; and Moody's view of moderate support
from and high dependence on the sovereign.
NRG REEL
TOP FINANCIAL
ECOPETROL PUBLISHES THE OFFERING NOTICE
REGARDING THE SECOND STAGE OF THE EQUITY
DIVESTMENT PLAN FOR ITS SHARES IN
INTERCONEXIN ELCTRICA S.A. E.S.P (ISA)
Ecopetrol S.A. announced on 4 March 2016, as
required by the Divestment Regulation (Reglamento
de Enajenacin), the company published the offering
notice regarding the second stage of Ecopetrol's
equity divestment plan for its shares in Interconexin
Elctrica S.A. E.S.P (ISA) in a newspaper widely
circulated in Colombia.
STRATEGIC RATIONALE
The PUT-7 Block is highly prospective in the
company's view. Based on an NI 51-101 independent
report prepared by GLJ Petroleum Consultants Ltd.,
as of 31 December 2014, there were 1.9 MMbbls of
Proved plus Probable reserves with respect to the 50
percent undivided working interest of Petroamerica
Oil Corp. In addition, the company believes there are
multiple seismically identified drill ready exploration
prospects on the PUT-7 Block, including the emerging
N Sands play.
"This acquisition is strategic to the company in
consolidating reserves and high potential exploration
opportunities in the Putumayo Basin, and throughout
the hydrocarbon producing basins in Colombia," said
Gran Tierra President and CEO Gary Guidry. "This
operated block will provide a focal point for potential
new infrastructure in the southern Putumayo as we
begin the exciting exploration and development
programs in this region."
The acquisition has the following characteristics
and metrics:
TABLE 10: SUMMARY OF THE ACQUISITION
Total consideration
$19 mln
65,093 acres
1.9 MMbbls
$10.00/bbl
TOP PETROLEUM
CITGO EMERGES WITH INTEREST IN VALERO'S
SHUTTERED ARUBA REFINERY
Houston-based Citgo Petroleum could be Valero's
last hope to divest of its 235 Mb/d refinery located in
San Nicolas, Aruba's second largest city.
San Antonio-based Valero's plans to dismantle the
shuttered refinery in Aruba had been extended as
the company and government collectively sought a
potential party to buy and run the plant shut since
2012 due to financial losses.
Citgo appears to be interested in the Aruba
refinery, according to reports by Reuters.
"From Valero's perspective, we have been working
with the government to explore options, including a
sale, for several years," said Valero media relations
official Bill Day in an interview in late 2015. "Valero
ceased production at the Aruba refinery in2012
because of steep financial losses at the plant and
since it had very high operating cost compared with
more competitive Gulf Coast refineries."
Valero's refinery was officially closed in September
2012 for economic reasons although the company
continued to operate the petroleum and by-product
storage terminal. Valero has no intentions to reopen
the refinery and plans to dismantle it if no interested
party emerges to buy and run the plant, said Day.
"No timetable has been set for final
dismantlement. The storage terminals continue to
operate and are not affected by what happens with
the refinery," according to Day.
Venezuela's Interest
Years of under investment on maintenance,
upgrades and safety protocols by PDVSA have left
the company's domestic refineries at less than
optimal conditions. Persistent problems continue to
affect the company's main refineries and their
flexicoker, fluid catalytic cracker and other units, said
oil union official Ivan Freites and Jos Bodas in phone
interviews from Punto Fijo and Barcelona,
respectively.
"Being a refinery with a coker it should be of
interest because it allows you to process Venezuelan
heavy crudes and produce a lighter product which
can then be exported to wherever you want to take
it," said oil consultant and Sivensa Director Arnold
Volkenborn in a phone interview from Caracas
referring to Valero's Aruba refinery.
The refinery can presumably handle Venezuelan
heavy crude. So, it would an interesting addition,
regardless to the condition of Venezuela's existing
refineries, said Volkenborn, who is also a former
president of Venezuela's petrochemical company
Pequiven.
"The Aruba refinery would be an interesting
addition to your being able to market heavy crudes.
There are relatively few refineries in the world that
can handle heavy crude and this is one of them," said
Volkenborn. "It is an important strategic addition
simply by virtue that it has deep conversion
capacity," said the executive.
The Aruba refinery has a coker and visbreaker,
among other units, according to Day. When
operating it processes primarily heavy sour oil and
produces mostly intermediate feedstocks and
finished distillate products. Significant amounts of
the refinery's intermediate feedstock production is
transported and further processed at Valero's other
refineries in the Gulf Coast, West Coast and
Northeast regions, according to Valero's 10-K
regulatory filing.
The refinery receives oil by ship at its two deepwater marine docks, which can berth ultra-large
crude carriers. The refinery has 63 storage tanks with
almost 12 million barrels of storage capacity,
according to Valero.
Venezuelan oil exports generate 95 percent of the
country's export earnings. The collapse in oil prices
stoke constant concerns that Venezuela will run out
of money.
Citgo's parent company, PDVSA, as the Caracasbased company is known, has divested of refining
assets abroad, curtailed sales of cheap oil to allies
and renegotiated debt with PetroCaribe member
countries in a bid to shore up funds. [LatinPetroleum,
1.Jan.2016]
SWIBER COMPLETES SUBSEA PIPELINE
INSTALLATION PROJECT OFF SOUTH AMERICA
Singapore-based Swiber Holdings Limited
completed a multi-million dollar platform and subsea
pipeline installation project in South America. The
platform is considered to be the world's
southernmost platform project.
The project, awarded in September 2013, by an oil
and gas company in South America, was for the
jacket and topside installation of a wellhead platform
and its 24 inch and 4 inch pipelines of 43.5 miles (70
kilometers) each. The scope of work included
transportation and installation of the platform as well
as two subsea pipelines spanning 43.5 miles (70
kilometers) each.
Swiber's team working on the project had to
endure very rough weather conditions offshore such
as high wind speeds of up to 80 knots, very high
maximum wave heights of up to 32.8 feet (10
meters), and below zero-degree temperatures.
The offshore platform structures and line pipes for
the project were transported from Spain and France
respectively by cargo barges on a dry tow vessel and
by bulk carriers Swiber has been securing new
contracts amid a more challenging market and new
contract wins have boosted the Group's order book
to a record $1.5 billion as at 13 November 2015.
[Swiber Holdings Ltd., 4.Feb.2016]
PETROBRAS BUYS FIRST SHIPMENT OF LNG
PRODUCED IN AMERICAN SECTOR OF GULF OF
MEXICO
In the next few days, Petrobras will receive its first
shipment of liquefied natural gas (LNG) produced in
the American portion of the Gulf of Mexico. The LNG
tanker Asia Vision was loaded up on 24 February
2016 at the Sabine Pass Terminal in Louisiana with
160,000 m of LNG, equivalent to 96 million m of
natural gas. The fuel will be taken to Petrobras'
regasification terminal in All Saints Bay, Bahia.
The commercial operation involves Cheniere, an
American company that is building seven natural gas
liquefaction facilities in the Gulf of Mexico. This is the
first shipment of LNG produced by the company and
also the first shipment of LNG produced in the
continental United States.
TOP REFINERY
ECOPETROL ANNOUNCES A STRATEGIC ROAD MAP
FOR THE BARRANCABERMEJA REFINERY FOR THE
PERIOD 2016-2020
Ecopetrol reports that its Board of Directors
approved a 2016-2020 road map for the
Barrancabermeja Refinery, with the objective of
maximizing its long-term competitiveness and
sustainability, as established in Ecopetrol's strategic
plan announced in May 2015 .
The crude oversupply in the international oil and
gas markets has deteriorated oil prices. Under this
environment, Ecopetrol, in line with industry trends,
has focused on making its operations profitable by
optimizing costs and implementing strict austerity
measures, in addition to adjusting its investment
plan, only approving projects that create the highest
value and generate the most cash flows in the shortterm.
In this challenging scenario, and in an effort to
ensure the financial sustainability of the Ecopetrol
group, Ecopetrol has decided that it is necessary to
suspend the Barrancabermeja Refinery
Modernization Plan (PMRB) until the oil price
environment allows investments to be made in such
a major project.
The Barrancabermeja Refinery is a fundamental
asset for diversifying risks among Ecopetrol's various
businesses. It is necessary to improve the Refinery's
operating excellence, increasing cash generation and
implementing new measures that will allow the
Barrancabermeja Refinery to become an efficient
asset that is operated according to the best
international standards. The Barrancabermeja
Refinery achieved excellent operating results in 2015.
Looking forward, Ecopetrol will make incremental
investments in order to ensure reliability and
integrity of the performance of the Barrancabermeja
Refinery, as well as investing in programs that are
critical for its operation and maintenance. [Ecopetrol
S.A., 7.Mar.2016]
BRAZIL
PETROBRAS COMMENTS ON ADJUSTMENTS TO THE
2015-2019 BUSINESS AND MANAGEMENT PLAN
NOTE: Tables Not Provided Throughout This
Article
Petrobras' Board of Directors approved some
adjustments to the 2015-2019 Business and
Management Plan (2015-2019 BMP).
These adjustments are designed to preserve the
fundamental objectives of deleveraging and
generation of value for shareholders laid down in the
2015-2019 BMP in light of new oil price and exchange
rate levels.
New Brent crude price and exchange rate on
which cost and investment projections are based:
Given these new baselines, investments for 2015
and 2016 have also been revised, prioritizing Brazilian
oil exploration and production (E&P) projects,
especially those in the pre-salt layer.
Projected manageable operating costs for 2015
were maintained at $29 billion, while the estimate
for 2016 is currently under review within the scope
of the ongoing annual budget.
Divestments for 2015-2016 were maintained at
$15.1 billion, after reaching $0.7 billion in 2015.
This adjustments for 2015 and 2016 led to a reevaluation of the company's portfolio of projects for
the five years covered by the 2015-2019 BMP and
consequent adjustment of the overall investment
portfolio, as shown below.
This new 2015-2019 capex figure of $98.4 billion
represents a reduction of $32 billion on the previous
amount ($130.3 billion), and is the result of portfolio
optimization (- $21.2 billion) and the exchange rate ($10.7 billion).
These adjustments to the investment portfolio
resulted in a reduction in projected Brazilian oil
production in 2016 from 2.185 MMb/d to 2.145
MMb/d and from 2.8 MMb/d to 2.7 MMb/d in 2020.
Petrobras oil production in Brazil averaged 2.128
MMb/d in 2015, 0.15 percent up on the target of
2.125 MMb/d, 4.6 percent up on the 2014 figure
(2.034 MMb/d) and a new annual record for the
company, exceeding the previous record, set the year
before.
Petrobras has been making continuous
improvements to its Business and Management Plan
and rapidly adapting to changes in the business
environment, honoring its commitment to capital
discipline and profitability.
COLOMBIA
2015 ECOPETROL'S PROVEN RESERVES REACH 1,849
MILLION BARRELS OF OIL EQUIVALENT
Ecopetrol announced its proven reserves (1P,
according to the international designation) of crude
oil, condensate and natural gas owned by the
company, including its interest in affiliates and
subsidiaries, as of 31 December 2015.
The reserves were estimated based on the U.S.
Securities and Exchange Commission (SEC) standards
and methodology. 99 percent of them were audited
by two well-known specialized independent
companies (Ryder Scott Company and DeGolyer and
MacNaughton).
Ecopetrol's Proven net hydrocarbon reserves were
1,849 MMboe at the close of 2015, an 11 percent
reduction compared with 2,084 MMboe at the end of
2014. The reserve replacement ratio was 6 percent,
and the reserves/production ratio (average life of
reserves) was 7.4 years.
MMboe
As of 31.Dec.2014
Revisions of previous
estimates
Purchases of minerals in
place
Improved recovery
Extensions and discoveries
Sales of minerals in place
Production
As of 31.Dec.2015
2,084
Source: Ecopetrol
(25)
0
16
24
0
(251)
1,849
VENEZUELA
CRYSTALLEX UPDATES STAKEHOLDERS ON ICSID
VENEZUELA CLAIM
Crystallex International Corporation awaits the
final award of the arbitral tribunal constituted under
the rules of the Additional Facility of the World
Bank's International Centre for Settlement of
Investment Disputes (ICSID) to decide its $3.16
billion (plus interest) claim against the Bolivarian
Republic of Venezuela in relation to the unlawful
expropriation of its investment in the Las Cristinas
mining project pursuant to the Agreement between
the Government of Canada and the Government of
the Republic of Venezuela for the Promotion and
Protection of Investments (the "Treaty"). The arbitral
proceedings were formally closed in December 2015
following the completion of the parties' oral and
written submissions in January 2015.
As a result of recent public announcements by
Gold Reserve Inc. and Venezuelan government
officials, Crystallex has become aware that Gold
Reserve and Venezuela have entered into a
memorandum of understanding that contemplates,
among other things, a settlement of Gold Reserve's
$740.3 million ICSID award against Venezuela under
the Treaty. Based on these public announcements,
Crystallex understands that the agreement
contemplates a joint venture to mine two properties:
the Las Brisas property, which was the object of Gold
Reserve's Treaty claim and award against Venezuela,
and the Las Cristinas property which is the object of
the Crystallex's arbitral claim. For the avoidance of
doubt, Crystallex has not taken part in the
negotiations between Gold Reserve and Venezuela,
or any other negotiations with Venezuela with
respect to its claim, and will receive no benefits
under the agreement.
Venezuelan government officials -- including
President Nicolas Maduro, President of PDVSA and
Minister of Petroleum and Mines Eulogio Del Pino
and Central Bank President Nelson Merentes -- have
announced that the combined Brisas-Cristinas project
contemplated in the memorandum of understanding
with Gold Reserve is valued at $5 billion. [Crystallex
International Corporation, 1.Mar.2016]
Venezuela
During the three months ended 31 December
2015, Petrodelta sold approximately 4.1 million
barrels of oil (MMbbls) for a daily average of 44,398
barrels of oil per day (b/d), an increase of 9 percent
over the same period in 2014 and 14 percent higher
than the previous quarter in 2015. Petrodelta sold
0.81 billion cubic feet (Bcf) of natural gas for a daily
average of 8.8 million cubic feet per day (MMcf/d),
decreasing 19 percent over the same period in 2014,
and decreasing 23 percent over the previous quarter
in 2015. Petrodelta's current production rate is
approximately 44,874 b/d.
During the fourth quarter of 2015, Petrodelta
drilled and completed three development wells in
the El Salto field. Currently, Petrodelta is operating
five drilling rigs and one workover rig and is
continuing with infrastructure enhancement projects
in the El Salto and Temblador fields.
The average sales price for crude oil produced
during the quarter was approximately $25.03 per
barrel, compared to $61.96 per barrel during the
fourth quarter of 2014 (adjusted for the approved El
Salto contract recorded during the fourth quarter not
associated with fourth quarter revenue).
The average sales price for crude oil produced
during the year ending 31 December 2015 was
approximately $36.92 per barrel, compared to
$82.45 per barrel during the year of 2014 (adjusted
for the approved El Salto contract recorded during
the fourth quarter not associated solely with 2014
revenue).
During the twelve months ended 31 December
2015, Petrodelta drilled and completed 18 successful
development wells, compared to 13 development
wells in 2014. Petrodelta produced approximately
14.76 MMbbls in 2015, compared to 15.56 MMbbls
during 2014, a decrease of 5 percent year over year.
In addition, Petrodelta sold 3.93 Bcf of natural gas
versus 2.98 Bcf of natural gas in 2015, an increase of
32 percent over 2014. Petrodelta produced an
average of 42,237 barrels of oil equivalent per day
during the twelve months ended 31 December 2015.
As a result of the continued downturn in oil prices,
political and economic uncertainty, continued
deterioration in value of the Bolivar currency in
Venezuela, and the inability to influence the
operations of Petrodelta, the company recorded an
impairment expense on its investment in Petrodelta
of $84 million, net to Harvest's 51 percent interest in
Harvest Holding.
EXECUTIVE SUITE
TWO NEW MEMBERS APPOINTED TO PDVSA BOARD
OF DIRECTORS
PDVSA announced appointment of two new
members to its Board of Directors, by decree #2183,
signed by Venezuelan President Nicols Maduro and
published in Official Gazette #40826 on 12 January
2016, in accordance with the existing legal
framework.
Ana Mara Espaa Girardi joins the board as Vice
President of Finance and Internal Director, and Sergio
Antonio Tovar Amaro joins as Internal Director of
Planning.
People's Minister of Petroleum and Mining Eulogio
Antonio Del Pino Daz was ratified as President of the
company. Also ratified were Vice President of
Exploration and Production Orlando Enrique Chacn,
Vice President of Refining, Trade and Supply Jess
Enrique Luongo; Vice President of International
Affairs and Internal Director Delcy Elona Rodrguez
Gmez, Internal Director Aracelis Coromoto Suez de
Vallejo, Internal Director Antn Rafael Castillo, as
well as External Directors Rodolfo Clemente Marco
Torres, Wills Rangel, and Ricardo Menndez Prieto.
[PDVSA, 15.Jan.2016]
PDVSA NAMES FERNANDO PADRN AS NEW
GENERAL MANAGER OF THE CRP
PDVSA named Fernando Padrn as the new
general manager to oversee the company's
Paraguan Refining Center (CRP by its Spanish
acronym) located in Falcn state in the city of Punto
Fijo, in western Venezuela.
DIVESTMENT TRACKER
SELLER
AMOUNT ($)
SUMMARY
Petrobras
$25 mln
$101 mln
COL govt
Ecopetrol
$2.6 bln
--
Petrobras signed with PetroRio S.A. contracts for the sale of 20% of
its stake in the concessions of Bijupir and Salema fields, currently
operated by Shell.
Sale of all of Petrobras Argentina (PESA) assets in the Austral Basin
(province of Santa Cruz) to Compaia General de Combustibles S.A.
(CGC).
Sale of interest in hydroelectric co. postponed until 2015-2016
Ecopetrol to divest of 6.87% stock interest in Empresa de Energa de
Bogot S.A. [El Tiempo]
M&A TRACKER
BUYER
TARGET
AMOUNT ($ MLN)
SUMMARY
Unclosed
Propilco S. A.
PetroGranada Limited
$19 mln
$322 mln
$470 mln
$400 mln
Pluspetrol
$3.3 bln
EQUITY/DEBT TRACKER
COMPANY
AMOUNT ($)
SUMMARY
Pemex
Pemex
Pemex
Pemex
$750 mln
$1,250 mln
$3,000 mln
0.900 bln
Pemex
1.350 bln
Pemex
5 bln pesos
$76.35 mln
--
Terpel
--
Pemex
$2.5 bln
$87 mln
Gas
Misc.
LatAm
Land
OS
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
Argentina
Bolivia
Brazil
Chile
Colombia
Costa Rica
Ecuador
Mexico
Peru
Trinidad
Venezuela
Other
Total LatAm
Source: Baker Hughes
Mar.2016
Land
OS
Feb.2016
Land
OS
Jan.2016
Land
OS
Dec.2015
Land
OS
67
5
15
2
4
0
3
10
1
2
67
2
178
64
5
18
3
7
0
4
16
1
2
65
2
187
71
6
19
3
8
0
1
18
0
2
62
2
192
90
5
17
1
11
0
2
18
2
2
63
2
213
1
0
13
0
0
0
0
17
0
5
4
0
40
1
0
17
0
0
0
0
23
0
5
4
0
50
1
0
15
0
0
0
0
25
0
5
5
0
51
1
0
21
0
1
0
0
24
0
5
5
0
57
Argentina
Bolivia
Brazil
Chile
Colombia
Costa Rica
Ecuador
Mexico
Peru
Trinidad
Venezuela
Other
Total LatAm
Oil
Mar.2016
Gas
Misc.
LatAm
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
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
Oil
Feb.2016
Gas
Misc.
LatAm
56
3
33
1
6
0
4
32
0
3
69
2
209
9
2
2
2
1
0
0
3
1
4
0
0
24
65
5
35
3
7
0
4
39
1
7
69
2
237
LatAm
92
5
38
1
12
0
2
42
2
7
68
2
270
0
0
0
0
0
0
0
4
0
0
0
0
4
Argentina
Bolivia
Brazil
Chile
Colombia
Costa Rica
Ecuador
Mexico
Peru
Trinidad
Venezuela
Other
Total LatAm
Source: Baker Hughes
Oil
Jan.2016
Gas
Misc.
LatAm
Oil
Dec.2015
Gas
Misc.
63
2
32
1
8
0
1
37
0
3
67
2
216
9
4
2
2
0
0
0
3
0
4
0
0
24
72
6
34
3
8
0
1
43
0
7
67
2
243
81
2
36
0
11
0
2
36
2
3
67
2
242
10
3
2
1
1
0
0
3
0
4
1
0
25
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
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
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
YTD AVG.2016
$27.46
$35.22
$36.94
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