NRGBriefs: Ecuador Declares Force Majeure On Oil Exports

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(Energy Analytics Institute, 13.Dec.2021) — Energy briefs including Ecuador’s gov’t declaring force majeure on 12 Dec. 2021 on oil exports due to erosion issues around the Piedra Fina River and other tributaries of the Quijos River; Argentina celebrating Petroleum Day; TechnipFMC being awarded three frame agreements by Petrobras; and more.

LATIN AMERICA AND THE CARIBBEAN

Argentina

— Argentina celebrated Petroleum Day on 13 Dec. 2021 across the South American country to commemorate the first oil discovery in its national territory in the city of Comodoro Rivadavia on this day in 1907, Argentina’s energy secretariat Dario Martinez announced 13 Dec. on social media.

Capella Minerals Ltd. (TSXV: CMIL) (FRA: N7D2) said Austral Gold Limited (ASX: AGD) (TSXV: AGLD) successfully completed the “Tranche 1” exploration investment required to earn-in to an initial 51% interest in the co.’s former Argentine subsidiary, Sierra Blanca SA (SBSA). SBSA’s sole asset is the Sierra Blanca gold-silver project in Santa Cruz Province. Austral may now invest a further $600,000 in exploration at the Sierra Blanca project over the next 2-yrs in order to earn-in to a further 29% interest (80% total) in SBSA (the “Tranche 2” investment), Capealla announced 10 Dec. 2021 in an official stmt. Afterwards, Austral retains the option to acquire the remaining 20% interest in SBSA in return for cash payments and further work commitments over an additional 2-yr period. Austral’s work program as part of the “Tranche 1” investment included detailed geological mapping and ASTER interpretation (specifically calibrating alteration anomalies at Sierra Blanca with those known from the nearby Cerro Vanguardia gold-silver deposit), which resulted in the definition of a potential new Dome-Diatreme complex hosted in favourable Chon Aike Formation in the Vetarron sector. Work currently being undertaken includes further core re-logging (Vetarron, Lucia, and Chala sectors) and reinterpretation of historical data.

Brazil

TechnipFMC has been awarded three frame agreements by Brazil’s state oil co. Petrobras to manufacture and service more than 500km of flexible pipe over the next 4yrs.

Chile

— Chile’s state oil entity ENAP inked a collaboration agreement w/ Total Eren, an independent energy producer renewable energy (IPP), for development of a project for the production of green hydrogen and its derived products, the co. said 13 Dec. 2021 over social media. The agreement covers, among other issues, technical aspects that will allow the harmonious development of the initiatives of both cos. in the area.

Colombia

— Colombia’s state oil and gas giant Ecopetrol has set its Capex budget between $4.8-$5.8bn in 2022 w/ an estimated oil price of $63/bbl, the co. said 13 Dec. 2021 over social media. The co. aims to achieve production of between 700-705 Mboe/d. The co. has earmarked $1bn in investments related to ISA.

RELATED STORY: Ecopetrol Expects To Invest $4.8-$5.8bn In 2022

Ecuador

— Ecuador’s gov’t declared force majeure on oil contracts on 12 Dec. 2021 due to erosion issues around the Piedra Fina River and other tributaries of the Quijos River that have impacted the SOTE and OCP oil export pipelines and Shushufindi products pipeline, the country’s Ministry of Energy and Non-Renewable Natural Resources (MERNNR) said 13 Dec. 2021 in an official stmt. All three pipelines have been shut down until the issues are resolved, according to the MERNNR.

Source: MERNNR

— Ecuador’s oil production was 483,064 b/d on 8 Dec. 2021 while oil transported along the SOTE and OCP was 302,821 b/d, according to Ecuador’s Ministry of Energy and Non-Renewable Natural Resources (MERNNR) daily update on 8 Dec. 2021.

Guyana

— Guyana’s VP Bharrat Jagdeo led a team that engaged w/ civil society regarding the final consultation on the draft Local Content Policy before it is tabled in the National Assembly, the gov’t announced 13 Dec. 2021 over social media.

AFRICA

Ghana

TechnipFMC’s Ghana team won two prizes at the Ghana Oil and Gas Awards – for Excellence in Health, Safety, Environment and Quality (Upstream) and Engineering Construction Company of the Year (Upstream), the co. announced 12 Dec. 2021 over social media.

ASIA

China

JinkoSolar Holding Co., Ltd. (NYSE: JKS), announced that all shareholders resolutions proposed at the co.’s 2021 annual general meeting were duly passed, the co. reported on 9 Dec. 2021. Specifically, the shareholders passed the following resolutions approving: 1) re-election of Mr. Xianhua Li as a director of the co.; 2) re-election of Mr. Steven Markscheid as a director of the co.; 3) ratification of the appointment of PricewaterhouseCoopers Zhong Tian LLP as auditors of the co. for the fiscal yr of 2021; 4) authorization of the directors of the co. to determine the remuneration of the auditors; and 5) authorization of each of the directors of the co. to take any and all action that might be necessary to effect the forgoing resolutions 1 to 4 as such director, in his or her absolute discretion, thinks fit.

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By Ian Silverman, Aaron Simonsky and Piero Stewart. © Energy Analytics Institute (EAI). All Rights Reserved.

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