LatinPetroleum LatAm NRGProspector 1Q16 Low

8/17/2019 LatinPetroleum LatAm NRGProspector 1Q16 Low

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Since 2000 www.latinpetroleum.com

LATINPETROLEUM

LatAm NRGProspector 1Q:16

CITGO Petroleum Emerges

With Interest In Valero's

Shuttered Aruba Refinery

FOR SALE: VENEZUELA

PDVSA Reports 50 Drop

In Recurring Net Income

LATAM ENERGY INVESTOR

WATCH LIST BRIEF: VENEZUELA

Venezuela Hikes Price

Of 95 And 91 Octane

Grade Gasolines

PDVSA, EP PetroEcuador

Oil Export Prices

HEARD ON THE STREET

Chinese Not Happy In

Dangerous Venezuela

LATAM RIG COUNTS


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IN THIS ISSUE15.April.2016

5-7 ….. HEARD ON THE STREETForeign companies in Venezuela starting to institutehiring freezes and make organic staff reductions.

8 ….. QUOTESVenezuela "exporting corruption."

8-32 ….. NRG BRIEFSCovering Argentina, Bolivia, Brazil, Colombia,Ecuador, Mexico, Peru, Uruguay and Venezuela.

26 ….. LatAm Energy Investor

Watch List BriefVenezuela: LatAm country with most attractive crudeoil and natural gas reserves, and output potential.

33-34 ….. COMPANY BRIEFSFrom Crystallex International to Valero Energy.

34-35 ….. RATING UPDATES

35-60 ….. NRG REELCovering Brazil, Colombia, Peru and Venezuela.

49 ….. Citgo Interest Arises In

Valero's Aruba RefineryHouston-based Citgo Petroleum could be Valero'slast hope to divest of its 235 Mb/d refinery located inSan Nicolas, Aruba's second largest city.

60-63 ….. EXECUTIVE SUITEFrom PEMEX to PDVSA.

For subscription details write us at: [email protected]

TRACKER TABLES

64 ….. DIVESTMENT/M&A 65 ….. EQUITY/DEBT ISSUANCES

66-68 ….. ROTARY RIG TRACKERLatAm oil, gas and misc., and onshore and offshore.

69 ….. ECUADOR EXPORT PRICE

70 ….. VENEZUELA EXPORT

PRICE VS WTI AND BRENT

ON THE COVER …

Valero Energy's Aruba Refinery in San Nicolas.

Photo credit: LatinPetroleum.com

MISC. TABLES (11)Bolivia Hydrocarbon Investments 2016-2020; Top 5

Foreign Companies To Watch In Venezuela;Venezuela Gasoline Price Hike; PDVSA VenezuelaRefining Circuit 2014 vs 2000 (Mb/d) ; PDVSA Capex,and Other Disbursements, Income Statement 2014-2015; Gran Tierra Acquisition Summary; andEcopetrol Proven Reserves YE:15.


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ABBREVIATIONS

HYDROCARBON SECTOR

B/d:

Barrels per dayBbls:

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: Venezuela’s Orinoco heavy oil belt

Ft: Feet

JV:

Joint ventureLNG: 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 metersMMcf: 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 UnderstandingYE:

Year end

WI: Working interest

STATE OIL ENTITIES (COUNTRY)

ANCAP: Administración Nacional de Combustibles,

Alcoholes y Portland (Uruguay)

Cupet: Cubapetróleo (Cuba)

Ecopetrol: Empresa Colombiana de Petróleos S.A.

(Colombia)

ENAP:

Empresa Nacional de Petróleo (Chile)Eni SpA: Ente Nazionale Idrocarburi (Italy)

PDVSA: Petróleos de Venezuela S.A. (Venezuela)

PEMEX: Petróleos Mexicanos (Mexico)

Petrobras: Petróleo Brasileiro S.A. (Brazil)

PetroEcuador: Ecuador

PetroPeru: Peru

Petrotrin: Petroleum Company of Trinidad & Tobago

Ltd.

YPFB: Yacimientos Petrolíferos 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


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LATAM/CARIBBEAN COUNTRIES

ARG: Argentina

ARW: Aruba

BHS: Bahamas

BRB: BarbadosBLZ: Belize

BOL: Bolivia

BRA: Brazil

CYM: Cayman Islands

CHL: Chile

COL: Colombia

CRI: Costa Rica

CUB: Cuba

DMA: Dominica

DOM: Dominican Republic

ECU: EcuadorFLK: Falkland Islands (Malvinas)

GUF: French Guiana

GLP: Guadeloupe

GTM: Guatemala

GUY: Guyana

HTI: Haiti

HND: Honduras

JAM: Jamaica

MTQ: Martinique

MEX: Mexico

NIC: NicaraguaPAN: 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: VenezuelaVGB: Virgin Islands (British)

VIR: Virgin Islands (USA)

ALL OTHER COUNTRIES

AGO: Angola

CAN: Canada

CHN: China

EGY: EgyptESP: Spain

IND: India

IRQ: Iraq

IRN: Iran

JPN: Japan

LBY: Libya

NGA: Nigeria

RUS: Russian Federation

SYR: Syria

USA: United States of America

LATINPETROLEUM.COMwww.latinpetroleum.com

In the USA

LatinPetroleum, Inc., dba LatinPetroleum.com2825 Wilcrest Drive, Suite 540Houston, Texas 77042

Texas Charter No.: 800624190EIN: 26-0435194

In Venezuela (Representative Office)

Editores LatinPetroleum, C.A.Avenida Francisco de MirandaEdificio Galerias Venezias, Local 3Municipio ChacaoCaracas, Venezuela

For subcription details:[email protected]

Contact: [email protected]

Venezuelan RIF.: J-31464958-2Venezuelan NIT.: 0493462636

Copyright © 2000-2016. All rights reserved.

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HEARD ON THE STREET

TOP PETROLEUM

* LatAm rig counts fall to 218 in Mar.2016 vs 237 inFeb.2016 and 243 in Jan.2016, according to BakerHughes.

* LatAm rig counts: In Mar.2016, 195 rigs weredrilling for oil, 20 for gas and 3 miscellaneous.Additionally, of the 218 rigs active in Mar.2016, 178rigs were drilling onland while 40 were drillingoffshore, according to Baker Hughes.

ECUADOR

* Ecuador issues $400 mln in bonds (20 yr maturity)to partially financial budget, reports El Universo.

* EP PetroEcuador received the following averageexport 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 inFeb.2016; and $29.52/bbl in Mar.2016, reported thestate 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, amongothers); Location: Northern South Americaw/Caribbean Sea; Resources: Crude, natural gas,gold, aluminum, steel, coal, and others, and greathydroelectric potential); Condition: As-is (Buyer

beware: Country in war-torn state); Cash dealspreferred; Investors from China and Russia likely toget better deals.

* Spain's Repsol looking for a way to export CardonIV gas offshore to Colombia so that it can later beexported to other markets.

* It only takes a second to reflect on how PDVSA isbeing run into the ground by analyzing theeffectiveness or not of the countless/useless tripsaround the world by Venezuela's Petroleum andMining Minister and PDVSA President Eulogio DelPino to rally support for boosting oil prices. If just half

Del Pino's time and effort where expended on PDVSAand listening to its JV partners, the company andVenezuela, for that matter, would probably be in aleague of their own and topping the lists as opposedto the opposite.

* Many Chinese petroleum and petroleum-relatedcompanies with operations in Venezuela are growingincreasingly pessimistic about conducting business inthe OPEC nation all the while a wave of escalatingkidnappings and crimes against Chinese businesspersons in the country is driving many workers torequest for transfers out of the country. Neither of

the aforementioned are good signs for cash-strappedDutch-diseased Venezuela which is counting on China(Asian countries in general) for just about everything(financing, technical support, housing construction,among other things).

* The Chinese appear to be unwilling to continueassisting Venezuela and are seemingly not willing togive Venezuela a 2-yr grace period related to loans-for-oil.

* Many international oil companies have instituted

hiring freezes and are making organic reductions; anumber of large producers are reducing staff viaearly retirement packages.

* Venezuela oil output likely to remain stagnate orfall in 2016 as oil producers reduce staff, and as oilfield services companies cut operations.

* "Houston we have a problem" again: Service cos.Halliburton and Schlumberger reduce operations inOPEC nation Venezuela.

* PDVSA downplays media reports that

Schlumberger is reducing operations in Venezuela.However, Chevron Venezuela has been offering earlyretirement packages to its employees for a while. So,the question is why wouldn't other energycompanies do the same?

https://twitter.com/hashtag/Ecuador?src=hashhttps://twitter.com/Pemexhttps://twitter.com/Pemexhttps://twitter.com/Pemexhttps://twitter.com/hashtag/oil?src=hashhttps://twitter.com/hashtag/PDVSA?src=hashhttps://twitter.com/hashtag/OPEC?src=hashhttps://twitter.com/hashtag/China?src=hashhttps://twitter.com/hashtag/China?src=hashhttps://twitter.com/hashtag/OPEC?src=hashhttps://twitter.com/hashtag/PDVSA?src=hashhttps://twitter.com/hashtag/oil?src=hashhttps://twitter.com/Pemexhttps://twitter.com/hashtag/Ecuador?src=hash


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Energy Crisis

* To save energy, Venezuela decrees all Fridays inMay.-Apr.2016 as non-working days for publicworkers, Venezuela's President Nicolas Maduro saidduring a televised broadcast via VTV.

Oil Reserves and Oil Production

* Venezuela's oil reserves rose 0.4% to 300.9 bln bblsin 2015 vs. 300 bln bbls in 2014; gas reserves rose1.4% to 201.9 Tcf vs 199 Tcf.

* Venezuela's domestic market consumed 579 Mb/din 2015 vs. 686 Mb/d in 2014, Venezuela's Petroleumand Mining Ministry reported.

* PDVSA oil exports in 2015 were 2.448 MMb/d andwent to the following markets: Asia, 1085 Mb/d;

LatAm, 363 Mb/d; Europe, 116 Mb/d; North America,866 Mb/d; Africa, 9 Mb/d; and other, 9 Mb/d.

* Venezuela producing 2.9 MMb/d of oil in 1Q:16: ofwhich 0.510 MMb/d is consumed internally and 2.39MMb/d is exported, according to PDVSA PresidentEulogio Del Pino.

* PDVSA openly talking with JV partners aboutreducing investments and production goals.

PDVSA Financial

* PDVSA studies potential $8-$9 bln bond issuance tocover Accounts Payable debts to certain suppliers.

* Nearly 3 months into 2016 and PDVSA has yet torelease its 2015 annual report. 2015 was bad for thestate oil company and 2016 looks like it will beworse.

* Venezuelan oil revenues were $77 mln in Jan.2016vs. $815 mln in Jan.2015, and $3 bln in Jan.2014,Venezuela's President Nicolas Maduro said during atelevised broadcast via VTV.

* PDVSA sold $12.6 bln in FX to Venezuela's CentralBank in 2015 vs. $37.2 bln in 2014, $42.7 bln in 2013,$46.1 bln in 2012, $37.3 bln in 2011, and $34.4 bln in2010, Venezuela's President Nicolas Maduro saidduring a televised broadcast via VTV.

Inflation

* Venezuela: Annual inflation in OPEC countryreached 180.9% in 2015 vs. 68.5% in 2014,Venezuela's Central Bank (BCV by its Spanishacronym) reports in official statement.

Expropriations

* Lake Maracaibo oil service cos.' expropriated byVenezuela in 2009 want to get paid by PDVSA w/cash or their old assets, or better, both.

Rosneft Petromonagas Deal

* Rosneft plans to pay $500 mln to PDVSA to boostthe Russian cos.' interest in PetroMonagas JV by23.33%. W/purchase, Rosneft interest inPetroMonagas heavy oil JV increases to 40% while

PDVSA reduces its interest to 60% from 83.33%.

* Venezuela ex-Petroleum and Mining MinisterAsdrubal Chavez said Rosneft was given first right ofrefusal to buy the 23.33% interest in PetromonagasJV from PDVSA. Chavez said that if Rosneft would'vedeclined, PDVSA would've opened up aninternational bidding process for the interest.

* Venezuela's National Assembly Permanent Energyand Petroleum Commission wants an investigationinto recent PDVSA agreements w/ Russia's Rosneft

involving $500 mln deal for 23.33% interest in thePetromonagas heavy oil JV and an agreement in upto three Mariscal Sucre natural gas fields offshoreVenezuela (Patao, Mejillones and potentially RioCaribe).

* Rosneft boosts interest in PetroMonagas heavy oilJV in Venezuela to 40% from 16.67% w⁄ $500 mlnpayment to cash-strapped PDVSA, said VenezuelaPresident Nicolas Maduro in Venezuela TV broadcast.

* Russia's Rosneft is very worried about legitimacy ofcontracts recently signed w/ PDVSA regarding

PetroMonagas heavy oil JV and Mariscal Sucreoffshore natural gas projects.

https://twitter.com/PDVSAhttps://twitter.com/PDVSAhttps://twitter.com/PDVSAhttps://twitter.com/hashtag/PDVSA?src=hashhttps://twitter.com/hashtag/PDVSA?src=hashhttps://twitter.com/hashtag/PDVSA?src=hashhttps://twitter.com/hashtag/Venezuela?src=hashhttps://twitter.com/hashtag/Venezuela?src=hashhttps://twitter.com/hashtag/PDVSA?src=hashhttps://twitter.com/PDVSA


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Orinoco Heavy Oil Belt or Faja

* With Venezuela's oil price below $25/bbl, the Fajais all but 'dead', according to an oil executive at oneof the country's large JV projects in the OrinocoHeavy Oil Belt or Faja. PDVSA must now focus on

light-to-medium oils, and preferably not imports, saidthe executive.

Gasoline

* The only way for PDVSA to rid itself of a nearly $15bln per year gasoline subsidy expense is to raisegasoline prices. Venezuela will reach a point wherebythey can't reduce consumption anymore and thenthe only way to do so will be increasing the price ofgasoline.

* Venezuela's President Nicolas Maduro raised the

price of 95-octane gasoline to 6 Venezuelanbolivars/liter and 91-octane to 1 Venezuelanbolivar/liter 17.Feb.2016. In late 2014, former PDVSAPresident and Petroleum and Mining Minister RafaelRamirez said the production cost for 95/91 octanewas 2.70 Venezuelan bolivars/liter.

* Since a large majority of vehicles in Venezuela use91-octane gasoline and heavy transport uses diesel(which didn't increase), the impact for these usersshould be much less than for users of 95-octane(mostly likely middle and upper class vehicle users),

reports Venezuela's Petroleum and Mining Ministryin an official statement.

* W/ 95-octane gasoline at 6 bolivars/liter and 91-octane gasoline at 1 bolivar/liter: Will drivers shift inmass to the latter?

* Gas consumption slump in Venezuela related todecline in economic activity and GDP.

* The closing of the border has had a marginal effecton reducing gasoline consumption/smuggling.

OPEC

* Oil ministers from Ecuador, Algeria, Nigeria, andOman all back decisions by Qatar, Venezuela, Russiaand Saudi Arabia to freeze output levels.

Mining, Petrochemical and Other

* Water levels at Venezuela's Guri hydroelectric damnow at 244.89 meters above sea level, just 89 cmabove the so-called 'collapse zone.'

* Venezuela moving forward with plans to certifygold, diamond and other resources, says Venezuela'sPetroleum and Mining Minister Eulogio Del Pino fromCaracas.

* Venezuela's chemical sector working at between20-30% of its installed capacity, reports El Nacional.

* Gold Reserve Inc. announces proposed $38 mlnprivate equity placement (9.5 mln Class A commonshares @ $4).

* If Venezuela moves away from an oil-dependent

economy, what national model could it adoptconsidering that it imports basically everything?

Collective Contract

* PDVSA workers to march to Miraflores PresidentialPalace to sign a collective contract which willrepresent a salary increase of around 143%.

* Venezuela to sign a Collective Contract w/ oil sectorworkers on 7.Jan.2016 that will benefit more than83,000 workers, PDVSA reports.

* Despite low oil prices, oil co. bankruptcies and masslayoffs worldwide, Venezuela's President NicolasMaduro says PDVSA has yet to fire any workersduring a televised broadcast via VTV.

Refining

* Utilization rates at PDVSA's 955 Mb/d capacityParaguana refining complex down to 48% on8.Jan.2016 vs 59% on 9.Dec.2015 as light oil suppliesfall, says oil union official Ivan Freites.

* Venezuela lawmaker Asdrubal Chavez openlyblamed oil union official Ivan Freites for the PDVSA Amuay refinery accident in Aug.2012.

https://twitter.com/hashtag/Venezuela?src=hashhttps://twitter.com/hashtag/Venezuela?src=hashhttps://twitter.com/hashtag/Venezuela?src=hashhttps://twitter.com/hashtag/Venezuela?src=hashhttps://twitter.com/hashtag/Venezuela?src=hash


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QUOTES

VENEZUELAN LAWMAKER AMERICO DE GRAZIA ONVENEZUELAN GOVERNMENT'S PLAN TO EXPORTGOLD

"The only thing they are exporting is corruption,"said Venezuelan lawmaker Americo de Grazia andmember of Venezuela's National AssemblyPermanent Energy and Petroleum Commission,referring to announcements by the government ofVenezuela to export gold and other preciousminerals. [LatinPetroleum, 26.Mar.2016]

NRG BRIEFS

TOP PETROLEUM

VENEZUELA OIL MINISTER DEL PINO SAYS 12COUNTRIES TO ATTEND OIL MEETING IN DOHA

Venezuela's Petroleum and Mining MinisterEulogio Del Pino said that nearly 12 countries haveconfirmed their presence at the next oil producersmeeting scheduled for 17.Apr.2016 in Doha, thecapital of Qatar.

One of the goals of the meeting is to convince theother countries to adhere to the agreementannounced on 15.Feb.2016 by Saudi Arabia, Qatar,

Russia and Venezuela to freeze production atJan.2016 levels while continuing to monitorinventories and prices, reported Venezuela'sPetroleum and Mining Ministry in an officialstatement, citing Del Pino. [LatinPetroleum.com,2.Apr.2016]

WEATHERFORD UPDATES ON 4Q15 OPERATIONS INLATAM

Weatherford International plc reported 4Q:15revenues 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, anddown 49% compared to 4Q:14. The shortfall inrevenue was driven primarily by a slowdown incustomer activity which was most prominent inBrazil, Colombia, and Mexico, while self-imposedreductions in activity in Venezuela and Ecuadordeepened the shortfall.

Operating income was negatively impacted by thedouble-digit decline in sequential revenues.[Weatherford, 30.Jan.2015]

BAKER HUGHES ANNOUNCES LATAM 4Q15REVENUE OF $428 MILLION

Baker Hughes Incorporated (BHI) announced4Q:15 revenue for Latin America was $428 mln,down $11 mln, or 3%, compared to 3Q:15, despite an11% decline in the rig count. The sequential decreasein revenue was driven mainly by reduced activity inthe Andean geomarket and Mexico as a result ofcustomer budgetary constraints, partially offset byshare gains in Argentina.

Adjusted operating profit margin for Latin Americain 4Q:15 was 3.5%, compared to 11.6% for 3Q:15.Foreign exchange losses, primarily in Argentina, andcosts related to additional reserves for doubtfulaccounts negatively impacted margins sequentially

by 600 bps, or approximately $25 mln.Compared to the prior year, revenue decreased

$163 mln, or 28%, as a result of reduced activityacross the region, including a significant decline inseasonal year-end product sales. The largest declinewas in the Andean geomarket as evidenced by the71% year-over-year rig count drop. Revenue was alsonegatively impacted by the unfavorable change inforeign exchange rates. Year over year, marginsdecreased from 20% in 4Q:14 to 3.5% in the currentquarter. The impact on margins from lower revenue,primarily high-margin year-end product sales, foreign

exchange losses, and increased reserves for doubtfulaccounts, was partially offset by improvements madeto the operating cost structure. [Baker Hughes,28.Jan.2016]

GRAN TIERRA ENERGY UPDATES ON LATAM JVOPPORTUNITIES

Gran Tierra continues to identify and analyzeacquisition and JV opportunities in Colombia (andpotentially Mexico) to expand and diversify itsgrowth portfolio. Gran Tierra's strong cash andworking capital position and undrawn credit facilityprovide the company with the flexibility to continue

its active exploration and development program,accelerate the appraisal of any new discoveriesand/or expand the growth portfolio throughacquisition and new joint-venture projects. [GranTierra Energy Inc., 15.Mar.2016]

http://finance.yahoo.com/q?s=bhihttp://finance.yahoo.com/q?s=bhi


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GRAN TIERRA ENERGY UPDATES ON PERU ANDBRAZIL BUSINESS UNITS

Gran Tierra announced the capital program inPeru is $6 mln, and includes only those activitiesrequired for retention of lands and security of assets.

In Brazil, the capital program approved for 2016 is

$8 mln, and includes minimal activity to implementwater injection for reservoir pressure maintenance,and to preserve current production levels.

In both Peru and Brazil, operations have beenscaled back significantly, with the aim of allowingtime for the company to explore and execute onoptions to maximize shareholder value.

The operations are now structured in such a waythat the free cash flow from production in Braziloffsets the spend in Peru, ensuring that these assetsremain in-tact without being a burden on the freecash flow generating core assets of the company.[Gran Tierra Energy Inc., 15.Mar.2016]

ARGENTINA (ARG)

YPF SETS APRIL DATE FOR DEPARTURE OF CEOMIGUEL GALUCCIO

YPF's board of directors has scheduled an ordinarygeneral assembly and extraordinary shareholdermeeting for 29.Apr.2016 to finalize changes at thehelm of the company.

At the meeting set for 11a.m., the directors planto name Miguel Angel Gutiérrez, an ex-JP Morgan

executive to replace YPF CEO Miguel Galuccio,reported the daily Clarin. [LatinPetroleum.com,29.Mar.2016]

YPF PRESIDENT TO RESIGN OVER REQUEST FROMGOVERNMENT

YPF President Miguel Galuccio plans to resign hisposition in late Apr.2016, reports Efe.

Galuccio will remain in his position until the nextshareholder meeting in order to assist with anorderly transition while also assisting to seek areplacement to assume his position.[LatinPetroleum.com, 9.Mar.2016]

ARGENTINA LOOKS TO REDUCE AMOUNTS PAIDINTO NATURAL GAS SUBSIDY

Argentina paid an estimated $4.6 bln to coversubsidized natural gas services in 2015, of which thegovernment paid $3.2 bln. The payments covered thecost for residential, commercial, industrial andcombustible natural gas stations, reported the dailyLa Nacion, citing a private report.

Argentina is looking to increase tariffs and alsoreduce the amount it pays into the natural gassubsidy while increasing the portion paid by theconsumers, reported the daily, citing Argentina'sEnergy Minister Juan José Aranguren.[LatinPetroleum.com, 30.Mar.2016]

ARGENTINA LOOKS TO SAVE $4 BILLION WITHREDUCTION OF ELECTRICITY SUBSIDY

The Argentine government plans to save $4 bln byreducing its electricity subsidy which primarilybenefits Buenos Aires and its suburbs.

The government of new Argentine PresidentMauricio Macri plans to restructure the country'senergy scheme after 12 years of a center-leftgovernment that supported subsidies that benefittedmillions of users but shored up investments in thesector, reports Reuters. [LatinPetroleum.com,30.Jan.2016]

ARGENTINA IMPUTES FORMER OFFICIAL FORINVOLVEMENT IN ILLEGAL OIL DEALS

Argentina has imputed a former official for hisinvolvement in illegal agreements related topetroleum concessions and his inability to complywith his obligations as a public figure.

The ex-governor Francisco 'Paco' Pérez wasimputed for turning over concessions to oil areas toan insolvent company that did not comply with itsinvestments, reports the daily Clarin.

The company in question, Chañares Herrados

Empresa de Trabajos Petroleros S.A. (Chasa), in 2011obtained a concession extension for exploitation oftwo areas through 2027.

In order to obtain the extension, Chasa proposedinvestments of $226 mln between 2011-2014 and atotal of $1 bln through to 2027.

The company charged $37 mln to the Argentinegovernment under the Petroleum Plus and Gas Plusprogram, which was the amount it was expected toreceive for increasing production and exploitationactivities. [LatinPetroleum.com, 29.Mar.2016]

ARGENTINA PAYS REMAINING DEBT FOR THE

PURCHASE OF NATURAL GAS FROM BOLIVIAEnarsa honored its remaining debt obligations

with YPFB with the complete cancellation of its debtwith Bolivia for the purchase of natural gas.

"The debt that Argentina had for the purchase ofgas from Bolivia has been 100 percent paid up as of31 March 2016," reported the daily El Diario, citingthe YPFB President Guillermo Achá Morales.


10/71

The amount Argentina owed Bolivia had reached$300 mln two months ago, said Bolivia's EconomyMinister Luis Arce during a meeting with Achá and hiscounterpart at Enarsa Hugo Balboa.

"Commercial relations between Bolivia andArgentina are framed around a brotherly relationship

that permits our country to continue to maintain thismarket," reported the daily, citing Achá.

Argentina paid $100 mln of the outstanding debton 6.Jan.2016 and remaining $200 mln on31.Mar.2016, reported the daily La Razón, citingBolivia's Vice President Álvaro García Linera.

Argentina consumes close to 150 MMcm/d ofnatural gas, of which 10% of this demand is coveredby imports from Bolivia. In recent months, Argentineimports from Bolivia have fluctuated between 14-15MMcm/d, according to La Razón.[LatinPetroleum.com, 30.Mar.2016]

YPF TO APPEAL JUDICIAL ORDER TO REVEALCONFIDENTIAL AGREEMENT WITH CHEVRON

Argentine producer YPF will appeal a judicial orderthat obligates it to reveal details of a confidentialagreement signed with U.S.-based ChevronCorporation for the joint exploitation of non-conventional hydrocarbons in southeasternArgentina.

The decision to appeal the order came from YPF'sboard of directors, announced YPF, which iscontrolled by the Argentine government, reportedEfe, referring to a YPF press statement.

Judge Carrión de Lorenzo ordered YPF to revealcomplete details of its agreement with the SanRoman, California-based Chevron at the request offormer socialist senator Rubén Giustiniani whosuggested the agreement contained 'secret clauses.'

Chevron has invested upwards to $2.5 bln in theLoma Campana project -- the largest non-conventional hydrocarbon reservoir in the worldoutside of the USA –– where it has drilled 470 wellsand created close to 5,000 jobs, according to YPF.

"The Chevron investment in the project is a costand risk and will only be repaid with productiongenerated from the project," announced YPF.

In late Feb.2016, YPF turned over a copy of thecontract to government officials but also requestedthat the judge adopt a written extension to preventrelease of confidential material information to thepublic. [LatinPetroleum.com, 16.Mar.2016]

BOLIVIA (BOL)

BOLIVIA EXPORT PRICE TO ARGENTINA AND BRAZILFALLS IN JANUARY 2016

The average price for Bolivia's natural gas exports

to Argentina fell to $3.88/MMBtu in Jan.2016, down37.34% compared to $6.20/MMBtu in Jan.2015,reported the daily La Razón, citing data from Bolivia'sHydrocarbon and Energy Ministry.

The average natural gas export price to Brazil fellto $3.61/MMBtu in Jan.2016, down 33.39%compared to $5.42/MMBtu in Jan.2015, reported thedaily.

Bolivia uses West Texas Intermediate (WTI) as theindex price for its natural gas exports.[LatinPetroleum.com, 27.Mar.2016]

BOLIVIA EXPORTED 14.13 MMCM/D TO ARGENTINA

IN EARLY MARCH 2016Bolivia exported an average 14.13 MMcm/d of

natural gas to Argentina during 1-6.Mar.2016,volumes below the minimum 16.4 MMcm/destablished 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 Razón.

The first amendment to the contract was signed inMar.2010 and established that during the summermonths (1.Jan thru 30.Apr) that the minimum

volumes to be sent from Bolivia to Argentina wouldbe 16.4 MMcm/d while the maximum volumes wouldbe 23.4 MMcm/d. [LatinPetroleum.com,11.Mar.2016]

ARGENTINE AMBASSADOR SAYS COUNTRY TOCONTINUE BUYING BOLIVIAN NATURAL GAS

Argentina plans to continue buying natural gasfrom Bolivia, reported the daily El Diario, citingNormando Álvarez García, the new ArgentineAmbassador to Bolivia.

García said Argentina was interested instrengthening 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]


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BOLIVIA TO CONTINUE SEARCH FOR OIL DESPITERESULTS OF LLIQUIMUNI WELL

Bolivia plans to continue its search for crude oildespite the negative results at the Lliquimuni CentroX1 well located north of La Paz.

The YPFB Petroandina SAM joint venture,

comprised of YPFB and PDVSA, initiated drillingoperations at the Lliquimuni Centro X1 explorationwell on 30.Dec.2014. Activities at the well concluded440 days later after reaching a depth of 4,562meters. The well turned up the presence ofhydrocarbons in non-commercial volumes, reportedthe daily La Razón.

"We will continue with exploration activities northof La Paz," reported the daily, citing Bolivia'sHydrocarbon and Energy Minister Luis AlbertoSánchez. "We are not going to tire in our search forhydrocarbons; although the first well was notsuccessful, the news is no daunting since we continue

our exploration activities with other wells."The Madre de Dios basin, located between the

departments of La Paz, Beni y Pando, is one of themajor hydrocarbon producers in the world, accordingto Sánchez. For this reason, Bolivia will continueactivities in the area until it finds productive wells, hesaid. [LatinPetroleum.com, 24.Mar.2016]

BOLIVIA USING $55/BBL BUDGET OIL PRICE FOR2016-2020

The Bolivian government plans to use anestimated oil price of $55/bbl under its Economic and

Social Development Plan 2016-2020 (PDES by itsSpanish acronym), reported the daily La Razón.

Bolivia is projecting public investments of $48.574bln during 2015-2020 with an estimated benchmarkWTI oil price of $45/bbl in 2016 and $55/bbl during2017-2020.

"The oil price estimate is reasonable andconservative because it is very difficult for oil pricesto rise to $100/bbl," reported the daily, citingEconomic Analyst Armando Álvarez with BolsaBoliviana de Valores (BBV by its Spanish acronym).

The WTI benchmark oil price is used to calculatethe natural gas price that Bolivia uses to export its

gas to Argentina and Brazil and is used by theBolivian government to calculate budget incomefrom royalties and income taxes as well as its fuelsubsidy. [LatinPetroleum.com, 30.Mar.2016]

BOLIVIA'S GRAN CHACO PLANT TO HAVE INSTALLEDCAPACITY OF 32 MMCM/D

The Gran Chaco 'Carlos Villegas' Liquids SeparationPlant in Yacuiba in Tarija Department will function inaccordance with the volumes it is able to send toArgentina until it reaches its maximum installed

capacity of 32 MMcm/d of natural gas."When the plant reaches its maximum installed

capacity of 32 MMcm/d, an estimated 5 MMcm/dwill remain in Bolivia while 27 MMcm/d will bedestined for Argentina," reported the daily La Razón,citing YPFB President Guillermo Achá.

The plant is actually processing 16.4 MMcm/d, butstarting in Jun.2016, the plant will process anestimated 19.9 MMcm/d when the Incahuasi fieldcomes online, said Achá.

The Gran Chaco Separation Plant is the thirdlargest of its type in the region, according to Achá.[LatinPetroleum.com, 29.Mar.2016]

YPFB TRANSIERRA ISSUES $76 MILLION IN BONDS INBOLIVIA

YPFB Transierra S.A., a subsidy of YPFB, issuedbonds on the Bolivian stock exchange for $76.35 mln.

The bonds, issued via the La Bolsa Boliviana deValores (BBV by its Spanish acronym), were originallyprojected to reach just $70 mln, but due to highdemand the final value rose by $6.35 mln, reportedthe daily La Razón.

Funds from the offering will be destined forprogrammed investments on pipelines to transport

hydrocarbons, reported the daily, citing YPFBTransierra.

The government of Bolivia, using the nation'sPublic Company Law, ordered YPFB to acquire theshares in Transierra, held previously by Total E&P and Petrobras Bolivia. On 5.Aug.2014, the companywas constituted as YPFB Transierra S.A.. Partners inthe new company include YPFB Corporation (55.5%WI) and YPFB Andina (45.5% WI).

YPFB Transierra is a transportation company whichtransports an average 20 MMcm/d of natural gas,which represents 60% of the gas volumes that Boliviasends to Brazil under a Purchase and Sales

Agreement (PSA) signed between both nations.[LatinPetroleum.com, 29.Mar.2016]


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COMPANY DELEGATION FROM HOLLAND VISITSBOLIVIA

A delegation of seven companies from Hollandvisited Santa Cruz to conduct meetings with theprincipal hydrocarbon companies operating inBolivia's natural gas sector.

The companies showcased their experience andtechnologies with the idea of someday working withcompanies with operations in Bolivia, reported thedaily El Diario, citing the Netherland's Ambassador toBolivia, Ecuador and Peru, Wiebe de Boer.[LatinPetroleum.com, 16.Mar.2016]

BOLIVIA SENDS DELEGATION TO INDIA TO DISCUSSINVESTMENTS, COOPERATION

The Bolivian government sent a delegation toIndia to discuss consolidation of investments,cooperation and technical assistance, reported thedaily La Razón.

India is expected to offer Bolivia a financialpackage to cover the aforementioned areas, reportedthe daily, citing Bolivia's Development PlanningMinister René Orellana. [LatinPetroleum.com,27.Mar.2016]

BOLIVIA OUTLINES CONTRACTS WITH CHINESECOMPANIES FOR AMAZONIA EXPLORATION

YPFB outlined direct contracts with two Chinesecompanies with operations in Bolivia, reported thedaily El Diario.

The companies, Asociación Accidental BGP and

Sinopec International Petroleum Service Ecuador CoS.A., Bolivian branch, will perform seismicexploration along a lineal layer of 2,675 kilometers inthe Amazonía. The companies were initially awardedthe contracts on 15.Apr.2015, according to the daily.[LatinPetroleum.com, 15.Mar.2016]

COST OF CAMC RIGS FALLS TO $55 MILLION FROM$60 MILLION

YPFB President Guillermo Achá announced thatthe cost of three rigs purchased from China'sNational Construction and Agricultural MachineryImport and Export Corporation (CAMC) has been

reduced to $55 mln from $60 mln due to a taxpenalties, reported the daily La Razón.

The official said that the 13 rigs purchased by YPFBin 1995 for $11 mln today offer services in Bolivia at ahigh cost.

"These three rigs were purchased for $60 mln butdiscounting for penalties the cost will fall to $55million," said Achá.

CAMC -- which sold the rigs and other equipment -- is being investigated after journalist Carlos Valverdereported on insider influences between the Boliviangovernment the Chinese company due to asentimental relation between Bolivia's President EvoMorales 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 theBolivian state oil company were said to be lackingother essential parts and materials. The penaltiesapplied for the missing parts and materials amountedto $4.4 mln, reported the daily. [LatinPetroleum.com,15.Mar.2016]

BOLIVIA LEGISLATORS INVESTIGATE CAMC DRILLINGRIGS

Five Bolivia's legislators verified the functioning ofa drilling rig acquired from the Asian company CAMC.

The legislators, who comprise an integratedcommission in charge of investigating contracts withCAMC, have already verified the function ability ofthe 1000 Hp rig at the YPF-38 well and also plan tovisit the ITG-X3 well, where the 1500 Hp rig islocated, reported the daily La Razón.[LatinPetroleum.com, 12.Mar.2016]

BOLIVIA'S TARIJA DEPARTMENT REVENUES TO FALLBY MORE THAN 20 PERCENT IN APRIL 2016

Natural gas export revenues from the Tarijadepartment in Apr.2016 are expected to fall by morethan 20% due to low oil prices, reported the daily LaRazón, citing Tarija Coordination Secretary WaldemarPeralta.

The department's budget for 2016 was calculatedusing an estimated oil price of $45/bbl, said Peralta.Typically, the payment of royalties is delayed bythree months, said the official.

"That's why in April when we receive paymentsdeferred from January, we're going see more than a20 percent reduction in revenues."[LatinPetroleum.com, 15.Jan.2016]

BOLIVIA'S MORALES TO SEEK INTERNATIONALASSISTANCE DUE TO LOW OIL PRICES

Bolivia's President Evo Morales announced hewould seek assistance from internationalorganizations to combat low oil prices.


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Morales said he would seek assistance from theLatin America and Caribbean Economic Commission (CEPAL, by its Spanish acronym), the Inter-AmericanDevelopment Bank (BID, by its Spanish acronym) andthe Corporacion Andino de Fomento – CAF (LatinAmerican Development Bank), reported the daily El

Diario, citing the official. [LatinPetroleum.com,15.Jan.2016]

BOLIVIA PLANS TO INVEST $400 MILLION IN TWOZINC REFINERIES

The Bolivian government assured the country'sSyndicate Federation of Mining Workers (SFTMB, byits Spanish acronym) that it plans investments of$400 mln to build two zinc refining plants in thePotosí and Oruro departments.

Construction of both plants could be finalized intwo years, reported the daily La Razón, citing Bolivia'sPresident Evo Morales. [LatinPetroleum.com,

13.Jan.2016]

YPFB ANDINA SPUDS YPC-38 WELL IN YAPACANÍFIELD

Bolivia's YPFB Andina initiated drilling activities atthe YPC-38 well in Yapacaní field on 18.Feb.2016using the 1000 Hp rig.

The rig, with an estimated useful life of 20 years, isplanned to target a total depth of 3,100 meters,reported the daily La Razón, citing YPFB PresidentGuillermo Achá.

As of 12.Mar.2016, the well had reached a total

depth of 1,947 meters.The well could come online in Jul.2016, reported

the daily, citing YPFB Andina Manager Juan José Sosa.The production potential from the well is 3 MMcf/d,said Sosa. [LatinPetroleum.com, 12.Mar.2016]

BOLIVIA TO EXPORT ELECTRICITY TO ARGENTINAFOR TWO YEARS

Bolivia plans to export between 600-700megawatts of energy to Argentina over the next twoyears.

ENDE Transmisión will be in charge of building theinterconnection line between the two countries. The

line will connect Tartagal, Argentina with SanJuancito, reported the daily La Razón, citing Bolivia'sHydrocarbon Minister Luis Alberto Sánchez.[LatinPetroleum.com, 11.Mar.2016]

REPSOL AND YPFB TO WORK TO DEVELOP 4 TCF INCAIPIPENDI BLOCK

YPFB and Repsol plan to work together in theCaipipendi block to develop three new geologicstructures in Boyui, Ipagauzú and Boicobo whichpotentially hold 4 Tcf of natural gas.

"YPFB and Repsol plan to work together in April todevelop these 4 Tcf in three structures," reported thedaily La Razón, citing Bolivia's Hydrocarbon MinisterLuis Alberto Sánchez.

Exploitation activities at the three blocks areexpected to start in 2019 and could generateestimated revenues of $1.3 bln per year for theBolivian government.

In terms of production: Boicobo is expected toproduce 9 MMcm/d, Boyui, 5.5 MMcm/d andIpaguazú between 4 and 5 MMcm/d.[LatinPetroleum.com, 11.Mar.2016]

YPFB AIMS TO EXECUTE 86 EXPLORATION PROJECTSIN 66 AREAS

YPFB plans to execute 86 exploration projects in66 areas with the aim of proving up 16 to 17 Tcf ofnatural gas by 2020, reported the daily La Razón,citing Bolivia's Hydrocarbon Minister Luis AlbertoSánchez. [LatinPetroleum.com, 11.Mar.2016]

GAZPROM SIGNS DEALS IN BOLIVIA THROUGH 2040Russia's Gazprom signed agreements with Bolivia

to operate in the country through 2040.With the signing of the agreements in Tarija

department during a Russia-Bolivia Energy Forum,Gazprom has agreed to participate in six explorationareas in Bolivia: Itaricua, Sausemayo, Okinawa,Villamontes, Madidi and La Ceiba.

The agreements cover hydrocarbon explorationactivities in the six area which contain an estimated9.2 Tcf of natural gas, the mass use of liquefiednatural gas as a motor fuel, as well as investigativework and strategic cooperation with YPFB, reportedthe daily La Razón.

The agreements include the acceleration ofinvestments in Azero block, located betweenChuquisaca and Santa Cruz departments, where

Gazprom has been an active partner since 2013, andthe design of a worker investigation center over thenext ten years.

"I consider this as us having opened a new page inour gas cooperation between Russia and Bolivia,"reported the daily La Razón, citing GazpromPresident Alexey Miller.


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Bolivia seeks to use more of its domesticallyproduced natural gas in an aim to reduce theconsumption of diesel and gasoline.[LatinPetroleum.com, 19.Feb.2016]

BOLIVIA INAUGURATES LIQUEFIED NATURAL GAS

PLANT IN RÍO GRANDEBolivia inaugurated operations at the liquefied

natural gas plant in Río Grande on 15.Feb.2016. Theplant will distribute gas to residential sectors and inthe form of vehicular natural gas for automobiles in27 areas of La Paz, Oruro, Potosí, Beni, Santa Cruzand Pando.

An investment of no less than $445 mln was madein the plant, reported the daily La Razón, of which$205 mln was invested directly in the plant while$240 mln was invested in gas network, regasificationstations and liquefied natural gas stations in the 27areas.

"The plant is estimated to generate revenuesabove $120 million thru 2020 and above $300 millionuntil 2025," reported the daily, citing YPFB PresidentGuillermo Achá. [LatinPetroleum.com, 15.Feb.2016]

BGP BOLIVIA TO INVEST $91 MILLION ON BOLIVIANSTUDIES

China's BGP Bolivia plans to invest $91 mln onthree important exploration projects in Amazoníaregion as well as the southern region of Bolivia insearch of gas and petroleum.

The Chinese company will invest in 2D seismic and

exploration activities, reported the daily El Diario,citing BGP Bolivia Manager Yang Weidong.

BGP Bolivia is a subsidiary of BGP International and part of CNPC. The company provides oil fieldservices related to the acquisition, processing andinterpretation of 2D and 3D seismic data.[LatinPetroleum.com, 15.Feb.2016]

BOLIVIA OPTIMISTIC ABOUT 50 MMBBLEXPLORATION PROSPECT NUEVA ESPERANZA

Bolivia initiated a 2D seismic project in the NuevaEsperanza area in the El Chivé community located inthe north of the country in Pando department. The

area, located in the Mother of God Basin in La Pazdepartment, could hold estimated reserves of 50MMbbls of oil and 125 Bcf of natural gas, reportedYPFB in an official statement.

It is possible that YPFB could announce plans for anew refinery in the area if the said reserve volumesare actually discovered, announced YPFB.

The Nueva Esperanza project includes theacquisition of 2D seismic lines that cover anextension of 1,008 kilometers. The project isexpected to last for 16 months including the seismicacquisition, processing and interpretation phases.

The project is estimated to generate

approximately 1,000 jobs in the area.[LatinPetroleum.com, 12.Feb.2016]

BOLIVIA TO INVEST $95.7 MILLION IN ORURO SOLARENERGY PLANT

Bolivia will invest $95.7 mln to build a 50 MWsolar energy plant that is expected to cover morethan 50% of the electricity demand in Oruro.

The financing will consist of a $65.5 mln creditfrom France, a $10 mln donation from the EuropeanUnion and a $19.5 mln injection from the NationalElectricity Company, reported the daily La Razón,citing Bolivia's President Evo Morales.

The Oruro region has electricity demand ofapproximately 80 MW, announced Bolivia's Planningand Development Minister René Orellana. During thefirst phase of the project development the plant willgenerate 50 MW which will rise to 100 MW with thecompletion of the second phase of development, saidthe minister. [LatinPetroleum.com, 11.Feb.2016]

BOLIVIA GAS PRODUCTION EXPECTED TO INCREASE13 PERCENT

Bolivia's production of natural gas is expected toincrease by 13% to 69 MMcm/d from 61 MMcm/d by

Jun.2016, reported the daily La Razón, citing Bolivia'sVice President Álvaro García.

A production increase of 1.5 MMcm/d will comefrom the Margarita-Huacaya field, located betweenthe Tarija and Chuquisaca departments, whileanother initial 6.5 MMcm/d will come from theIncahuasi field, located in the Cordillera de SantaCruz province. [LatinPetroleum.com, 8.Jan.2016]

BOLIVIA INAUGURATES NEW UNIT AT GUILLERMOELDER BELL REFINERY

Bolivia inaugurated the new isomerization unit atthe Guillermo Elder Bell refinery which will allow the

refinery to introduce better technologies at the plantand allow it to obtain fuel from petroleumproduction.

The investment in the unit was $110 mln and wasconstructed and executed by the company TécnicasReunidas as a turn-key project, reported the daily ElDiario.


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The unit will allow the refinery to produce anadditional 12.5 mln liters per month of gasoline,which represents 10% of Bolivia's domestic demandfor the product. When online, the unit will generatebenefits of nearly $53.05 mln, the daily reportedwithout providing a timeframe. [LatinPetroleum.com,

5.Feb.2016]

BOLIVIA AIMS TO PRODUCE LITHIUM IN THREEYEARS

Bolivia will commence to produce nearly 50,000tons of lithium carbonate during the 4Q:18, reportedthe daily El Diario, citing Evaporating ResourcesNational Manager Luís Alberto Echazú.

To-date, $250 mln has been invested in theproject to industrialize lithium. It is estimated thatthe total investment in the project could surpass$900 mln, announced Echazú. [LatinPetroleum.com,5.Feb.2016]

BOLIVIA EXPECTS HYDROCARBON INVESTMENTS OF$12,681 MILLION OVER 5 YEARS

Bolivia expects hydrocarbon investments to reach$12,681 mln under its Economic and SocialDevelopment Plan for 2016-2020.

The plan also calls for increasing natural gasproduction to a minimum 73 MMcm/d from 60MMcm/d, reported the daily La Razón, citing Bolivia’sPresident Evo Morales.

Morales said that natural gas reserves are alsoprojected to reach 17.45 Tcf by 2020 compared to

10.45 Tcf in 2013, while liquid reserves are projectedto reach 411 MMbbls compared to 211.4 MMbbls,respectively. [LatinPetroleum.com, 1.Jan.2016]

TABLE 1: BOLIVIA HYDROCARBONINVESTMENTS 2016-2020 ($MILLIONS)

Sector Amount

Exploration $4,587Exploitation, development $2,694Refining $254 Transportation $1,172

Commercialization $117 Storage $184 Gas network $871 Industrialization $2,657 Minor investments $145 TOTAL INVESTMENTS $12,681

Source: La Razón

BOLIVIA PLANS OIL EXPLORATION ANDEXPLOITATION INVESTMENTS OF $2.4 BILLION IN2016

Bolivia aims to invest $2.4 bln on exploration andexploitation activities in 2016, reported the daily ElDiario, citing President Evo Morales.

[LatinPetroleum.com, 11.Mar.2016]

BRAZIL (BRA)

PETROBRAS INITIATES PROCESS TO DIVEST OFTERRESTRIAL FIELDS

Petrobras announced that its executivedirectorate approved the initiation of a rights cessionprocess related to exploration, development andproduction of oil and gas in a terrestrial complex aswell as assets related to the concessions, announcedthe state oil company.

The initiative, which forms part of Petrobras'Divestment Plan, will be realized through acompetitive process. [LatinPetroleum.com,2.Mar.2016]

BAKER HUGHES AWARDED CONTRACT EXTENSIONBY STATOIL IN BRAZIL

Baker Hughes was awarded a contract extensionby Statoil in Brazil. Baker Hughes negotiated a 3-yrcontract extension with Statoil for the provision ofdirectional drilling, MWD, LWD, surface loggingsystems, and drill bits for the Peregrino offshore fieldin Brazil's Campos Basin. Under the new terms, whichextend the contract until Mar.2019, Baker Hugheswill provide 100% of the drill bits for the Peregrinofield. [Baker Hughes, 28.Jan.2016]

PETROBRAS OFFERS CLARIFICATION ON NEWS:INVESTMENT IN 2016

As announced on 5.Oct.2015, the estimatedinvestment for 2016 is $19 bln, which represents adecline in relation to the estimate for 2015, reportedPetrobras in an official statement.

As disclosed on 29.Jun.2015, in its 2015-2019Business and Management Plan, the company plans

investment in gas reception and treatment inComperj. [Petrobras, 7.Jan.2016]


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COLOMBIA (COL)

COLOMBIA PRESIDENT DOWNPLAYS NEED TORATION ENERGY

Colombia doesn't need to ration energy use at themoment, announced the country's President Juan

Manuel Santos.However, XM, an affiliate of ISA, has been

pressuring the government to decree energyrationing for six weeks with the aim to reduce energydemand by about 5%, reported the daily ElEspectador.

The measure would apply to all residential areasof Colombia and could be extended to coverindustries. [LatinPetroleum.com, 8.Mar.2016]

VENEZUELAN NATURAL GAS AND QUIMBO AMONGCOLOMBIA'S ENERGY PROBLEMS

The inability of Venezuela to fulfill its natural gasexport obligations to supply Colombianthermoelectric plants and delays at the Quimbohydroelectric plant due to a judicial order are twofactors Colombia must consider in dealing with itsenergy crisis.

Colombia was counting on electricity from Quimboand 39 MMcf/d of natural gas from Venezuela beforethe energy crisis began, reported the daily El Tiempo,citing energy experts.

Quimbo has a capacity to generate 5% of thecountry's electricity demand while the gas fromVenezuela assisted Colombia to cover 3% of its

demand for natural gas, according to the daily.[LatinPetroleum.com, 4.Jan.2016]

COLOMBIA CHARGED EXCESSIVELY FOR REFICARREFINERY UPGRADE

A project to modernize and increase the refiningcapacity of the Reficar refinery to 165 Mb/d from 80Mb/d was part of a project to assist Colombiaachieve auto-sufficiency in the production ofcombustibles. However, the project which initiallyhad an estimated cost of $3.993 bln ended up costingthe country $8 bln and was 27 months behind

schedule, reported the daily El Tiempo.The company in charge of the project wasChicago-based Chicago, Bridge and Iron (CB&I).

Information seized from the company's 37 harddrives revealed that 440 of the 2,460 contractssigned related to the refinery had markups of over100% while 25 had markups that exceeded 1000%,reported the daily.

Brief HistoryThe Reficar refinery was inaugurated in 1957 by

International Petroleum Co.. In 1974 the refinerychanged hands and became a property of Ecopetrol.In 2001, the idea of a project to increase itsproductive capacity was floated within Colombia and

work towards this end commenced in 2006-2007with the entrance of partner Glencore. In 2009,Glencore pulled out of the project, citing economicproblems, and the company's interest was acquiredagain by Ecopetrol.

Later, CB&I, a company specialized in theconstruction of energy infrastructure projects,entered the picture and commenced plans to moveforward with a project to increase the refinery'scapacity. [LatinPetroleum.com, 7.Feb.2016]

ECOPETROL TO SUE CB&I FOR WORK RELATED TOCARTAGENA REFINERY

Ecopetrol will go to an international arbitrationcourt in an attempt to recuperate an estimated $2bln from Chicago Bridge and Iron Company (CB&I) which it claims overcharged for the construction ofthe Cartagena refinery.

The costs overruns for the Engineering,Procurement, and Construction Contract (EPC) werereportedly over $4 bln, reported the daily, ElEspectador.

Ecopetrol is seeking compensation of at least $2bln for the following reasons: 1) delays and non-reasonable costs in the engineering process, 2)

programmed work that was deficient andinadequate, 3) low productivity in all jobs performed,4) deficient handling of materials, 5) deficiencies inthe purchase of goods and equipment, 6) managerialdeficiencies with providers, 7) non-reasonablefabrication module costs, 8) errors in negotiating,administration, control and closing of sub-contractswith CB&I, 9) inadequate handling of labor relationsassociated with the project and 10) unjustified delaysin the mechanical termination of the project.[LatinPetroleum.com, 15.Mar.2016]

REFICAR REFINERY EXPORTS COULD GENERATE $1.5

BILLION A YEAR IN REVENUEsThe 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 producelight combustibles and products of use by thepetrochemical sector. [LatinPetroleum.com,6.Mar.2016]


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COLOMBIA STUDIES USE OF GRAPHITE OXIDE FORPOTENTIAL FRACKING PROJECTS

Colombia's National University and BiopharmaChemicals continue to advance with an investigativeproject to determine the effectiveness and theviability of the use of graphite oxide as a component

to clean the waters utilized in the search andproduction of oil and gas produced from shaleformations.

Graphite oxide is widely used in the medicalindustry as a cleaner of radioactive materials used inequipment to perform medical exams, reports thedaily El Tiempo.

The study has an environmental aspect and isoriented towards using graphite oxide as aneutralizing agent in water used and reinjectedduring the fracking process, reported the daily, citingBiopharma Chemicals General Director PedroMancebo.

The agreement between the two institutions,which commenced in Jan.2016 and will last for 18months, will require an estimated investment of $1.8bln.

The use of graphite oxide could possibly neutralize87.5% of the radioactive materials according to theofficial.

"At the moment carbon assets are being used witha 20 to 40 percent level of efficiency," said Mancebo.[LatinPetroleum.com, 15.Mar.2016]

PACIFIC BOARD TO EVALUATE SIX PURCHASE

OFFERSPacific Exploration & Production is evaluating six

purchase offers, reported the daily Portafolio, citingan article by The Wall Street Journal, which quotespersons familiar with the negotiations.

The offers are being collected by Lazard, thefinancial advisory company, and will be analyzed byan independent committee appointed by Pacific'sboard of directors.

In 2015, Pacific produced an average 156,000boe/d, more than any other private company in LatinAmerica. The company's market capitalization hasfallen to around $200 mln from more than $7 bln at

the start of the 2012. [LatinPetroleum.com,17.Mar.2016]

COLOMBIA GOVERNMENT NEEDS TO INTERVENE TOASSIST THERMOELECTRIC PLANTS

Colombia's thermoelectric plants could use ofnatural gas from the secondary market to assist thecountry weather the final stages of the El Niñophenomena.

The government needs to intervene over the next4-5 weeks so that the country's thermoelectric plantscan access natural gas from secondary markets atlower prices. Currently, prices are between$11/MMBtu and $14/MMBtu, which are the same asthe generation cost with Acpm, reported the daily El

Tiempo, citing Ángela Montoya, President of theColombian Energy Generators Association (Acolgén by its Spanish acronym).

"The gas theme has not been resolved and weneed, if the government has the will, to give theplants gas so that they can operate more efficientlyin the generation of energy," said Montoya.[LatinPetroleum.com, 16.Mar.2016]

CANACOL SAYS OBOE 1 WELL TESTS FLOWS 66MMCF/D OF NATURAL GAS

Canacol Energy announced that the Oboe 1 welltest flowed 66 MMcf/d of natural gas, considerably

above rates initially estimated for the well, reportedthe daily El Tiempo.

The company had expected the well to flow anestimated 25 MMcf/d, reported the daily.[LatinPetroleum.com, 16.Mar.2016]

CARTAGENA LNG REGASIFICATION PLANT ONLINEIN NOVEMBER 2016

The Cartagena LNG regasification plant will startoperations in Nov.2016 and offer 400 MMcf/d ofnatural gas, reported the daily El Espectador, citingNaturgas President Eduardo Pizano de Narváez.

[LatinPetroleum.com, 9.Mar.2016]

COLOMBIA'S ANH ACCEPTS ECOPETROL ANDREPSOL REQUEST TO SHUT-IN AKACÍAS FIELD

Colombia's National Hydrocarbon Agency (ANH by its Spanish acronym) accepted a request from Ecopetrol and Spain's Repsol to temporarily suspendactivities at the Akacías field, located in Block CPO-9in Meta department due to the decline in oil prices.

With low oil prices the field was not profitable,reported the daily El Tiempo, citing an Ecopetrolstatement. Technical teams continue to work on anoptimized development concept to assure the

viability of the field in a low oil price environment.The Akacías field produced an average 6,699 b/d

in Feb.2016, of which 3,684 b/d corresponded toEcopetrol and 3,015 b/d corresponded to Repsol.[LatinPetroleum.com, 1.Mar.2016]


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ECOPETROL EQUIVALENT PROVED RESERVES FALL11% IN 2015 ON LOWER OIL PRICES

The decline in oil prices during 2015 affectedEcopetrol's E&P activities and produced an 11%decline in the company's equivalent proved oil andgas reserves.

Ecopetrol's reserves fell to 1,849 MMboe at YE:15,down 11% compared to 2,084 MMboe at YE:14,reported the daily El Tiempo. As a result, thecompany's reserve life ratio fell to 7.4 years in 2015compared to 8.6 years in 2014. Ecopetrol's reservereplacement ratio was just 6% in 2015 compared to146% in 2014.

Ecopetrol used an average Brent oil price of$55.57/bbl in 2015 compared to $101.80/bbl in 2014to evaluate its year-end oil and gas reserves. As aresult of oil prices the company reported a 404MMboe reduction due to pricing.[LatinPetroleum.com, 29.Feb.2016]

RUSSIANS AND KOREANS PROPOSE BUILDING $2.7BILLION REFINERY IN META

An international consortium comprised of Koreanand Russian companies proposed a project plan tothe government of Meta department forconstruction of a $2.7 bln refinery.

The Russian company RNGS plans to contribute $2bln to the project while the Colombian-Dominican-Korean consortium -- comprised of Colombia'sModern Energy Supply; Dominican Republic's NativoInternational SRL and South Korea's SK -- plans to

contribute $700 mln, reported the daily El Tiempo.The Meta refinery could be built in two years, less

time that planned, announced Modern Energy SupplyDirector Alfredo Benavides. With technology, it isexpected the crude can be improved to one of morethan a 10-degree API, said Benavides.

Additionally, the proposed plan entails removingsulfur and metals and substantially lowering theviscosity of the crudes, which will allow the refineryto obtain gasoline and diesel in line withinternational standards. [LatinPetroleum.com,12.Jan.2016]

ECOPETROL TO DIVEST OF NON-PETROLEUM ASSETSEcopetrol aims to raise $1.4 bln through the

divestment of non-petroleum assets in 2016 and2017, which is in line with its strategy to combat thefall in international oil prices.

Assets for sale include a propylene unit, a gastransport unit and stock in Energía de Bogotá andInterconexión Eléctrica (ISA), reported the dailyPortafolio, citing Ecopetrol President Juan CarlosEcheverry.

In recent years Ecopetrol has reduced its work

force to around 30,000 compared to 48,000 yearsearlier. With a smaller headcount, the country aimsto produce between 800 and 850 Mboe/d by 2021compared to around 700 Mboe/d currently.

A grand part of the production increase isexpected to come from the Rubiales field, one of thelargest areas in Colombia, and which currentlyproduces around 150 Mboe/d, reported the daily.[LatinPetroleum.com, 23.Feb.2016]

COLOMBIA REPORTS 77.8 PERCENT DECLINE INEXPLORATION DRILLING IN 2015 VS 2014

Colombia drilled 25 exploratory wells in 2015,

down 77.8% compared to 2014, reported the daily ElTiempo, citing data from ANH.

Of the 25 wells drilled, 10 were plugged andabandoned (40%) while just 2 wells were successful(8%).

The first successful well was related to the MonoAraña 11 well in Cesar department and was drilled byExxonMobil. The second successful well related tothe La Estancia 1 well in Casanare department andwas drilled by Lewis Energy.

Four wells drilled by Drummond, Tecpetrol,ExxonMobil and DCX were suspended.

Ecopetrol drilled three exploration wells in 2015,of which 2 were abandoned while the NuevaEsperanza 3 well in Block CPO-09 was still undergoingtesting at the close of 2015.

Seismic work onshore Colombia in 2015 fell tolevels not seen in 20 years. Only 2,200 kilometers ofseismic was recorded in 2015 compared to 7,980kilometers in 2014. Offshore seismic work reached30,481 kilometers compared to 32,492 kilometers,respectively. [LatinPetroleum.com, 1.Feb.2016]

STANDARD & POOR'S REVISES PERSPECTIVE OFOLEODUCTO CENTRAL S. A. TO NEGATIVE

Standard & Poor's reduced the classificationperspective of Oleoducto Central S. A. to negativefrom stable.

The revision in the perspective reflects similaractions taken in respect to Ecopetrol, reported thedaily El Tiempo, citing S&P. The revision is not relatedto the credit quality, the agency reported.[LatinPetroleum.com, 3.Feb.2016]


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STANDARD AND POOR'S MAINTAINS ECOPETROLBBB RATING

Standard and Poor's announced that it wouldmaintain its 'BBB' corporate rating for Ecopetrol butwould revise the perspective to negative from stable,citing falling oil prices in international markets.

Standard and Poor's also revised the individualrating on Ecopetrol to 'BB' from 'BBB', reported thedaily El Espectador. [LatinPetroleum.com,29.Jan.2016]

ECOPETROL SUSPENDS ACTIVITIES AT CAÑO SURESTE FIELD FOR ECONOMIC REASONS

Ecopetrol suspended development andproduction activities at Caño Sur Este field located inPuerto Gaitán (Meta department) in the southernportion of the Rubiales field.

Colombia's ANH authorized the temporarilysuspension of the activities in the area after

reviewing such a request from the state oil company,reported the daily El Tiempo. The request fromEcopetrol was made due to the low prices whichmake profitable production from the field impossible.

The field produces 1,277 b/d of heavy oil andrepresents just 0.2% of Ecopetrol's production.

Caño Sur Este field was declared commerciallyviable in 2013 when oil prices averaged $108/bbl,and it was projected to produce 25,000 b/d in 2016,reported the daily.

Ecopetrol initially reported the field contained anestimated 492 MMbbls of original oil in place and

proved reserves of 22.4 MMbbls and projectedestimated investments of $656 mln during 2014-2016to develop the field. [LatinPetroleum.com,18.Feb.2016]

ECOPETROL INITIATES ACTIONS TO DELIST ADRFROM TORONTO STOCK EXCHANGE

Ecopetrol initiated paperwork and actions tovoluntarily delist its American Depositary Receipts(ADR) from the Toronto Stock Exchange, reportedthe daily El Tiempo.

Ecopetrol citing low ADR volumes in Canada asone of its primary reasons behind taking the decision.

[LatinPetroleum.com, 18.Feb.2016]

ECOPETROL COULD RECEIVE 1.5 BILLION PESOS FORPROPILCO DIVESTMENT

Ecopetrol's board of directors approved the initialsale of the company's 100% interest in Polipropilenodel Caribe S. A. (Propilco S. A.).

Ecopetrol must obtain approval from theColombian government in order to move forwardwith the divestment, reported the daily El Tiempo,citing Law #226 launched in 1995.

The divestment plan is part of Ecopetrol's goal toobtain funding from the divestment of non-strategic

assets with the aim to maintain is exploration andproduction activities.

Ecopetrol reported that Propilco had accumulatedshareholder equity of 1.25 bln Colombian pesos inthe 3Q:15 and assets of 1.8 bln pesos. Between Jan.-Sep.2015, Propilco reported sales of 1.35 bln pesosand net income of 95,000 pesos, reported the daily.[LatinPetroleum.com, 28.Jan.2016]

COLOMBIA ACHIEVED AVERAGE PRODUCTION OF1,005,500 B-D IN 2015

Colombia achieved average oil production of1,005,500 b/d in 2015, reported the daily Portafolio,

citing the country's Oil and Energy Minister TomásGonzález.

The Andean country reported average oilproduction of 993,800 b/d in Dec.2015, up 0.46%compared to 989,000 b/d in Dec.2014.

Colombia's natural gas production average 1,035.2MMcf/d in Dec.2015, up 0.08% compared toNov.2014. [LatinPetroleum.com, 15.Jan.2016]

ECOPETROL ABLE TO CONTINUE OPERATING WITHOIL BETWEEN $30 AND $40 A BARREL

Despite the pull back in oil prices, Ecopetrol is able

to continue operating with oil prices between$30/bbl and $40/bbl, announced an official with thestate oil company.

"The price range at which we produce cash flow isbetween $20 a barrel and $30 a barrel and the pricerange at which we produce income is between $30 abarrel and $40 a barrel," reported the daily ElTiempo, citing Ecopetrol Juan Carlos Echeverry.[LatinPetroleum.com, 4.Jan.2016]

DOMINICAN REPUBLIC (DOM)

TAIWAN COMPANY TO INVEST $110 MILLION INSOLAR ENERGY IN DOMINICAN REPUBLICThe Taiwan company General Energy Solution

announced plans to invest $110 mln on the firstlarge-scale solar energy plant in Dominican Republic.


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The Monte Solar Plant, located 70 kilometersnorth of the Dominican capital of Santa Domingo, willhave 132,000 solar panels and a capacity to generate30 MW under the first phase of development. Underthe second phase of development, the plant will raiseits capacity to 60 MW, reported AP, citing the

Dominican Republic's National Energy Commission.The plant, built by General Energy Solution, uses

technology from the Germany company SoventixCaribbean. [LatinPetroleum.com, 29.Mar.2016]

ECUADOR (ECU)

PETROECUADOR TO MODERNIZE INSTRUMENTMAINTENANCE LABORATORY

PetroEcuador announced plans to modernize theinstrument maintenance laboratory at the LibertadRefinery as well as improve the automatization of

measurement controls and controls related to thestorage tanks. [LatinPetroleum.com, 31.Mar.2016]

PETROAMAZONAS INITIATES ACTIVITIES TOEXTRACT OIL FROM ITT

PetroAmazonas initiated activities to drill the firstwell at the Ishpingo-Tambococha and Tiputini (ITT)field or Block 43, part of which is located in theYasuní National Park.

The company initiated initial development drillingactivities from the Tiputini C platform, reported thedaily El Comercio, citing PetroAmazonas ManagerJosé Icaza and Strategic Sectors Minister RafaelPoveda.

Brief ChronologyExploration work from Shell led to the discovery of

the Tiputini field in 1949. Much later, PetroEcuadordiscovered the Ishpingo and Tambococha fieldsbetween 1992-1993.

In 2007, Ecuador's President Rafael Correapresented his plan, the Yasuní-ITT Initiative, whichcalled for leaving the ITT crude in the ground inexchange for compensation from internationalcompanies or organizations.

In 2013, Correa called for an end to the Yasuní-ITT

Initiative and announced that exploitation of oil inthe area would generate estimated revenues of $18bln over 30 years.

Ecuador's Assembly declared petroleum extractionin Blocks 31 and 43, both located in Yasuní, a matterof national interest. Plans to extract crude in Yasuníwere announced by YE:15. [LatinPetroleum.com,30.Mar.2016]

KOREAN AND CHINESE COMPANIES CONTINUE TODISCUSS PACIFIC REFINERY PROJECT

Korean and Chinese companies as well as bankscontinue to negotiate construction of the estimatedclose to $13 billion Pacific Refinery (Refinería delPacífico in Spanish).

Negotiations continue optimistically and thepreliminary works such as construction of anaqueduct that will span from La Esperanza to thelocation of the new refinery are in the works,reported the daily El Universo, citing Strategic SectorCoordinating Minister Rafael Poveda.

The aqueduct, which is expected to be operationalin Sep.2016, will pass through some cities in Manabí.

The cities are expected to benefit from theconstruction of the aqueduct, said Poveda.[LatinPetroleum.com, 30.Mar.2016]

PETROECUADOR TO DIVEST OF 6,000 TONS OF

SCRAP LEFT OVER FROM ESMERALDASMODERNIZATION

PetroEcuador announced plans to sale 6,000 tonsof scraps left over after the modernization of theEsmeraldas refinery.

"With the aim to recycle the scrap obtained duringthe modernization process of the Esmeraldasrefinery, PetroEcuador will initiate a bid process forthe recycling of the 6,000 tons of scrap," announcedEcuador's Hydrocarbon Ministry in a statement on itswebsite.

The Esmeraldas refinery has capacity to process

112 Mb/d of crude. The refinery is the largest of thecountry's three refineries and is located in the city ofEsmeraldas, some 180 kilometers northeast of thenation's capital city Quito. [LatinPetroleum.com,29.Mar.2016]

PETROECUADOR SIGNS AGREEMENT TO ASSISTPOPULATION IN ESMERALDA

EP PetroEcuador signed an agreement withEcuador's Community Assistance Foundation (FACE by its Spanish acronym) to provide assistance tocommunities affected by the consequences offlooding in Esmeraldas province.

The agreement, which aims to provide socialcompensation in the form of emergency medicalbrigades and the purchase of sanitary equipment andmaterials, was signed by PetroEcuador Manager AlexBravo and FACE President Cristina VanegasAltamirano, according to official statement fromPetroEcuador.


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Investment in the project will total $744,343.PetroEcuador will provide $708,858 and FACE willprovide the remaining $35,485 over a period of 4-months. [LatinPetroleum.com, 3.Feb.2016]

ANDES PETROLEUM TO INVEST $72 MILLION OVER

FOUR YEARS IN PASTAZAAndes Petroleum plans investments of $72 mln

over 4-years on exploration and exploitationactivities at the 79 and 83 fields located in Pastaza,reported the daily El Universo. [LatinPetroleum.com,26.Jan.2016]

ECUADOR ORDERED TO PAY OXY $980 MILLION INEXPROPRIATION CASE

A World Bank court ordered Ecuador to pay US-based Occidental Petroleum (Oxy) $980 mln in anexpropriation case filed with the ICSID court.

The case dates back to May.2006 when Ecuador

declared the expiry of an exploration contract forBlock 15 signed in 1999 by Oxy after the companytransferred a 40% interest in the contract to AlbertaEnergy Company (AEC), an affiliate of Encana,without consultation with the government, reportedthe daily El Universo. [LatinPetroleum.com,13.Jan.2016]

PETROECUADOR'S ESMERALDAS REFINERYPROCESSING AT FULL CAPACITY

PetroEcuador's Esmeraldas refinery is working at100% of its processing capacity after the completion

of modernization work, reported the state oilcompany in an official statement.

The refinery, the largest in the Andean nation, hasa processing capacity of 110 Mb/d. The recentmodernization work will allow the refinery toproduce 20% more LPG and 15% more naphtharesulting in a savings of $305 mln per year due toincreased production and reduced imports.

Likewise, the modernization helped to boost theprocessing capacity at the Fluid Catalytic Cracker(FCC) unit to 20 Mb/d from 18 Mb/d.

The benefits of the modernization include: 1) A6,000 b/d reduction in naphtha imports, 2) Increased

production of LPGs, more than 260 tons/day,equivalent to 9% of the total volumes consumed inthe country, 3) Better incorporation of low octanenaphtha in the blending with gasoline, more than3,200 b/d, 4) Increased production of #2 diesel andpremium, more than 5,600 b/d, and 5) Increasedproduction of fuel oil, more than 13,700 b/d.[LatinPetroleum.com, 3.Jan.2016]

MEXICO (MEX)

BIG TRANSPARENCY ISSUES FACING PEMEX INPLATFORM LEASING CONTRACTS

The lack of transparency in platform leasingcontracts and modifications of clauses represent a

disadvantage for Pemex, reported the dailyLaJornada.

This year, Pemex Exploration and Production, orPEP, contracted 63 platforms (54 jack ups and 9submersible platforms) in order to increasehydrocarbon reserve and production levels. Sixty-nine percent of the platforms, or 44, were obtainedby a direct award while 19 were obtained byinternational bidding process. [LatinPetroleum.com,26.Mar.2016]

PEMEX SIGNS CONTRACT TO BOOST NITROGEN

ACQUISITONSPemex signed a nitrogen services and supplycontract with the aim to recuperate 800 MMbbls ofpetroleum over the next 11 years through theapplication of well pressure maintenance.

The contract was signed with Compañía Nitrógenode Cantarell S.A. de C.V., a company of The LindeGroup, reported the daily LaJornada.

Pemex, which has been conducting alternativefluid studies of the Cantarell field since 1997, hasproved that nitrogen gas is the best injection materialto recuperate petroleum. [LatinPetroleum.com,11.Jan.2016]

SEVEN COMPANIES TO INVEST $2.1 BILLION ONSOLAR AND WIND ENERGY PROJECTS

Mexico's Federal Electricity Commission (Comisión Federal de Electricidad or CFE by itsSpanish acronym) will buy solar and wind energyfrom seven companies that won the first long-termbid for clean energy and electric energy certificates.

The seven winning companies will invest around$2.116 bln over the next 3-years to develop differentprojects, reported the daily LaJornada.

The winning companies include: SunPower

Systems México, Enel Green Power México, ParqueEólico Reynosa III, Gestamp Wind México, RecurrentEnergy México, Alten Energías Renovables andEnergía Renovable del Istmo, announced Mexico'sElectricity Undersecretary César Hernández and thedirector of Mexico's National Energy Control Center (Centro Nacional de Control de Energía or Cenace byits Spanish acronym).


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A total of 69 companies participated in the biddingand submitted more than 200 proposals.

The bidding is expected to translate into theacquisition of 5,385 GWh and 5.3 million cleanenergy certificates (CEL). Wind plants will be installedin Aguascalientes, Coahuila and Guanajuato while

solar energy plants will be installed in Tamaulipasand Zacatecas.

A total of 56% of the sales offered were related tosolar energy and 44% wind energy, reported thedaily, citing Hernández. Installed capacity is expectedto rise to 1,720 MW, of which 1,100 MW is expectedto come from solar energy and the remaining 620MW from wind energy.

Using an exchange rate of 17.33 Mexican pesosper US dollar, the prices for an integrated packagefrom CEL, the MWh was between $35.50/MWh and$47.90/MWh with an average of $41.80/MWh.[LatinPetroleum.com, 29.Mar.2016]

PEMEX FIRES 139 ENGINEERS and 648 OFFSHOREPLATFORM WORKERS

In a cost reduction move Pemex announced thedeparture of 139 petroleum engineers, geologistsand geophysicists and 648 offshore marine workersin mid-Mar.2016, according to a document releasedby the state oil company, reported the dailyLaJornada.

Additional firings are expected on 28.Mar.2016that will affect the following assets of Samaría-Luna,Jujo-Tecominoacán and Ku-Maloob-Zap, according to

the daily.Of the total offshore workers, 570 belong to the

union while the remaining 78 had no unionaffiliation. The workers were dismissed in twophases: the first phase affected 181 workers whilethe second phase affected 467 workers. Thedepartures occurred from 22-23.Mar.2016, accordingto the daily.

The departures come from the Field DevelopmentDivision and six producing assets: 1) Litoral deTabasco Tsimin-Xux, 2) Abkatún, 3) Macuspana-Muspac, 4) Cantarell, 5) Ayatsil-Tekel and 6) CincoPresidentes.

A total of 139 engineers and other professionalworkers where employed on the following assets:Cantarell (30); Ayatsil-Tekel (23); Abkatún (33);Macuspana-Muspac (13); Tsimin-Xux (9); and CincoPresidentes (24).

These payroll reductions add to others, includingpositions of highly specialized personnel, reportedthe daily, citing the National Technical Union andPetroleum Professionals (Unión Nacional deTécnicos y Profesionistas Petroleros or UNTyPP byits Spanish acronym).

The recent cuts represent the loss of technicalpersonnel within the company with years ofspecialized experience and could consequently causethe company to lose some of its competitiveness,announced UNTyPP.

On 25.Jan.2016, LaJornada announced that PEMEXwould permanently fire 10,533 workers, citing thethen Pemex General Director Emilio Lozoya Austinand Pemex Budget Director Mario Govea Soria.[LatinPetroleum.com, 28.Mar.2016]

PEMEX CONFIRMS DEATHS OF TWO WORKERS ATOFFSHORE PLATFORM

Pemex confirmed the deaths of 2 workers during afire at the Abkatún A platform located in CampecheSound offshore the Gulf of Mexico.

One of the deceased was a Pemex employee whilethe other worked for the contract company Cotemar,reported the daily LaJornada.

The fire occurred in the compression area of theplatform, the daily reported, citing Pemex. The firewas controlled without the need to evacuate theplatform, according to state oil company.[LatinPetroleum.com, 7.Feb.2016]

PEMEX TO DEFER $3.6 BILLION INVESTMENTSPemex announced a strategy to defer $3.6 bln in

investments as part of budget cuts proposed by thefederal government in reaction to the fall in theinternational price of oil.

The strategy, which forms part of a $5.5 blnreduction plan, aims to stop production declines atPemex, reported AFP, citing Pemex General DirectorJosé Antonio González Anaya. [LatinPetroleum.com,29.Feb.2016]

FIVE COMPANIES INTERESTED IN IMPORTINGGASOLINE, BUILDING STORAGE FACILITIES

Five companies have expressed interest inimporting gasoline in Mexico through the use of traintransportation and construction of terminals to storethe product, reported the daily LaJornada, citingMexico's Energy Secretary Pedro Joaquín Coldwell.[LatinPetroleum.com, 16.Mar.2016]


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PEMEX ISSUES STOCK CERTIFICATES WORTH 5BILLION MEXICAN PESOS

Pemex issued stock certificates worth 5 blnMexican pesos. The certificates, which mature inOct.2019, will pay a coupon of TIIE28 + 135 points,reported Pemex in an official statement.

Funds from the issuance will be used by Pemex toinvest in strategic projects and a potentialrefinancing.

The principal investors in the certificates werebanks, investment funds as well as public and privatetreasuries.

The agents that placed the certificates were: BBVABancomer, Banamex, Santander and Bank ofAmerica Merrill Lynch. [LatinPetroleum.com,17.Mar.2016]

PEMEX ANNOUNCES €2.250 BILLION EURO BONDSOFFERINGS

Pemex announced the issuance of €2.250 bln inEuro bonds in two separate offerings with maturitiesof 3 and 7 years, reported the company in an officialstatement.

The first issuance was for €1.350 bln with amaturity of Mar.2019. The bond offers a return(yield) of 3.808% and a coupon of 3.75%. The secondissuance was for €0.900 bln with a maturity ofMar.2023. The bond offers a return (yield) of 5.213%and a coupon of 5.125%.

The demand for the two offerings wasapproximately €6.000 bln, which represents 2.67

times the assigned amounts. Investors includedpension funds and portfolios from Europe, Asia andthe Middle East.

Lead agents on the offering were: Crédit Agricole,Deutsche Bank, Société Générale and HSBC.[LatinPetroleum.com, 9.Mar.2016]

PEMEX ANNNOUNCES $5 BILLION BOND OFFERINGIN THREE TRANCHES

Pemex announced the issuance of $5 billion inbonds in three tranches of $750 million, $1,250million and $3,000 million, announced the companyin an official statement.

The first tranche was for $750 mln with a maturityof Feb.2019. The bond offers a return (yield) of5.50%.The second tranche was for $1,250 mln with amaturity of Feb.2021. The bond offers a return (yield)of 6.375%.

The third tranche was for $3,000 mln with amaturity of Feb.2026. The bond offers a return (yield)of 6.90%.

The demand for the offerings was approximately$18,000 mln, which represents 3.5 times theassigned amounts. Investors included pension fundsand portfolios from Europe, the U.S.A., the MiddleEast, Asia, Mexico and other countries.

Lead agents on the offering were: BBVA, BofA

Merrill Lynch, JP Morgan and Santander.[LatinPetroleum.com, 28.Jan.2016]

PEMEX SAYS TULA REFINERY COMPLIES WITHENVIRONMENTAL REQUIREMENTS

The Miguel Hidalgo refinery located in Tula is incomplete compliance with legal environmentalrequirements as stipulated by Mexico's Official NormNOM-001-SEMARNAT-1996, reported Pemex in anofficial statement.

Pemex produces Pemex Magna and PemexPremium gasolines in Mexico as well as diesel.[LatinPetroleum.com, 16.Mar.2016]

PEMEX SIGNS MOUS WITH THREE PERSIAN GULF OILCOMPANIES

Mexico's President Enrique Peña Nieto took partin the signing of three Memoranda of Understanding(MOUs) between Pemex and Persian Gulf companiesduring an official visit by the executive to that region.

Pemex signed MOUs with Mubadala Petroleum and ADNOC, both from the United Arab Emirates aswell as another with Saudi Aramco from SaudiArabia, reported Pemex in an official statement.

The MOUs were signed by Pemex General Director

Emilio Lozoya as well as by Mubadala Petroleum CEOMusabbeh Al Kaabi, ADNOC CEO Abdulla Nasser AlSuwaidi, and Saudi Aramco CEO Amin H. Al-Nasser.

Under the MOUs, the companies agree to worktogether and explore business opportunities inMexico. [LatinPetroleum.com, 19.Jan.2016]

MEXICO'S HYDROCARBON COMMISSION GIVESPEMEX GO AHEAD TO DRILL TWO WELLS

Mexico's National Hydrocarbon Commission approved terms to allow Pemex to carry out thedrilling of the two exploration wells: Basto Mil Unoand Nobilis Uno.

The estimated cost to drill the first well is nearly275 mln Mexican pesos while the cost to drill thesecond is nearly 126 mln pesos, reported the dailyNotimex. [LatinPetroleum.com, 12.Jan.2016]


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PEMEX's FD&A COSTS ESTIMATED AT AROUND$26.19 A BARREL

Pemex's Finding, Development and Productioncost is estimated at nearly $26.19/bbl, reported thedaily LaJornada. [LatinPetroleum.com, 11.Jan.2016]

PERU (PER)

OIL OPERATORS WORRIED ABOUT CREATION OFMARINE RESERVE IN NORTHERN PERU

A proposal by Sernanp to create a marine reservein northern Peru worries oil companies from Piuraand Tumbes which fear it may threaten theirexploration 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 innorthern Peru, the daily reported, citing PeruHydrocarbon Society President Rolando Egúsquiza.Officials with the country's National Mining,Petroleum and Energy Society shared similarcomments about the new marine reserve initiative.

The creation of the Pacific Tropical Sea Reserve(Mar Pacífico Tropical, in Spanish) could interferewith 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 inthe area. However, the creation of a protected areawould affect the capacity of our parent company,

Alfa Energy, to compete with other projectsworldwide that don't have to encounter similarproblems," reported the daily, citing BPZrepresentative Carmen Castellanos.

The marine reserve also threatens to affectAustralian company Karoon, which plans to drill someof the deepest submarine wells in Peru in Lot Z-38,reports the daily.

"The Sernanp administers eight protected areasthat belong to 12 petroleum lots and activities therehaven't been affected," reported the daily, citingSernanp 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 withoperators in the Pacific Tropical Sea Reserves."

Perú-Petro estimates that offshore operators inPiura and Tumbes could invest up to $900 mln onexploration activities through 2020. The figure couldrise to $4 bln if Karoon confirms the existence ofpetroleum in Lot Z-38 and decides to move forwardwith exploitation activities. [LatinPetroleum.com,

29.Mar.2016]

OIL SPILL IMPACTS FARMING AREAS IN THEAMAZONAS IN PERU

A petroleum spill equi

LatinPetroleum LatAm NRGProspector 1Q16 Low

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