YPFB Reports Explosion Along Santa Cruz-Yacuiba Gas Pipeline

(Energy Analytics Institute, Jared Yamin, 19.Oct.2018) — An explosion along a portion of a pipeline that transports natural gas to Argentina injured a total of five people.

Bolivia’s state oil entity Yacimientos Petrolíferos Fiscales (YPFB) has initiated an investigation to establish the causes and origin of the incident, reported the daily La Razón.

“This event has been sudden and unexpected. We don’t know the causes … however it is being investigated,” reported the daily, citing YPFB National Vice President of Operations Gonzalo Saavedra in an interview with Cadena A.

At noon on October 19, an explosion occurred along a portion of GSCY (Santa Cruz – Yacuiba) gas pipeline in the city of Villa Montes, in the department of Tarija. The explosion was controlled in a couple of hours.

All the injured were transferred by helicopter from Villa Montes to a medical center in Santa Cruz de la Sierra due to the severity of the burns. Among the victims there are two children, the daily reported.

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Bolivian Refineries Cover 71.4% Of Domestic Demand for Special Gasoline

(Energy Analytics Institute, Jared Yamin, 19.Oct.2018) — Production of special gasolines from Bolivia’s three existing refineries isn’t sufficient to cover the country’s demand.

Domestic supply only covers 71.4% of domestic market demand, down 2% compared to 2017, and down 5% between January and May of the current year, reported the daily El Diario.

In May 2018, the Jubilee Foundation reported the Gualberto Villarroel, Guillermo Elder Bell and Río Negro refineries produced a combined 3,570,000 liters per day of gasoline versus demand of 5,000,000.

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Brazil Reserves And Production Update, H1 2018

(Seeking Alpha, George Kaplan, 19.Oct.2018) — Brazil and Petrobras show something in common with US LTO: even with a lot of debt and desire, and a strong resource base, it is difficult to raise production in the face of high decline rates. It may also be a lesson for the world as oil prices rise and activity picks up; it is by far the most active conventional oil region with many major projects at various stages of completion, but facing delays and schedule crowding so oil production has continued a slow decline, contrary to expectations from last year. In July, new production again did not quite match overall decline, mostly because of delays in start-ups of FPSOs planned for this year, and at 2575 kbpd was down 14 kbpd or 0.5% m-o-m and 48 kbpd or 1.8% y-o-y (data from ANP).

Two FPSOs were started in 2017: Lula Extension Sul (P-66) at 150 kbpd nameplate and Pioneiro de Libra, an extended well test project on the Mero field, at 50 kbpd. Both are now about at design throughput. Two other FPSOs completed ramp-up in 2017. In 2018, three FPSOs have started up: Atlanta a small early production system at 20 kbpd, Bezios-1 (P-74) in the Santos basin at 150 kbpd and FPSO Cidade de Campos dos Goytacazes on the Tartaruga Verde field in Campos, also at 150 kbpd. There were three other FPSOs due for the Buzios field (P-75, 76 and 77) but at least one is delayed till next year. There are now four planned FPSOs remaining to be started up this year, all in the fourth quarter: P-75 and P-76 plus P-67 (Lula Norte) and P-69 (Lula Extremo Sul) in the Lula field (each 150 kbpd nameplate). Even for a company the size of Petrobras that seems a very tight schedule for commissioning large, complex plant, so one or two may slip to next year and all may be so late as to make little difference to this year’s numbers.

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Mexico’s Peso Falls To Lowest Level In 5 Weeks On Pemex Outlook

(Reuters, 19.Oct.2018) — Mexico’s peso currency reversed gains on Friday to fall 1 percent, hitting its lowest level in five weeks after a report by ratings agency Fitch on national oil company Pemex.

Following the decision by Fitch to revise the company’s outlook rating to negative from stable, the peso currency weakened to 19.34 pesos per dollar. (Reporting by Miguel Angel Gutierrez)

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Petrobras Announces Resignation Of Board Member Christian Alejandro Queipo

(Petrobras, 19.Oct.2018) — Petrobras announced Mr. Christian Alejandro Queipo presented his resignation from the position as member of the company’s Board of Directors, for personal reasons.

As a member representing the company’s employees, his succession will follow the procedures established in paragraph 2 of article 25 of Petrobras’ Bylaws, observing the previous analysis by the Nominating, Compensation and Succession Committee.

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Petrobras Reveals Release Date For 3Q:18 Results

(Petrobras, 19.Oct.2018) — Petrobras will release its 2018 third quarter results on November 6, 2018, before the market opens.

Therefore, between Oct. 22, 2018 and Nov. 6, 2018, the company will be in quiet period, during which it is not able to comment or provide clarifications related to its results and perspectives.

This initiative aims at meeting the best Corporate Governance practices, thus ensuring fair disclosure of information with its stakeholders.

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Environmental Emergency: 720,000 Lt. Oil Spill in Chile

(TeleSur, 19.Oct.2018) — The spill is the largest ever registered in the region of Tierra del Fuego.

In the southernmost region of Tierra del Fuego in Chile, an oil spill has unleashed an environmental emergency affecting at least 6,000 square meters, according to the National Emergency Office.

This is the largest spill registered in the Magallanes region. On Wednesday an oil leak from a plant owned by Chile’s National Oil Company (ENAP) and operated by YPF, Argentina’s Fiscal Oil Fields, reached the narrow river Chorrillo Paraguaya carrying the leak and affecting more land and water surface.

Chile’s regional secretariat for the Environment Ministry said, “the spill was contained in Rio Cullen, so it is affecting this river and several unnamed lakes.” Authorities don’t expect the spill to reach the Strait of Magellan or the Atlantic Ocean.

Authorities have yet to determine what caused the leak while YPF confirmed they have recovered 60 percent of the leaked oil.

“We will take all the measures to understand why these situations occur … and to determine what measures the companies will take to ensure these accidents do not take place because they generate gigantic environmental damage that we cannot accept,” Chile’s Environment Minister and businesswoman Carolina Schmidt said Thursday.

Senators Guido Girardi and Aysen Ordenes of the Environmental Commission announced legal actions against those responsible for the spill. “We cannot be complacent. The minister has said that everything is under control — that’s a lie, everything is not under control, this cannot be controlled. It takes a long time to control and we are going to present a criminal suit for environmental reparation…” Girardi said.

Greenpeace Chile has also expressed their concern over the spill and announced they will monitor the situation to ensure “an effective and transparent response by the authorities to minimize the effects in the area.”

Environmental Scandal Rocks Chile

A toxic cloud above Quintero in Chile is affecting hundreds of people in the coastal town.

Posted by teleSUR English on Thursday, September 13, 2018

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YPF Personnel Try To Mitigate Gas Leak In Bandurria

(Energy Analytics Institute, Ian Silverman, 19.Oct.2018) — YPF personnel conducted operations today to mitigate a gas leak located at the Bandurria deposit in Neuquén.

No injuries were reported, and the location was evacuated for security reasons to initial contingency work, reported the media outlet Río Negro.

YPF didn’t reveal details about the incident.

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Petrofac Completes Sale Of 49% Interest In Mexican Operations

(Petrofac Limited, 19.Oct.2018) — Petrofac Limited announces that it has completed the sale of 49% of the company’s operations in Mexico to Perenco (Oil & Gas) International Limited, following approval from the Federal Competition Commission of Mexico (COFECE).

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Petrofac Introduces Partner In Mexico

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Foreign Oil And Gas Firms Look To Play Crucial Role In Venezuela

(Energy Global, David Bizley, 19.Oct.2018) — The majority of foreign companies are not making any profit or losing money in their partnerships with PDVSA to develop and produce hydrocarbons due to inadequate investment, shattered infrastructure and US sanctions.

However, in the long term, having access to the vast hydrocarbon reserves of Venezuela compensates the current country risks and current negative cash flows in joint ventures (JVs), says GlobalData.

In this way, foreign companies have formally or informally also gained operatorship in key upstream fields located mainly in the Orinoco Belt. Indeed, Rosneft gained operatorship in the Mejillones and Patao blocks and exporting rights for 30 years with an in-kind 20% royalty rate.

Chinese and Russian companies have invested the most in the Venezuelan oil and gas sector during recent years. China, through its Development Bank, has provided more than US$60 billion in loans to Venezuela. In 2018, it has given an additional US$5 billion loan to support oil developments in the country, on top of the US$6.3 billion in loans since 2014 from Rosneft.

David Bautista, Oil and Gas Analyst at GlobalData, comments: “In other important basins such as Maracaibo or East Venezuela, most companies have recovered their initial investments. Thus foreign participants will likely be able to improve their JV terms and conditions in exchange for capital injection in the sector if the critical situation ends when PDVSA is finally able to boost production.”

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