Brazil’s labor court suspends deal between Petrobras and 3r Petroleum

Dec 7 (Reuters) – A Brazilian labor court suspended a deal between Petroleo Brasileiro SA and 3R Petroleum, documents seen by Reuters show.

The judge said that Petrobras’ board of directors approved the deal without the presence of its employee representative. Petrobras announced a $453 million agreement with oil company 3R Petroleum over 34 oil fields in Bacia Potiguar.

According to sources 3R Petroleum expects to close next week.


Brazil energy minister favors more nuclear power but not hydro: report

Brazil’s incoming mines and energy minister, Bento Albuquerque, supports more nuclear and wind power development to diversify the country’s energy matrix, while saying hydropower had reached its limit, newspaper Folha de S.Paulo reported on Friday.

Albuquerque favors restarting construction of the Angra 3 nuclear power plant, which has been halted since 2015, as well as promoting the mining of uranium in Brazil, he said in an interview with Folha.

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Petrobras (“Petrobras”) (NYSE: PBR) announces the commencement of offers by its wholly-owned subsidiary Petrobras Global Finance B.V. (“PGF”) to purchase for cash PGF’s notes (all such notes appearing in either tables below, the “Notes” and each a “series” of Notes), for an aggregate purchase price, excluding accrued and unpaid interest, of up to US$1,500,000,000, divided as follows: (i) up to US$1,000,000,000 for Notes of the series set forth in the table below under the heading “Tender Group 1” (the “Tender Group 1 Notes”) and (ii) up to US$500,000,000 for Notes of the series set forth in the table below under the heading “Tender Group 2” (the “Tender Group 2 Notes”), in each case at a purchase price to be determined pursuant to a modified “Dutch Auction” in accordance with the procedures set forth in the offer to purchase dated December 6, 2018 (as may be amended or supplemented from time to time, the “Offer to Purchase”) and subject to proration (each a “Tender Offer” and together the “Tender Offers”).

‘Pioneer of Libra’ FPSO completes one year of operation with more than 9 million barrels produced

The FPSO “Pioneer of Libra” completes one year of operation in the field of Mero and the completion of the first Long-Term Test, a process to evaluate the behavior of the oil reservoir, at the Libra field. Safety and environment indicators reinforce the success of the vessel, which surpassed the mark of nine million barrels of oil produced since the first oil in November last year.

During this period, the platform ship produced more than 58 thousand barrels of oil equivalent per day (boed). The vessel, which is able to perform on water depths of up to 2,400 meters, has the capacity to produce 50,000 barrels of oil per day and compress and reinject 4 million cubic meters of gas per day.

“Achieving 58,000 boed output with 1 well in ultra deep waters is a milestone in the offshore industry, we are very proud of this success achieved in the first year of operation,” said Clarice Romariz, director of the TK-Ocyan Joint Venture.

Another favorable indicator is the one-year mark with no recordable accidents on board, which reinforces the quality of planning from the beginning of the project. “This is the result of continuous work, of team engagement from the beginning of the project and operation. Our Recordable Incidence Rate (TFIR) is equal to zero in this period, which demonstrates the seriousness of the work and commitment of the entire TK-Ocyan team, “says the executive.

Clarice reports that safety, the key value of TK-Ocyan, has been crucial to the project since the start of construction of the FPSO in late 2014 at Jurong Shipyard in Singapore. Over more than two years, approximately four thousand people were involved in the project, including activities at the shipyard, with more than 19 million man-hours worked, with no record of any work-related accidents.

Regarding the environment, the vessel achieved several positive results, with a gas burning rate below 3% and no oil or chemical leakage to the sea. Currently, a scheduled production stop is underway for the exchange / interconnection of an injector well to start the new unit testing campaign.

TK-Ocyan Partnership

As a result of an investment of US $ 1 billion, the FPSO is owned by the 50/50 joint venture formed by Ocyan and Teekay Offshore and has a 12-year contract with the consortium formed by Petrobras ( Operator with 40%), Total (20%), Shell (20%), CNPC (10%) and CNOOC Limited (10%). The partnership with Teekay was initiated with the construction of the FPSO Cidade de Itajaí, which has a production capacity of 80,000 barrels of oil per day.


Source: Portos e Navios

Petrobras Disclosure of Relevant Shareholding Position

Rio de Janeiro, December 06, 2018 – Petróleo Brasileiro S.A. – Petrobras, in compliance with article 12 of CVM Instruction no. 358, dated of 1/3/2002, reports that it was notified by BlackRock, Inc. (“BlackRock”) that the latter has acquired preferred shares issued by the company and as of December 04, 2018 it manages share interests of approximately 5.00% of preferred shares issued by Petrobras, thus qualifying as a relevant holder of shares in the company’s capital stock, as per the information below.

I. share interests held by BlackRock reached a combined 247,138,734 preferred shares and 16,694,503 American Depositary Receipts (ADRs), which represent preferred shares, to a total of 280,527,740 preferred shares, equivalent to approximately 5.00% of total preferred shares issued by the company, and 1,927,900 cash-settlement derivative financial instruments referenced by preferred shares, which represent approximately 0.03% of total preferred shares issued by the company;

II. the purpose of the aforementioned share interests is strictly investment, whereas there is no intention to alter shareholding control or the administrative structure of Petrobras;

III. BlackRock did not celebrate any contracts or agreements governing the exercise of voting rights or the purchase and sale of securities issued by Petrobras;

IV. BlackRock has registered headquarters at 55 East 52nd Street, New York City, New York State, 10022-0002, United States of America.

The U.S. Just Became a Net Oil Exporter for the First Time in 75 Years

 America turned into a net oil exporter last week, breaking 75 years of continued dependence on foreign oil and marking a pivotal — even if likely brief — moment toward what U.S. President Donald Trump has branded as “energy independence.”

The shift to net exports is the dramatic result of an unprecedented boom in American oil production, with thousands of wells pumping from the Permian region of Texas and New Mexico to the Bakken in North Dakota to the Marcellus in Pennsylvania.

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Insight: Development of production to focus on Búzios


The Búzios field, in the Santos Basin pre-salt, will absorb 20% of Petrobras’ total development investments between 2019 and 2023, in the order of US $ 48.4 billion. The onerous assignment project will receive US $ 9 billion in the period, according to Petrobras’ new business plan for the period, released on Wednesday (5/12).

Búzios has four FPSOs contracted: P-74 and P-75, which are already in operation, and P-76 and P-77, scheduled to extract the first oil in 2019. In addition, a fifth FPSO (Búzios V) is yet to be hired.

The other pre-salt fields declared by Petrobras in the new plan are Mero, which will have capex of US $ 3.5 billion (one FPSO contracted and one to be contracted); Atapu (US $ 2.7 bn / one contracted FPSO); Berbigão and Sururu (US $ 1.7bn / one contracted FPSO) and Lula Cernambi (US $ 4.6bn / eight FPSO’s in operation and one to be contracted).

Including Búzios, these ventures will account for 44% of total investments in production development over the next five years, totaling capex of US $ 21.5 billion.

The Campos Basin will absorb 42% of the contributions, totaling US $ 20.5 billion. In its business plan, Petrobras points out that the strategic partnership with Equinor in the field of Roncador and new projects guarantee the sustainability of production in the basin.

Source: Brazil Energy

Petrobras to invest US $ 3.7 billion in gas over the next four years


Petrobras will invest about US $ 3.7 billion in natural gas for the period between 2019-2023, according to the business plan released on Wednesday (5/12) by the company. Despite changes in its operations in the domestic market, Petrobras intends to develop its operations in the global gas market.

Among the main projects that will receive the resources are the construction of the gas treatment unit of Recife for the outflow and processing of gas produced in the deepwater fields of the Sergipe / Alagoas Basin; the construction of Route 3, including the pipeline, a Natural Gas Processing Unit and the northern pipelines, which should increase the production of pre-salt gas; and the suitability of the treatment unit of Route 1, also in view of the production of the pre-salt.

Overall position

Although Petrobras has a strategy of repositioning in relation to the national gas market, the company has established a strategy of positioning itself in the international gas market, with a search for long-term supply. In addition to the increased activity of optimization of gas production, to meet this global market.

Currently, the company operates with three regasification terminals for liquefied natural gas (LNG) and is focused on its operations in Brazil, trading spot and short-term service market.

Regarding the divestments in the area, Petrobras is still waiting for a definition of the sale of the Associated Gas Company (TAG), stopped due to an injunction in the Federal Supreme Court (STF) and the Nitrogen Fertilizer Unit III (UFN-III) , in Três Lagoas (MS), which is in the process of negotiating with Russia’s Acron.

Source: Brazil Energy



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