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Thursday, January 21, 2010
Today's News Headlines
* Gran Tierra to begin exploratory drilling next quarter - Peru
* BAL expecting first algae results in six months - Chile
* Power sector emissions could be reduced by 28.3% through 2030, says World Bank - Mexico
* Enap signs supply deal with Shell - Chile
* Pemex exports 30.6Mb from largest terminal in December - Mexico
* Brownstone, Quetzal to acquire interest in Llanos block - Colombia
* Itaipu to launch biogas laboratory in March - Brazil
* New constitution has not modified contracts - Repsol YPF - Bolivia
* Petrobras to increase oil shipments to Asia - report - Brazil
* IN BRIEF Ministry, chamber pen jatropha promotion deal - Paraguay
* IN BRIEF Petrobras to invest US$1.7mn in Antarctic biofuel tests - Brazil
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* Gran Tierra to begin exploratory drilling next quarter - Peru
Calgary-based Gran Tierra Energy (Amex, TSX: GTE) plans to begin drilling exploration wells on its onshore acreage in Peru next quarter, according to CEO Dana Coffield.
The company holds a 100% working interest and is operator of blocks 122 and 128 in the Marañón basin, Loreto region.
Two wells are planned for block 128 in the second quarter followed by two additional wells on block 122 in the third quarter.
The wells will cost roughly US$4mn each and will be drilled to a depth of 2,000-4,000f (610-1,219m), Coffield said on Wednesday at the IPAA Oil & Gas Investment Symposium.
Gran Tierra also plans to carry out 500km of seismic acquisition on the acreage this year.
Last month, the company announced that its 2010 capital spending program for Peru totals US$40.8mn.
By David Casallas
Business News Americas
* BAL expecting first algae results in six months - Chile
Seattle-based Bioarchitecture Lab (BAL) is expecting to see the first results from a new study to determine Chile's potential to develop biofuels from algae in six months, BAL chief executive Lance Ayrault told BNamericas.
The company was recently awarded 3.7bn pesos by Chile's state development agency Corfo to help fund the study. Two other consortiums were awarded funds in the national contest launched last year by Corfo in conjunction with the national energy commission CNE.
"We were the only macroalgae project in the contest, but we managed to get the largest award from Corfo," Ayrault said. "We couldn't be happier. This is wonderful confirmation of the project's potential.
Consortiums Desert Bionergy and AlgaFuels were the other winners in the contest. A total of US$31.6mn will be invested in the three projects.
BAL is set to use 100ha of land on southern Chiloé island to produce biofuels from macroalgae.
As currently planned, the macroalgae will be used to produce biofuels at a pilot plant in Los Lagos region slated for completion in 2010.
If the pilot phase is successful, BAL has plans to cultivate 10,000ha across Chile for algae production, enough to produce 165,000m3/y of biofuels.
"The first crop is going in the water now, and within six months we will have a very good indication of the biomass creation efficiency," Ayrault said.
By Christopher Lenton
Business News Americas
* Power sector emissions could be reduced by 28.3% through 2030, says World Bank - Mexico
Mexico could reduce its carbon emissions from the energy sector by 91Mt in 2030 compared to a baseline scenario (business as usual) of 322Mt, according to a World Bank study on reducing Mexico's carbon emissions (Medec).
A baseline scenario for Mexico's power sector would see CO2 emissions increase by 230% from 142Mt in 2008 to 322Mt in 2030 (21.5% and 28.3% of the total emissions, respectively). Coal and natural gas would account for 37% and 25% of new installed capacity.
The Medec scenario, however, would replace much of the fossil fuel generation with renewables, biomass and cogeneration.
Wind generation in 2030 would make up 6% of generated power, up from 1.4% in the baseline. Geothermal would reach 11% compared to 2%, biomass 8% rather than 0.1%, and small hydroelectric 16% instead of 14%.
Cogeneration would provide 13% of new capacity. Cogeneration in state oil company Pemex's facilities alone would account for more than 6% of national capacity.
"Developing this [cogeneration] potential will require a regulatory framework that enables and encourages the sale of excess energy and capacity to the electricity grid," according to the report.
Investment in cogeneration is less attractive to Pemex than E&P projects. Furthermore, the firm will face troubles financing such efforts due to its high debt that presents an obstacle for tapping credit markets at reasonable terms, as well as fiscal constraints related to burdensome tax obligations.
"Measures to allow contracting with the private sector to tap cogeneration and reduce gas flaring and leakage could reduce the need for public investment," the report said.
Adjusting Pemex and state power company CFE's procurement procedures to the particularities of such energy projects is required to reduce risks and transaction costs of small power producers.
Given the Medec scenario, coal-fired generation would comprise only 6% of generated power in 2030, down from 31% in the baseline.
The additional investment costs in the power sector under the Medec scenario would be US$10bn between 2009 and 2030, "much of which would be offset by lower operation costs," the report said.
The baseline scenario is based on government estimates that power demand will increase by 4.8% between 2007 and 2016. The Medec scenario assumes that generation technologies with a net cost below US$25/t CO2 will be deployed.
When also including the oil and gas, energy end-use, agriculture and forestry, and transportation sectors, Mexico could reduce its carbon emissions by 42% in 2030 compared to the baseline scenario. The baseline would see CO2 emissions increase by 72.5% from 659Mt in 2008 to 1,137Mt in 2030. The Medec scenario would thus keep 2030 emissions at virtually the same level as in 2008.
The World Bank described the Medec as "conservative" given that "only 40 interventions were considered and the analysis did not assume any major changes in technology.
"Almost all of the Medec measures have already been implemented in Mexico as commercial-scale investments projects or pilot programs, thus demonstrating the feasibility of implementing them in the near term."
To read a full copy of the 179-page report, go to this link (http://www.bnamericas.com/research_detalle.jsp?idioma=I&documento=1012774&id_sector=0)
By Business News Americas staff reporters
* Enap signs supply deal with Shell - Chile
Chile's state oil company Enap has signed a one-year supply deal with distributor Shell Chile, the former company said in a statement.
The signing concludes Enap's round of negotiating deals with local distributors that begun on December 1, 2009 as part of its new commercial policy, according to the statement.
Over the last two months Enap has signed distribution contracts with distributors Terpel, Petrobras, JLC, HN, Cabal, Santa Elena and Copec.
"Enap is our preferred supplier of oil and we are very happy with the signing of this contract," Shell's country chairman Rodrigo Infante said in the statement.
Enap, which purchases crude from abroad at market prices and then refines it, is seeking to offload some price risk onto the distributors with longer term contracts. The new model could entail cheaper prices for the distributors but would entail greater investments on their part in the supply chain.
Details on the exact nature of the contract were not released.
By Business News Americas staff reporters
* Pemex exports 30.6Mb from largest terminal in December - Mexico
Mexico's state oil company Pemex in December 2009 exported 30.6Mb of oil from its largest terminal, Cayo Arcas in Campeche state, according to a company statement.
Sales of crude from the port totaled US$2.05bn in the month.
The amount was down from 31.1Mb in December 2008. However, the value of the exports was up from US$1.16bn due to higher oil prices.
Pemex will release operating statistics for December on January 22. Companywide crude exports in November were 1.22Mb/d and were worth US$2.65bn.
Exports of heavy Maya crude in December were shipped from Cayo Arcas to the US, Spain, India and the Netherlands.
By Business News Americas staff reporters
* Brownstone, Quetzal to acquire interest in Llanos block - Colombia
Canadian companies Brownstone Ventures (TSX-V: BWN) and Quetzal Energy (TSX-V: QEI) have entered into an assignment agreement with Fenix Energy to acquire 100% of Fenix's interests in the Canaguaro block in Colombia's Llanos basin, the companies said in a joint statement.
Fenix has the rights to acquire 50% of the block in an agreement signed with Taurex-Condor Exploration, according to the statement.
The Canaguaro block totals 9,754ha and is offset by several oil fields and infrastructure including pipelines and roads.
Brownstone and Quetzal will be entitled to 50% (Brownstone 25%, Quetzal 25%) of any net revenue.
Work commitments over the first 36 month phase total approximately US$15.5mn, according to the statement.
By Business News Americas staff reporters
* Itaipu to launch biogas laboratory in March - Brazil
Brazilian national hydro plant operator Itaipu Binacional will launch in March a research center for biogas studies.
In a statement, Itaipu Binacional said it will be Brazil's first biogas laboratory.
The facility is being built in partnership with the United Nations and Austria's Boku University.
According to the statement, the partners will invest 30,000 euros (US$43,000) in the project.
Itaipu Binacional aims to implement a series of similar research centers across the country.
By Business News Americas staff reporters
* New constitution has not modified contracts - Repsol YPF - Bolivia
The terms of Spanish major Repsol YPF's (NYSE: REP) contracts in Bolivia have not been modified as a result of the latter country's new constitution, according to a company filing sent to Spain's securities regulator CNMV.
The announcement followed an article published in Spanish paper Expansión claiming that Repsol YPF would be forced to drop reserves in the Andean country by 90Mb due to the constitutional changes.
"Future cash flows and, consequentially, the value of assets and results of operations of the company in the said country are not affected in any way," said the filing.
The only effect to determine is the way to present information of hydrocarbons reserves, which does not have any impact on Repsol YPF's economic interests in Bolivia, added the letter.
In November, during a meeting with the major's CEO Antonio Brufau in La Paz, President Evo Morales said foreign investment would be respected under the sector's new regulatory framework.
At the meeting, Repsol YPF announced it would invest US$1.5bn in Bolivia to increase natural gas production.
By Business News Americas staff reporters
* Petrobras to increase oil shipments to Asia - report - Brazil
Brazilian federal energy company Petrobras (NYSE: PBR) will boost its supply of crude oil to Asia by using facilities of Nansei Sekiyu, the Okinawa, Japan-based oil firm that Petrobras acquired in 2008, local daily O Estado de S Paulo reported.
According to the newspaper, Petrobras plans to transport 1.8Mb of oil to Nansei storage facilities over a two-month period starting in April.
Petrobras will use small tankers to ship the oil to Japan, China, India, South Korea and Taiwan, among other countries in the region.
Petrobras was not able to comment on the report when contacted by BNamericas.
By Business News Americas staff reporters
* IN BRIEF Ministry, chamber pen jatropha promotion deal - Paraguay
Paraguay's industry and trade ministry announced it has signed a cooperation agreement with the country's jatropha productive chain chamber (Capropim) to promote the cultivation of the biodiesel feedstock.
The ministry has pledged to support the preparation of necessary studies, provide technical assistance and allocate funds, while the chamber will establish a work group to advance work.
Proponents see jatropha as an alternative to Paraguay's current biodiesel feedstock: animal fat and vegetable oil, primarily soy.
By Business News Americas staff reporters
* IN BRIEF Petrobras to invest US$1.7mn in Antarctic biofuel tests - Brazil
Brazilian federal energy company Petrobras (NYSE: PBR) has pledged to invest 3mn reais (US$1.7mn) to test the use of biofuels in the Antarctic, according to a group statement.
Petrobras signed a four-year agreement with the Brazilian navy in order to use the military facilities in the region.
Petrobras said it wants to study the efficiency of biofuels such as ethanol in extremely low temperatures.
By Business News Americas staff reporters
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In-deph interview
* Devaluation likely to benefit PDVSA in short term
José Luis Villanueva
Director
Fitch Ratings
Venezuela
http://www.bnamericas.com/interviews/oilandgas/Jose_Luis_Villanueva_,Fitch_Ratings,2/170884495
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Main companies covered in today's news
* GasValpo S.A.
http://www.bnamericas.com/company-profile/en/GasValpo_S,A,-GasValpo/170884495
* Comisión Federal de Electricidad
http://www.bnamericas.com/company-profile/en/Comision_Federal_de_Electricidad-CFE/170884495
* The World Bank Group
http://www.bnamericas.com/company-profile/en/The_World_Bank_Group-World_Bank/170884495
* Corporación Nacional del Cobre de Chile
http://www.bnamericas.com/company-profile/en/Corporacion_Nacional_del_Cobre_de_Chile-Codelco/170884495
* Shell Chile Sociedad Anónima Comercial e Industrial S.A.
http://www.bnamericas.com/company-profile/en/Shell_Chile_Sociedad_Anonima_Comercial_e_Industrial_S,A,-Shell_Chile/170884495
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