LatinPetroleum LatAm NRGProspector 1Q16 Low

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
IN THIS ISSUE
15.April.2016
5-7 .. HEARD ON THE STREET

Foreign companies in Venezuela starting to institute
hiring freezes and make organic staff reductions.
8 .. QUOTES
Venezuela "exporting corruption."
8-32 .. NRG BRIEFS

Covering Argentina, Bolivia, Brazil, Colombia,
Ecuador, Mexico, Peru, Uruguay and Venezuela.
26 .. LatAm Energy Investor

Watch List Brief
TRACKER TABLES
64 .. DIVESTMENT/M&A
65 .. EQUITY/DEBT ISSUANCES
66-68 .. ROTARY RIG TRACKER
LatAm oil, gas and misc., and onshore and offshore.
69 .. ECUADOR EXPORT PRICE

70 .. VENEZUELA EXPORT
PRICE VS WTI AND BRENT
ON THE COVER
Venezuela: LatAm country with most attractive crude

oil and natural gas reserves, and output potential.
33-34 .. COMPANY BRIEFS

From Crystallex International to Valero Energy.
34-35 .. RATING UPDATES

35-60 .. NRG REEL
Covering Brazil, Colombia, Peru and Venezuela.
49 .. Citgo Interest Arises In

Valero's Aruba Refinery
Houston-based Citgo Petroleum could be Valero's
last hope to divest of its 235 Mb/d refinery located in
San Nicolas, Aruba's second largest city.
60-63 .. EXECUTIVE SUITE

From PEMEX to PDVSA.
For subscription details write us at:

webmaster08@latinpetroleum.com
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 Venezuela
Refining Circuit 2014 vs 2000 (Mb/d) ; PDVSA Capex,
and Other Disbursements, Income Statement 20142015; Gran Tierra Acquisition Summary; and
Ecopetrol Proven Reserves YE:15.
ABBREVIATIONS
HYDROCARBON SECTOR
B/d: Barrels per day
Bbls: 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: Venezuelas Orinoco heavy oil belt
Ft: Feet
JV: Joint venture
LNG: 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 meters
MMcf: 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 Understanding
YE: Year end
WI: Working interest
STATE OIL ENTITIES (COUNTRY)
ANCAP: Administracin Nacional de Combustibles,
Alcoholes y Portland (Uruguay)
Cupet: Cubapetrleo (Cuba)
Ecopetrol: Empresa Colombiana de Petrleos S.A.
(Colombia)
ENAP: Empresa Nacional de Petrleo (Chile)
Eni SpA: Ente Nazionale Idrocarburi (Italy)
PDVSA: Petrleos de Venezuela S.A. (Venezuela)
PEMEX: Petrleos Mexicanos (Mexico)
Petrobras: Petrleo Brasileiro S.A. (Brazil)
PetroEcuador: Ecuador
PetroPeru: Peru
Petrotrin: Petroleum Company of Trinidad & Tobago
Ltd.
YPFB: Yacimientos Petrolferos 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
LATAM/CARIBBEAN COUNTRIES
ALL OTHER COUNTRIES
ARG: Argentina
ARW: Aruba
BHS: Bahamas
BRB: Barbados
BLZ: Belize
BOL: Bolivia
BRA: Brazil
CYM: Cayman Islands
CHL: Chile
COL: Colombia
CRI: Costa Rica
CUB: Cuba
DMA: Dominica
DOM: Dominican Republic
ECU: Ecuador
FLK: Falkland Islands (Malvinas)
GUF: French Guiana
GLP: Guadeloupe
GTM: Guatemala
GUY: Guyana
HTI: Haiti
HND: Honduras
JAM: Jamaica
MTQ: Martinique
MEX: Mexico
NIC: Nicaragua
PAN: 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: Venezuela
VGB: Virgin Islands (British)
VIR: Virgin Islands (USA)
AGO: Angola
CAN: Canada
CHN: China
EGY: Egypt
ESP: Spain
IND: India
IRQ: Iraq
IRN: Iran
JPN: Japan
LBY: Libya
NGA: Nigeria
RUS: Russian Federation
SYR: Syria
USA: United States of America
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HEARD ON THE STREET

TOP PETROLEUM
* LatAm rig counts fall to 218 in Mar.2016 vs 237 in
Feb.2016 and 243 in Jan.2016, according to Baker
Hughes.
* LatAm rig counts: In Mar.2016, 195 rigs were
drilling for oil, 20 for gas and 3 miscellaneous.
Additionally, of the 218 rigs active in Mar.2016, 178
rigs were drilling onland while 40 were drilling
offshore, 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 average
export 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 in
Feb.2016; and $29.52/bbl in Mar.2016, reported the
state 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, among
others); Location: Northern South America
w/Caribbean Sea; Resources: Crude, natural gas,
gold, aluminum, steel, coal, and others, and great
hydroelectric potential); Condition: As-is (Buyer
beware: Country in war-torn state); Cash deals
preferred; Investors from China and Russia likely to
get better deals.
* Spain's Repsol looking for a way to export Cardon
IV gas offshore to Colombia so that it can later be
exported to other markets.
* It only takes a second to reflect on how PDVSA is

being run into the ground by analyzing the
effectiveness or not of the countless/useless trips
around the world by Venezuela's Petroleum and
Mining Minister and PDVSA President Eulogio Del
Pino to rally support for boosting oil prices. If just half
Del Pino's time and effort where expended on PDVSA
and listening to its JV partners, the company and
Venezuela, for that matter, would probably be in a
league of their own and topping the lists as opposed
to the opposite.
* Many Chinese petroleum and petroleum-related
companies with operations in Venezuela are growing
increasingly pessimistic about conducting business in
the OPEC nation all the while a wave of escalating
kidnappings and crimes against Chinese business
persons in the country is driving many workers to
request for transfers out of the country. Neither of
the aforementioned are good signs for cash-strapped
Dutch-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 continue
assisting Venezuela and are seemingly not willing to
give Venezuela a 2-yr grace period related to loansfor-oil.
* Many international oil companies have instituted
hiring freezes and are making organic reductions; a
number of large producers are reducing staff via
early retirement packages.
* Venezuela oil output likely to remain stagnate or
fall in 2016 as oil producers reduce staff, and as oil
field services companies cut operations.
* "Houston we have a problem" again: Service cos.
Halliburton and Schlumberger reduce operations in
OPEC nation Venezuela.
* PDVSA downplays media reports that
Schlumberger is reducing operations in Venezuela.
However, Chevron Venezuela has been offering early
retirement packages to its employees for a while. So,
the question is why wouldn't other energy
companies do the same?
Energy Crisis
Inflation
* To save energy, Venezuela decrees all Fridays in

May.-Apr.2016 as non-working days for public
workers, Venezuela's President Nicolas Maduro said
during a televised broadcast via VTV.
* Venezuela: Annual inflation in OPEC country

reached 180.9% in 2015 vs. 68.5% in 2014,
Venezuela's Central Bank (BCV by its Spanish
acronym) reports in official statement.
Oil Reserves and Oil Production
Expropriations
* Venezuela's oil reserves rose 0.4% to 300.9 bln bbls

in 2015 vs. 300 bln bbls in 2014; gas reserves rose
1.4% to 201.9 Tcf vs 199 Tcf.
* Lake Maracaibo oil service cos.' expropriated by

Venezuela in 2009 want to get paid by PDVSA w/
cash or their old assets, or better, both.
* Venezuela's domestic market consumed 579 Mb/d

in 2015 vs. 686 Mb/d in 2014, Venezuela's Petroleum
and Mining Ministry reported.
Rosneft Petromonagas Deal
* PDVSA oil exports in 2015 were 2.448 MMb/d and

went 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: of
which 0.510 MMb/d is consumed internally and 2.39
MMb/d is exported, according to PDVSA President
Eulogio Del Pino.
* PDVSA openly talking with JV partners about
reducing investments and production goals.
PDVSA Financial
* PDVSA studies potential $8-$9 bln bond issuance to
cover Accounts Payable debts to certain suppliers.
* Nearly 3 months into 2016 and PDVSA has yet to
release its 2015 annual report. 2015 was bad for the
state oil company and 2016 looks like it will be
worse.
* Venezuelan oil revenues were $77 mln in Jan.2016
vs. $815 mln in Jan.2015, and $3 bln in Jan.2014,
Venezuela's President Nicolas Maduro said during a
televised broadcast via VTV.
* PDVSA sold $12.6 bln in FX to Venezuela's Central
Bank 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 in
2010, Venezuela's President Nicolas Maduro said
* Rosneft plans to pay $500 mln to PDVSA to boost

the Russian cos.' interest in PetroMonagas JV by
23.33%. W/purchase, Rosneft interest in
PetroMonagas heavy oil JV increases to 40% while
PDVSA reduces its interest to 60% from 83.33%.
* Venezuela ex-Petroleum and Mining Minister
Asdrubal Chavez said Rosneft was given first right of
refusal to buy the 23.33% interest in Petromonagas
JV from PDVSA. Chavez said that if Rosneft would've
declined, PDVSA would've opened up an
international bidding process for the interest.
* Venezuela's National Assembly Permanent Energy
and Petroleum Commission wants an investigation
into recent PDVSA agreements w/ Russia's Rosneft
involving $500 mln deal for 23.33% interest in the
Petromonagas heavy oil JV and an agreement in up
to three Mariscal Sucre natural gas fields offshore
Venezuela (Patao, Mejillones and potentially Rio
Caribe).
* Rosneft boosts interest in PetroMonagas heavy oil
JV in Venezuela to 40% from 16.67% w $500 mln
payment to cash-strapped PDVSA, said Venezuela
President Nicolas Maduro in Venezuela TV broadcast.
* Russia's Rosneft is very worried about legitimacy of
contracts recently signed w/ PDVSA regarding
PetroMonagas heavy oil JV and Mariscal Sucre
offshore natural gas projects.
Orinoco Heavy Oil Belt or Faja
Mining, Petrochemical and Other
* With Venezuela's oil price below $25/bbl, the Faja

is all but 'dead', according to an oil executive at one
of the country's large JV projects in the Orinoco
Heavy Oil Belt or Faja. PDVSA must now focus on
light-to-medium oils, and preferably not imports, said
the executive.
* Water levels at Venezuela's Guri hydroelectric dam

now at 244.89 meters above sea level, just 89 cm
above the so-called 'collapse zone.'
Gasoline
* Venezuela moving forward with plans to certify

gold, diamond and other resources, says Venezuela's
Petroleum and Mining Minister Eulogio Del Pino from
Caracas.
* The only way for PDVSA to rid itself of a nearly $15

bln per year gasoline subsidy expense is to raise
gasoline prices. Venezuela will reach a point whereby
they can't reduce consumption anymore and then
the only way to do so will be increasing the price of
gasoline.
* Venezuela's chemical sector working at between

20-30% of its installed capacity, reports El Nacional.
* Venezuela's President Nicolas Maduro raised the

price of 95-octane gasoline to 6 Venezuelan
bolivars/liter and 91-octane to 1 Venezuelan
bolivar/liter 17.Feb.2016. In late 2014, former PDVSA
President and Petroleum and Mining Minister Rafael
Ramirez said the production cost for 95/91 octane
was 2.70 Venezuelan bolivars/liter.
* If Venezuela moves away from an oil-dependent

economy, what national model could it adopt
considering that it imports basically everything?
* Since a large majority of vehicles in Venezuela use

91-octane gasoline and heavy transport uses diesel
(which didn't increase), the impact for these users
should be much less than for users of 95-octane
(mostly likely middle and upper class vehicle users),
reports Venezuela's Petroleum and Mining Ministry
in an official statement.
* W/ 95-octane gasoline at 6 bolivars/liter and 91octane gasoline at 1 bolivar/liter: Will drivers shift in
mass to the latter?
* Gas consumption slump in Venezuela related to
decline in economic activity and GDP.
* The closing of the border has had a marginal effect
on reducing gasoline consumption/smuggling.
OPEC
* Oil ministers from Ecuador, Algeria, Nigeria, and
Oman all back decisions by Qatar, Venezuela, Russia
and Saudi Arabia to freeze output levels.
* Gold Reserve Inc. announces proposed $38 mln

private equity placement (9.5 mln Class A common
shares @ $4).
Collective Contract
* PDVSA workers to march to Miraflores Presidential
Palace to sign a collective contract which will
represent a salary increase of around 143%.
* Venezuela to sign a Collective Contract w/ oil sector
workers on 7.Jan.2016 that will benefit more than
83,000 workers, PDVSA reports.
* Despite low oil prices, oil co. bankruptcies and mass
layoffs worldwide, Venezuela's President Nicolas
Maduro says PDVSA has yet to fire any workers
Refining
* Utilization rates at PDVSA's 955 Mb/d capacity
Paraguana refining complex down to 48% on
8.Jan.2016 vs 59% on 9.Dec.2015 as light oil supplies
fall, says oil union official Ivan Freites.
* Venezuela lawmaker Asdrubal Chavez openly
blamed oil union official Ivan Freites for the PDVSA
Amuay refinery accident in Aug.2012.
QUOTES
VENEZUELAN LAWMAKER AMERICO DE GRAZIA ON
VENEZUELAN GOVERNMENT'S PLAN TO EXPORT
GOLD
"The only thing they are exporting is corruption,"
said Venezuelan lawmaker Americo de Grazia and
member of Venezuela's National Assembly
Permanent Energy and Petroleum Commission,
referring to announcements by the government of
Venezuela to export gold and other precious
minerals. [LatinPetroleum, 26.Mar.2016]
NRG BRIEFS
TOP PETROLEUM
VENEZUELA OIL MINISTER DEL PINO SAYS 12
COUNTRIES TO ATTEND OIL MEETING IN DOHA
Venezuela's Petroleum and Mining Minister
Eulogio Del Pino said that nearly 12 countries have
confirmed their presence at the next oil producers
meeting scheduled for 17.Apr.2016 in Doha, the
capital of Qatar.
One of the goals of the meeting is to convince the
other countries to adhere to the agreement
announced on 15.Feb.2016 by Saudi Arabia, Qatar,
Russia and Venezuela to freeze production at
Jan.2016 levels while continuing to monitor
inventories and prices, reported Venezuela's
Petroleum and Mining Ministry in an official
statement, citing Del Pino. [LatinPetroleum.com,
2.Apr.2016]
WEATHERFORD UPDATES ON 4Q15 OPERATIONS IN
LATAM
Weatherford International plc reported 4Q:15
revenues 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, and
down 49% compared to 4Q:14. The shortfall in
revenue was driven primarily by a slowdown in
customer activity which was most prominent in
Brazil, Colombia, and Mexico, while self-imposed
reductions in activity in Venezuela and Ecuador
deepened the shortfall.
Operating income was negatively impacted by the

double-digit decline in sequential revenues.
[Weatherford, 30.Jan.2015]
BAKER HUGHES ANNOUNCES LATAM 4Q15
REVENUE OF $428 MILLION
Baker Hughes Incorporated (BHI) announced
4Q:15 revenue for Latin America was $428 mln,
down $11 mln, or 3%, compared to 3Q:15, despite an
11% decline in the rig count. The sequential decrease
in revenue was driven mainly by reduced activity in
the Andean geomarket and Mexico as a result of
customer budgetary constraints, partially offset by
share gains in Argentina.
Adjusted operating profit margin for Latin America
in 4Q:15 was 3.5%, compared to 11.6% for 3Q:15.
Foreign exchange losses, primarily in Argentina, and
costs related to additional reserves for doubtful
accounts 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 activity
across the region, including a significant decline in
seasonal year-end product sales. The largest decline
was in the Andean geomarket as evidenced by the
71% year-over-year rig count drop. Revenue was also
negatively impacted by the unfavorable change in
foreign exchange rates. Year over year, margins
decreased from 20% in 4Q:14 to 3.5% in the current
quarter. The impact on margins from lower revenue,
primarily high-margin year-end product sales, foreign
exchange losses, and increased reserves for doubtful
accounts, was partially offset by improvements made
to the operating cost structure. [Baker Hughes,
28.Jan.2016]
GRAN TIERRA ENERGY UPDATES ON LATAM JV
OPPORTUNITIES
Gran Tierra continues to identify and analyze
acquisition and JV opportunities in Colombia (and
potentially Mexico) to expand and diversify its
growth portfolio. Gran Tierra's strong cash and
working capital position and undrawn credit facility
provide the company with the flexibility to continue
its active exploration and development program,
accelerate the appraisal of any new discoveries
and/or expand the growth portfolio through
acquisition and new joint-venture projects. [Gran
Tierra Energy Inc., 15.Mar.2016]
GRAN TIERRA ENERGY UPDATES ON PERU AND

BRAZIL BUSINESS UNITS
Gran Tierra announced the capital program in
Peru is $6 mln, and includes only those activities
required for retention of lands and security of assets.
In Brazil, the capital program approved for 2016 is
$8 mln, and includes minimal activity to implement
water injection for reservoir pressure maintenance,
and to preserve current production levels.
In both Peru and Brazil, operations have been
scaled back significantly, with the aim of allowing
time for the company to explore and execute on
options to maximize shareholder value.
The operations are now structured in such a way
that the free cash flow from production in Brazil
offsets the spend in Peru, ensuring that these assets
remain in-tact without being a burden on the free
cash flow generating core assets of the company.
[Gran Tierra Energy Inc., 15.Mar.2016]
Argentina is looking to increase tariffs and also

reduce the amount it pays into the natural gas
subsidy while increasing the portion paid by the
consumers, reported the daily, citing Argentina's
Energy Minister Juan Jos Aranguren.
[LatinPetroleum.com, 30.Mar.2016]
ARGENTINA (ARG)
ARGENTINA IMPUTES FORMER OFFICIAL FOR

INVOLVEMENT IN ILLEGAL OIL DEALS
Argentina has imputed a former official for his
involvement in illegal agreements related to
petroleum concessions and his inability to comply
with his obligations as a public figure.
The ex-governor Francisco 'Paco' Prez was
imputed for turning over concessions to oil areas to
an insolvent company that did not comply with its
investments, reports the daily Clarin.
The company in question, Chaares Herrados
Empresa de Trabajos Petroleros S.A. (Chasa), in 2011
obtained a concession extension for exploitation of
two areas through 2027.
In order to obtain the extension, Chasa proposed
investments of $226 mln between 2011-2014 and a
total of $1 bln through to 2027.
The company charged $37 mln to the Argentine
government under the Petroleum Plus and Gas Plus
program, which was the amount it was expected to
receive for increasing production and exploitation
activities. [LatinPetroleum.com, 29.Mar.2016]
YPF SETS APRIL DATE FOR DEPARTURE OF CEO

MIGUEL GALUCCIO
YPF's board of directors has scheduled an ordinary
general assembly and extraordinary shareholder
meeting for 29.Apr.2016 to finalize changes at the
helm of the company.
At the meeting set for 11a.m., the directors plan
to name Miguel Angel Gutirrez, 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 FROM
GOVERNMENT
YPF President Miguel Galuccio plans to resign his
position in late Apr.2016, reports Efe.
Galuccio will remain in his position until the next
shareholder meeting in order to assist with an
orderly transition while also assisting to seek a
replacement to assume his position.
ARGENTINA LOOKS TO REDUCE AMOUNTS PAID
INTO NATURAL GAS SUBSIDY
Argentina paid an estimated $4.6 bln to cover
subsidized natural gas services in 2015, of which the
government paid $3.2 bln. The payments covered the
cost for residential, commercial, industrial and
combustible natural gas stations, reported the daily
La Nacion, citing a private report.
ARGENTINA LOOKS TO SAVE $4 BILLION WITH

REDUCTION OF ELECTRICITY SUBSIDY
The Argentine government plans to save $4 bln by
reducing its electricity subsidy which primarily
benefits Buenos Aires and its suburbs.
The government of new Argentine President
Mauricio Macri plans to restructure the country's
energy scheme after 12 years of a center-left
government that supported subsidies that benefitted
millions of users but shored up investments in the
sector, reports Reuters. [LatinPetroleum.com,
30.Jan.2016]
ARGENTINA PAYS REMAINING DEBT FOR THE

PURCHASE OF NATURAL GAS FROM BOLIVIA
Enarsa honored its remaining debt obligations
with YPFB with the complete cancellation of its debt
with Bolivia for the purchase of natural gas.
"The debt that Argentina had for the purchase of
gas from Bolivia has been 100 percent paid up as of
31 March 2016," reported the daily El Diario, citing
the YPFB President Guillermo Ach Morales.
The amount Argentina owed Bolivia had reached

$300 mln two months ago, said Bolivia's Economy
Minister Luis Arce during a meeting with Ach and his
counterpart at Enarsa Hugo Balboa.
"Commercial relations between Bolivia and
Argentina are framed around a brotherly relationship
that permits our country to continue to maintain this
market," reported the daily, citing Ach.
Argentina paid $100 mln of the outstanding debt
on 6.Jan.2016 and remaining $200 mln on
31.Mar.2016, reported the daily La Razn, citing
Bolivia's Vice President lvaro Garca Linera.
Argentina consumes close to 150 MMcm/d of
natural gas, of which 10% of this demand is covered
by imports from Bolivia. In recent months, Argentine
imports from Bolivia have fluctuated between 14-15
MMcm/d, according to La Razn.
YPF TO APPEAL JUDICIAL ORDER TO REVEAL
CONFIDENTIAL AGREEMENT WITH CHEVRON
Argentine producer YPF will appeal a judicial order
that obligates it to reveal details of a confidential
agreement signed with U.S.-based Chevron
Corporation for the joint exploitation of nonconventional hydrocarbons in southeastern
Argentina.
The decision to appeal the order came from YPF's
board of directors, announced YPF, which is
controlled by the Argentine government, reported
Efe, referring to a YPF press statement.
Judge Carrin de Lorenzo ordered YPF to reveal
complete details of its agreement with the San
Roman, California-based Chevron at the request of
former socialist senator Rubn Giustiniani who
suggested the agreement contained 'secret clauses.'
Chevron has invested upwards to $2.5 bln in the
Loma Campana project -- the largest nonconventional hydrocarbon reservoir in the world
outside of the USA where it has drilled 470 wells
and created close to 5,000 jobs, according to YPF.
"The Chevron investment in the project is a cost
and risk and will only be repaid with production
generated from the project," announced YPF.
In late Feb.2016, YPF turned over a copy of the
contract to government officials but also requested
that the judge adopt a written extension to prevent
release of confidential material information to the
public. [LatinPetroleum.com, 16.Mar.2016]
BOLIVIA (BOL)
BOLIVIA EXPORT PRICE TO ARGENTINA AND BRAZIL
FALLS IN JANUARY 2016
The average price for Bolivia's natural gas exports
to Argentina fell to $3.88/MMBtu in Jan.2016, down
37.34% compared to $6.20/MMBtu in Jan.2015,
reported the daily La Razn, citing data from Bolivia's
Hydrocarbon and Energy Ministry.
The average natural gas export price to Brazil fell
to $3.61/MMBtu in Jan.2016, down 33.39%
compared to $5.42/MMBtu in Jan.2015, reported the
daily.
Bolivia uses West Texas Intermediate (WTI) as the
index price for its natural gas exports.
BOLIVIA EXPORTED 14.13 MMCM/D TO ARGENTINA
IN EARLY MARCH 2016
Bolivia exported an average 14.13 MMcm/d of
natural gas to Argentina during 1-6.Mar.2016,
volumes below the minimum 16.4 MMcm/d
established 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 Razn.
The first amendment to the contract was signed in
Mar.2010 and established that during the summer
months (1.Jan thru 30.Apr) that the minimum
volumes to be sent from Bolivia to Argentina would
be 16.4 MMcm/d while the maximum volumes would
be 23.4 MMcm/d. [LatinPetroleum.com,
11.Mar.2016]
ARGENTINE AMBASSADOR SAYS COUNTRY TO
CONTINUE BUYING BOLIVIAN NATURAL GAS
Argentina plans to continue buying natural gas
from Bolivia, reported the daily El Diario, citing
Normando lvarez Garca, the new Argentine
Ambassador to Bolivia.
Garca said Argentina was interested in
strengthening commercial ties with Bolivia and also
interested in buying electricity from its neighbor,
without providing details of volumes or dates.
BOLIVIA TO CONTINUE SEARCH FOR OIL DESPITE

RESULTS OF LLIQUIMUNI WELL
Bolivia plans to continue its search for crude oil
despite the negative results at the Lliquimuni Centro
X1 well located north of La Paz.
The YPFB Petroandina SAM joint venture,
comprised of YPFB and PDVSA, initiated drilling
operations at the Lliquimuni Centro X1 exploration
well on 30.Dec.2014. Activities at the well concluded
440 days later after reaching a depth of 4,562
meters. The well turned up the presence of
hydrocarbons in non-commercial volumes, reported
the daily La Razn.
"We will continue with exploration activities north
of La Paz," reported the daily, citing Bolivia's
Hydrocarbon and Energy Minister Luis Alberto
Snchez. "We are not going to tire in our search for
hydrocarbons; although the first well was not
successful, 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 the
major hydrocarbon producers in the world, according
to Snchez. For this reason, Bolivia will continue
activities in the area until it finds productive wells, he
said. [LatinPetroleum.com, 24.Mar.2016]
BOLIVIA USING $55/BBL BUDGET OIL PRICE FOR
2016-2020
The Bolivian government plans to use an
estimated oil price of $55/bbl under its Economic and
Social Development Plan 2016-2020 (PDES by its
Spanish acronym), reported the daily La Razn.
Bolivia is projecting public investments of $48.574
bln during 2015-2020 with an estimated benchmark
WTI oil price of $45/bbl in 2016 and $55/bbl during
2017-2020.
"The oil price estimate is reasonable and
conservative because it is very difficult for oil prices
to rise to $100/bbl," reported the daily, citing
Economic Analyst Armando lvarez with Bolsa
Boliviana de Valores (BBV by its Spanish acronym).
The WTI benchmark oil price is used to calculate
the natural gas price that Bolivia uses to export its
gas to Argentina and Brazil and is used by the
Bolivian government to calculate budget income
from royalties and income taxes as well as its fuel
subsidy. [LatinPetroleum.com, 30.Mar.2016]
BOLIVIA'S GRAN CHACO PLANT TO HAVE INSTALLED

CAPACITY OF 32 MMCM/D
The Gran Chaco 'Carlos Villegas' Liquids Separation
Plant in Yacuiba in Tarija Department will function in
accordance with the volumes it is able to send to
Argentina 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/d
will remain in Bolivia while 27 MMcm/d will be
destined for Argentina," reported the daily La Razn,
citing YPFB President Guillermo Ach.
The plant is actually processing 16.4 MMcm/d, but
starting in Jun.2016, the plant will process an
estimated 19.9 MMcm/d when the Incahuasi field
comes online, said Ach.
The Gran Chaco Separation Plant is the third
largest of its type in the region, according to Ach.
YPFB TRANSIERRA ISSUES $76 MILLION IN BONDS IN
BOLIVIA
YPFB Transierra S.A., a subsidy of YPFB, issued
bonds on the Bolivian stock exchange for $76.35 mln.
The bonds, issued via the La Bolsa Boliviana de
Valores (BBV by its Spanish acronym), were originally
projected to reach just $70 mln, but due to high
demand the final value rose by $6.35 mln, reported
the daily La Razn.
Funds from the offering will be destined for
programmed investments on pipelines to transport
hydrocarbons, reported the daily, citing YPFB
Transierra.
The government of Bolivia, using the nation's
Public Company Law, ordered YPFB to acquire the
shares in Transierra, held previously by Total E&P
and Petrobras Bolivia. On 5.Aug.2014, the company
was constituted as YPFB Transierra S.A.. Partners in
the new company include YPFB Corporation (55.5%
WI) and YPFB Andina (45.5% WI).
YPFB Transierra is a transportation company which
transports an average 20 MMcm/d of natural gas,
which represents 60% of the gas volumes that Bolivia
sends to Brazil under a Purchase and Sales
Agreement (PSA) signed between both nations.
COMPANY DELEGATION FROM HOLLAND VISITS

BOLIVIA
A delegation of seven companies from Holland
visited Santa Cruz to conduct meetings with the
principal hydrocarbon companies operating in
Bolivia's natural gas sector.
The companies showcased their experience and
technologies with the idea of someday working with
companies with operations in Bolivia, reported the
daily El Diario, citing the Netherland's Ambassador to
Bolivia, Ecuador and Peru, Wiebe de Boer.
BOLIVIA SENDS DELEGATION TO INDIA TO DISCUSS
INVESTMENTS, COOPERATION
The Bolivian government sent a delegation to
India to discuss consolidation of investments,
cooperation and technical assistance, reported the
daily La Razn.
India is expected to offer Bolivia a financial
package to cover the aforementioned areas, reported
the daily, citing Bolivia's Development Planning
Minister Ren Orellana. [LatinPetroleum.com,
27.Mar.2016]
BOLIVIA OUTLINES CONTRACTS WITH CHINESE
COMPANIES FOR AMAZONIA EXPLORATION
YPFB outlined direct contracts with two Chinese
companies with operations in Bolivia, reported the
daily El Diario.
The companies, Asociacin Accidental BGP and
Sinopec International Petroleum Service Ecuador Co
S.A., Bolivian branch, will perform seismic
exploration along a lineal layer of 2,675 kilometers in
the Amazona. The companies were initially awarded
the contracts on 15.Apr.2015, according to the daily.
COST OF CAMC RIGS FALLS TO $55 MILLION FROM
$60 MILLION
YPFB President Guillermo Ach announced that
the cost of three rigs purchased from China's
National Construction and Agricultural Machinery
Import and Export Corporation (CAMC) has been
reduced to $55 mln from $60 mln due to a tax
penalties, reported the daily La Razn.
The official said that the 13 rigs purchased by YPFB
in 1995 for $11 mln today offer services in Bolivia at a
high cost.
"These three rigs were purchased for $60 mln but
discounting for penalties the cost will fall to $55
million," said Ach.
CAMC -- which sold the rigs and other equipment - is being investigated after journalist Carlos Valverde
reported on insider influences between the Bolivian
government the Chinese company due to a
sentimental relation between Bolivia's President Evo
Morales 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 the
Bolivian state oil company were said to be lacking
other essential parts and materials. The penalties
applied for the missing parts and materials amounted
to $4.4 mln, reported the daily. [LatinPetroleum.com,
15.Mar.2016]
BOLIVIA LEGISLATORS INVESTIGATE CAMC DRILLING
RIGS
Five Bolivia's legislators verified the functioning of
a drilling rig acquired from the Asian company CAMC.
The legislators, who comprise an integrated
commission in charge of investigating contracts with
CAMC, have already verified the function ability of
the 1000 Hp rig at the YPF-38 well and also plan to
visit the ITG-X3 well, where the 1500 Hp rig is
located, reported the daily La Razn.
BOLIVIA'S TARIJA DEPARTMENT REVENUES TO FALL
BY MORE THAN 20 PERCENT IN APRIL 2016
Natural gas export revenues from the Tarija
department in Apr.2016 are expected to fall by more
than 20% due to low oil prices, reported the daily La
Razn, citing Tarija Coordination Secretary Waldemar
Peralta.
The department's budget for 2016 was calculated
using an estimated oil price of $45/bbl, said Peralta.
Typically, the payment of royalties is delayed by
three months, said the official.
"That's why in April when we receive payments
deferred from January, we're going see more than a
20 percent reduction in revenues."
[LatinPetroleum.com, 15.Jan.2016]
BOLIVIA'S MORALES TO SEEK INTERNATIONAL
ASSISTANCE DUE TO LOW OIL PRICES
Bolivia's President Evo Morales announced he
would seek assistance from international
organizations to combat low oil prices.
Morales said he would seek assistance from the

Latin America and Caribbean Economic Commission
(CEPAL, by its Spanish acronym), the Inter-American
Development Bank (BID, by its Spanish acronym) and
the Corporacion Andino de Fomento CAF (Latin
American Development Bank), reported the daily El
Diario, citing the official. [LatinPetroleum.com,
15.Jan.2016]
BOLIVIA PLANS TO INVEST $400 MILLION IN TWO
ZINC REFINERIES
The Bolivian government assured the country's
Syndicate Federation of Mining Workers (SFTMB, by
its Spanish acronym) that it plans investments of
$400 mln to build two zinc refining plants in the
Potos and Oruro departments.
Construction of both plants could be finalized in
two years, reported the daily La Razn, citing Bolivia's
President Evo Morales. [LatinPetroleum.com,
13.Jan.2016]
YPFB ANDINA SPUDS YPC-38 WELL IN YAPACAN
FIELD
Bolivia's YPFB Andina initiated drilling activities at
the YPC-38 well in Yapacan field on 18.Feb.2016
using the 1000 Hp rig.
The rig, with an estimated useful life of 20 years, is
planned to target a total depth of 3,100 meters,
reported the daily La Razn, citing YPFB President
Guillermo Ach.
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 Jos Sosa.
The production potential from the well is 3 MMcf/d,
said Sosa. [LatinPetroleum.com, 12.Mar.2016]
BOLIVIA TO EXPORT ELECTRICITY TO ARGENTINA
FOR TWO YEARS
Bolivia plans to export between 600-700
megawatts of energy to Argentina over the next two
years.
ENDE Transmisin will be in charge of building the
interconnection line between the two countries. The
line will connect Tartagal, Argentina with San
Juancito, reported the daily La Razn, citing Bolivia's
Hydrocarbon Minister Luis Alberto Snchez.
REPSOL AND YPFB TO WORK TO DEVELOP 4 TCF IN

CAIPIPENDI BLOCK
YPFB and Repsol plan to work together in the
Caipipendi block to develop three new geologic
structures in Boyui, Ipagauz and Boicobo which
potentially hold 4 Tcf of natural gas.
"YPFB and Repsol plan to work together in April to
develop these 4 Tcf in three structures," reported the
daily La Razn, citing Bolivia's Hydrocarbon Minister
Luis Alberto Snchez.
Exploitation activities at the three blocks are
expected to start in 2019 and could generate
estimated revenues of $1.3 bln per year for the
Bolivian government.
In terms of production: Boicobo is expected to
produce 9 MMcm/d, Boyui, 5.5 MMcm/d and
Ipaguaz between 4 and 5 MMcm/d.
YPFB AIMS TO EXECUTE 86 EXPLORATION PROJECTS
IN 66 AREAS
YPFB plans to execute 86 exploration projects in
66 areas with the aim of proving up 16 to 17 Tcf of
natural gas by 2020, reported the daily La Razn,
citing Bolivia's Hydrocarbon Minister Luis Alberto
Snchez. [LatinPetroleum.com, 11.Mar.2016]
GAZPROM SIGNS DEALS IN BOLIVIA THROUGH 2040
Russia'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 exploration
areas in Bolivia: Itaricua, Sausemayo, Okinawa,
Villamontes, Madidi and La Ceiba.
The agreements cover hydrocarbon exploration
activities in the six area which contain an estimated
9.2 Tcf of natural gas, the mass use of liquefied
natural gas as a motor fuel, as well as investigative
work and strategic cooperation with YPFB, reported
the daily La Razn.
The agreements include the acceleration of
investments in Azero block, located between
Chuquisaca and Santa Cruz departments, where
Gazprom has been an active partner since 2013, and
the design of a worker investigation center over the
next ten years.
"I consider this as us having opened a new page in
our gas cooperation between Russia and Bolivia,"
reported the daily La Razn, citing Gazprom
President Alexey Miller.
Bolivia seeks to use more of its domestically

produced natural gas in an aim to reduce the
consumption of diesel and gasoline.
[LatinPetroleum.com, 19.Feb.2016]
BOLIVIA INAUGURATES LIQUEFIED NATURAL GAS
PLANT IN RO GRANDE
Bolivia inaugurated operations at the liquefied
natural gas plant in Ro Grande on 15.Feb.2016. The
plant will distribute gas to residential sectors and in
the form of vehicular natural gas for automobiles in
27 areas of La Paz, Oruro, Potos, Beni, Santa Cruz
and Pando.
An investment of no less than $445 mln was made
in the plant, reported the daily La Razn, of which
$205 mln was invested directly in the plant while
$240 mln was invested in gas network, regasification
stations and liquefied natural gas stations in the 27
areas.
"The plant is estimated to generate revenues
above $120 million thru 2020 and above $300 million
until 2025," reported the daily, citing YPFB President
Guillermo Ach. [LatinPetroleum.com, 15.Feb.2016]
BGP BOLIVIA TO INVEST $91 MILLION ON BOLIVIAN
STUDIES
China's BGP Bolivia plans to invest $91 mln on
three important exploration projects in Amazona
region as well as the southern region of Bolivia in
search 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 field
services related to the acquisition, processing and
interpretation of 2D and 3D seismic data.
BOLIVIA OPTIMISTIC ABOUT 50 MMBBL
EXPLORATION PROSPECT NUEVA ESPERANZA
Bolivia initiated a 2D seismic project in the Nueva
Esperanza area in the El Chiv community located in
the north of the country in Pando department. The
area, located in the Mother of God Basin in La Paz
department, could hold estimated reserves of 50
MMbbls of oil and 125 Bcf of natural gas, reported
YPFB in an official statement.
It is possible that YPFB could announce plans for a
new refinery in the area if the said reserve volumes
are actually discovered, announced YPFB.
The Nueva Esperanza project includes the

acquisition of 2D seismic lines that cover an
extension of 1,008 kilometers. The project is
expected to last for 16 months including the seismic
acquisition, processing and interpretation phases.
The project is estimated to generate
approximately 1,000 jobs in the area.
BOLIVIA TO INVEST $95.7 MILLION IN ORURO SOLAR
ENERGY PLANT
Bolivia will invest $95.7 mln to build a 50 MW
solar energy plant that is expected to cover more
than 50% of the electricity demand in Oruro.
The financing will consist of a $65.5 mln credit
from France, a $10 mln donation from the European
Union and a $19.5 mln injection from the National
Electricity Company, reported the daily La Razn,
citing Bolivia's President Evo Morales.
The Oruro region has electricity demand of
approximately 80 MW, announced Bolivia's Planning
and Development Minister Ren Orellana. During the
first phase of the project development the plant will
generate 50 MW which will rise to 100 MW with the
completion of the second phase of development, said
the minister. [LatinPetroleum.com, 11.Feb.2016]
BOLIVIA GAS PRODUCTION EXPECTED TO INCREASE
13 PERCENT
Bolivia's production of natural gas is expected to
increase by 13% to 69 MMcm/d from 61 MMcm/d by
Jun.2016, reported the daily La Razn, citing Bolivia's
Vice President lvaro Garca.
A production increase of 1.5 MMcm/d will come
from the Margarita-Huacaya field, located between
the Tarija and Chuquisaca departments, while
another initial 6.5 MMcm/d will come from the
Incahuasi field, located in the Cordillera de Santa
Cruz province. [LatinPetroleum.com, 8.Jan.2016]
BOLIVIA INAUGURATES NEW UNIT AT GUILLERMO
ELDER BELL REFINERY
Bolivia inaugurated the new isomerization unit at
the Guillermo Elder Bell refinery which will allow the
refinery to introduce better technologies at the plant
and allow it to obtain fuel from petroleum
production.
The investment in the unit was $110 mln and was
constructed and executed by the company Tcnicas
Reunidas as a turn-key project, reported the daily El
Diario.
The unit will allow the refinery to produce an

additional 12.5 mln liters per month of gasoline,
which represents 10% of Bolivia's domestic demand
for the product. When online, the unit will generate
benefits of nearly $53.05 mln, the daily reported
without providing a timeframe. [LatinPetroleum.com,
5.Feb.2016]
BOLIVIA PLANS OIL EXPLORATION AND

EXPLOITATION INVESTMENTS OF $2.4 BILLION IN
2016
Bolivia aims to invest $2.4 bln on exploration and
exploitation activities in 2016, reported the daily El
Diario, citing President Evo Morales.
BOLIVIA AIMS TO PRODUCE LITHIUM IN THREE

YEARS
Bolivia will commence to produce nearly 50,000
tons of lithium carbonate during the 4Q:18, reported
the daily El Diario, citing Evaporating Resources
National Manager Lus Alberto Echaz.
To-date, $250 mln has been invested in the
project to industrialize lithium. It is estimated that
the total investment in the project could surpass
$900 mln, announced Echaz. [LatinPetroleum.com,
5.Feb.2016]
BRAZIL (BRA)
BOLIVIA EXPECTS HYDROCARBON INVESTMENTS OF

$12,681 MILLION OVER 5 YEARS
Bolivia expects hydrocarbon investments to reach
$12,681 mln under its Economic and Social
Development Plan for 2016-2020.
The plan also calls for increasing natural gas
production to a minimum 73 MMcm/d from 60
MMcm/d, reported the daily La Razn, citing Bolivias
President Evo Morales.
Morales said that natural gas reserves are also
projected to reach 17.45 Tcf by 2020 compared to
10.45 Tcf in 2013, while liquid reserves are projected
to reach 411 MMbbls compared to 211.4 MMbbls,
respectively. [LatinPetroleum.com, 1.Jan.2016]
TABLE 1: BOLIVIA HYDROCARBON
INVESTMENTS 2016-2020 ($MILLIONS)
Sector
Amount
Exploration
Exploitation, development
Refining
Transportation
Commercialization
Storage
Gas network
Industrialization
Minor investments
TOTAL INVESTMENTS
$4,587
$2,694
Source: La Razn
$254
$1,172
$117
$184
$871
$2,657
$145
$12,681
PETROBRAS INITIATES PROCESS TO DIVEST OF

TERRESTRIAL FIELDS
Petrobras announced that its executive
directorate approved the initiation of a rights cession
process related to exploration, development and
production of oil and gas in a terrestrial complex as
well as assets related to the concessions, announced
the state oil company.
The initiative, which forms part of Petrobras'
Divestment Plan, will be realized through a
competitive process. [LatinPetroleum.com,
2.Mar.2016]
BAKER HUGHES AWARDED CONTRACT EXTENSION
BY STATOIL IN BRAZIL
Baker Hughes was awarded a contract extension
by Statoil in Brazil. Baker Hughes negotiated a 3-yr
contract extension with Statoil for the provision of
directional drilling, MWD, LWD, surface logging
systems, and drill bits for the Peregrino offshore field
in Brazil's Campos Basin. Under the new terms, which
extend the contract until Mar.2019, Baker Hughes
will provide 100% of the drill bits for the Peregrino
field. [Baker Hughes, 28.Jan.2016]
PETROBRAS OFFERS CLARIFICATION ON NEWS:
INVESTMENT IN 2016
As announced on 5.Oct.2015, the estimated
investment for 2016 is $19 bln, which represents a
decline in relation to the estimate for 2015, reported
Petrobras in an official statement.
As disclosed on 29.Jun.2015, in its 2015-2019
Business and Management Plan, the company plans
investment in gas reception and treatment in
Comperj. [Petrobras, 7.Jan.2016]
COLOMBIA (COL)
COLOMBIA PRESIDENT DOWNPLAYS NEED TO
RATION ENERGY
Colombia doesn't need to ration energy use at the
moment, announced the country's President Juan
Manuel Santos.
However, XM, an affiliate of ISA, has been
pressuring the government to decree energy
rationing for six weeks with the aim to reduce energy
demand by about 5%, reported the daily El
Espectador.
The measure would apply to all residential areas
of Colombia and could be extended to cover
industries. [LatinPetroleum.com, 8.Mar.2016]
VENEZUELAN NATURAL GAS AND QUIMBO AMONG
COLOMBIA'S ENERGY PROBLEMS
The inability of Venezuela to fulfill its natural gas
export obligations to supply Colombian
thermoelectric plants and delays at the Quimbo
hydroelectric plant due to a judicial order are two
factors Colombia must consider in dealing with its
energy crisis.
Colombia was counting on electricity from Quimbo
and 39 MMcf/d of natural gas from Venezuela before
the energy crisis began, reported the daily El Tiempo,
citing energy experts.
Quimbo has a capacity to generate 5% of the
country's electricity demand while the gas from
Venezuela assisted Colombia to cover 3% of its
demand for natural gas, according to the daily.
COLOMBIA CHARGED EXCESSIVELY FOR REFICAR
REFINERY UPGRADE
A project to modernize and increase the refining
capacity of the Reficar refinery to 165 Mb/d from 80
Mb/d was part of a project to assist Colombia
achieve auto-sufficiency in the production of
combustibles. However, the project which initially
had an estimated cost of $3.993 bln ended up costing
the country $8 bln and was 27 months behind
schedule, reported the daily El Tiempo.
The company in charge of the project was
Chicago-based Chicago, Bridge and Iron (CB&I).
Information seized from the company's 37 hard
drives revealed that 440 of the 2,460 contracts
signed related to the refinery had markups of over
100% while 25 had markups that exceeded 1000%,
reported the daily.
Brief History
The Reficar refinery was inaugurated in 1957 by
International Petroleum Co.. In 1974 the refinery
changed hands and became a property of Ecopetrol.
In 2001, the idea of a project to increase its
productive capacity was floated within Colombia and
work towards this end commenced in 2006-2007
with the entrance of partner Glencore. In 2009,
Glencore pulled out of the project, citing economic
problems, and the company's interest was acquired
again by Ecopetrol.
Later, CB&I, a company specialized in the
construction of energy infrastructure projects,
entered the picture and commenced plans to move
forward with a project to increase the refinery's
capacity. [LatinPetroleum.com, 7.Feb.2016]
ECOPETROL TO SUE CB&I FOR WORK RELATED TO
CARTAGENA REFINERY
Ecopetrol will go to an international arbitration
court in an attempt to recuperate an estimated $2
bln from Chicago Bridge and Iron Company (CB&I)
which it claims overcharged for the construction of
the Cartagena refinery.
The costs overruns for the Engineering,
Procurement, and Construction Contract (EPC) were
reportedly over $4 bln, reported the daily, El
Espectador.
Ecopetrol is seeking compensation of at least $2
bln for the following reasons: 1) delays and nonreasonable costs in the engineering process, 2)
programmed work that was deficient and
inadequate, 3) low productivity in all jobs performed,
4) deficient handling of materials, 5) deficiencies in
the purchase of goods and equipment, 6) managerial
deficiencies with providers, 7) non-reasonable
fabrication module costs, 8) errors in negotiating,
administration, control and closing of sub-contracts
with CB&I, 9) inadequate handling of labor relations
associated with the project and 10) unjustified delays
in the mechanical termination of the project.
REFICAR REFINERY EXPORTS COULD GENERATE $1.5
BILLION A YEAR IN REVENUEs
The 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 produce
light combustibles and products of use by the
petrochemical sector. [LatinPetroleum.com,
6.Mar.2016]
COLOMBIA STUDIES USE OF GRAPHITE OXIDE FOR

POTENTIAL FRACKING PROJECTS
Colombia's National University and Biopharma
Chemicals continue to advance with an investigative
project to determine the effectiveness and the
viability of the use of graphite oxide as a component
to clean the waters utilized in the search and
production of oil and gas produced from shale
formations.
Graphite oxide is widely used in the medical
industry as a cleaner of radioactive materials used in
equipment to perform medical exams, reports the
daily El Tiempo.
The study has an environmental aspect and is
oriented towards using graphite oxide as a
neutralizing agent in water used and reinjected
during the fracking process, reported the daily, citing
Biopharma Chemicals General Director Pedro
Mancebo.
The agreement between the two institutions,
which commenced in Jan.2016 and will last for 18
months, will require an estimated investment of $1.8
bln.
The use of graphite oxide could possibly neutralize
87.5% of the radioactive materials according to the
official.
"At the moment carbon assets are being used with
a 20 to 40 percent level of efficiency," said Mancebo.
PACIFIC BOARD TO EVALUATE SIX PURCHASE
OFFERS
Pacific Exploration & Production is evaluating six
purchase offers, reported the daily Portafolio, citing
an article by The Wall Street Journal, which quotes
persons familiar with the negotiations.
The offers are being collected by Lazard, the
financial advisory company, and will be analyzed by
an independent committee appointed by Pacific's
board of directors.
In 2015, Pacific produced an average 156,000
boe/d, more than any other private company in Latin
America. The company's market capitalization has
fallen 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 TO
ASSIST THERMOELECTRIC PLANTS
Colombia's thermoelectric plants could use of
natural gas from the secondary market to assist the
country weather the final stages of the El Nio
phenomena.
The government needs to intervene over the next

4-5 weeks so that the country's thermoelectric plants
can access natural gas from secondary markets at
lower prices. Currently, prices are between
$11/MMBtu and $14/MMBtu, which are the same as
the generation cost with Acpm, reported the daily El
Tiempo, citing ngela Montoya, President of the
Colombian Energy Generators Association (Acolgn
by its Spanish acronym).
"The gas theme has not been resolved and we
need, if the government has the will, to give the
plants gas so that they can operate more efficiently
in the generation of energy," said Montoya.
CANACOL SAYS OBOE 1 WELL TESTS FLOWS 66
MMCF/D OF NATURAL GAS
Canacol Energy announced that the Oboe 1 well
test flowed 66 MMcf/d of natural gas, considerably
above rates initially estimated for the well, reported
the daily El Tiempo.
The company had expected the well to flow an
estimated 25 MMcf/d, reported the daily.
CARTAGENA LNG REGASIFICATION PLANT ONLINE
IN NOVEMBER 2016
The Cartagena LNG regasification plant will start
operations in Nov.2016 and offer 400 MMcf/d of
natural gas, reported the daily El Espectador, citing
Naturgas President Eduardo Pizano de Narvez.
COLOMBIA'S ANH ACCEPTS ECOPETROL AND
REPSOL REQUEST TO SHUT-IN AKACAS FIELD
Colombia's National Hydrocarbon Agency (ANH
by its Spanish acronym) accepted a request from
Ecopetrol and Spain's Repsol to temporarily suspend
activities at the Akacas field, located in Block CPO-9
in 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 Ecopetrol
statement. Technical teams continue to work on an
optimized development concept to assure the
viability of the field in a low oil price environment.
The Akacas field produced an average 6,699 b/d
in Feb.2016, of which 3,684 b/d corresponded to
Ecopetrol and 3,015 b/d corresponded to Repsol.
ECOPETROL EQUIVALENT PROVED RESERVES FALL

11% IN 2015 ON LOWER OIL PRICES
The decline in oil prices during 2015 affected
Ecopetrol's E&P activities and produced an 11%
decline in the company's equivalent proved oil and
gas 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, the
company's reserve life ratio fell to 7.4 years in 2015
compared to 8.6 years in 2014. Ecopetrol's reserve
replacement ratio was just 6% in 2015 compared to
146% in 2014.
Ecopetrol used an average Brent oil price of
$55.57/bbl in 2015 compared to $101.80/bbl in 2014
to evaluate its year-end oil and gas reserves. As a
result of oil prices the company reported a 404
MMboe reduction due to pricing.
RUSSIANS AND KOREANS PROPOSE BUILDING $2.7
BILLION REFINERY IN META
An international consortium comprised of Korean
and Russian companies proposed a project plan to
the government of Meta department for
construction of a $2.7 bln refinery.
The Russian company RNGS plans to contribute $2
bln to the project while the Colombian-DominicanKorean consortium -- comprised of Colombia's
Modern Energy Supply; Dominican Republic's Nativo
International 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 Supply
Director Alfredo Benavides. With technology, it is
expected the crude can be improved to one of more
than a 10-degree API, said Benavides.
Additionally, the proposed plan entails removing
sulfur and metals and substantially lowering the
viscosity of the crudes, which will allow the refinery
to obtain gasoline and diesel in line with
international standards. [LatinPetroleum.com,
12.Jan.2016]
ECOPETROL TO DIVEST OF NON-PETROLEUM ASSETS
Ecopetrol aims to raise $1.4 bln through the
divestment of non-petroleum assets in 2016 and
2017, which is in line with its strategy to combat the
fall in international oil prices.
Assets for sale include a propylene unit, a gas

transport unit and stock in Energa de Bogot and
Interconexin Elctrica (ISA), reported the daily
Portafolio, citing Ecopetrol President Juan Carlos
Echeverry.
In recent years Ecopetrol has reduced its work
force to around 30,000 compared to 48,000 years
earlier. With a smaller headcount, the country aims
to produce between 800 and 850 Mboe/d by 2021
compared to around 700 Mboe/d currently.
A grand part of the production increase is
expected to come from the Rubiales field, one of the
largest areas in Colombia, and which currently
produces around 150 Mboe/d, reported the daily.
COLOMBIA REPORTS 77.8 PERCENT DECLINE IN
EXPLORATION DRILLING IN 2015 VS 2014
Colombia drilled 25 exploratory wells in 2015,
down 77.8% compared to 2014, reported the daily El
Tiempo, citing data from ANH.
Of the 25 wells drilled, 10 were plugged and
abandoned (40%) while just 2 wells were successful
(8%).
The first successful well was related to the Mono
Araa 11 well in Cesar department and was drilled by
ExxonMobil. The second successful well related to
the La Estancia 1 well in Casanare department and
was 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 Nueva
Esperanza 3 well in Block CPO-09 was still undergoing
testing at the close of 2015.
Seismic work onshore Colombia in 2015 fell to
levels not seen in 20 years. Only 2,200 kilometers of
seismic was recorded in 2015 compared to 7,980
kilometers in 2014. Offshore seismic work reached
30,481 kilometers compared to 32,492 kilometers,
respectively. [LatinPetroleum.com, 1.Feb.2016]
STANDARD & POOR'S REVISES PERSPECTIVE OF
OLEODUCTO CENTRAL S. A. TO NEGATIVE
Standard & Poor's reduced the classification
perspective of Oleoducto Central S. A. to negative
from stable.
The revision in the perspective reflects similar
actions taken in respect to Ecopetrol, reported the
daily El Tiempo, citing S&P. The revision is not related
to the credit quality, the agency reported.
STANDARD AND POOR'S MAINTAINS ECOPETROL

BBB RATING
Standard and Poor's announced that it would
maintain its 'BBB' corporate rating for Ecopetrol but
would revise the perspective to negative from stable,
citing falling oil prices in international markets.
Standard and Poor's also revised the individual
rating on Ecopetrol to 'BB' from 'BBB', reported the
daily El Espectador. [LatinPetroleum.com,
29.Jan.2016]
ECOPETROL SUSPENDS ACTIVITIES AT CAO SUR
ESTE FIELD FOR ECONOMIC REASONS
Ecopetrol suspended development and
production activities at Cao Sur Este field located in
Puerto Gaitn (Meta department) in the southern
portion of the Rubiales field.
Colombia's ANH authorized the temporarily
suspension of the activities in the area after
reviewing such a request from the state oil company,
reported the daily El Tiempo. The request from
Ecopetrol was made due to the low prices which
make profitable production from the field impossible.
The field produces 1,277 b/d of heavy oil and
represents just 0.2% of Ecopetrol's production.
Cao Sur Este field was declared commercially
viable 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 an
estimated 492 MMbbls of original oil in place and
proved reserves of 22.4 MMbbls and projected
estimated investments of $656 mln during 2014-2016
to develop the field. [LatinPetroleum.com,
18.Feb.2016]
ECOPETROL INITIATES ACTIONS TO DELIST ADR
FROM TORONTO STOCK EXCHANGE
Ecopetrol initiated paperwork and actions to
voluntarily delist its American Depositary Receipts
(ADR) from the Toronto Stock Exchange, reported
the daily El Tiempo.
Ecopetrol citing low ADR volumes in Canada as
one of its primary reasons behind taking the decision.
ECOPETROL COULD RECEIVE 1.5 BILLION PESOS FOR
PROPILCO DIVESTMENT
Ecopetrol's board of directors approved the initial
sale of the company's 100% interest in Polipropileno
del Caribe S. A. (Propilco S. A.).
Ecopetrol must obtain approval from the

Colombian government in order to move forward
with the divestment, reported the daily El Tiempo,
citing Law #226 launched in 1995.
The divestment plan is part of Ecopetrol's goal to
obtain funding from the divestment of non-strategic
assets with the aim to maintain is exploration and
production activities.
Ecopetrol reported that Propilco had accumulated
shareholder equity of 1.25 bln Colombian pesos in
the 3Q:15 and assets of 1.8 bln pesos. Between Jan.Sep.2015, Propilco reported sales of 1.35 bln pesos
and net income of 95,000 pesos, reported the daily.
COLOMBIA ACHIEVED AVERAGE PRODUCTION OF
1,005,500 B-D IN 2015
Colombia achieved average oil production of
1,005,500 b/d in 2015, reported the daily Portafolio,
citing the country's Oil and Energy Minister Toms
Gonzlez.
The Andean country reported average oil
production 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 1,035.2
MMcf/d in Dec.2015, up 0.08% compared to
Nov.2014. [LatinPetroleum.com, 15.Jan.2016]
ECOPETROL ABLE TO CONTINUE OPERATING WITH
OIL 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 the
state oil company.
"The price range at which we produce cash flow is
between $20 a barrel and $30 a barrel and the price
range at which we produce income is between $30 a
barrel and $40 a barrel," reported the daily El
Tiempo, citing Ecopetrol Juan Carlos Echeverry.
DOMINICAN REPUBLIC (DOM)

TAIWAN COMPANY TO INVEST $110 MILLION IN
SOLAR ENERGY IN DOMINICAN REPUBLIC
The Taiwan company General Energy Solution
announced plans to invest $110 mln on the first
large-scale solar energy plant in Dominican Republic.
The Monte Solar Plant, located 70 kilometers

north of the Dominican capital of Santa Domingo, will
have 132,000 solar panels and a capacity to generate
30 MW under the first phase of development. Under
the second phase of development, the plant will raise
its 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 Soventix
Caribbean. [LatinPetroleum.com, 29.Mar.2016]
ECUADOR (ECU)
PETROECUADOR TO MODERNIZE INSTRUMENT
MAINTENANCE LABORATORY
PetroEcuador announced plans to modernize the
instrument maintenance laboratory at the Libertad
Refinery as well as improve the automatization of
measurement controls and controls related to the
storage tanks. [LatinPetroleum.com, 31.Mar.2016]
PETROAMAZONAS INITIATES ACTIVITIES TO
EXTRACT OIL FROM ITT
PetroAmazonas initiated activities to drill the first
well at the Ishpingo-Tambococha and Tiputini (ITT)
field or Block 43, part of which is located in the
Yasun National Park.
The company initiated initial development drilling
activities from the Tiputini C platform, reported the
daily El Comercio, citing PetroAmazonas Manager
Jos Icaza and Strategic Sectors Minister Rafael
Poveda.
Brief Chronology
Exploration work from Shell led to the discovery of
the Tiputini field in 1949. Much later, PetroEcuador
discovered the Ishpingo and Tambococha fields
between 1992-1993.
In 2007, Ecuador's President Rafael Correa
presented his plan, the Yasun-ITT Initiative, which
called for leaving the ITT crude in the ground in
exchange for compensation from international
companies or organizations.
In 2013, Correa called for an end to the Yasun-ITT
Initiative and announced that exploitation of oil in
the area would generate estimated revenues of $18
bln over 30 years.
Ecuador's Assembly declared petroleum extraction
in Blocks 31 and 43, both located in Yasun, a matter
of national interest. Plans to extract crude in Yasun
were announced by YE:15. [LatinPetroleum.com,
30.Mar.2016]
KOREAN AND CHINESE COMPANIES CONTINUE TO

DISCUSS PACIFIC REFINERY PROJECT
Korean and Chinese companies as well as banks
continue to negotiate construction of the estimated
close to $13 billion Pacific Refinery (Refinera del
Pacfico in Spanish).
Negotiations continue optimistically and the
preliminary works such as construction of an
aqueduct that will span from La Esperanza to the
location of the new refinery are in the works,
reported the daily El Universo, citing Strategic Sector
Coordinating Minister Rafael Poveda.
The aqueduct, which is expected to be operational
in Sep.2016, will pass through some cities in Manab.
The cities are expected to benefit from the
construction of the aqueduct, said Poveda.
PETROECUADOR TO DIVEST OF 6,000 TONS OF
SCRAP LEFT OVER FROM ESMERALDAS
MODERNIZATION
PetroEcuador announced plans to sale 6,000 tons
of scraps left over after the modernization of the
Esmeraldas refinery.
"With the aim to recycle the scrap obtained during
the modernization process of the Esmeraldas
refinery, PetroEcuador will initiate a bid process for
the recycling of the 6,000 tons of scrap," announced
Ecuador's Hydrocarbon Ministry in a statement on its
website.
The Esmeraldas refinery has capacity to process
112 Mb/d of crude. The refinery is the largest of the
country's three refineries and is located in the city of
Esmeraldas, some 180 kilometers northeast of the
nation's capital city Quito. [LatinPetroleum.com,
29.Mar.2016]
PETROECUADOR SIGNS AGREEMENT TO ASSIST
POPULATION IN ESMERALDA
EP PetroEcuador signed an agreement with
Ecuador's Community Assistance Foundation (FACE
by its Spanish acronym) to provide assistance to
communities affected by the consequences of
flooding in Esmeraldas province.
The agreement, which aims to provide social
compensation in the form of emergency medical
brigades and the purchase of sanitary equipment and
materials, was signed by PetroEcuador Manager Alex
Bravo and FACE President Cristina Vanegas
Altamirano, according to official statement from
PetroEcuador.
Investment in the project will total $744,343.

PetroEcuador will provide $708,858 and FACE will
provide the remaining $35,485 over a period of 4months. [LatinPetroleum.com, 3.Feb.2016]
ANDES PETROLEUM TO INVEST $72 MILLION OVER
FOUR YEARS IN PASTAZA
Andes Petroleum plans investments of $72 mln
over 4-years on exploration and exploitation
activities 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 IN
EXPROPRIATION CASE
A World Bank court ordered Ecuador to pay USbased Occidental Petroleum (Oxy) $980 mln in an
expropriation case filed with the ICSID court.
The case dates back to May.2006 when Ecuador
declared the expiry of an exploration contract for
Block 15 signed in 1999 by Oxy after the company
transferred a 40% interest in the contract to Alberta
Energy Company (AEC), an affiliate of Encana,
without consultation with the government, reported
the daily El Universo. [LatinPetroleum.com,
13.Jan.2016]
PETROECUADOR'S ESMERALDAS REFINERY
PROCESSING AT FULL CAPACITY
PetroEcuador's Esmeraldas refinery is working at
100% of its processing capacity after the completion
of modernization work, reported the state oil
company in an official statement.
The refinery, the largest in the Andean nation, has
a processing capacity of 110 Mb/d. The recent
modernization work will allow the refinery to
produce 20% more LPG and 15% more naphtha
resulting in a savings of $305 mln per year due to
increased production and reduced imports.
Likewise, the modernization helped to boost the
processing capacity at the Fluid Catalytic Cracker
(FCC) unit to 20 Mb/d from 18 Mb/d.
The benefits of the modernization include: 1) A
6,000 b/d reduction in naphtha imports, 2) Increased
production of LPGs, more than 260 tons/day,
equivalent to 9% of the total volumes consumed in
the country, 3) Better incorporation of low octane
naphtha in the blending with gasoline, more than
3,200 b/d, 4) Increased production of #2 diesel and
premium, more than 5,600 b/d, and 5) Increased
production of fuel oil, more than 13,700 b/d.
MEXICO (MEX)
BIG TRANSPARENCY ISSUES FACING PEMEX IN
PLATFORM LEASING CONTRACTS
The lack of transparency in platform leasing
contracts and modifications of clauses represent a
disadvantage for Pemex, reported the daily
LaJornada.
This year, Pemex Exploration and Production, or
PEP, contracted 63 platforms (54 jack ups and 9
submersible platforms) in order to increase
hydrocarbon reserve and production levels. Sixtynine percent of the platforms, or 44, were obtained
by a direct award while 19 were obtained by
international bidding process. [LatinPetroleum.com,
26.Mar.2016]
PEMEX SIGNS CONTRACT TO BOOST NITROGEN
ACQUISITONS
Pemex signed a nitrogen services and supply
contract with the aim to recuperate 800 MMbbls of
petroleum over the next 11 years through the
application of well pressure maintenance.
The contract was signed with Compaa Nitrgeno
de Cantarell S.A. de C.V., a company of The Linde
Group, reported the daily LaJornada.
Pemex, which has been conducting alternative
fluid studies of the Cantarell field since 1997, has
proved that nitrogen gas is the best injection material
to recuperate petroleum. [LatinPetroleum.com,
11.Jan.2016]
SEVEN COMPANIES TO INVEST $2.1 BILLION ON
SOLAR AND WIND ENERGY PROJECTS
Mexico's Federal Electricity Commission
(Comisin Federal de Electricidad or CFE by its
Spanish acronym) will buy solar and wind energy
from seven companies that won the first long-term
bid for clean energy and electric energy certificates.
The seven winning companies will invest around
$2.116 bln over the next 3-years to develop different
projects, reported the daily LaJornada.
The winning companies include: SunPower
Systems Mxico, Enel Green Power Mxico, Parque
Elico Reynosa III, Gestamp Wind Mxico, Recurrent
Energy Mxico, Alten Energas Renovables and
Energa Renovable del Istmo, announced Mexico's
Electricity Undersecretary Csar Hernndez and the
director of Mexico's National Energy Control Center
(Centro Nacional de Control de Energa or Cenace by
its Spanish acronym).
A total of 69 companies participated in the bidding

and submitted more than 200 proposals.
The bidding is expected to translate into the
acquisition of 5,385 GWh and 5.3 million clean
energy certificates (CEL). Wind plants will be installed
in Aguascalientes, Coahuila and Guanajuato while
solar energy plants will be installed in Tamaulipas
and Zacatecas.
A total of 56% of the sales offered were related to
solar energy and 44% wind energy, reported the
daily, citing Hernndez. Installed capacity is expected
to rise to 1,720 MW, of which 1,100 MW is expected
to come from solar energy and the remaining 620
MW from wind energy.
Using an exchange rate of 17.33 Mexican pesos
per US dollar, the prices for an integrated package
from CEL, the MWh was between $35.50/MWh and
$47.90/MWh with an average of $41.80/MWh.
PEMEX FIRES 139 ENGINEERS and 648 OFFSHORE
PLATFORM WORKERS
In a cost reduction move Pemex announced the
departure of 139 petroleum engineers, geologists
and geophysicists and 648 offshore marine workers
in mid-Mar.2016, according to a document released
by the state oil company, reported the daily
LaJornada.
Additional firings are expected on 28.Mar.2016
that will affect the following assets of Samara-Luna,
Jujo-Tecominoacn and Ku-Maloob-Zap, according to
the daily.
Of the total offshore workers, 570 belong to the
union while the remaining 78 had no union
affiliation. The workers were dismissed in two
phases: the first phase affected 181 workers while
the second phase affected 467 workers. The
departures occurred from 22-23.Mar.2016, according
to the daily.
The departures come from the Field Development
Division and six producing assets: 1) Litoral de
Tabasco Tsimin-Xux, 2) Abkatn, 3) MacuspanaMuspac, 4) Cantarell, 5) Ayatsil-Tekel and 6) Cinco
Presidentes.
A total of 139 engineers and other professional
workers where employed on the following assets:
Cantarell (30); Ayatsil-Tekel (23); Abkatn (33);
Macuspana-Muspac (13); Tsimin-Xux (9); and Cinco
Presidentes (24).
These payroll reductions add to others, including

positions of highly specialized personnel, reported
the daily, citing the National Technical Union and
Petroleum Professionals (Unin Nacional de
Tcnicos y Profesionistas Petroleros or UNTyPP by
its Spanish acronym).
The recent cuts represent the loss of technical
personnel within the company with years of
specialized experience and could consequently cause
the company to lose some of its competitiveness,
announced UNTyPP.
On 25.Jan.2016, LaJornada announced that PEMEX
would permanently fire 10,533 workers, citing the
then Pemex General Director Emilio Lozoya Austin
and Pemex Budget Director Mario Govea Soria.
PEMEX CONFIRMS DEATHS OF TWO WORKERS AT
OFFSHORE PLATFORM
Pemex confirmed the deaths of 2 workers during a
fire at the Abkatn A platform located in Campeche
Sound offshore the Gulf of Mexico.
One of the deceased was a Pemex employee while
the other worked for the contract company Cotemar,
reported the daily LaJornada.
The fire occurred in the compression area of the
platform, the daily reported, citing Pemex. The fire
was controlled without the need to evacuate the
platform, according to state oil company.
PEMEX TO DEFER $3.6 BILLION INVESTMENTS
Pemex announced a strategy to defer $3.6 bln in
investments as part of budget cuts proposed by the
federal government in reaction to the fall in the
international price of oil.
The strategy, which forms part of a $5.5 bln
reduction plan, aims to stop production declines at
Pemex, reported AFP, citing Pemex General Director
Jos Antonio Gonzlez Anaya. [LatinPetroleum.com,
29.Feb.2016]
FIVE COMPANIES INTERESTED IN IMPORTING
GASOLINE, BUILDING STORAGE FACILITIES
Five companies have expressed interest in
importing gasoline in Mexico through the use of train
transportation and construction of terminals to store
the product, reported the daily LaJornada, citing
Mexico's Energy Secretary Pedro Joaqun Coldwell.
PEMEX ISSUES STOCK CERTIFICATES WORTH 5

BILLION MEXICAN PESOS
Pemex issued stock certificates worth 5 bln
Mexican pesos. The certificates, which mature in
Oct.2019, will pay a coupon of TIIE28 + 135 points,
reported Pemex in an official statement.
Funds from the issuance will be used by Pemex to
invest in strategic projects and a potential
refinancing.
The principal investors in the certificates were
banks, investment funds as well as public and private
treasuries.
The agents that placed the certificates were: BBVA
Bancomer, Banamex, Santander and Bank of
America Merrill Lynch. [LatinPetroleum.com,
17.Mar.2016]
PEMEX ANNOUNCES 2.250 BILLION EURO BONDS
OFFERINGS
Pemex announced the issuance of 2.250 bln in
Euro bonds in two separate offerings with maturities
of 3 and 7 years, reported the company in an official
statement.
The first issuance was for 1.350 bln with a
maturity of Mar.2019. The bond offers a return
(yield) of 3.808% and a coupon of 3.75%. The second
issuance was for 0.900 bln with a maturity of
Mar.2023. The bond offers a return (yield) of 5.213%
and a coupon of 5.125%.
The demand for the two offerings was
approximately 6.000 bln, which represents 2.67
times the assigned amounts. Investors included
pension funds and portfolios from Europe, Asia and
the Middle East.
Lead agents on the offering were: Crdit Agricole,
Deutsche Bank, Socit Gnrale and HSBC.
PEMEX ANNNOUNCES $5 BILLION BOND OFFERING
IN THREE TRANCHES
Pemex announced the issuance of $5 billion in
bonds in three tranches of $750 million, $1,250
million and $3,000 million, announced the company
in an official statement.
The first tranche was for $750 mln with a maturity
of Feb.2019. The bond offers a return (yield) of
5.50%.
The second tranche was for $1,250 mln with a
maturity of Feb.2021. The bond offers a return (yield)
of 6.375%.
The third tranche was for $3,000 mln with a
maturity 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 the
assigned amounts. Investors included pension funds
and portfolios from Europe, the U.S.A., the Middle
East, Asia, Mexico and other countries.
Lead agents on the offering were: BBVA, BofA
Merrill Lynch, JP Morgan and Santander.
PEMEX SAYS TULA REFINERY COMPLIES WITH
ENVIRONMENTAL REQUIREMENTS
The Miguel Hidalgo refinery located in Tula is in
complete compliance with legal environmental
requirements as stipulated by Mexico's Official Norm
NOM-001-SEMARNAT-1996, reported Pemex in an
official statement.
Pemex produces Pemex Magna and Pemex
Premium gasolines in Mexico as well as diesel.
PEMEX SIGNS MOUS WITH THREE PERSIAN GULF OIL
COMPANIES
Mexico's President Enrique Pea Nieto took part
in the signing of three Memoranda of Understanding
(MOUs) between Pemex and Persian Gulf companies
during an official visit by the executive to that region.
Pemex signed MOUs with Mubadala Petroleum
and ADNOC, both from the United Arab Emirates as
well as another with Saudi Aramco from Saudi
Arabia, reported Pemex in an official statement.
The MOUs were signed by Pemex General Director
Emilio Lozoya as well as by Mubadala Petroleum CEO
Musabbeh Al Kaabi, ADNOC CEO Abdulla Nasser Al
Suwaidi, and Saudi Aramco CEO Amin H. Al-Nasser.
Under the MOUs, the companies agree to work
together and explore business opportunities in
Mexico. [LatinPetroleum.com, 19.Jan.2016]
MEXICO'S HYDROCARBON COMMISSION GIVES
PEMEX GO AHEAD TO DRILL TWO WELLS
Mexico's National Hydrocarbon Commission
approved terms to allow Pemex to carry out the
drilling of the two exploration wells: Basto Mil Uno
and Nobilis Uno.
The estimated cost to drill the first well is nearly
275 mln Mexican pesos while the cost to drill the
second is nearly 126 mln pesos, reported the daily
Notimex. [LatinPetroleum.com, 12.Jan.2016]
PEMEX's FD&A COSTS ESTIMATED AT AROUND

$26.19 A BARREL
Pemex's Finding, Development and Production
cost is estimated at nearly $26.19/bbl, reported the
daily LaJornada. [LatinPetroleum.com, 11.Jan.2016]
PERU (PER)
OIL OPERATORS WORRIED ABOUT CREATION OF
MARINE RESERVE IN NORTHERN PERU
A proposal by Sernanp to create a marine reserve
in northern Peru worries oil companies from Piura
and Tumbes which fear it may threaten their
exploration 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 in
northern Peru, the daily reported, citing Peru
Hydrocarbon Society President Rolando Egsquiza.
Officials with the country's National Mining,
Petroleum and Energy Society shared similar
comments about the new marine reserve initiative.
The creation of the Pacific Tropical Sea Reserve
(Mar Pacfico Tropical, in Spanish) could interfere
with 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 in
the area. However, the creation of a protected area
would affect the capacity of our parent company,
Alfa Energy, to compete with other projects
worldwide that don't have to encounter similar
problems," reported the daily, citing BPZ
representative Carmen Castellanos.
The marine reserve also threatens to affect
Australian company Karoon, which plans to drill some
of the deepest submarine wells in Peru in Lot Z-38,
reports the daily.
"The Sernanp administers eight protected areas
that belong to 12 petroleum lots and activities there
haven't been affected," reported the daily, citing
Sernanp 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 with
operators in the Pacific Tropical Sea Reserves."
Per-Petro estimates that offshore operators in

Piura and Tumbes could invest up to $900 mln on
exploration activities through 2020. The figure could
rise to $4 bln if Karoon confirms the existence of
petroleum in Lot Z-38 and decides to move forward
with exploitation activities. [LatinPetroleum.com,
29.Mar.2016]
OIL SPILL IMPACTS FARMING AREAS IN THE
AMAZONAS IN PERU
A petroleum spill equivalent to more than 150
barrels of oil was reported on 25.Jan.2016 near
kilometer 441 of the Northern Peru Oil Pipeline
(Oleoducto Norperuano, in Spanish) in the Imaza,
Amazonas district.
The spill is expected to impact the planting of
cacao as well as the Inayo waterfall in the region,
reported the daily El Comercio.pe.
PETRO-PERU SIGNS MOU FOR LOT 192 WITH TWO
COMPANIES
State oil entity Petro-Peru signed a MOU with
Pacific Exploration & Production and Pacific Stratus
Energy del Per related to exploration activities at
Lot 192, the country's major lot.
"The signing of the memorandum is the first step
in order to establish a cooperation between the
companies involved with the intention to exchange
technical knowledge, information, experiences and
business practices related to the oil and gas sector,"
reported the daily El Comercio.pe, citing a statement
from Peru's Exchange Superintendency
(Superintendencia del Mercado de Valores or SMV
by its Spanish acronym). [LatinPetroleum.com,
29.Jan.2016]
PERUPETRO TO SIGN CONTRACT WITH PETROPER
FOR LOTE 192
Per-Petro plans to sign a contract during the first
quarter of 2016 that will allow Petroper to assume
exploitation activities at Lot 192, which was two
years ago loaned out to Pacific Stratus Energy.
Petroper plans to start operating Lot 192 in 2017,
reported the daily El Comercio.pe. The extension of
the contract will be for 30 years.
[LatinPetroleum.com, 15.Dec.2015]
ENEL GREEN POWER TO INVEST 359 MILLION IN

THREE RENEWABLE ENERGY PLANTS
Italy's Enel Green Power (EGP) signed contracts
for the supply of energy for 20 years with an
investment of close to 359 mln.
The company will provide 326 MW of energy
through three energy plants: the Nazca wind project
(126 MW), the Ayanunga hydroelectric project (20
MW), and the Rub solar project (180 MW), reported
Semanaeconomica. The three plants are expected to
all be online before 2018.
The wind project will be located in Marcona (Ica)
and will have an installed capacity of 126 MW that
generate 600 GWh/year and prevent the emission of
almost 370,000 tons of carbon dioxide.
The hydroelectric project will be located in
Monzn (Hunuco) and produce 140 GWh/year.
Finally, the solar project, denominated Rubi, will
be located in Moquegua and produce 440 GWh/year.
URUGUAY (URY)
URUGUAY SENATE APPROVES MARTA JARA AS NEW
ANCAP PRESIDENT
The Senate of the Southern Cone nation Uruguay
approved the appointment of Marta Jara as the new
president of ANCAP.
The senate also approved on 8.Mar.2016 the
appointment of Juan Carlos Herrera as the company
Vice President and Laura Saldanha as a member of
the company's board of directors, reported the daily
LaRed21.
"It is important to see how we transform a crisis
into an opportunity," reported LaRed21, citing Jara.
"To be at the head of the company is an enormous
challenge and a large responsibility."
Executive profile
Marta Jara Otero was born in Montevideo in 1964.
She is married and has two children, reports the daily
LaRed21.
Jara is a chemical engineer graduated from the
Buenos Aires University. She has a Masters in
Strategic Financial Management obtained at
Kingston University. Jara has over 21 years of
international experience, having spent the last 15
years specializing in natural gas and liquefied natural
gas. She has participated in regasification terminal
projects in Mexico, including one in Altamira in 2004
and another at Ensenada in 2008 as well as having
worked in Argentina and Venezuela (Shell
Venezuela).
From 2009-2012, she worked with Shell Mexico

and focused on joint ventures and the
commercialization of natural gas.
In 2012, Jara assumed the position of General
Manager at Gas Sayago. [LatinPetroleum.com,
14.Mar.2016]
URUGUAY AWAITS ARRIVAL OF NEW PARTNERS IN
OFFSHORE BLOCKS
Uruguay is awaiting the arrival of new partners in
the offshore exploration blocks 8, 9, and 13, which
are owned by Shell, reported the daily El Pais.
URUGUAY ROUND II: RECAP
The Uruguay Round II that took place in 2011
included offerings on 15 exploration blocks, of which
eight were awarded: British Petroleum took 3 (Blocks
6,11 and 12), British Gas Group took 3 (Blocks 8, 9
and 13), Total took 1 (Block 14), while Tullow Oil
took 1 (Block 15), reported the daily El Pais.
ARGENTINA SAYS IT WANTS TO BUY GAS FROM
PUNTA DE SAYAGOS
Argentina's Vice President Gabriela Michetti and
the Argentine Ambassador in Uruguay Guillermo
Montenegro assured Uruguay's President Tabar
Vzquez that Argentina would be a buyer of the gas
coming from the regasification plant at Punta de
Sayago.
"Argentina will be one of the buyers of gas to
come from the regasification plant," reported the
daily LaRed 21, citing Montenegro.
URUGUAY LOOKS TO INJECT $1.2 BILLION INTO
STATE OIL COMPANY ANCAP
Uruguay plans to inject $1.2 bln into its state oil
company ANCAP destined for activities at the Teja
refinery, ALUR and biodiesel production plants,
reported the daily LaRed21. [LatinPetroleum.com,
11.Feb.2016]
STATOIL BUYS 15% INTEREST IN BLOCK 15 IN
URUGUAY FROM TOTAL
Norway's Statoil bought a 15% interest in Block 14
offshore Uruguay from Total. France's Total was
awarded the block in 2012 under the so-called
Uruguay Round II, reported the daily El Pais.
STATOIL BUYS 35% INTEREST IN BLOCK 15 IN

URUGUAY FROM TULLOW OIL
Norway's Statoil bought a 35 percent interest in
the Block 15 offshore exploration project from
Tullow Oil.
"With this transaction we are increasing our
exposure to growth potential in this geologic
configuration," reported the daily El Pais, citing
Statoil Exploration Vice President Nicholas Alan
Maden.
Tullow maintains a 35 percent interest in the
block, reported the daily El Pais.
VENEZUELA (VEN)
LATAM ENERGY INVESTOR WATCH LIST BRIEF
Venezuela: LatAm Country With Most Attractive
Crude Oil and Natural Gas Reserves, and Production
Potential
Investment Considerations:
OPEC member country Venezuela holds the
world's largest crude oil reserves and consistently
ranks among the world's top 5 largest exporters of
crude oil to the USA.
Blessed with an immense hydrocarbon
(conventional and non-conventional crude oil
reserves and associated and non-associated natural
gas reserves) resource base, Venezuela has attracted
companies the world over to participate in the
development and expansion of the country's
hydrocarbon industry.
Under an ambitious business plan, Venezuela's
state oil company PDVSA aims to nearly double the
country's production of crude oil with a special focus
on production increases from the prolific Orinoco
Heavy Oil Belt or Faja. However, declines in light oil
production, and a shortage of diluent is creating
havoc on PDVSA's export strategy which includes
exports of the following blends: 1) upgraded or
syncrude from the countries' four upgraders, 2) a
diluted crude oil (DCO), a blend of Faja heavy oil plus
naphtha, 3) a blend of Faja heavy oil plus imported
light oil, and 4) a blend of Faja heavy oil plus
Venezuela light oil.
The country also has enormous natural gas
production potential offshore at the Rafael Urdaneta
project (Cardon IV) where natural gas production
commenced in 2015. Additional reserve and
production potential can be found at Mariscal Sucre
and Deltana projects offshore.
Investment Constraints
A takeover and nationalization trend that started
to take shape in 2005 under then President Hugo
Chvez is still a constant threat under President
Nicolas Maduro. The continued uncertainty that
surrounds the petroleum sector has effectively
spooked investors and is a constant concern, while
uncertainties regarding sanctity of contracts remain a
constant. Currency controls and multi-official
exchange rates also complicate the financial scenario
while cash constrained PDVSA doesn't have financial
or administrative capacity to move forward the
small-to-large projects. Rumors of widespread
corruption at PDVSA only help to feed doubt among
potential investors about their partner (potential
partner to be) and the host country in general.
Other considerations:
The pull back in oil prices has severely hampered
PDVSA's ability to maintain investment or attract
investments from JV partners. Yet, Venezuela is still
desperately reaching out to foreign oil companies
and countries such as Russia, China, India and others
for investment capital, technology and know-how.
The prolonged economic and political crises point to
a doubtful and pessimistic scenario for positive
progress in the country's petroleum sector in 2016. If
either crisis is extended, the outlook for the oil sector
will likely follow suit in coming years even with a
slight recovery in oil prices.
The upside potential across all energy sectors in
Venezuela is too hard for Big Oil to turn down.
However, the present day economic and political
scenarios, coupled with the low oil price scenario, is
forcing Big Oil to take an extended 'wait-and-see'
attitude in the only 'Middle Eastern' country, oil
resource speaking, in South America.
TABLE 2: TOP 5 INTERNATIONAL COMPANIES
TO WATCH IN VENEZUELA
CNPC (China)
Rosneft (Russia)
Repsol (Spain)
Chevron Corp. (USA)
Eni (Italy)
Source: LatinPetroleum
PDVSA TO SHUT CARDON CATALYTIC CRACKER FOR

MAINTENANCE
PDVSA plans to shut the Catalytic cracker at the
310 Mb/d capacity Cardon refinery for major
maintenance, according to oil union official Ivn
Freites.
"The stoppage is scheduled for 75 days," said
Freites in a phone interview with
LatinPetroleum.com. [LatinPetroleum.com,
1.Apr.2016]
PDVSA SAYS OPERATIONS AT JOS TERMINAL ARE
NORMAL
PDVSA announced that operations at its Jos
Antonio Anzotegui storage and shipping terminal
are normal and that it maintains exports of its
different crudes to international markets.
PDVSA, as the state oil company is known,
announced that 70% of the exports leave the Jos
terminal, which is equivalent to 1.496 MMb/d,
reported the daily El Universal.
The Jos terminal, located in the eastern region of
Venezuela, is comprised of 3 docks and 2 monobuoys
capable of handling an average 56 tankers each
month. The terminal receives tankers such as VLCC
(capacity: 1.9 MMb/d), Suezmax (Capacity: 1 MMb/d)
and Aframax (Capacity: 0.6 MMb/d).
PDVSA ADVANCES WITH MODERNIZATION OF JOSE
ANTONIO STORAGE AND SHIPPING TERMINAL
PDVSA continues to advance with the
modernization, expansion and automization of its
Jos Antonio Anzotegui Storage and Shipping
Terminal or TAECJAA by its Spanish acronym.
The terminal, located in the Jose Industrial
Condominium (CIJAA, by its Spanish acronym) north
of Anzotegui state, is the first of its kind in
Venezuela and third in cargo capacity and exports in
the continent, reported PDVSA in an official
statement. [LatinPetroleum.com, 25.Jan.2016]
PDVSA GAS LOOKS TO USE CHEMICAL INJECTION
PUMPS MADE IN VENEZUELA
PDVSA's gas affiliate, PDVSA Gas, plans to use
chemical injection pumps made in Venezuela in order
to reduce costs.
PDVSA Gas, in alliance with the Venezuelan
company INELECSIS, plans to acquire over the short
term an estimated 250 pumps made in Venezuela,
reported PDVSA.
The pumps will be priced in Venezuelan Bolivars

and not U.S. dollars, and represent a cost six times
cheaper than the average price offered by other
transnational companies, reported PDVSA.
The alliance will be charged with the design,
fabrication, maintenance and repair of the chemical
injections pumps as well as other imported
hydrocarbon sector equipment such as parts and
pieces for control valves, security, process valves,
medical boxes and other equipment acquired during
2016-2019. [LatinPetroleum.com, 18.Mar.2016]
PDVSA GAS EXECUTES CONVERSION OF 2 UTGS TO
NATURAL GAS FROM DIESEL
PDVSA Gas executed a project to adjust two
turbo-driven generators (UTG) at the Josefa Joaquina
Snchez Bastidas Complex in Vargas state to use
natural gas instead of diesel.
The project will mark a change to PDVSA Gas'
energy matrix since it entails the conversion of the
two UTGs that use diesel into units that will use
natural gas. The use of natural gas will free up an
estimated 14,620 b/d of diesel, according to PDVSA.
PDVSA Gas will supply the gas to the complex, in
the Arrecifes sector of Vargas state, via the UTG
Josefa Rufina I and Margarita I (type Barcaza) with
the aim to generate 342 MW. The UTGs currently
generate 140 MW of energy with the use of diesel.
With the conversion to natural gas they will generate
an estimated 202 MW of additional energy, which
will be supplied to Venezuela's national energy grid.
VENEZUELA CHEMICAL SECTOR WORKING AT 2030% OF INSTALLED CAPACITY
Venezuela's chemical sector is working at between
20% and 30% of its installed capacity and companies
operating in the sector have accumulated debts,
reported El Nacional, citing Venezuelan Chemical
and Petrochemical Industry Association President
Francisco Acevedo.
Acevedo didn't provide details of the outstanding
debts that the chemical companies have
accumulated. [LatinPetroleum.com, 23.Jan.2016]
VENEZUELA WORKING TO MOVE AWAY FROM OIL

RENTIER STATE MODEL
Venezuela is working to move away from its oil
rentier state model, the country's Vice President
Aristbulo Istriz said during an interview broadcast
by Televen television station.
"Venezuela must develop other productive
economic sectors and move away from its
dependency on the petroleum sector," said Istriz.
"Venezuela's oil rentier model has been a failure for
some time but was extended by 'strong' oil prices."
The official admitted that Venezuela imports
nearly everything and needs to develop national
productive capacity.
"Venezuela must produce foreign revenues from
different sectors other than the petroleum sector,"
said Istriz. [LatinPetroleum.com, 30.Jan.2016]
FIFTY PERCENT OF PETROLEUM SECTOR NONWORKING DUE TO OPERATING PROBLEMS
An estimated 50% of Venezuela's petroleum
industry is halted due to operating problems with
cargo loading arms that are used to connect the
docks with oil tankers, reported the daily El Nacional,
citing oil union official Eudis Girot.
"We have a problem and that is that only 4 of the
11 loading arms are working," said Girot. "And
Eulogio Del Pino knows this." [LatinPetroleum.com,
17.Mar.2016]
MARISCAL SUCRE PRODUCTION POTENTIAL
ESTIMATED AT 600 MMCF/d OF NATURAL GAS
The Mariscal Sucre natural gas project offshore
the coast of Venezuela has a production potential of
600 MMcf/d of natural gas.
The offshore project will supply markets in
Colombia, Ecuador, Central American and the
Caribbean, reported the daily Globovision, citing
PDVSA President Eulogio Del Pino.
PDVSA AND KERUI SIGN MOU FOR THE PURCHASE
OF NEW DRILLING RIGS
PDVSA and oil field service company Kerui Group
signed a MOU for the acquisition of drilling rigs
destined for the Orinoco Heavy Oil Belt or Faja.
"We want Kerui Group to commence soon,"
reported PDVSA in an official statement, citing
company President Eulogio Del Pino. "And we hope
to improve our drilling operation times."
PDVSA TO INCORPORATE 80 MMCF/D OF NATURAL

GAS VIA COPA MACOYA PLANT
PDVSA will incorporate 80 MMcf/d of natural gas
when the compression plant Copa Macoya, located in
the Jos Flix Ribas municipality of Gurico state,
comes online.
The installation forms part of the company Gas
Gurico, a license that is operated by Japan's Inpex
to boost the production of non-associated natural
gas from the Copya Macoya field, reported PDVSA in
an official statement.
The new compression system will allow PDVSA to
increase production to 80 MMcf/d from 32 MMcf/d,
reported PDVSA, citing PDVSA Gas President Antn
Castillo.
"The idea is to increase the sources of nonassociated natural gas production for the
development of the national production," said
Castillo.
More than 300 persons worked on the project
which also included a refrigeration plant that will
allow the company to recover 1,000 barrels of
condensate of a 54-degree API with a total
investment of $300 mln. [LatinPetroleum.com,
1.Mar.2016]
VENEZUELA VEHICLES IN CIRCULATION REACH 4.4
MILLION
An estimated 4.445 million vehicles are in
circulation in Venezuela, of which an estimated 70%
require use of 91 octane gasoline and the remaining
30% percent require 95 octane gasoline, reported
PDVSA in an official statement. [LatinPetroleum.com,
29.Feb.2016]
VENEZUELA GASOLINE SUBSIDY COSTS VENEZUELA
$12.592 BILLION PER YEAR
Venezuela's gasoline subsidy costs the country
$12.592 bln per year, which represents the
difference between the production cost and the sale
price, announced PDVSA President Eulogio Del Pino
in a television broadcast on Venezuelan state
television.
In Feb.2016, Venezuela announced it would
increase the price of its 95 octane gasoline to 6
Venezuelan bolivars/liter from 0.097 bolivars/liter
and its 91 octane gasoline to 1 bolivar/liter from
0.070 bolivars/liter.
"Venezuela continues to have the lowest petrol
cost in the world," said Del Pino.
Money collected from the gasoline price hike will

be destined to social missions, said Del Pino, who
also serves as Venezuela's oil minister.
Venezuela, which has 1,642 service stations
nationwide, did not change the price of its diesel.
TABLE 3: VENEZUELA GASOLINE PRICE HIKE (IN
VENEZUELAN BOLIVARS)
Gasoline Grade
New Price
Old Price
95 Octane
91 Octane
6 bsf/liter
1 bsf/liter
0.097 bsf/liter
0.070 bsf/liter
Source: Venezuela Petroleum and Mining Ministry
VENEZUELA PRODUCING 2.9 MMB/D OF CRUDE OIL
Venezuela is producing 2.9 MMb/d of crude oil, of
which 510 Mb/d is being consumed in the domestic
market, reported the daily Globovision, citing PDVSA
President Eulogio Del Pino. [LatinPetroleum.com,
29.Feb.2016]
PDVSA REFINING VP SAYS IT WAS NECESSARY TO
INCREASE GASOLINE PRICES
"It is very clear with the Venezuela citizens that
this was the moment to adjust the price of gasoline,"
reported PDVSA in an official statement, citing the
company's Vice President of Refining, Commerce and
Supply Jess Luongo.
PDVSA has to invest $370 mln to produce its 95
octane gasoline, said Luongo.
"An estimated 70 percent of the vehicle park
should use 91 octane gasoline," said the executive.
"It's necessary for drivers to read their car's manual
as many will find that their autos don't need the
higher octane gasoline." [LatinPetroleum.com,
18.Feb.2016]
VENEZUELA MAINTAINS PRICE OF ITS DIESEL FUEL
Venezuela increased the price of its 95 octane and
91 octane grade gasolines but did not increase the
price of its diesel fuel.
Diesel fuel is used by more than 250,000 vehicles
in Venezuela in the area of public transportation,
reported Venezuela's Petroleum and Mining
Ministry, citing the country's Energy Minister Eulogio
Del Pino.
The reduction in the gasoline subsidy for 95 and

91 octane gasolines in Venezuela will not affect the
cost of diesel, said Del Pino. [LatinPetroleum.com,
22.Feb.2016]
VENEZUELA PRESIDENT MADURO NEEDS TO
EXPLAIN PURPOSE OF CAMIMPEG
Venezuela's President Nicolas Maduro must
explain to the nation exactly the motives behind the
creation of the new military company Camimpeg,
which will conduct work in the nation's oil, gas, and
mining sectors, according to a Venezuelan lawmaker.
The company, which will reportedly work in
parallel with state oil company PDVSA, will
presumably be run by military officials, reported the
daily El Carabobeno, citing lawmaker Carlos
Berrizbeitia.
Details of the new company first emerged in the
Official Gazette, No. 40,845 which reported that
Camimpeg would perform duties such as, but not
limited to the following: reworking and maintaining
petroleum wells, overseeing drilling rig operations;
importing, exporting, commercialization and
distribution of chemical products to the mining
sector, maritime transport and construction of civil
infrastructure. [LatinPetroleum.com, 16.Feb.2016]
PDVSA AIMS TO BOOST PETRO SAN FELIX
PROCESSING CAPACITY
PDVSA aims to increase the processing capacity of
the Petro San Flix upgrader located in the Orinoco
Heavy Oil Belt or Faja, reported Venezuela's
Petroleum and Mining Ministry in an official
statement.
During 2016-2019 the company plans to increase
the upgrader's production processing capacity to 240
Mb/d from 180 Mb/d, incorporate two two-phase
separators, an oven as well as construct two 40 Mb/d
capacity cleaning tanks.
PDVSA also aims to incorporate 113 wells with the
potential to produce 800 b/d each associated with 16
basic production units, representing a production
potential of 90.40 Mb/d.
The Petro San Flix (before known as Petrozuata)
upgrader was inaugurated on 13.Feb.2001 in the
presence of late President Hugo Chvez.
The upgrader upgrades 9-degree API crude into a
lighter 19-degree API crude at the Jos Antonio
Anzotegui Industrial Complex (CIJAA by its Spanish
acronym). [LatinPetroleum.com, 12.Feb.2016]
PDVSA GETS TWO NEW APPOINTEES TO ITS BOARD

OF DIRECTORS
PDVSA incorporated two new members to its
Board of Directors, according to Venezuela's Official
Gazette No.40,675.
According to the document, Ana Mara Espaa
Girardi was appointed as Vice President of Finance
and Internal Director while Sergio Antonio Tovar
Amaro was appointed as Internal Director over
Planning.
The rest of the board is comprised of the following
members: Eulogio Antonio Del Pino Daz, President of
PDVSA and Venezuela's Petroleum and Mining
Minister; Orlando Enrique Chacn, PDVSA Vice
President of Exploration and Production and Internal
Director; Jess Enrique Luongo, PDVSA Vice President
of Refining, Commerce and Supply and Internal
Director; Delcy Elona Rodrguez Gmez, PDVSA Vice
President of International Affairs and Internal
Director; Aracelis Coromoto Suez de Vallejo, Internal
Director; Antn Rafael Castillo, Internal Director.
Additionally, the External Directors include: Rodolfo
Clemente Marco Torres, Wills Rangel and Ricardo
Menndez Prieto. [LatinPetroleum.com, 15.Jan.2016]
PDVSA PRESIDENT SAYS VENEZUELA PRODUCTION
COST AT $13 A BARREL
Venezuela's average production cost is $13 a
barrel, reported PDVSA in an official statement,
citing company President Eulogio Del Pino.
Del Pino downplayed rumors that the nation's
production cost was $20 a barrel and added that in
2016 that he envisioned a 28% reduction in costs.
"This year we are planning for an additional
reduction, to the order of 28 percent, which would
reduce production costs to below $10 a barrel," said
Del Pino, who also serves as Venezuela's Petroleum
and Mining Minister.
"We are preparing to maintain the profitability of
PDVSA during a year complicated by oil prices," said
Del Pino. [LatinPetroleum.com, 25.Jan.2016]
PETROMONAGAS PRODUCES AND UPGRADES MORE
THAN 130 MB/D OF EHCO
Petromonagas currently produces and upgrades
more than 130 Mb/d of extra heavy crude in
Venezuela, reported Rosneft.
Besides Petromonagas JV Rosneft also has the
interest in the following joint ventures with PDVSA in
Venezuela:
-- Project Carabobo-2,4 (JV PetroVictoria): Partners
include PDVSA (60% WI) and Rosneft (40% WI).
-- Project Junin-6 (JV PetroMiranda): Partners include

PDVSA (60% WI) and Rosneft (32% WI through NOC
in which Rosneft holds 80%).
-- JV Boqueron: Partners include PDVSA (60% WI)
and Rosneft (40% WI).
-- JV PetroPerija: Partners include PDVSA (60% WI)
and NOC (40% WI).
Original oil in place for these projects is estimated
at over 20.5 bln tons. [Rosneft, 20.Mar.2016]
VENEZUELA REFINING CAPACITY: 14 YEAR
COMPARISION
PDVSA's refining processing capacity in Venezuela
has changed little when comparing to two data
points (years): 2014 vs 2000.
TABLE 4: PDVSA VENEZUELA REFINING CIRCUIT
2014 VS 2000 (MB/D)
2000
2014
Paraguana Refining Complex

Amuay
Cardon
Total CRP (Falcon)
625
305
930
645
310
955
Puerto La Cruz (Anzotegui)

El Palito (Carabobo)
Bajo Grande (Zulia)
San Roque (Anzotegui)
TOTAL REFINING CAPACITY
195
130
15
5
1,275
187
140
16
5
1,303
Source: PDVSA
In 2014, the last year data is available on PDVSA's

domestic refineries, the company had a total in
country processing capacity of 1,303 Mb/d compared
to 1,275 Mb/d in 2000. Venezuela's Paraguan
Refining Complex (CRP, by its Spanish acronym)
located in Falcn state -- the largest such complex in
LatAm and the Caribbean and ranked among the top
five worldwide -- has only increased its processing
capacity by 2.2% or 28 Mb/d, primarily due to a lack
of capital investments in the complex by cashstrapped PDVSA.
Futhermore, a lack of investment in maintenance
in the massive complex as well as PDVSA's other
refineries has left them in a poor state of operations,
leading to increased accidents, increased worker
discontent, and less than optimal utilizations rates
due to a lack of replacement parts, among other
issues, said oil union official Ivan Freites in an
interview from Falcn state in Western Venezuela.
[LatinPetroleum, 30.Mar.2016]
THE ORINOCO HEAVY OIL BELT IS STILL ATTRACTIVE

The Orinoco Heavy Oil Belt is still an attractive
investment alternative, announced the Vice
President of Venezuela's Energy and Petroleum
Commission to the National Assembly.
"It is still profitable to produce in the Orinoco
Belt," reported the daily El Mundo, citing the official.
PDVSA 2015 DEBT FALLS $2 BILLION COMPARED TO
2014
Total consolidated financial debt for PDVSA and its
affiliates fell $1,985 mln in 2015 to $43,751 mln vs.
$45,736 mln in 2014, Venezuela's Petroleum and
Mining Ministry reported in a special advertisement
placed in Panorama daily newspaper.
PDVSA's debt fell $4,997 mln to $35,999 mln vs
$40,996 mln while debt for Citgo Holdings, Inc. in the
USA rose $2,175 mln to $4,082 mln vs. $1,907 mln,
respectively (See tables below for more details).
The debt statement was prepared by the
accounting firm of Rodriguez Velaquez & Asociados,
an affiliate of KPMG in Venezuela. [LatinPetroleum,
22.Jan.2016]
TABLE 5: PDVSA DEBT SUMMARY ($MILLIONS)
Current portion of debt

Long-term portion of debt
TOTAL FINANCIAL DEBT
2015
2014
$6,814
$36,937
$43,751
$5,865
$39,871
$45,736
TABLE 6: PDVSA DEBT SUMMARY ($MILLIONS)

2015
2014
PDVSA (Parent co.)

Bonds
Investment certificates
Credit notes
Credit facilities
Loans
Financing leases
Total PDVSA
$30,153
$434
$171
$737
$4,503
$1
$35,999
$33,263
$420
$0
$1,177
$6,135
$1
$40,996
Citgo Holding, Inc.

Bonds
Credit facilities
Financing leases
Total Citgo Holdings
$2,160
$1,681
$241
$4,082
$742
$918
$247
$1,907
PDVSA America S.A.

Loans
Financing leases
Total PDVSA America
$0
$0
$0
$76
$1
$77
PDVSA Petrleo
Bonds
Credit facility
Total PDVSA Petrleo
$2
$1,950
$1,952
$2
$1,477
$1,479
CVP, S.A.
PetroAnzoategui bonds
PetroPiar credit facility
PetroCedeo credit facility
PetroWarao credit facility
PetroZamora credit facility
P. Sinovensa credit facility
PetroBoscn credit facility
PetroQuiriquire credit facility
PetroDelta loan
Total CVP
$4
$5
$56
$17
$73
$699
$461
$0
$20
$1,335
$5
$0
$40
$0
$8
$291
$297
$45
$0
$686
PDV Marina, S.A.

Credit facility
Loan
Financing leases
Total PDV Marina
$110
$39
$148
$297
$124
$83
$173
$380
PDVSA Industrial, S.A.

PDVSA Naval, S.A.
Curazao Refinery (Isla)
$0
$0
$86
$92
$16
$103
TOTAL FINANCIAL DEBT
$43,751
$45,736
PDVSA REPORTS 41 PERCENT DECLINE IN CAPITAL

INVESTMENTS IN 2015 VS. 2014
PDVSA reported capital investments fell 41% to
$14,486 mln in 2015 vs. $24,418 mln in 2014,
according to figures from Venezuela's Petroleum and
Mining Annual Report for 2015.
PDVSA was expected to report capital investments
of around $20,000 to $25,000 mln in 2015, according
to comments from PDVSA President Eulogio Del Pino
who said in late 2015 that the company was
'maintaining investments'. [LatinPetroleum,
22.Mar.2016]
TABLE 7: PDVSA CAPEX 2014-2015 ($MILLIONS)
Exploration
Production
Refining
Commerce, Supply
PDVSA Gas
Non-petroleum sector
Electric projects
Other affiliates
TOTAL INVESTMENTS
2015
2014
$240
$8,785
$1,791
$110
$784
$1,768
$351
$656
$14,486
$198
$12,908
$1,364
$523
$4,349
$3,551
$652
$872
$24,418
Source: Venezuela Finance Vice Presidency

Note: Preliminary figures for 2015 for Jan.-Dec. Vs
actual figures for same period in 2014.
TABLE 8: PDVSA DISBURSEMENTS 2014-2015

($MILLIONS)
2015
2014
Operating cost
Other cost and expenses
Sub-Total Cost and Expenses
$34,437
$13,816
$48,253
$30,015
$23,636
$53,651
Investments
Social development
$14,486
$2,815
$24,418
$1,970
TOTAL
$65,554
$80,039

Note: Preliminary figures for 2015 for Jan.-Dec. Vs
actual figures for same period in 2014.
PDVSA REPORTS 50% DECLINE IN RECURRING NET

INCOME
PDVSA reported recurring net income fell 50% to
$6,947 mln in 2015 vs. $13,935 mln in 2014,
according to figures from Venezuela's Petroleum and
Mining Annual Report for 2015.
As a result, the company's recurring net income
margin fell to 7.8% in 2015 vs. 11.5% in 2014, based
on LatinPetroleum.com calculations.
[LatinPetroleum, 22.Mar.2016]
TABLE 9: PDVSA INCOME STATEMENT
($MILLIONS)
2015
2014
Revenues
$88,554
$120,892
Purchases of oil, net

Operating expenses
Depreciation, depletion
Royalties
Financial expenses
Affiliate participation
Other expenses
Total Expenses, Costs
$23,429
$19,756
$9,099
$7,063
$4,650
($216)
$12,550
$76,331
$34,317
$27,116
$8,038
$13,466
$4,001
$94
$9,427
$96,459
Operating Profit Pre-Social

Social contributions
Operating Profit Post-Social
$12,223
$3,559
$8,664
$24,433
$5,321
$19,112
Income taxes
After Tax Income
$1,717
$6,947
$5,177
$13,935
Discontinued operations
NET INCOME
$1,506
$8,453
($2,860)
$11,075
Employee benefits
TOTAL INTEGRAL INCOME
$0
$8,453
$1,390
$12,465

Note: Results not audited by outside auditing firm.
COMPANY BRIEFS
HELMERICH & PAYNE, INC.
Helmerich & Payne, Inc. is primarily a contract
drilling company. As of 28 January 2016, the
company's existing fleet includes 347 land rigs in the
USA, 38 international land rigs, and nine offshore
platform rigs. In addition, the company is scheduled
to deliver another three new H&P-designed and
operated FlexRigs*, all under long-term contracts
with customers. Upon completion of these
commitments, the company's global fleet is expected
to have a total of 388 land rigs, including 373 AC
drive FlexRigs.
ROWAN
Rowan is a global provider of contract drilling
services with a fleet of 31 mobile offshore drilling
units, composed of 27 self-elevating jack-up rigs and
four ultra-deepwater drillships. The company's fleet
operates worldwide, including the US Gulf of Mexico,
the United Kingdom and Norwegian sectors of the
North Sea, the Middle East, Southeast Asia and
Trinidad. The company's Class A Ordinary Shares are
traded on the New York Stock Exchange under the
symbol "RDC."
ECOPETROL, S.A.
Headquartered in Colombia, Ecopetrol is the
largest integrated oil and gas company in Colombia.
It is responsible for over 60 percent of total
Colombian oil production and has a proved
hydrocarbon reserve position of roughly two billion
barrels of oil equivalent at the end of 2014.
For the twelve months 30 September 2015, the
company generated revenues of $22.5 billion and it
had total assets of $59 billion through three business
segments, exploration and production (E&P, 51
percent of revenues and 56 percent of EBITDA for the
last 12-months ended 31 September 2015), refining
activities (34 percent of revenues and 5 percent of
EBITDA), and transportation and logistics (15 percent
of revenues and 39 percent of EBITDA), according to
Moody's. Its production averaged 740.9 Mboe/d in
the third quarter of 2015, 2 percent below that of the
year before.
CRYSTALLEX INTERNATIONAL CORPORATION

Crystallex International Corporation is a Canadian
based mining company, with a history of acquiring,
exploring, developing and operating mining projects.
Crystallex has successfully operated an open pit mine
in Uruguay and developed and operated three gold
mines in Venezuela. The company's principal asset is
its international claim in relation to its investment in
the Las Cristinas gold project located in Bolivar State,
Venezuela.
WEATHERFORD
Weatherford is one of the largest multinational
oilfield service companies providing innovative
solutions, technology and services to the oil and gas
industry. The company operates in over 100
countries and has a network of approximately 1,200
locations, including manufacturing, service, research
and development, and training facilities and employs
approximately 39,500 people.
VALERO ENERGY PARTNERS LP
Valero Energy Partners LP is a fee-based master
limited partnership formed by Valero Energy
Corporation to own, operate, develop and acquire
crude oil and refined products pipelines, terminals,
and other transportation and logistics assets. With
headquarters in San Antonio, Texas the Partnership's
assets include crude oil and refined petroleum
products pipeline and terminal systems in the Gulf
Coast and Mid-Continent regions of the USA that are
integral to the operations of nine of Valero's
refineries.
HALLIBURTON
Founded in 1919, Halliburton is one of the world's
largest providers of products and services to the
energy industry. With approximately 65,000
employees, representing 140 nationalities in
approximately 80 countries, the company serves the
upstream oil and gas industry throughout the
lifecycle of the reservoir - from locating hydrocarbons
and managing geological data, to drilling and
formation evaluation, well construction and
completion, and optimizing production through the
life of the field.
BAKER HUGHES
Baker Hughes is a leading supplier of oilfield
services, products, technology and systems to the
worldwide oil and natural gas industry. The
company's 43,000 employees today work in more
than 80 countries helping customers find, evaluate,
drill, produce, transport and process hydrocarbon
resources.
PARKER DRILLING
Parker Drilling provides drilling services and rental
tools to the energy industry. The company's Drilling
Services business serves operators in the inland
waters of the US Gulf of Mexico utilizing Parker
Drilling's barge rig fleet and in select US and
international markets and harsh-environment
regions utilizing Parker-owned and customer-owned
equipment. The company's Rental Tools Services
business supplies premium equipment and well
services to operators on land and offshore in the US
and international markets.
RATING UPDATES
MOODY'S ASSIGNS CAA1 RATING TO YPF'S
PROPOSED USD 1 BILLION IN GLOBAL NOTES;
POSITIVE OUTLOOK
Moody's Investors Service (Moody's) assigned a
Caa1 global foreign currency rating to YPF Sociedad
Anonima's (YPF)'s proposed $1 billion in notes due in
2021. These notes will be issued in the global capital
markets. The proceeds of the notes will be used for
capital expenditure and working capital purposes.
The outlook on the ratings is positive.
RATINGS RATIONALE
Since YPF is majority owned and controlled by the
Argentine government, YPF's Caa1 rating reflects the
application of Moody's joint default rating
methodology for government-related issuers (GRIs).
YPF's Caa1 rating combines its underlying Baseline
Credit Assessment (BCA), which expresses a
company's intrinsic credit risk, of b3; the Caa1 local
currency rating and positive outlook of the Argentine
government; and Moody's view of moderate support
from and high dependence on the sovereign.
YPF's underlying BCA reflects the company's

exposure to Argentine economic instability, including
the uncertain government energy policy framework,
and exposure to foreign currency convertibility and
transfer risk. However, Moody's recognizes that YPF
has maintained a strong financial profile since 2012,
when it came under government control.
The BCA is supported by the company's status as
the largest industrial corporation and energy
company in Argentina as well as its low leverage and
high levels of retained cash flow when compared
with peers. In the last twelve months ended in
December, 2015, YPF's RCF/Debt ratio was at 32.9%.
YPF benefits from upstream/downstream integration
and other business diversification, and sizeable oil
and gas reserves, including large shale resources in
the longer-term.
The government of Argentina's ability to provide
support to YPF is measured by its Caa1 local currency
rating and positive outlook, weakened somewhat by
the high dependence of the government and the
company on credit factors that could cause stress on
both simultaneously.
Moody's considers the government's willingness
to support YPF as moderate. The moderate support
takes into account YPF's majority government
ownership and control, as well as the importance of
the company to the Argentine economy, with a
dominant market position in the energy sector.
However, our support assumptions are constrained
by the low policy transparency and predictability of
the Argentine government to date.
While YPF is expected to account for only a small
part of the government's revenue base, the high
default dependence reflects the high correlation
between YPF's credit profile and Argentine economic
trends. YPF derives the majority of its revenues
domestically; also, the company and the government
also both share common exposure foreign exchange
rate risk.
Moody's considers YPF liquidity profile as weak. Its
$1.3 billion in cash at 31 December 2015 covers only
58 percent of the company's next twelve months
debt maturities, although the aggregate amount is
owed to local market participants and Moody's
believes that at least a portion of it could be rolled
over. The company has demonstrated successful
access to both local and international markets to
conduct liability managements.
Moody's expects it to continue to rely heavily on

the capital markets for its financing needs, mainly
Argentine pension and insurance funds. The
company has also relied on Argentina banks,
including government-owned Banco de la Nacion for
financing.
Foreign currency risk is also high: as of 31
December 2015, 73% of YPF's debt was denominated
in foreign currency, 35 percent of the company's
revenue was linked to the US dollar and 17 percent
of its cash was held in that currency. In addition,
about 30 percent of its capital spending and 30
percent of its operating costs are linked to the US
dollar.
As typical in Argentina, YPF does not have a
committed revolving credit facility. The company's
significant capital spending program, which Moody's
expects to be around $5 billion in 2016, will continue
to outstrip cash flow from operations by roughly $1.5
billion.
YPF's positive rating outlook is based on the
positive outlook on the Argentine government. YPF
and the government's ratings are closely linked since
YPF is a government-related issuer and also due to
the uncertain impact of the government's
involvement in the energy sector going forward.
Continued growth in oil production while
maintaining strong margins and low leverage could
result in positive pressure on YPF's BCA. Over the
medium term, an improvement in Argentina's Caa1
rating and continued demonstration of a strong
financial track record could result in a ratings
upgrade. However, a rating upgrade will depend on
Moody's having a more clear view about the new
government's energy policies for the next several
years and how that could affect YPF.
Conversely, YPF's ratings could be downgraded if it
is unable to maintain sufficient liquidity and access to
foreign currency in order to meet its debt service
obligations. The ratings could also be downgraded if
the government of Argentina's Caa1 rating were to
be downgraded. [Moody's, 18.Mar.2016]
MOODY'S DOWNGRADES ECOPETROL TO BAA3;
PLACES RATINGS ON REVIEW FOR FURTHER
DOWNGRADE
Moody's Investors Service downgraded
Ecopetrol's senior unsecured ratings to Baa3 from
Baa2. At the same time, the company's BCA (Baseline
Credit Assessment) was lowered to ba3 from baa3.
The ratings are on review for further downgrade.
Ecopetrol's ratings downgrade was triggered by

persisting stressed oil prices, which will continue to
negatively affect the company's cash flow generation
and credit metrics, increasing its credit risk. While
Ecopetrol has no material debt coming due in the
next two years, weaker cash generation and higher
leverage, coupled with limited funding availability
overall for the oil industry, will hurt the company's
ability to continue with its capital spending program
to sustain reserves and production.
Moody's joint-default analysis continues to
assume a high probability of support from the
government of Colombia (Baa2 stable). In addition,
the agency's assumption for default dependence
between Ecopetrol and the government continues to
be moderate. This assessment now results in a threenotch uplift of Ecopetrol's senior unsecured rating to
Baa3 from its ba3 BCA.
Moody's review of Ecopetrol's Baa3 senior
unsecured ratings and ba3 BCA will focus on the
degree of the impact that depressed oil prices will
have on the company's cash generation. The analysis
will also consider opportunities that the company
may have to reduce costs further, as well as on its
flexibility to adjust capex down or sell assets in order
to protect liquidity. In addition, Moody's will assess
the government of Colombia's ability to support the
company on a timely manner. [Moody's Investors
Service, 18.Jan.2016]
NRG REEL
TOP FINANCIAL
ECOPETROL PUBLISHES THE OFFERING NOTICE
REGARDING THE SECOND STAGE OF THE EQUITY
DIVESTMENT PLAN FOR ITS SHARES IN
INTERCONEXIN ELCTRICA S.A. E.S.P (ISA)
Ecopetrol S.A. announced on 4 March 2016, as
required by the Divestment Regulation (Reglamento
de Enajenacin), the company published the offering
notice regarding the second stage of Ecopetrol's
equity divestment plan for its shares in Interconexin
Elctrica S.A. E.S.P (ISA) in a newspaper widely
circulated in Colombia.
The purpose of the second stage of the equity

divestment plan is to offer publicly, in Colombia
and/or abroad, the shares that were not acquired by
special conditions offerees, as described in Article 3
of Law 226 of 1995 and Article 16, paragraph 3 of
Law 789 of 2002, during the first stage of the equity
divestment plan, which was carried out between 29
September and 30 November of 2015.
The public offering for the second stage will be
carried out through an auction process and will be
conducted prior to the start of common stock trading
on the Colombian Stock Exchange on 11 March
2016, in accordance with the provisions set forth in
the Divestment Regulation (Reglamento de
Enajenacin) and the applicable addenda.
Ecopetrol's equity divestment plan, including the
second stage, was approved by the National
Government of Colombia through Decree 1800 of 9
September 2015, as previously reported via a press
release. [Ecopetrol S.A., 4.Mar.2016]
GRAN TIERRA ANNOUNCES STRATEGIC
ACQUISITION CONSOLIDATING INTERESTS IN THE
PUTUMAYO-7 BLOCK
Gran Tierra Energy Inc. entered into an agreement
with PetroGranada Limited to acquire all of the
issued and outstanding shares of PetroGranada
Colombia Limited (PGC). Subject to approval by the
Agenca Naconal de Hidrocarburos of Colombia
(ANH), PGC holds a full 50 percent undivided working
interest in the exploration and production contract
for the Putumayo-7 block ("PUT-7 Block"), in the
Putumayo Basin of Colombia. Consideration for the
Acquisition is $19 million, subject to customary
adjustments, to be paid on the closing of the
Acquisition. In addition, the company has agreed to
pay an additional $4 million to PGC if the cumulative
production from the PUT-7 Block plus gross Proved
plus Probable reserves under the PUT-7 Block meet
or exceed 8 MMbbls. As a result of its previous
acquisition of Petroamerica Oil Corp., the Company
already holds the rights to the other 50 percent
undivided working interest of the PUT-7 Block, which
is subject to ANH approval. Upon receiving ANH
approval with respect to both interests, the company
will hold a 100 percent undivided working interest
and be the operator of the PUT-7 Block.
The Acquisition will be funded with cash-on-hand,
and the company will remain debt free with an
undrawn $200 million credit facility.
STRATEGIC RATIONALE
The PUT-7 Block is highly prospective in the
company's view. Based on an NI 51-101 independent
report prepared by GLJ Petroleum Consultants Ltd.,
as of 31 December 2014, there were 1.9 MMbbls of
Proved plus Probable reserves with respect to the 50
percent undivided working interest of Petroamerica
Oil Corp. In addition, the company believes there are
multiple seismically identified drill ready exploration
prospects on the PUT-7 Block, including the emerging
N Sands play.
"This acquisition is strategic to the company in
consolidating reserves and high potential exploration
opportunities in the Putumayo Basin, and throughout
the hydrocarbon producing basins in Colombia," said
Gran Tierra President and CEO Gary Guidry. "This
operated block will provide a focal point for potential
new infrastructure in the southern Putumayo as we
begin the exciting exploration and development
programs in this region."
The acquisition has the following characteristics
and metrics:
TABLE 10: SUMMARY OF THE ACQUISITION
Total consideration
$19 mln
Total net acres of

undeveloped land (50% of
block)
65,093 acres
Working Interest Proved

plus Probable reserves
1.9 MMbbls
Consideration paid for barrel

of 2P reserves
$10.00/bbl
Source: Gran Tierra
Gran Tierra has agreed to pay an additional $4

million to PGC if cumulative production from the
PUT-7 Block plus gross Proved plus Probable reserves
under the PUT-7 Block meet or exceed 8 MMbbls.
Based on NI 51-101 independent report prepared
by GLJ Petroleum Consultants Ltd. as of 31 December
2014, with respect to the 50 percent undivided
working interest of Petroamerica Oil Corp.
There are commitments to drill two exploration
wells on the PUT-7 Block during 2016, after which
there will remain a commitment to perform
approximately 167 square kilometers of 3D seismic.
The company considers the drill ready prospects on
the PUT-7 Block to be in the top quartile of its
exploration portfolio.
Gran Tierra continues to execute its business plan

of creating sustainable value-added growth in
reserves, production and cash flow through
management's integrated strategy of acquiring,
exploring, developing and enhancing high-quality
assets in Colombia. [Gran Tierra Energy Inc.,
14.Jan.2016]
GRAN TIERRA ENERGY INC. AND PETROAMERICA
OIL CORP. ANNOUNCE CLOSING OF PETROAMERICA
OIL CORP. ACQUISITION
Gran Tierra Energy Inc. and Petroamerica Oil
Corp. announced that Gran Tierra completed the
acquisition of all of the issued and outstanding
common shares of Petroamerica (being 108,888,215
Petroamerica Shares) by way of plan of arrangement
under the provisions of the Business Corporations
Act (Alberta). Under the terms of the acquisition,
shareholders of Petroamerica exchanged each of
their Petroamerica Shares for: (a) cash in the amount
of C$1.33; (b) 0.4 of a share of common stock of Gran
Tierra; or (c) a combination thereof. Gran Tierra paid
an aggregate of approximately $69.8 million (C$99.4
million) and issued an aggregate of 13,656,719 Gran
Tierra Shares to the shareholders of Petroamerica,
and assumed Petroamerica's working capital surplus
of approximately $26.0 million after accounting for
severance and transaction costs, in connection with
the acquisition.
The acquisition is a first step in Gran Tierra's
strategy to grow and diversify its portfolio
throughout the productive basins in Colombia. In
addition, the compliment of assets will strengthen
Gran Tierra's position in the developing N Sand
exploration trend in the Putumayo Basin of
Colombia. Petroamerica's undeveloped land holdings
and exploration and development portfolio are
complementary to Gran Tierra's own exploration
portfolio, strong cash flow, reserves base and
balance sheet strength. Gran Tierra believes that the
combined entity will be uniquely positioned as a
high-growth, well-capitalized, Colombia focused oil
and gas producer with a dominant position in the
Putumayo Basin, and a growing presence in the
Llanos Basin of Colombia.
Registered shareholders of Petroamerica who
have not already done so should submit their
certificates representing Petroamerica Shares to
Computershare Investor Services Inc., the depositary
appointed by Gran Tierra in relation to the
Acquisition.
Certificates should be submitted together with the

applicable letters of transmittal in accordance with
the instructions set out therein in order to receive
the cash consideration. Letters of transmittal were
previously sent to shareholders of Petroamerica and
additional copies may be obtained by contacting
Computershare Investor Services Inc. by telephone at
1-800-564-6253 or by email at
corporateactions@computershare.com.
ADVISORS
FirstEnergy Capital Corp. and Peters & Co. Limited
acted as financial advisors to Gran Tierra on the
acquisition.
Black Spruce Merchant Capital Corp. acted as sole
financial advisor to Petroamerica on the acquisition.
[Gran Tierra Energy Inc. and Petroamerica Oil Corp.,
13.Jan.2016]
PEMEX ISSUES STOCK CERTIFICATES FOR 5 BILLION
PESOS
As part of its 2016 Financing Program, and in
accordance with the previously announced local
placement calendar, Pemex issued five billion pesos
in the domestic market through the transaction with
ticker symbol PEMEX 16, due in 2019, at 28 days
floating TIIE (Mexican Interbank Interest Rate) plus
135 basis points.
The issuance was 1.1 times oversubscribed,
reaching a total demand of approximately 5.5 billion
pesos and was distributed among banks, investment
funds and public and corporate treasuries.
The bookrunners on this transaction were BBVA
Bancomer, Banamex, Santander and Bank of
America Merrill Lynch.
The proceeds raised will be used to finance
strategic investment projects and for debt
refinancing and to promote the company's
operations, pursuant to a responsible comprehensive
financing program.
The issuance will also contribute to solve the
company's liquidity problem.
This transaction continues to attest the confidence
investors have bestowed upon Pemex as a stateowned productive company, as well as on the
opportunities made available by the approval of the
Energy Reform, which encourage the competitive
development of the company and the Mexican oil
and gas industry. [PEMEX, 17.Mar.2016]
PEMEX ISSUES NEW SECURITIES FOR 2.250 BILLION

EUROS
As part of its 2016 Financing Program, Pemex
issued 2.250 billion euros of three and seven-year
debt in the international capital markets:
i) 1.350 billion euros of its 3.75 percent Notes due
in 2019, bearing interest rate of 3.808 percent; and ii)
900 million euros of its 5.125 percent Notes due in
2023, bearing interest rate of 5.213 percent.
The issuance was 2.67 times oversubscribed,
reaching a total demand of approximately 6 billion
euros and was distributed among pension funds,
portfolio managers and financial institutions from
Europe, Asia and the Middle East.
The bookrunners on these transactions were
Crdit Agricole, Deutsche Bank, Socit Gnrale
and HSBC.
The proceeds raised will be used to finance
strategic investment projects and for debt
refinancing and to promote the company's
operations, pursuant to a responsible comprehensive
financing program.
These transactions will also contribute to solve the
companys liquidity problem and to focus additional
resources to the most profitable projects.
This transaction continues to attest the confidence
investors have bestowed upon Pemex as a stateowned productive company, as well as on the
opportunities made available by the approval of the
Energy Reform, which encourage the competitive
development of the company and the Mexican oil
and gas industry. [Pemex, 9.Mar.2016]
PEMEX WILL PRIORITIZE PAYMENTS TO MORE THAN
85% OF ITS SUPPLIERS
Jos Antonio Gonzlez Anaya, CEO of Pemex, met
with the Industry and Commerce Undersecretary of
the Ministry of Economy, Rogelio Garza; and with the
chairmen of the following business associations: Juan
Pablo Castan of the Corporate Coordinating
Council (CCE); Gustavo de Hoyos of the Mexican
Confederation of Business Owners (COPARMEX);
Manuel Herrera of the Mexican National Chamber of
Industry (CONCAMIN); Enrique Guilln of the
National Chamber of Industry (CANACINTRA);
Gustavo Arballo of the Mexican Chamber of
Construction (CMIC); Enrique Solana of the Mexican
National Chambers of Commerce, Services and
Tourism (CONCANACO SERVYTUR) and Juan Pablo
Vega of the Mexican Chamber of the Maritime
Transportation Industry (CAMEINTRAM). The
meeting had the purpose of analyzing solutions for
Pemex's delays in accounts payable to suppliers.
During this gathering, Gonzlez Anaya reaffirmed

that Pemex is facing a liquidity, not a solvency
problem, and that necessary actions are being
implemented to overcome it.
The CEO of Pemex acknowledged that its accounts
payable to suppliers is one of the most crucial
problems the company is facing. He mentioned that
by year-end 2015, Pemex held a 147 billion pesos
debt with suppliers, from which more than 20 billion
have been paid according to applicable policies, from
February 2016 to date.
In line with this endeavor, Pemex has worked with
Mexican Development Banking Institutions in order
to obtain lines of credit, specifically with Nacional
Financiera, Banobras and Bancomext.
These resources will allow the company to cover
last year's liabilities with over 1,300 suppliers, which
represent more than 85 percent of the total suppliers
and contractors.
In particular, these actions are focused on the
payment of invoices amounting up to 85 million
pesos from small and medium-sized suppliers, the
ones in a most vulnerable situation.
Business representatives welcomed Pemex's CEO
willingness to dialogue, as well as the current
administration's quick response to solve this issue,
develop productive supply chain programs in the
sector and support the economy in oil producing
areas.
Both Pemex and the business sector committed to
establishing a joint task force to keep moving forward
towards the permanent solution to this challenge.
Juan Pablo Castaon, Chairman of the CCE,
highlighted the importance of working together with
Pemex in order to strengthen and improve the Stateowned productive enterprise, and encourage its
global competitiveness.
These actions are the fruition of Pemex's
collaboration with the business sector, as
emphasized by Gonzlez Anaya, in an effort to find
suitable and viable solutions. By solving its liquidity
problem, he added, Pemex acknowledges its
obligations, and specified that with concrete actions,
the company will maintain itself as the Mexican
engine of growth. [Pemex, 8.Mar.2016]
BOARD OF DIRECTORS APPROVES ADJUSTMENT

PLAN FOR MXN 100 BILLION TO PEMEX 2016
BUDGET
Around the world, oil companies have made
adjustments to their operations to cope with the fall
in oil prices. Pemex is no exception. The 2016 Income
Law, provided for a price per barrel of 50 dollars, and
at present the average price expected for the year is
25 dollars per barrel.
This decrease in the price of oil poses serious
liquidity challenges to Pemex that demand an
expenditure adjustment of 100 billion pesos to meet
the financial balance goal.
To address the situation, an adjustment program
whose priority is not to affect the long-term viability
of the company was designed with the following
criteria: maintain safety at work and reliability of the
company's facilities; take advantage of the new
instruments and figures provided by the Energy
Reform in order to attract third-party investment;
meet the company's labor and financial obligations;
and maintain, to the extent possible, the 2016
hydrocarbons production platform, and stabilize
production levels in the medium and long-term.
The three main adjustment lines at the corporate
and subsidiary company level, according to the plan
approved by the Board of Directors on 26 February
2016, are (NOTE: Table not included):
-- Generate efficiencies and reduce costs
Increase productivity of operations and promote a
rational use of resources. Estimated adjustment:
MXN 29 billion.
-- Defer/reconsider investments minimizing the
impact on future production reduce or defer
investments, based on their profitability and
availability of budgetary resources. Estimated
adjustment: MXN 65 billion.
-- Adjust CAPEX and OPEX to $25 per barrel
assign budgetary resources to those projects that
yield profitable returns under a low-price crude oil
scenario. Estimated adjustment: MXN 6.2 billion, and
obeys the following criteria: that deferred
investments are not profitable at current oil price
levels, and that they don't affect projects that are
already producing in 2016.
This adjustment for 100 billion pesos will enable
Pemex to consolidate itself as a State Productive
Enterprise, maximizing the use of new mechanisms
created by the Energy Reform to establish strategic
alliances with other companies.
These mechanisms provide Pemex with great

flexibility to determine the best conditions for an
alliance based on the two established mandates in
the law, and instructed by the President: generate a
profit for the company and create value for the
country.
Among others, these new tools contemplate the
monetization of assets, FIBRA E, and associations to
share risk. These figures will enable Pemex to have
additional resources to invest in exploration and
production areas that are not profitable at current oil
price levels, such as those that are made in
deepwaters.
The adjustment plan will also allow the search of
new schemes for a possible capitalization with the
Ministry of Finance and Public Credit.
Additionally, at the end of 2015, the company
faced a supplier liability of 147 billion pesos. To
undertake this situation, the company will continue
searching for schemes that allow it to meet these
commitments.
Pemex is faced with a liquidity problem, not a
solvency one. This adjustment does not weaken the
company; it strengthens its long-term perspectives.
The measures that will be implemented in the
upcoming months will allow Pemex to overcome the
current situation and establish itself in the future as a
true Productive State Enterprise, while continuing to
be, as it has for almost 80 years, Mexico's flagship
company. [Pemex, 29.Feb.2016]
PETROBRAS REPORTS FULL-YEAR 2015 FINANCIAL
RESULTS
In 2015, Petrobras' adjusted EBITDA rose 25%;
however, due to write-downs, the company posted
losses:
-- Net loss of R$34.8 billion in 2015, caused by the
following:
- Impairment of assets and investments, mainly due
to the decline in oil prices and an increase in the
companys discount rates (R$49.7 billion); and
- Exchange rate losses and interest expenses (R$32.9
billion).
-- Operating loss of R$12.4 billion, down 42% from
2014.
-- Adjusted EBITDA of R$73.9 billion, up 25% from
2014, due to higher prices of diesel and gasoline, and
a reduction in spending on royalties and imports of
oil and oil products.
-- Positive free cash flow of R$15.6 billion, compared

with negative cash flow of R$19.6 billion in 2014,
enabling a 5 percent reduction in net debt in US
dollar terms. This was the first year of positive free
cash flow since 2007.
-- Investment amounted to R$76.3 billion, down 12
percent from 2014. In US dollars, investment totaled
$23.1 billion, down 38 percent. The Exploration and
Production segment accounted for 83 percent of
investment.
-- The fall in Brent crude prices had a negative impact
on the company's results, due to recognition of
impairment losses. The devaluation of the Brazilian
real also had a negative impact on the company's
financial results.
Operational highlights
-- Annual growth of 4 percent in oil and natural gas
production (in Brazil and abroad), reaching an
average of 2.787 MMboe/d. Oil production in Brazil
2.128 MMb/d exceeded the Business and
Management Plan's target. In the pre-salt layer,
production operated by Petrobras has remained
above 1 MMboe/d since July 2015.
-- 55 percent increase in oil exports between 2014
and 2015, thereby improving Petrobras' contribution
to Brazil's balance of trade, achieving a surplus in the
fourth quarter of 2015 (+167 Mb/d).
-- In refining, diesels share of total output of oil
products rose, as did domestically produced oil's
share of total processed crude. Total output of oil
products (in Brazil and abroad) was 2.175 MMb/d,
down 7 percent from 2014, mainly due to
maintenance shutdowns at the RLAM and REDUC
refineries.
EDITOR'S NOTE: The full report is available on
Petrobras's website. [Petrobras, 22.Mar.2016]
PETROBRAS OFFERS CLARIFICATION OF NEWS ITEM:
LAWYERS' FEES - NESTOR CERVER
Petrobras response to Official Letter 117/2016CVM/SEP/GEA-1, which requests the following
clarifications:
Official Letter 117/2016-CVM/SEP/GEA-1
"Dear Officer,
We refer to the news item published on March 15,
2016 on O Antagonista website, entitled: Dida
autorizou Petrobras a bancar advogado de Cerver
(Dida authorized Petrobras to pay Cerver's lawyer),
which contains the following affirmations:
In one section of his state's evidence as part of his

plea bargaining agreement, Delcdio do Amaral
stated that Nestor Cerver's family was having
difficulties paying the fees for his lawyer, Edson
Ribeiro.
Payment for Ribeiro's services was "partially made
by Petrobras." Delcdio then spoke with Aldemir
Bendine, CEO of Petrobras, who authorized the
payment of two bills, one of R$600,000 and the other
of R$147,000.
It is ridiculous that a company embezzled by its
officers should then pay for the legal defense of
those officers.
Given the above, we would like you to confirm
whether the content of this news item is in fact true
and, if so, to identify the parameters used by the
company for said approval. We also request that you
comment on any other relevant information on this
topic."
Clarification
Petrobras hereby states that fees proposed in the
news item were approved by the insurance company
before the appointment of Aldemir Bendine as CEO
and were covered by the existing D&O (Directors and
Officers) insurance policy.
The fees paid to Edson Ribeiro, in the amount of
six hundred thousand Brazilian Reais (R$600,000.00),
were approved by the insurance company on 29
October 2014 and were for the purpose of defending
the interests of former executive officer Nestor
Cerver in the Federal Accounting Court process
examining the acquisition of the Pasadena Refinery.
When this approval took place, the former officer
was not yet a defendant in the process arising from
the Operation Lava Jato (Carwash) investigations.
Following his conviction, the insurance company
suspended payment of Ribeiro's remaining fees,
which are currently under consideration.
On 2 September 2014, the law firm Siqueira
Castro was hired to defend members of Petrobras'
management, including former officer Nestor
Cerver. The amount envisaged for the defense of
each officer was one hundred and forty-seven
thousand reais (R$147,000.00). As the firm was
unsuccessful in the writ of mandamos filed in the
Federal Supreme Court, only forty-two thousand
reais (R$42,000) was paid in fees for each manager.
The insurance company made the payment in
October 2014. Furthermore, on that occasion, the
former officer was not yet a defendant in the process
arising from Operation Lava Jato. [Petrobras,
22.Mar.2016]
PETROBRAS REPORTS ON DISBURSEMENT OF THE

FINANCING AGREEMENT WITH ICBC LEASING
Petrobras disbursed $1 billion related to the
financial leasing of P-52 platform, signed with ICBC
Leasing (Industrial and Commercial Bank of China
Leasing) as announced to the market on 13 October
2015.
The transaction has a 10 year maturity and is part
of the cooperation agreement between Petrobras
and ICBC Leasing, signed during the visit of the
Chinese Prime Minister Li Keqiang to Brazil in May
2015.
The deal is pursuant to Petrobras' financial
strategy of diversifying its funding sources.
[Petrobras, 26.Mar.2016]
PETROBRAS REPORTS ON SALE OF PETROBRAS
ARGENTINA
In regard to the sale of its interest in Petrobras
Argentina, disclosed by the Press Release of 20
January 2016, the Petrobras Executive Board has
given the go-ahead for negotiations with Pampa
Energia on an exclusive basis, initially for a period of
30 days with a possible extension for a further 30
days.
The final terms and conditions of the transaction
will be submitted for approval to the Petrobras
Executive Board and Board of Directors, as well as
the competent regulatory agencies. [By Petrobras,
2.Mar.2016]
ECOPETROL GROUP ANNOUNCES ITS RESULTS FOR
THE FOURTH QUARTER OF 2015 AND THE YEAR
ENDED DECEMBER 31, 2015
Ecopetrol announced Ecopetrol Group's financial
results for the fourth quarter and full year 2015,
prepared and filed in Colombian pesos (COP$) and
under International Financial Reporting Standards
(IFRS) applicable in Colombia .
In the opinion of Ecopetrol's CEO Juan Carlos
Echeverry G.:
2015 was one of the most challenging years for
the oil industry. As many other oil and gas
companies, Ecopetrol undertook profound
adjustments on its operations to be more efficient
and face lower crude prices.
The company intensified the interaction between

operational and financial excellence to generate and
protect its cash flow, secure its sustainability and,
when price environment permits, be prepared to
grow. In addition to prices other challenges were
added: attacks on oil infrastructure, El Nio
phenomenon, the closing of Venezuelan border, the
completion of key Midstream and Downstream
projects and the devaluation of the exchange rate.
In the midst of this defying environment, the
company maintained a solid operational
performance while advancing the transformation of
all of its business lines to increase its structural
efficiency. It reduced operational costs without
affecting reliability and safety of its operations, and
strengthened an organizational culture based on
integrity, cooperation and creativity. This change
process has been led by a new management team
that has leveraged Ecopetrol's strengths to introduce
new and more efficient ways to conduct operations
throughout its entire value chain.
As of the second half of 2015, Ecopetrol began to
adjust its investment plan without sacrificing
production and progress in important projects; to
increase its efficiency levels and reduce costs and
expenses; and established a savings target of
COP$1.6 trillion for the year.
As of 31 December 2015, Ecopetrol's savings
totaled COP$2.2 trillion, above the initially defined
target. This achievement was possible thanks to
renegotiation strategies in contracts (COP$0.98
trillion) and supply (COP$0.50 trillion), and higher
operational efficiencies (COP$0.72 trillion). In
addition, affiliates and subsidiaries contributed with
COP$0.6 trillion, for overall total savings within the
Group of COP$2.8 trillion. The company is working
towards making these savings structural and
supportive in securing its sustainability and
competitiveness in the long term.
The higher efficiency achieved in 2015 enabled
Ecopetrol to partially offset the impact of lower
crude prices on the balance of proven reserves,
which was 1,849 billion of oil equivalent barrels, 11%
lower as compared to 2014. The 45% drop in prices
used in reserves valuation led to an estimated
reduction of 404 million of barrels of oil equivalent,
which was offset by lower costs and higher
efficiencies, which added approximately 275 million
barrels of oil equivalent.
At the operational level, the company presented

solid results, starting with the best historic industrial
safety performance, measured by the Recordable
Incident Frequency Rate and the Accident Frequency
Index, which were 0.96 and 0.49, respectively. This is
the result of a permanent and systematic effort to
achieve industry standards and a strong indication of
Ecopetrol's commitment for people's well-being.
In 2015, the Group slightly surpassed the 760
thousand barrels per day production goal, despite
the low price environment, operational challenges
and public order disruptions. As compared to 2014,
production grew by 5 thousand barrels per day,
mainly driven by the production increase at the
Castilla (+17.4%) and Chichimene (+38.9%) fields, due
to the entrance of new wells into production.
With regards to recovery factor increase, during
2015 eight pilot projects were initiated in water
injection, solvent injection and improved water
injection technologies, achieving the established
goal. It's important to highlight the implementation
of water injection pilot projects in fields with heavy
crude, such as Castilla and Chichimene, with positive
results in the intervened areas. Additional cumulative
production represents a 1.2% increase in the
recovery factor in the pilot area of Chichimene and
0.15% in the pilot area of Castilla.
The improvement in the recovery factor, mainly
through infill drilling, will continue to be the main
source of reserves growth in producing fields in
coming years. Hence, it is necessary to increase well
drilling efficiency, as has been done among different
fields. For example, between 2014 and 2015, in
Castilla, the average drilling days per well went from
34 to 26 and in Chichimene from 36 to 26.
In exploration, the discovery in May of the Kronos
well in the Caribbean offshore area is considered one
of the 20 largest discoveries worldwide in 2015. The
exploratory campaign also included the drilling of the
Calas well (geological success) in the Caribbean Sea,
and three additional wells: Murgana Sur (sealed and
abandoned), located at Llanos Orientales,
Bullerengue (geological success), in the Lower
Magdalena Valley, and Sea Eagle (dry well) in the US
Gulf of Mexico.
By the end of 2015, the Leon 2 appraisal well was
being drilled in the Gulf of Mexico deep waters,
operated by Repsol, who has a 60 percent share, and
Ecopetrol America Inc., with 40 percent. The well
reached its final depth on February 2, 2016, and is
currently under assessment.
As compared to 2014, during 2015 a growth of 2

percent in the transported volume was evidenced,
mainly due to higher availability over the course of
the year of the Cao Limn Coveas and
Transandino systems, caused by a lower number of
oil infrastructure attacks, which went from 130 in
2014 to 80 in 2015.
Tests to verify the performance of transportation
systems with higher viscosity crudes through
Oleoducto de los Llanos, Oleoducto de Colombia and
Ocensa were successful, opening the possibility to
decrease diluent consumption in 2016. This is a key
aspect in increasing heavy oil production profitability,
which today represents 57 percent of the Group's
total production. The tolerance increase in
transportation systems from 220 centi stocks (CST) to
300 CST of viscosity allowed a decrease of US$0.75
/Bl in dilution cost. The 2016 goal is to transport at
400 CST.
For refining, the major achievement was the
startup of the Crude Unit at the Cartagena Refinery,
which led the sequential entry of the plants
comprising the new refinery. On February 24 the
Delayed Coking Unit started its operations, which
allows reaching a 97 percent conversion factor. By
the end of February two more plants started up: the
Catalytic Cracking Unit, that takes diesel fuels from
the Crude Unit and produces selectively streams of
higher value, and the Naphtha Hydrotreater Unit
which main function is to remove sulphur from
gasolines to deliver clean fuels, with less than 50
parts per million of sulphur.
Ecopetrol expects to have all the plants in
operation during the second quarter of 2016, and
stabilize gradually the refinery to take it to full
capacity by the third quarter of the year. It's worth
highlighting that the refinery made its first fuel
export in November 2015 with destination to the
United States and the Caribbean, with a total of 200
thousand barrels of virgin naphtha and 50 thousand
barrels of JET A1 aviation fuel.
Other important result was achieved at the
Barrancabermeja Refinery, which reported a gross
margin of US$16.8 /bbl in 2015, as compared to
US$14.6 /bbl in 2014, due to a higher performance of
medium distillates, the implementation of initiatives
to enhance the value of LPG and residual streams,
and price behavior of refined products.
2015 also included the consolidation of a new

management team, with the renewal of half of the
positions with top qualified and expert personnel on
their knowledge fields, with distinguished experience
in the oil and gas industry. Leadership style, in line
with cultural transformation, is based on knowledge,
trust, communication, and teamwork. In 2016, the
company will deepen its work with mid-level
management and will aim for the development of
future leaders with high potential, who are prepared
to assume the challenges of Ecopetrol.
The company ended the year with a loss of
COP$3.9 trillion, mainly due to accounting effects on
the presentation of the financial statements caused
by IFRS implementation. Excluding the impairment
effect, the company would have reported a net
income of COP$2.4 trillion. This accounting effect, as
well as the exchange rate difference, constitute an
impact on the expenses account that affects the
financial outcome, but that does not imply a cash
outflow. Impairment expenses can be reverted once
market conditions turn more favorable, except in the
case of goodwill impairments. Nonetheless, despite
the adverse price environment and strong impact on
results, the company kept its EBITDA margin at 35%,
close to last year's level, and continued having in its
internal cash flow generation, the main source to
fund its operations.
Savings aren't the foundation for the future.
Investment quality is the other key factor. We are
currently strengthening the exploration and
production portfolio, through an institutional change
oriented to align incentives to identify the best
prospectuses and place them under rigorous scrutiny
and competition. A targeted and effective
investment, and at lower costs, should redound in
higher future reserves.
2016 is a transition year for the businesses of the
Group. We will end relevant investments in refining
and transport segments. In these segments we have
enough installed capacity for the Company's midterm growth. Finalizing the meaningful investments
in refinery and transport means, that from 2017
onwards, close to $1 billion of annual investments
will be freed and 90 percent of total investment
capacity will be allocated to exploration and
production, while in the past 5 years we have
dedicated only near 60 percent.
Breakeven prices have decreased and technical
risk has been mitigated. As a result, the recognition
of additional projects should improve the Company's
growth potential.
Finally, 2016 will be a financial excellency year

focused on cash generation and preservation. The
divestment process, which was analyzed and
structured during 2015, will be dynamic. These will
strengthen the focus on financial sustainability and
will pursue protecting the company's credit rating by
keeping adequate indebtedness levels.
The 2016 investment plan for COP$4.8 trillion
implies a decrease of 26 percent as compared to the
execution in 2015. This reinforces capital expenditure
discipline and focus on profitable investments, as
well as the opportunity to achieve higher efficiencies
without affecting Ecopetrol's operation. We will
manage the CAPEX depending on the crude oil price,
just like a stream whose flow is regulated by locks.
The company will continue promoting its 20162017 assets divestment program to obtain resources
between $400 and $900 million , out of a potential
pool of assets of $1.4 billion. Within this phase, the
company will pursue the divestment of non-strategic
assets and stock holdings, such as Propilco, EEB, ISA
and some others under current analysis.
It is a priority for Ecopetrol to maintain its
investment grade rating, as well as access to capital
markets. Adjustments made in 2016 imply financing
needs between $1.5 and $1.9 billion, out of which
$475 million were already obtained through loans
from local and international banks. The confidence in
the company and the appetite for Ecopetrol's credit
has been ratified. This estimation does not include
resources resulting from the divestment program,
which in case of positive results, would strengthen
the company's cash flow.
With regards to Reficar and the concerns
expressed by the different control entities, it is
important to note that all investigations are still at a
preliminary stage. The Office of the General
Comptroller initiated a review of Reficar in 2015,
which was completed and disclosed in 2016. This
report does not point to any conclusive findings on
Reficar's finances. However, it has led to the
commencement of specific investigations into the
EPC contract for the project. Meanwhile, the
Prosecutor's Office currently has two investigations
underway: one which began in 2012 involving
members of the board of directors of Reficar on such
date and a more recent one, regarding delays in the
completion of the project, into current and former
officers of Ecopetrol as well as current and former
members of the board of directors of Ecopetrol,
including me. Meanwhile, the General Attorney's
Office, in early February, began collecting and
reviewing information about Reficar.
All the investigations are still at preliminary stages

and I want to emphasize that Ecopetrol and Reficar
are giving due importance to these processes
through exhaustive cooperation with the control
entities. Finally, I would like to highlight that, to date,
none of the investigations allege any violations to the
Code of Ethics nor do they affect the integrity of
Ecopetrol's businesses.
Ecopetrol has rapidly and decisively responded to
the challenges imposed by the price environment,
with an internal deep transformation and
management based on financial discipline, the search
for increasing efficiencies, and improving quality and
active rotation of its portfolio. The company will
continue seeking alternatives to confront the current
scenario and prepare the exploration and production
portfolio to take advantage of a future rise in oil
prices. In addition, the company will pursue value
generation for its shareholders, prioritizing
sustainability and long-term financial stability.
[Ecopetrol S.A., 6.Mar.2016]
GRAN TIERRA ENERGY INC. ANNOUNCES FOURTH
QUARTER AND YEAR-END RESULTS FOR 2015
NOTE FROM EDITOR: TABLES NOT INCLUDED
Gran Tierra Energy Inc. announced its financial
and operating results for the fourth quarter and year
ended 31 December 2015.
Message to Shareholders
Gary Guidry, President and Chief Executive Officer
of Gran Tierra, commented: "2015 was a
transformational year for Gran Tierra. With the
appointment of a new management team and Board
of Directors in May 2015, the company began its
transition to a Colombia-focused exploration and
production company focusing on disciplined capital
allocation and net asset value per share growth.
We are committed to being a low cost operator
that is not merely trying to survive in the current
environment but rather thrive and position the
company for growth in 2016 and beyond. We have
significantly driven down both operating costs and
general and administrative expenses and have
reduced the days to drill wells in Moqueta and
Costayaco by approximately 40 to 50 percent. These
drilling efficiencies will become evident as we start to
prove up our extensive exploration portfolio over the
next couple of years. We continue to focus on
organic growth as well as remaining disciplined on
accessing business development opportunities.
We have been successful on the acquisition front,

having recently closed two strategic acquisitions in
January 2016, which increased our risked prospective
resources by approximately 50%. Our balance sheet
remains strong and we continue to assess new
business development opportunities to expand and
diversify our asset base.
Overall, 2015 was a very strong year amidst a
difficult oil price environment. The low declines and
low costs from our two core conventional operated
oil fields, Costayaco and Moqueta, highlight the
strength of our base assets and the competitive
advantage of our operating team in Colombia. We
expect that both fields will be fully developed in the
first half of 2016 and will provide significant free cash
flow in 2017 and beyond. At 31 December 2015,
these fields made up 75 percent (49.6 million barrels
of oil equivalent) of our proved plus probable (2P)
working interest reserves with proved developed
reserves comprising of 48 percent of these 2P
reserves.
With $97.0 million of working capital remaining
after acquisitions, an undrawn $200 million credit
facility and cash flows from operations, we believe
that Gran Tierra can emerge from this low oil price
environment as one of the strongest exploration and
development companies in Colombia. We believe
that Gran Tierra is well positioned for growth in 2016
and beyond.
On behalf of our Board of Directors and the team
at Gran Tierra, I want to thank all of our stakeholders
for their continued support during this difficult
commodity price environment. We look forward to
communicating additional updates in the coming
quarters."
Financial and operating highlights for the year
include:
Production:
-- Annual production for 2015 averaged 23,401
company interest boe/d before royalties, or 19,489
boe/d net after royalty (NAR). The 23,401 boe/d was
at the upper range of the previous guidance of
22,500 to 23,500 boe/d announced 24 June 2015.
-- Sales volumes were 18,260 boe/d compared
with 18,523 boe/d in 2014. During 2015, changes in
oil inventory accounted for 1,229 b/d of reduced
sales volumes.
-- 2016 average working interest (WI) production

from the company's assets in Colombia and Brazil is
expected to be approximately 27,500 to 29,000
boe/d, representing an increase of approximately
20% over Gran Tierra's 2015 average production of
23,401 boe/d. The 2016 production guidance
includes 900 to 1,000 boe/d of production from the
company's assets in Brazil. The company is expecting
2016 WI exit production of 29,000 to 30,000 boe/d.
Reserves:
-- The company's independent reserves
evaluation, effective 31 December 2015 (GTE
McDaniel Reserves Report), was completed by
McDaniel & Associates Ltd. in accordance with
Canadian National Instrument 51-101 - Standards of
Disclosure for Oil and Gas Activities (NI 51-101) and
the Canadian Oil and Gas Evaluation Handbook
(COGEH):
-- Proved (1P) reserves increased 7,251 Mboe
from year-end 2014, before production, due to
technical and economic revisions. In Brazil, 1P
reserves increased by 83 percent based on reservoir
performance. After production of 8,542 Mboe, yearend 2015 1P reserves were 48,350 Mboe compared
to 49,100 Mboe at year-end 2014;
-- 2P reserves increased 7,0251 Mboe from yearend 2014 due to technical and economic revisions. In
Brazil, 2P reserves increased based on reservoir
performance and budgeted plans to implement
water injection. After production of 8,542 Mboe,
year-end 2015 2P reserves were 65,962 Mboe
compared to 66,9391 Mboe year-end 2014;
-- Proved plus probable plus possible (3P) reserves
were 81,009 Mboe after 2015 production, a decrease
of 8 percent from year-end 2014, excluding Peru
reserves1.
-- Proved developed producing reserves decreased
4 percent to 37,105 Mboe from year-end 2014,
representing 56 percent of total 2P reserves.
Financial and Operational:
-- Funds flow from continuing operations
decreased to $108.3 million in 2015 from $319.6
million in 2014.
-- The company maintains a strong balance sheet
with cash and cash equivalents of $145.3 million and
working capital (including cash and cash equivalents)
of $160.4 million as at December 31, 2015.
-- Average realized price decreased to $41.41/boe
compared with $82.74/boe in the prior year,
primarily due to lower benchmark oil prices.
-- Operating expenses decreased to $11.34/boe

from $13.28/boe in the prior year, primarily as a
result of lower negotiated rates and the depreciation
of the Colombian peso against the U.S. dollar.
-- Transportation expenses increased to $6.03/boe
from $3.58/boe in the prior year, primarily due to the
alternative transportation routes used during periods
of Trans-Andean Oil (OTA) pipeline disruptions.
During 2015, Gran Tierra used new alternative
transportation routes which carried higher
transportation costs, but achieved higher realized
prices compared with other customers. The OTA
pipeline was not operational for 213 days during
2015 and yet the company did not shut in any
production.
-- General and Administrative (G&A) expenses
decreased by 37 percent compared with the prior
year as a result of reductions in the number of
employees as part of our cost saving measures, a
focus on reductions of other G&A expenses and the
effect of the strengthening of the U.S. dollar against
local currencies in South America and Canada, which
resulted in savings for costs denominated in local
currency.
-- Net loss was $268.0 million, representing
$0.94/share basic and diluted, compared with net
loss of $171.3 million, or $0.60/share basic and
diluted, in 2014. The loss was primarily the result of
$229.6 million of non-cash ceiling test write-downs,
net of income tax recovery, resulting from the
continued low commodity price environment.
-- In accordance with its previously announced
normal course issuer bid, the company repurchased
4.6 million shares of common stock on the open
market at an average price of $2.19/share of
common stock for total cash consideration of $10.0
million.
-- The company made significant improvements in
drilling efficiencies in both the Costayaco and
Moqueta Fields by renegotiating drilling contracts
with a 10 to 20 percent reduction on daily rates for
key services and reducing drilling times by
approximately 40 to 50 percent.
-- The company drilled eight gross wells (6.2 net
wells) in Colombia in 2015 with a success rate of 88
percent.
-- With the exception of net loss, the 2014

amounts in the table above exclude amounts relating
to discontinued operations. Oil and gas production
NAR associated with discontinued operations was nil
boe/d for the year ended 31 December 2015 (2014 1,361 boe/d). Argentina production for the year
ended 31 December 2014, was calculated to the date
of sale of 25 June 2014.
-- Pro Forma Combined Reserves and Net Present
Value
-- On 31 January 2016, and 25 January 2016,
respectively, Gran Tierra completed the acquisitions
of all the issued and outstanding common shares of
Petroamerica Oil Corp. and PetroGranada Colombia
Limited (PGC). In connection with these acquisitions,
Gran Tierra commissioned McDaniel to prepare
independent reserves reports in accordance with NI
51-101 and COGEH each with an effective date of 31
December 2015 for Petroamerica (the PTA McDaniel
Reserves Report) and PGC (the PGC McDaniel
Reserves Report). The following table summarizes
pro forma combined NI 51-101 and COGEH compliant
WI reserves as at 31 December 2015, after giving
effect to the Petroamerica and PGC acquisitions.
Readers are cautioned that the aggregate estimates
set forth below may reflect different price estimates
and other assumptions.
Fourth Quarter 2015 Operational Highlights
Colombia
Chaza Block, Putumayo Basin (Gran Tierra 100%
WI and Operator)
The company continued its development program
in both Costayaco and Moqueta.
In Costayaco, Gran Tierra drilled and completed
the Costayaco-26D well as a producer and the well
was brought on stream on 30 October 2015. The rig
then moved to Costayaco-24D which, was drilled,
completed and brought on stream 2 February 2016
as a producer. At year end, the rig was drilling the
Costayaco-27i injector well on the flank of the field.
One further injector well (Costayaco-23i) is expected
to be drilled in the first quarter of 2016 to complete
the 2016 development program for Costayaco.
In Moqueta, the Moqueta-19i water injector well
testing was completed and a dual completion string
was being installed to inject in the Caballos and
produce from the T sand at year end. The rig then
moved from Moqueta 19i and drilled the Moqueta21D well, which finished one day ahead of schedule.
The well was completed in the U, T and Caballos

formation and was brought on stream on 22 October
2015. In December, an upgraded heli-portable rig
was brought in to complete the Moqueta
development program. This rig includes improved
fluid pumping capabilities, a brand new top drive unit
and will improve overall efficiencies and reduce nonproductive time. At year end, the Moqueta 20, 22
and 23 production wells remain in the Moqueta
drilling program.
Ongoing field optimization and stimulation work
was successful in the fourth quarter. To start, Gran
Tierra successfully stimulated the Costayaco-25 well
in the T sand and U sand. The stimulation increased
production to 1,370 b/d in the well, which is an
increase of approximately 1,200 b/d, meanwhile
water cut dropped from 70 percent to about 20
percent. Costayaco-8 was also stimulated in
December and saw an increase in production of 300
b/d. Costayaco-5 and Costayaco-6 were also
stimulated in the fourth quarter of 2015 which
successfully increased injectivity in both. In
Costayaco-5, injectivity in the K sand rose by 204
percent and injectivity into the T sand increased by
83 percent. In Costayaco-6, stimulation in the T sand
increased injectivity by 67 percent. In Moqueta, no
stimulations were performed but the T sand was
opened in the Moqueta-13 well, which provided an
increase in production of 110 b/d.
Cost reduction
Gran Tierra continued cost-cutting measures in
the fourth quarter. Operating expenses per BOE were
$3.20/bbl less than budget. Contract renegotiations
for rigs, wireline services, stimulation services, air
transport, helicopter services, goods and tubular
transportation services, fuels and lubricants and
private security services have all played a large role in
reducing operating costs. In addition, optimizing
operations such as road / location / camp
maintenance, security, rental equipment and special
services, catering and logistics have contributed to
cost reductions.
Future operating cost reductions are expected as
Gran Tierra installs third-party natural gas fueled
power generation in the Costayaco Field. The project
will utilize the company's produced natural gas to
generate power, and in return the company expects
to realize reduced cost for electricity.
Activity Year to Date

Gran Tierra has continued to remain active
through the first two months of 2016.
In the Costayaco Field, drilling finished on the
Costayaco-27 well, which was originally intended to
be an injector. With good pay on logs it was decided
to complete the Costayaco-27 well as a producer and
has since been brought on production at 460 b/d.
Costayaco-24 was completed and brought on
production at 930 b/d. In Costayaco-8, the ESP was
replaced and Gran Tierra managed to regain some
production as rates rose from 800 b/d back up to
1,100 b/d. Water injection rates have recently been
increased from 25,000 to 34,000 b/d of water
injection total for the Costayaco Field in order to
maintain the reservoir pressure in the both the T
sand and Caballos formations. Facility work has been
progressing in the Costayaco Field with the Gas to
Power project being commissioned, and ready to
start generating electricity by the end of the first
quarter of 2016.
In the Moqueta Field the new heli-portable rig
commenced drilling Moqueta-20. The well was
recently completed in the T sand and Caballos
formations and will be placed on production shortly
at approximately 1,000 b/d. In Moqueta-13, a dual
completion string was recently installed successfully
in order inject water in to the T sand formation, while
producing from the Caballos formation.
Other highlights included an ESP being installed in
the La Casona-1 well located in the Llanos Basin. The
well has currently been producing at 550 b/d.
Gran Tierra recently received the exploration
environmental license for Cumplidor (Block PUT 7,
Gran Tierra 100 percent WI and Operator, subject to
Agencia Nacional de Hidrocarburos (National
Hydrocarbons Agency) (ANH) approval) from the
Autoridad Nacional De Licencias Ambientales
(ANLA).
Drilling Efficiencies
Gran Tierra continues to demonstrate efficiencies
through the drill bit. In the fourth quarter, Gran
Tierra drilled three wells in the Costayaco Field, with
drill time and costs in the field reduced by 43 percent
and 23 percent, respectively when comparing to the
wells previously drilled in the field. In the Moqueta
Field, Moqueta-21 was the only well drilled in the
fourth quarter, but was on trend with the previous
six wells drilled in the field. The most recent trend
has shown that Gran Tierra has been able to reduce
drill times by 52 percent and costs by 41 percent.
Key components to the reduction in costs have

included renegotiating drilling contracts to deliver a
10 to 20 percent reduction on daily rates for key
services and reducing drilling times by focusing on
operational efficiencies and focus on non-productive
time "NPT".
Peru
Operations in Peru during the fourth quarter
continued to focus on maintaining tangible asset
integrity and security, and moving forward with
environmental approvals where possible.
Full field development plans and economics have
been finalized for the prospect inventory on the Peru
assets, and the Company continues to evaluate
alternatives to maximize the value of these assets.
The company has successfully "ring-fenced" Block
95's Bretaa Field with PeruPetro S.A., and maintains
the remainder of Block 95 as exploration acreage for
an additional two years until December 2017.
Brazil
Blocks REC-T-129, REC-T-142, REC-T-155 and RECT-224 (100 percent WI and operator)
In Brazil, the third party operator commenced
repairs on their crude oil receiving tank for Ti Field
production, and working with the Agncia Nacional
de Petrleo, Gs Natural e Biocombustveis, expects
the tank to be approved for operation before the end
of the first quarter of 2016. Production continued
from the Ti Field at approximately 600 b/d during
this interim phase. [By Gran Tierra Energy Inc.,
29.Feb.2016]
PETROBRAS SIGNS TERM SHEET WITH CDB
Petrobras signed a Term Sheet with the China
Development Bank (CDB), for financing $10 billion.
The document contains the main terms and
conditions for the operation and was signed by the
President of Petrobras, Aldemir Bendine, and the
President of CDB, Zheng Zhijie, during a ceremony
held at the company's headquarters.
Alongside the signing of the Term Sheet, the drafts
of the financing contracts are already being
negotiated, and include the implementation of a
trade agreement to supply oil to Chinese companies,
in similar terms to the contracts signed by the two
parties in 2009.
This new contract is a result of the Cooperation
Agreement signed by Petrobras and CBD in 2015,
when the Prime Minister of China visited Brazil, Mr. Li
Keqiang, aimed at developing partnerships between
the institutions during 2015 and 2016. [Petrobras,
26.Feb.2016]
ECOPETROL S.A. VOLUNTARILY DELISTS ITS ADRS

FROM THE TORONTO STOCK EXCHANGE
Ecopetrol reports that the ADRs of the company
will be delisted from the Toronto Stock Exchange at
the close of markets on 2 March 2016 , following the
voluntary delisting decision announced to the market
on 17 February 2016 .
The ADRs will continue to trade on the New York
Stock Exchange under the trading symbol "EC".
[Ecopetrol S.A., 25.Feb.2016]
ECOPETROL CONTINUES THE FINANCING OF ITS
2016 INVESTMENT PLAN WITH A LOCAL BANK LOAN
FOR COP$990 BILLION
Ecopetrol reports that on 23 February 2016, it
signed a bilateral commercial loan agreement with
Bancolombia S.A. for COP$990 billion (approximately
$300 million).
The company fulfilled all the procedures and
approvals required by the relevant government
authorities in Colombia, including receipt of
Resolution of Authorization No. 445 of 22 February
2016 from the Ministry of Finance and Public Credit.
This loan agreement has a term of 8 years and a 2year grace period on principal, with interest payable
semiannually at a rate of DTF TA + 560 basis points.
With this loan agreement, the Company continues
the funding of its 2016 investment plan and is able to
diversify the currency of its financing sources.
The resources from the loan will be used for the
2016 investment plan and other general corporate
purposes.
The terms of this loan agreement confirm that the
company has access to resources not only in the
international market, but also in the Colombian
banking market. This transaction also illustrates the
local market's confidence in Ecopetrol. [Ecopetrol
S.A., 24.Feb.2016]
ECOPETROL ANNOUNCES NEW SAVINGS OF COP$1.6
TRILLION FOR 2016
Ecopetrol reports that during 2015 the Corporate
Group achieved its savings goals for a total of
COP$2.8 trillion, of which COP$2.2 trillion
corresponded to the parent company.
Given the challenging price environment observed
since the beginning of 2016, Ecopetrol announces
that it will seek to save an additional COP$1.6 trillion
through the present year.
In order to accomplish this, the company has

adopted a new series of savings and austerity
measures aimed at optimizing cash flow and reducing
costs of all of its processes. The measures will help
mitigate the impact of the drop in international crude
prices on production and reserves, allowing for the
continued production of profitable barrels and the
value creation for shareholders and Colombian
citizens.
The new measures are:
-- The freezing of the expense budget at 50
percent for all areas (OPEX).
-- A freeze on personnel except for critical
operational positions. The company will reorganize
itself internally in order to take over the Rubiales and
Cusiana fields, events that will take place during the
year.
-- The adoption of a new model of contract
management. Technical and administrative
management, previously handled through
contractors, will be handled directly by Ecopetrol
personnel, which will involve a reorganization of
tasks and transfer of personnel between operational
areas and sites.
-- The budget for travel will be reduced to the
minimum required to support the operation.
-- The elimination of consulting and professional
services that are not strictly necessary for the
operation.
-- It trimmed to one-third investment in
advertising and sponsorships. This means moving
from COP$ 9,000 million in 2015 to COP$3,350
million in 2016.
-- A shock policy to ensure the efficient use of
inventories. Material or parts purchases will only be
authorized when nothing is available in Ecopetrol and
affiliate warehouses.
-- Giving priority to the carrying out of business by
Group companies before any third party as long as
they are carried out under conditions equal to or
better than the market's.
-- Implementation of the 2016 investment plan
will depend on crude oil price evolution. Investments
will be evaluated by means of a strict process of
capital allocation and value creation and cash
generation criteria.
-- Proceeds from the divestment plan for nonstrategic assets and share ownership are expected to
be between US$400 million and US$900 million for
the period 2016-2017. As the 2016 budget does not
have uses for proceeds derived from this program,
resources obtained will strengthen the company's
cash flow.
-- In exploration, investments will be redirected to

onshore projects (continental territory) and will focus
on recent deep water discoveries with strong
potential (Kronos).
-- In 2015, Ecopetrol obtained $3,425 million in
financing, while in 2016 the company has adjusted its
financing needs to a range between $1,500 million
and $1,900 million.
This strengthens financial metrics and seeks to
preserve the company's investment grade rating. It is
estimated that in the current environment, the
debt/EBITDA ratio would fluctuate between 3.8 and 4
times in 2016 and gradually drop in the following
years. These figures could vary depending on the
price situation, changes in the investment plan and
divestment program results. [Ecopetrol S.A.,
16.Feb.2016]
TOP PETROLEUM
CITGO EMERGES WITH INTEREST IN VALERO'S
SHUTTERED ARUBA REFINERY
Houston-based Citgo Petroleum could be Valero's
last hope to divest of its 235 Mb/d refinery located in
San Nicolas, Aruba's second largest city.
San Antonio-based Valero's plans to dismantle the
shuttered refinery in Aruba had been extended as
the company and government collectively sought a
potential party to buy and run the plant shut since
2012 due to financial losses.
Citgo appears to be interested in the Aruba
refinery, according to reports by Reuters.
"From Valero's perspective, we have been working
with the government to explore options, including a
sale, for several years," said Valero media relations
official Bill Day in an interview in late 2015. "Valero
ceased production at the Aruba refinery in2012
because of steep financial losses at the plant and
since it had very high operating cost compared with
more competitive Gulf Coast refineries."
Valero's refinery was officially closed in September
2012 for economic reasons although the company
continued to operate the petroleum and by-product
storage terminal. Valero has no intentions to reopen
the refinery and plans to dismantle it if no interested
party emerges to buy and run the plant, said Day.
"No timetable has been set for final
dismantlement. The storage terminals continue to
operate and are not affected by what happens with
the refinery," according to Day.
Venezuela's Interest
Years of under investment on maintenance,
upgrades and safety protocols by PDVSA have left
the company's domestic refineries at less than
optimal conditions. Persistent problems continue to
affect the company's main refineries and their
flexicoker, fluid catalytic cracker and other units, said
oil union official Ivan Freites and Jos Bodas in phone
interviews from Punto Fijo and Barcelona,
respectively.
"Being a refinery with a coker it should be of
interest because it allows you to process Venezuelan
heavy crudes and produce a lighter product which
can then be exported to wherever you want to take
it," said oil consultant and Sivensa Director Arnold
Volkenborn in a phone interview from Caracas
referring to Valero's Aruba refinery.
The refinery can presumably handle Venezuelan
heavy crude. So, it would an interesting addition,
regardless to the condition of Venezuela's existing
refineries, said Volkenborn, who is also a former
president of Venezuela's petrochemical company
Pequiven.
"The Aruba refinery would be an interesting
addition to your being able to market heavy crudes.
There are relatively few refineries in the world that
can handle heavy crude and this is one of them," said
Volkenborn. "It is an important strategic addition
simply by virtue that it has deep conversion
capacity," said the executive.
The Aruba refinery has a coker and visbreaker,
among other units, according to Day. When
operating it processes primarily heavy sour oil and
produces mostly intermediate feedstocks and
finished distillate products. Significant amounts of
the refinery's intermediate feedstock production is
transported and further processed at Valero's other
refineries in the Gulf Coast, West Coast and
Northeast regions, according to Valero's 10-K
regulatory filing.
The refinery receives oil by ship at its two deepwater marine docks, which can berth ultra-large
crude carriers. The refinery has 63 storage tanks with
almost 12 million barrels of storage capacity,
according to Valero.
Venezuelan oil exports generate 95 percent of the
country's export earnings. The collapse in oil prices
stoke constant concerns that Venezuela will run out
of money.
Citgo's parent company, PDVSA, as the Caracasbased company is known, has divested of refining
assets abroad, curtailed sales of cheap oil to allies
and renegotiated debt with PetroCaribe member
countries in a bid to shore up funds. [LatinPetroleum,
1.Jan.2016]
SWIBER COMPLETES SUBSEA PIPELINE
INSTALLATION PROJECT OFF SOUTH AMERICA
Singapore-based Swiber Holdings Limited
completed a multi-million dollar platform and subsea
pipeline installation project in South America. The
platform is considered to be the world's
southernmost platform project.
The project, awarded in September 2013, by an oil
and gas company in South America, was for the
jacket and topside installation of a wellhead platform
and its 24 inch and 4 inch pipelines of 43.5 miles (70
kilometers) each. The scope of work included
transportation and installation of the platform as well
as two subsea pipelines spanning 43.5 miles (70
kilometers) each.
Swiber's team working on the project had to
endure very rough weather conditions offshore such
as high wind speeds of up to 80 knots, very high
maximum wave heights of up to 32.8 feet (10
meters), and below zero-degree temperatures.
The offshore platform structures and line pipes for
the project were transported from Spain and France
respectively by cargo barges on a dry tow vessel and
by bulk carriers Swiber has been securing new
contracts amid a more challenging market and new
contract wins have boosted the Group's order book
to a record $1.5 billion as at 13 November 2015.
[Swiber Holdings Ltd., 4.Feb.2016]
PETROBRAS BUYS FIRST SHIPMENT OF LNG
PRODUCED IN AMERICAN SECTOR OF GULF OF
MEXICO
In the next few days, Petrobras will receive its first
shipment of liquefied natural gas (LNG) produced in
the American portion of the Gulf of Mexico. The LNG
tanker Asia Vision was loaded up on 24 February
2016 at the Sabine Pass Terminal in Louisiana with
160,000 m of LNG, equivalent to 96 million m of
natural gas. The fuel will be taken to Petrobras'
regasification terminal in All Saints Bay, Bahia.
The commercial operation involves Cheniere, an
American company that is building seven natural gas
liquefaction facilities in the Gulf of Mexico. This is the
first shipment of LNG produced by the company and
also the first shipment of LNG produced in the
continental United States.
Following regasification at the terminal in Bahia, the

fuel will be pumped into Petrobras' network of gas
pipelines to supply Brazil's domestic market, mainly
for use in thermal power plants.
The natural gas was processed and liquefied for
shipment by Cheniere at an industrial facility built to
make use of the abundant gas in the U.S. market
following the shale gas revolution. Through this
purchase, Petrobras is diversifying its portfolio of
suppliers, making Brazil's supply of natural gas more
flexible and secure, and establishing an important
commercial partnership in the Atlantic Basin.
[Petrobras, 24 February 2016]
EXMAR NV AND PACIFIC EXPLORATION AND
PRODUCTION TERMINATE LIQUEFACTION AND
STORAGE AGREEMENT
EXMAR NV announces that EXMAR NV and Pacific
Exploration and Production (PEP) agreed to
terminate a Liquefaction and Storage Agreement,
originally executed in March 2012 for a term of 15
years from delivery of a floating liquefaction unit
(CFLNG) with a liquefaction capacity of approximately
0.5 million tons per annum of liquefied natural gas
and a storage volume of 16,100 m (the Tolling
Agreement).
Since the execution of the Tolling Agreement the
domestic natural gas market in Colombia and
international LNG market have changed substantially
making the liquefaction of LNG in Colombia no longer
economic for PEP.
The Settlement Agreement stipulates a
termination fee payable by PEP to EXMAR in monthly
installments from March 2016 until June 2017.
By virtue of the Settlement Agreement as of 3
March 2016, any and all obligations in connection
with the Tolling Agreement have been terminated,
except for customary survival clauses (e.g.
confidentiality and dispute resolution) and makes the
CFLNG available for other projects around the world.
EXMAR is actively negotiating new employment of
the CFLNG with several counterparts and the CFLNG
will be delivered in the second quarter 2016 from the
Wison shipyard in Nantong (China). [EXMAR NV,
8.Mar.2016]
GEOPARK ANNOUNCES CERTIFIED 2015 OIL AND

GAS RESERVE INCREASE WITH RECORD 2P RESERVES
OF 125 MMBOE
GeoPark Limited announced its reserves
assessment as of 31 December 2015 independently
certified by DeGolyer and MacNaughton (D&M)
under PRMS methodology.
Year-End 2015 D&M Certified Reserves Highlights
After producing 7.4 MMboe in 2015, total net
proven developed producing (PDP) reserves in
Colombia, Chile and Brazil increased 25 percent (3.5
MMboe) to 17.3 MMboe. For each BOE produced in
2015, 1.5 BOE of PDP reserves were added with a
PDP reserve replacement index (RRI) of 150 percent.
Total net proven (P1) reserves in Colombia, Chile and
Brazil increased 19% (8.1 MMboe) to 52.3 MMboe
and, including Peru, to 71.1 MMboe. P1 reserve life
index (RLI) in Colombia, Chile and Brazil equaled 7.1
years and, including Peru, 9.6 years. For each BOE
produced in 2015, 2.1 BOE of P1 reserves were added
with a P1 RRI of 211 percent.
Total proven and probable (2P) reserves in
Colombia, Chile and Brazil increased 3 percent (3
MMboe) to 95.1 MMboe and, including Peru, to
125.3 MMboe. 2P RLI in Colombia, Chile and Brazil
equaled 12.9 years and, including Peru, equaled 16.9
years. For each BOE produced in 2015, 1.4 BOE of 2P
reserves were added with a 2P RRI of 141 percent.
Total net present value (NPV) after tax of 2P
reserves was $1.65 billion in 2015 compared to $1.69
billion in 2014.
"Our independently-certified oil and gas reserve
increase this year represents another performance
record and important 2015 achievement reflecting
the quality of our assets, our financial discipline and
focus, and the experience and capabilities of our
team," said GeoPark CEO James F. Park. "Despite the
low oil price environment and significant cutbacks in
new capital investment, our team was able to pivot
and adapt our program to explore and develop our
high quality low cost assets, including the discovery
of three new oil fields in Colombia, while also
keeping our long-term business plan and growth on
track."
GeoPark's reserve additions followed the
production of 7.4 million boes during the year and
the reduction of 4.7 million boes of uneconomic
reserves from the impact of low oil prices and
technical revisions. Importantly, we had significant
increases in our PDP and P1 reserves last year, which
represent the lowest risk and most accessible oil and
gas reserves, said Park.
"Our overall reserve increase also led our certified

net present value of our 2P reserves to reach $1.6
billion -- approximately in line with 2014 numbers
even after adjusting for a lower oil price forecast,"
said Park. [GeoPark Limited, 29.Feb.2016]
PETROBRAS TO REMODEL STRUCTURE AND
GOVERNANCE
Restructuring will align Petrobras with oil and gas
sector's new reality and increase oversight of
executives' decisions
At a meeting held on 27 January 2016, Petrobras'
Board of Directors approved the company's new
organizational structure and management and
governance model.
This reform is taking place as part of the
company's response to the oil and gas sector's new
circumstances, leading Petrobras to prioritize its
most profitable activities and become more
competitive.
The restructuring involves redistributing activities,
merging departments and revising its decisionmaking model. One of the core objectives is to
expand oversight and compliance mechanisms.
It is estimated that these changes will reduce costs
by up to R$1.8 billion per year. There are also plans
to cut the number of managerial posts in nonoperational departments by at least 30 percent. The
company has around 7,500 approved managerial
posts, of which 5,300 are in non-operational
departments.
The overhaul will adjust Petrobras structure and
management in line with the vision established by
the 2015-2019 Business Plan, whose fundamental
goals include value creation and deleveraging. In
addition, the company is expanding its efforts to
strengthen its oversight, compliance and
transparency mechanisms.
Phases
The first restructuring phase will involve
eliminating 14 senior management functions. The
number of departments will fall from seven to six
through the merger of the Downstream and Gas &
Electricity departments. The total number of
management posts reporting directly to the Board of
Directors, CEO and directors will be reduced from 54
to 41.
The second phase, planned for February, will cover
the remaining management functions. Appointments
and team allocations will begin in March.
Accountability and compliance

Six Statutory Technical Committees will be
established, composed of executive managers tasked
with previously analyzing and issuing
recommendations about topics to be decided on by
directors, and to be jointly responsible in decisionmaking processes.
Due to their statutory nature, the committees
acts will be subject to oversight by the Brazilian
Securities and Exchange Commission (CVM).
To appoint executive managers, there will be new
criteria for analyzing their integrity and technical and
managerial capacity. In addition, the Board of
Directors will be responsible for approving
appointments and terminations for these functions.
By reinforcing Petrobras' commitment to
compliance, the restructuring provides for changes in
internal procurement and investment control.
Activities involved in buying goods and services will
be concentrated in the new Human Resources, HSE
and Services Department.
The execution of investment projects will be
centralized in the new Production Development &
Technology Department (DP&T). This new structure
will concentrate management and technical
competencies for implementing projects.
As a rule, procurement for investment projects will
involve three departments: the requesting
department, which will produce the basic technical
design; DP&T, which will develop the detailed design;
and the HR, HSE and Services Department, which will
conduct tenders to acquire goods and services. The
redesign of the procurement process for projects and
services will prevent excessive concentrations in
decision-making processes.
In order to increase the profitability of businesses,
the new model will involve merging departments to
harness synergies. Accordingly, the Downstream and
Gas & Electricity departments will be merged to form
the Refining and Natural Gas Department.
The Exploration and Production Department will
be organized by asset class, with structures created
for Deep Water, Ultra-Deep Water, Onshore and
Shallow Water. This will enable better management
of value added by assets and optimization of oil and
gas production.
Changes that involve alterations to Petrobras'
bylaws will be submitted for approval to a General
Shareholders Meeting, to be convened in due course.
[Petrobras, 28.Jan.2016]
TOP REFINERY
ECOPETROL ANNOUNCES A STRATEGIC ROAD MAP
FOR THE BARRANCABERMEJA REFINERY FOR THE
PERIOD 2016-2020
Ecopetrol reports that its Board of Directors
approved a 2016-2020 road map for the
Barrancabermeja Refinery, with the objective of
maximizing its long-term competitiveness and
sustainability, as established in Ecopetrol's strategic
plan announced in May 2015 .
The crude oversupply in the international oil and
gas markets has deteriorated oil prices. Under this
environment, Ecopetrol, in line with industry trends,
has focused on making its operations profitable by
optimizing costs and implementing strict austerity
measures, in addition to adjusting its investment
plan, only approving projects that create the highest
value and generate the most cash flows in the shortterm.
In this challenging scenario, and in an effort to
ensure the financial sustainability of the Ecopetrol
group, Ecopetrol has decided that it is necessary to
suspend the Barrancabermeja Refinery
Modernization Plan (PMRB) until the oil price
environment allows investments to be made in such
a major project.
The Barrancabermeja Refinery is a fundamental
asset for diversifying risks among Ecopetrol's various
businesses. It is necessary to improve the Refinery's
operating excellence, increasing cash generation and
implementing new measures that will allow the
Barrancabermeja Refinery to become an efficient
asset that is operated according to the best
international standards. The Barrancabermeja
Refinery achieved excellent operating results in 2015.
Looking forward, Ecopetrol will make incremental
investments in order to ensure reliability and
integrity of the performance of the Barrancabermeja
Refinery, as well as investing in programs that are
critical for its operation and maintenance. [Ecopetrol
S.A., 7.Mar.2016]
BRAZIL
PETROBRAS COMMENTS ON ADJUSTMENTS TO THE
2015-2019 BUSINESS AND MANAGEMENT PLAN
NOTE: Tables Not Provided Throughout This
Article
Petrobras' Board of Directors approved some
adjustments to the 2015-2019 Business and
Management Plan (2015-2019 BMP).
These adjustments are designed to preserve the
fundamental objectives of deleveraging and
generation of value for shareholders laid down in the
2015-2019 BMP in light of new oil price and exchange
rate levels.
New Brent crude price and exchange rate on
which cost and investment projections are based:
Given these new baselines, investments for 2015
and 2016 have also been revised, prioritizing Brazilian
oil exploration and production (E&P) projects,
especially those in the pre-salt layer.
Projected manageable operating costs for 2015
were maintained at $29 billion, while the estimate
for 2016 is currently under review within the scope
of the ongoing annual budget.
Divestments for 2015-2016 were maintained at
$15.1 billion, after reaching $0.7 billion in 2015.
This adjustments for 2015 and 2016 led to a reevaluation of the company's portfolio of projects for
the five years covered by the 2015-2019 BMP and
consequent adjustment of the overall investment
portfolio, as shown below.
This new 2015-2019 capex figure of $98.4 billion
represents a reduction of $32 billion on the previous
amount ($130.3 billion), and is the result of portfolio
optimization (- $21.2 billion) and the exchange rate ($10.7 billion).
These adjustments to the investment portfolio
resulted in a reduction in projected Brazilian oil
production in 2016 from 2.185 MMb/d to 2.145
MMb/d and from 2.8 MMb/d to 2.7 MMb/d in 2020.
Petrobras oil production in Brazil averaged 2.128
MMb/d in 2015, 0.15 percent up on the target of
2.125 MMb/d, 4.6 percent up on the 2014 figure
(2.034 MMb/d) and a new annual record for the
company, exceeding the previous record, set the year
before.
Petrobras has been making continuous
improvements to its Business and Management Plan
and rapidly adapting to changes in the business
environment, honoring its commitment to capital
discipline and profitability.
Finally, it is worth noting that various risk factors

may impact these projections, including:
- Changes in market variables, such as oil prices
and the exchange rate;
- Divestment operations and other business
restructuring, subject to prevailing market conditions
and the timing of transactions;
- Achievement of oil and gas production targets
against a back of difficulties with suppliers in Brazil.
[Petrobras, 12.Jan.2016]
PETROBRAS OIL AND NATURAL GAS PRODUCTION
IN JANUARY
Petrobras announces that its average domestic oil
and natural gas production in January was 2.47
MMboe/d, and oil and natural gas production abroad
was 183,000 boe/d, totaling 2.65 MMboe/d. Average
oil production was 2 MMb/d in Brazil and 92,000 b/d
abroad.
Average daily production in the pre-salt province
reached 1.03 MMboe/d, while pre-salt oil output
operated by Petrobras averaged 822,000 b/d. Natural
gas production in Brazil, excluding the liquefied
volume, averaged 74.1 MMcm/d.
The company's oil and gas output in January was
7.1 percent down on the previous month (2.66
MMboe/d), primarily due to scheduled maintenance
stoppages on high-production platforms, notably P58 (Parque das Baleias, with a current output of
around 120,000 b/d), FPSO Cidade de Mangaratiba
(Lula, with a current output of around 130,000 b/d)
and P-48 (Barracuda/Caratinga, with a current output
of around 50,000 b/d).
Oil and gas production abroad
In January, oil production abroad averaged 92,000
b/d, 4.2 percent down on the previous month, mainly
due to a production shutdown in the Nigerian
Agbami field for maintenance (already concluded)
and energy cuts due to heavy rainfall in the
Argentinian Medanito field.
Natural gas production averaged 15.5 MMcm/d, a
4.3 percent reduction over the previous month,
mostly in the Hadrian South field in the U.S., due to a
shutdown to modify the platforms gas plant.
[Petrobras, 29.Feb.2016]
PETROBRAS COMMENCES OPS OF THE SEPIA EPS IN

BRAZIL'S SANTOS BASIN
Petrobras announced the Early Production System
in the Sepia area (formerly the Nordeste de Tupi
area) has commenced operations in the Santos Basin
pre-salt layer offshore Brazil. The FPSO Cidade de Sao
Vicente floating platform is set to produce around
20,000 b/d of oil during the test period.
Deployed in waters of approximately 7,218 feet
(2,200 meters) depth, the floating production storage
and offloading (FPSO) is connected to the 1-RJS-691
well and will remain in its current location for 180
days.
This is the fourth Early Production System set up in
the Rights Transfer area of the Santos Basin. The oil is
of good quality oil (26 degree API) and will be
transported by shuttle tankers.
The Sepia Early Production System is designed to
collect technical data on the behavior of the
reservoirs and oil outflow through underwater pipes,
as well as other data. This will provide support for
the development of the final production system,
scheduled to come on-stream in 2020.
Located some 115 miles (185 kilometers) of the
coast of the state of Rio de Janeiro, the Sepia field
was declared commercially viable in September
2014. [Petroleo Brasileiro S.A., 3.Mar.2016]
SHELL STARTS PRODUCTION FROM PHASE 3 OF
DEEPWATER DEVELOPMENT OFFSHORE BRAZIL
Shell announced the start of oil production from
the third phase of the deepwater Parque das
Conchas (BC-10) development in Brazil's Campos
basin. Production for this final phase of the project is
expected to add up to 20 Mboe/d, at peak
production, from fields that have already produced
more than 100 MMbbls since 2009.
Operated by Shell (50 percent WI) and owned
together with ONGC (27 percent WI) and QPI (23
percent WI), Parque das Conchas Phase 3 comprises
five producing wells in two Campos basin fields
(Massa and O-South) and two water-injection wells.
The subsea wells sit in water depths greater than
5,900 feet and connect to a floating production,
storage and offloading vessel, the Espirito Santo,
located more than 90-miles offshore Brazil.
Parque das Conchas Phase 3 is the latest, major

deepwater project for Shell. Shell deepwater
sanctioned projects currently in development
include, the Stones project, whose FPSO vessel is
now on location in the Gulf of Mexico, and the
Appomattox project, also a Gulf of Mexico project,
now under construction. Shell is also part of a
consortium exploring and developing the giant, presalt Libra field, offshore Brazil, and recently
completed the acquisition of BG, which includes
significant deepwater Brazil positions. [Shell,
14.Mar.2016]
CHARIOT KICKS OFF 3D SEISMIC SURVEY OFFSHORE
BRAZIL
Chariot Oil & Gas Ltd. commenced a 3D seismic
acquisition survey of approximately 785 km2
covering its wholly operated BAR-M-292, BAR-M-293,
BAR-M-313 and BAR-M-314 licenses in the
Barreirinhas basin, offshore Brazil. This survey is
being conducted by Polarcus.
Further to the approval of the Environmental
Impact Assessment in October 2015, Chariot is now
able to carry out its 3D seismic program, which will
fulfil all commitments on the licenses.
Following the analysis of legacy 2D seismic data
over these blocks, the company has identified a
number of leads that will be targeted by the 3D
survey to mature this prospectivity. The survey is
anticipated to take approximately 30 days to
complete. [Chariot, 10.Mar.2016]
GOLAR GENPOWER, EXXONMOBIL SIGN LNG
SUPPLY DEAL FOR POWER PROJECT IN BRAZIL
Golar GenPower Brasil Participacoes S.A. (Golar
GenPower), a joint venture between LNG Power
Limited (UK), a standalone non-recourse subsidiary
of Golar LNG Limited and GenPower Participacoes
S.A., disclosed that it has signed a framework
agreement for the supply of liquefied natural gas
(LNG) to the natural gas fired power generation
project it is developing in the Brazilian state of
Sergipe.
Golar GenPower and ExxonMobil Titan LNG
Limited (ExxonMobil) agreed heads of terms
covering the supply of LNG to the approximately
1,500 megawatts (MW) Porto de Sergipe project. The
agreement also establishes a framework for LNG to
be supplied exclusively from ExxonMobil for
expansion phases and other projects that Golar
GenPower is pursuing in Brazil.
The LNG supply is conditional on execution of a fully

termed LNG Sale and Purchase Agreement (SPA).
Golar GenPower intends to bid at the upcoming 2016
Leilao A-5 Power Auction.
This framework agreement is a significant step
towards a positive final investment decision on the
Porto de Sergipe project which Golar GenPower hope
will be the first of several Brazilian opportunities
jointly delivered over the coming years. [Golar LNG
Ltd., 7.Mar.2016]
FLUOR, CONSTRUCAP HAND OVER GAS FACILITY IN
BRAZIL'S PARNAIBA BASIN TO PGN
Fluor Corporation announced that its consortium
has met substantial completion on the Gaviao Branco
facility in the state of Maranhao, Brazil, turning it
over to Parnaiba Gas Natural (PGN), Brazil's leading
private gas exploration and production company.
The consortium performed basic and detailed
engineering, procurement, construction,
commissioning and start-up of a 300.14 million cubic
feet (8.5 million cubic meters) per day gas gathering
system in the Gaviao Branco field, as well as a 43.5
mile- (70 kilometer-) gas pipeline, under a demanding
12-month schedule. The consortium included Fluor;
Construcap CCPS Engenharia e Comercio S.A.
(Construcap), the consortium leader; and CFPS
Engenharia e Projetos S.A. (CFPS), a joint venture of
Fluor and Construcap. The consortium significantly
optimized the facility's design to reduce capital
investment costs, while maintaining the original
completion date. The project brings the Gaviao
Branco field into commercial operation, enables the
tie-in of the Gaviao Branco Sudeste field in the first
quarter of 2016 and will provide the tie-in point for
Gaviao Caboclo and Gaviao Branco Norte in the
future.
Based on the results of this project, PGN has
retained the consortium to deliver master planning
services for future developments in the Parnaiba
Basin. By [Fluor Corp., 26.Feb.2016]
FUGRO DEPLOYS SUPPORT VESSEL FOR PETROBRAS
CONTRACT IN BRAZIL
Fugro has been awarded an inspection, repair and
maintenance (IRM) contract by Petrobras in Brazil.
Under the contract, Fugro will deploy its new 83-m
ROV support vessel, Fugro Aquarius, for the IRM
activities. The contract duration is one year with an
option for an additional year.
Fugro Aquarius has been designed specifically for

operations in the challenging conditions offshore
Brazil. Capable of operating in water depths of 3,000
m, the vessel was built in Brazil and the local content
exceeds 60%. Specialized equipment on board
includes two 150HP Fugro FCV3000 work class ROV
systems.
Operations will commence in April 2016. [Fugro,
26.Feb.2016]
EARLY PRODUCTION SYSTEM STARTS UP IN THE
SANTOS BASIN'S SEPIA PRE-SALT
The Early Production System in the Spia area
(formerly the Nordeste de Tupi area) has
commenced operations in the Santos Basin pre-salt
layer. The FPSO Cidade de So Vicente floating
platform is set to produce around 20,000 barrels of
oil per day during the test period.
Deployed in waters of approximately 2,200 meters
depth, the FPSO is connected to the 1-RJS-691 well
and will remain in its current location for 180 days.
This is the fourth Early Production System set up in
the Rights Transfer area of the Santos Basin. The oil is
of good quality oil (26-degree API) and will be
transported by shuttle tankers.
The Spia Early Production System is designed to
collect technical data on the behavior of the
reservoirs and oil outflow through underwater pipes,
as well as other data. This will provide support for
the development of the final production system,
scheduled to come on-stream in 2020.
Located some 185 kilometers of the coast of the
state of Rio de Janeiro, the Spia field was declared
commercially viable in September 2014. [By
Petrobras, 2.Mar.2016]
PETROBRAS REPORTS ON ONSHORE FIELD SALES
PROCESS BEGINS
The Petrobras Executive Board has given the goahead for the transfer of rights to oil and natural gas
exploitation, development and production for some
onshore fields, and the sale of assets related to these
concessions.
This initiative, written into the Petrobras
Divestment Plan, will be subject to competitive
bidding. [Petrobras, 2.Mar.2016]
AQUALIS OFFSHORE WINS FPSO TOPSIDE

WARRANTY SURVEY JOB
Aqualis Offshore has been contracted by Cantex
Global Logistics to provide the marine warranty
surveyor (MWS) services for FPSO P67 and P70
topside modules transportation from various
Brazilian ports to COOEC's yard in Qingdao, China.
The scope of work for Aqualis Offshore, part of
Oslo-listed Aqualis ASA, is to provide the MWS
services for the load out and sail away of the
transport vessels in Brazil, as well as the discharges of
the modules in Qingdao, China. The contract value is
undisclosed.
A total of 29 topside modules for the FPSO P67
and P70 will be transported in eight shipments from
Brazil to China. The maximum module weight is
about 1,650 metric tons. Aqualis Offshore has been
contracted to provide marine warranty services for
six of the eight shipments, including load out and sail
away from Brazil to China, as well as discharges of all
modules at COOEC's Qingdao yard.
Aqualis Offshore's offices in Shanghai, China and in
Rio, Brazil are working on this project.
Aqualis Offshore has already completed the MWS
for loadout and sail away for one vessel, and it will
oversee the loadout for another three vessels in
Brazil in a few weeks' time. The remaining two
shipments from Brazil will be completed in the
summer of 2016.
For surveying the discharges, Aqualis Offshore
finished the first shipment in Qingdao China on 15
February 2016. The discharge of the second vessel
will start at the end of February. The rest of the
vessels will arrive in Qingdao for discharges in March,
April and in the third quarter of 2016. [Aqualis, 25
Feb.2016]
SHELL CANCELS PETRO RIO DEAL FOR BIJUPIR AND
SALEMA FIELDS
Petro Rio said Royal Dutch Shell has cancelled an
agreement to sell an 80 percent stake in Bijupir and
Salema fields to the company.
The transaction, which would also have included
the FPSO Fluminense, was announced in January
2015.
Bijupir and Salema fields lie 250 km to the east of
Rio de Janeiro. [Shell, 16.Feb.2016]
SNM'S NEWBUILD PSLV SAPURA JADE COMMENCES

WORK FOR PETROBRAS OFF BRAZIL
Malaysia's SapuraKencana Petroleum Berhad
reported its presence in Brazil continues to grow
after entering the market with its first pipelaying
support vessel (PLSV), Sapura Diamante, on 28 June
2014. On 14 February 2016, its latest PLSV, Sapura
Jade commenced work with Petrobras on schedule in
Brazil.
SapuraKencana's offshore operations are being
executed in Brazil for Petrobras by its Brazilian joint
venture company Sapura Navegacao Maritima
(SNM), a 50:50 venture with offshore drilling
company Seadrill Ltd.
In November 2011 and in June 2013,
SapuraKencana's joint venture company in Brazil,
SNM, was awarded two major contracts by Petrobras
worth a total of $4.1 billion to build and operate a
total of six PLSVs for offshore deepwater flexible
pipelay work in Brazil.
The Sapura Jade is the fourth of a series of six
PLSVs contracted under a long-term contract by
Petrobras for deepwater flexible pipelay work in
Brazil. Other PLSVs already in service with Petrobras
includes the Sapura Diamante, Sapura Topazio, and
Sapura Onix, all of which started work on schedule or
ahead of schedule and continue to operate at strong
utilization rates.
Following the Sapura Jade, the final two PLSVs, the
Sapura Esmeralda and the Sapura Rubi are set to be
delivered progressively in 2016.
Similar to previous vessels, Sapura Jade is
equipped with a 550 ton vertical (tiltable) lay system
for the deployment of a range of flexible products in
up to 9,842 feet (3,000 meters) water depth for
Petrobras' pre-salt developments offshore Brazil. It is
also fitted with world class Remotely Operated
Vehicles (ROVs) developed and built by
SapuraKencana's Australian subsidiary, Total Marine
Technology Pty Ltd. [SapuraKencana Petroleum
Berhad, 19.Feb.2016]
PETROBRAS: NEW WELL IN LIBRA CONFIRMS GOOD
QUALITY OIL DISCOVERY
Petrobras concluded the drilling of well 3-BRSA1305A-RJS (3-RJS-739A), located on the Libra block,
northwest area, in the pre-salt of the Santos Basin,
confirming the discovery of good quality oil in
reservoirs with excellent productivity.
The well found an oil column of around 270

meters and high-quality reservoirs in communication
with previous wells in this area. Two Drill Stem Tests
(DSTs), performed on two different intervals, have
confirmed the excellent productivity of these
reservoirs and good oil quality (28 API), similar to
the wells 2-ANP-2A-RJS and 3-RJS-731.
Currently, two other wells are being drilled in the
Libra block northwest area: 3-BRSA-1322-RJS (3-RJS741) and 3-BRSA-1339-RJS (3-RJS-742). The oilbearing zone of well 3-RJS-741 was identified by
wireline logging (set of tools to characterize the
reservoir drilled in the well) and fluid samples, which
will be characterized by laboratory analysis. The well
is being drilled at a depth of 5,527 meters. The well
3-RJS-742 started to be drilled on February 6th.
These three wells are part of the Discovery
Evaluation Plan activities of well 2-ANP-2A-RJS,
submitted to the National Oil, Natural Gas and
Biofuels Agency (ANP), on 15 September 2015,
pending on approval.
The Libra Consortium is comprised of Petrobras
(operator, 40 percent WI), Shell (20 percent WI),
Total (20 percent WI), CNPC (10 percent WI) and
CNOOC (10 percent WI), and the contract manager is
Pr-Sal Petrleo S.A. (PPSA). [Petrobras,
18.Feb.2016]
COLOMBIA
2015 ECOPETROL'S PROVEN RESERVES REACH 1,849
MILLION BARRELS OF OIL EQUIVALENT
Ecopetrol announced its proven reserves (1P,
according to the international designation) of crude
oil, condensate and natural gas owned by the
company, including its interest in affiliates and
subsidiaries, as of 31 December 2015.
The reserves were estimated based on the U.S.
Securities and Exchange Commission (SEC) standards
and methodology. 99 percent of them were audited
by two well-known specialized independent
companies (Ryder Scott Company and DeGolyer and
MacNaughton).
Ecopetrol's Proven net hydrocarbon reserves were
1,849 MMboe at the close of 2015, an 11 percent
reduction compared with 2,084 MMboe at the end of
2014. The reserve replacement ratio was 6 percent,
and the reserves/production ratio (average life of
reserves) was 7.4 years.
The reduction in proved reserves was mainly

driven by the plunge of hydrocarbon prices. In 2015,
SEC price for Brent was $55.57/bbl compared to
$101.80/bbl in 2014.
Ecopetrol estimates that the price effect implies a
decrease of 404 MMboe in reserves during 2015
compared with those from the end of 2014. This
decrease was largely offset by the addition of 275
MMboe, attributable to cost optimizations and
higher efficiencies achieved by the company as well
as by the addition of 67 MMboe as a result of the
new drilling campaigns in Castilla and Rubiales fields,
and the positive revisions of some fields like
Chichimene, due to good production performance.
Another positive effect came from the inclusion of
natural gas self-consumption on proved reserves
(+47 MMboe).
The highest contributions to the reserve balance
were from Castilla and Chichimene fields, both
directly operated by Ecopetrol, and from Rubiales
field, which will be operated by Ecopetrol as of July
2016.
95 percent of the proved reserves belong to
Ecopetrol S.A., while Hocol, Ecopetrol America and
the participation in Equion and Savia Peru
contributes with 5 percent. [Ecopetrol S.A.,
1.Mar.2016]
TABLE 11: ECOPETROL'S PROVEN RESERVES AS
OF 31 DECEMBER 2015
Proved Reserves (1P)
MMboe
As of 31.Dec.2014
Revisions of previous
estimates
Purchases of minerals in
place
Improved recovery
Extensions and discoveries
Sales of minerals in place
Production
As of 31.Dec.2015
2,084
Source: Ecopetrol
(25)
0
16
24
0
(251)
1,849
VENEZUELA
CRYSTALLEX UPDATES STAKEHOLDERS ON ICSID
VENEZUELA CLAIM
Crystallex International Corporation awaits the
final award of the arbitral tribunal constituted under
the rules of the Additional Facility of the World
Bank's International Centre for Settlement of
Investment Disputes (ICSID) to decide its $3.16
billion (plus interest) claim against the Bolivarian
Republic of Venezuela in relation to the unlawful
expropriation of its investment in the Las Cristinas
mining project pursuant to the Agreement between
the Government of Canada and the Government of
the Republic of Venezuela for the Promotion and
Protection of Investments (the "Treaty"). The arbitral
proceedings were formally closed in December 2015
following the completion of the parties' oral and
written submissions in January 2015.
As a result of recent public announcements by
Gold Reserve Inc. and Venezuelan government
officials, Crystallex has become aware that Gold
Reserve and Venezuela have entered into a
memorandum of understanding that contemplates,
among other things, a settlement of Gold Reserve's
$740.3 million ICSID award against Venezuela under
the Treaty. Based on these public announcements,
Crystallex understands that the agreement
contemplates a joint venture to mine two properties:
the Las Brisas property, which was the object of Gold
Reserve's Treaty claim and award against Venezuela,
and the Las Cristinas property which is the object of
the Crystallex's arbitral claim. For the avoidance of
doubt, Crystallex has not taken part in the
negotiations between Gold Reserve and Venezuela,
or any other negotiations with Venezuela with
respect to its claim, and will receive no benefits
under the agreement.
Venezuelan government officials -- including
President Nicolas Maduro, President of PDVSA and
Minister of Petroleum and Mines Eulogio Del Pino
and Central Bank President Nelson Merentes -- have
announced that the combined Brisas-Cristinas project
contemplated in the memorandum of understanding
with Gold Reserve is valued at $5 billion. [Crystallex
International Corporation, 1.Mar.2016]
HARVEST NATURAL RESOURCES ANNOUNCES 2015

FOURTH QUARTER AND YEAR-END RESULTS
Harvest Natural Resources, Inc. announced 2015
fourth quarter and year-end earnings.
Harvest posted a fourth quarter 2015 net loss of
$73.2 million, or $1.42 per diluted share, compared
with a net loss of $179.7 million, or $4.23 per diluted
share, for the 2014 fourth quarter. For the yearended 31 December 2015, Harvest's net loss was
$98.6 million, or $2.18 per diluted share, compared
with a net loss of $193.5 million, or $4.60 per diluted
share, for 2014.
The fourth quarter 2015 results include
exploration charges of $0.6 million, or $0.01 pre-tax
per diluted share, and non-recurring items of (i) loss
on the impairment of the Gabon Dussafu Block of
$23.6 million, or $0.46 pre-tax per diluted share; (ii)
loss on the impairment of equity investment in
Petrodelta, S.A. of $84 million, net to Harvest's 51
percent interest in Harvest-Vinccler Dutch Holding
B.V. (Harvest Holding), or $1.63 pre-tax per diluted
share; (iii) gain on the change in fair value of warrant
liabilities of $22.1 million, or $0.43 pre-tax per
diluted share; (iv) gain on the change in fair value of
derivative assets and liabilities of $1.5 million, or
$0.03 pre-tax per diluted share; and (v) income tax
benefit of $15.8 million, or $0.31 per diluted share.
Adjusted for exploration charges and these nonrecurring items, Harvest's fourth quarter net loss,
unadjusted for any income tax effects, would have
been $4.4 million, or $0.09 per diluted share.
The year-end 2015 results include exploration
charges of $3.9 million, or $0.09 pre-tax per diluted
share, and non-recurring items of (i) loss on the
impairment of the Gabon Dussafu Block of $24.2
million, or $0.53 pre-tax per diluted share; (ii) loss on
the impairment of the equity investment in
Petrodelta of $84 million, net to Harvest's 51 percent
interest in Harvest Holding, or $1.86 pre-tax per
diluted share; (iii) gain on the change in fair value of
warrant liabilities of $34.5 million, or $0.76 pre-tax
per diluted share; (iv) gain on the change in fair value
of derivative assets and liabilities of $4.8 million, or
$0.11 pre-tax per diluted share; (v) loss on debt
conversion of $1.9 million, or $0.04 pre-tax per
diluted share; (vi) loss on the issuance of debt and
warrants of $20.4 million, or $0.45 pre-tax per
diluted share; and (vii) income tax benefit of $16.4
million, or $0.36 per diluted share. Adjusted for
exploration charges and these non-recurring items,
Harvest's net loss, unadjusted for any tax effects, for
2015 would have been $19.9 million, or $0.44 per
diluted share.
Venezuela
During the three months ended 31 December
2015, Petrodelta sold approximately 4.1 million
barrels of oil (MMbbls) for a daily average of 44,398
barrels of oil per day (b/d), an increase of 9 percent
over the same period in 2014 and 14 percent higher
than the previous quarter in 2015. Petrodelta sold
0.81 billion cubic feet (Bcf) of natural gas for a daily
average of 8.8 million cubic feet per day (MMcf/d),
decreasing 19 percent over the same period in 2014,
and decreasing 23 percent over the previous quarter
in 2015. Petrodelta's current production rate is
approximately 44,874 b/d.
During the fourth quarter of 2015, Petrodelta
drilled and completed three development wells in
the El Salto field. Currently, Petrodelta is operating
five drilling rigs and one workover rig and is
continuing with infrastructure enhancement projects
in the El Salto and Temblador fields.
The average sales price for crude oil produced
during the quarter was approximately $25.03 per
barrel, compared to $61.96 per barrel during the
fourth quarter of 2014 (adjusted for the approved El
Salto contract recorded during the fourth quarter not
associated with fourth quarter revenue).
The average sales price for crude oil produced
during the year ending 31 December 2015 was
approximately $36.92 per barrel, compared to
$82.45 per barrel during the year of 2014 (adjusted
for the approved El Salto contract recorded during
the fourth quarter not associated solely with 2014
revenue).
During the twelve months ended 31 December
2015, Petrodelta drilled and completed 18 successful
development wells, compared to 13 development
wells in 2014. Petrodelta produced approximately
14.76 MMbbls in 2015, compared to 15.56 MMbbls
during 2014, a decrease of 5 percent year over year.
In addition, Petrodelta sold 3.93 Bcf of natural gas
versus 2.98 Bcf of natural gas in 2015, an increase of
32 percent over 2014. Petrodelta produced an
average of 42,237 barrels of oil equivalent per day
during the twelve months ended 31 December 2015.
As a result of the continued downturn in oil prices,
political and economic uncertainty, continued
deterioration in value of the Bolivar currency in
Venezuela, and the inability to influence the
operations of Petrodelta, the company recorded an
impairment expense on its investment in Petrodelta
of $84 million, net to Harvest's 51 percent interest in
Harvest Holding.
This amount fully impaired Harvest's interest in the

asset in the financial statements at December 31,
2015. Even though the book value is zero, this does
not reflect the value that a potential buyer might pay
for Harvest's interest in Petrodelta.
The company used internal and external data to
arrive at a valuation acceptable under US GAAP to
evaluate the extent of impairment at 31 December
2015.
In order to estimate the fair value of Petrodelta's
equity, the income approach was utilized to estimate
the fair value of Petrodelta's reserves. The key
factors that caused a full impairment of this asset
were, (i) artificial supported exchange rate which is
enforced by the Venezuelan government of 6.3
Bolivars to $1 US Dollar which grossly exaggerates
cost reported in US Dollars, (ii) the poor operating
and drilling performance of Petrodelta which has
compounded the increase of lease operating costs
and drilling costs, and (iii) the high cost of capital of
approximately 25% which reflects the difficult
financial environment in Venezuela.
Corporate
On 2 December 2015, the company received
notification from the NYSE that the Company was not
in compliance with the NYSE's continued listing
standards, which require a minimum average closing
price of $1.00 per share over 30 consecutive trading
days. Under the NYSE's rules, Harvest has a period of
six months from the date of the NYSE notice to bring
its share price and 30 trading-day average share price
back above $1.00. During this period, the company's
common stock will continue to be traded on the
NYSE under the symbol HNR, subject to the
company's compliance with other NYSE continued
listing requirements, but will be assigned the
notation .BC after the listing symbol to signify that
the Company is not currently in compliance with the
NYSE's continued listing standards. As required by
the NYSE, in order to maintain its listing, Harvest has
notified the NYSE that it intends to cure the price
deficiency.
On 4 January 2016, Harvest amended the 15
percent Note with CT Energy and made a loan, via
one of its subsidiaries, to a third party. The parties
involved in the transactions are HNR Energia,
Harvest Holding, HNR Finance, CT Energy and CT
Energia, which is the service provider under the 19
June 2015 management agreement with Harvest and
HNR Finance. Harvest and CT Energy executed a first
amendment (the Amendment) to the 15 percent
Note.
The Amendment, effective as of 31 December 2015,

increased the principal amount of the 15% Note to
$26.1 million, to reflect a loan back to Harvest equal
to the amount of interest that otherwise would have
been due to CT Energy on 1 January 2016, less
applicable withholding tax.
On 4 January 2016, HNR Finance made a loan to
CT Energia in the amount of $5.2 million under an
11.0 percent promissory note due 2019 (the CT
Energia Note), dated 4 January 2016, executed by CT
Energia. The purpose of the loan is to provide CT
Energia with collateral to obtain funds for one or
more loans to Petrodelta. The loans to Petrodelta are
to assist Petrodelta in satisfying its working capital
needs and discharging its obligations. Interest on the
CT Energia Note is due and payable on the first of
each January and July, commencing 1 July 2016. The
full amount outstanding, including any unpaid
accrued interest, is due on January 4, 2019; however,
HNR Finance's sole recourse for payment of the
principal amount of the loan is to payments of
principal and interest from loans that CT Energia has
made to Petrodelta. If and when CT Energia receives
any payments of principal or interest from loans it
has made to Petrodelta, then those proceeds must
be used to prepay unpaid interest and principal
under the CT Energia Note. The source of funds for
HNR Finance's $5.2 million loan to CT Energia was a
capital contribution from Harvest Holding, which, in
return, received the same aggregate amount of
capital contributions from its shareholders, pro rata
according to their equity interests in Harvest Holding.
Of that aggregate amount of capital contributions,
HNR Energia contributed $2.6 million, which it had
received as a capital contribution from Harvest.
[Harvest Natural Resources, Inc., 30.Mar.2016]
ROSNEFT INCREASES STAKE IN PETROMONAGAS JV
WITH PDVSA
Rosneft reached an agreement with PDVSA to
increase the Russian company's interest in the
PetroMonagas JV in Venezuela. The document signed
by the two companies reflects indicative terms and
conditions in relation to the equity acquisition.
Currently Rosneft owns 16.67 percent in this joint
venture, after the transaction is completed Rosneft
will increase its interest to 40 percent of the JV and
PDVSA participation will be reduced to 60 percent.
The document, signed in continuation of the

Memorandum, concluded in June 2015 within the St.
Petersburg International Economic Forum
demonstrates the level of cooperation between the
Companies, at Rosneft's commitment to the
development of leading upstream projects in
Venezuela.
The parties of the Petromonagas JV, already being
one of the most prolific partnerships in Venezuela
(crude oil production in 2015 exceeded 7.7 mln t),
plan to amplify its development by introducing stateof-the-art technologies and raising E&P management
efficiency. [Rosneft, 20.Feb.2016]
EXECUTIVE SUITE
TWO NEW MEMBERS APPOINTED TO PDVSA BOARD
OF DIRECTORS
PDVSA announced appointment of two new
members to its Board of Directors, by decree #2183,
signed by Venezuelan President Nicols Maduro and
published in Official Gazette #40826 on 12 January
2016, in accordance with the existing legal
framework.
Ana Mara Espaa Girardi joins the board as Vice
President of Finance and Internal Director, and Sergio
Antonio Tovar Amaro joins as Internal Director of
Planning.
People's Minister of Petroleum and Mining Eulogio
Antonio Del Pino Daz was ratified as President of the
company. Also ratified were Vice President of
Exploration and Production Orlando Enrique Chacn,
Vice President of Refining, Trade and Supply Jess
Enrique Luongo; Vice President of International
Affairs and Internal Director Delcy Elona Rodrguez
Gmez, Internal Director Aracelis Coromoto Suez de
Vallejo, Internal Director Antn Rafael Castillo, as
well as External Directors Rodolfo Clemente Marco
Torres, Wills Rangel, and Ricardo Menndez Prieto.
[PDVSA, 15.Jan.2016]
PDVSA NAMES FERNANDO PADRN AS NEW
GENERAL MANAGER OF THE CRP
PDVSA named Fernando Padrn as the new
general manager to oversee the company's
Paraguan Refining Center (CRP by its Spanish
acronym) located in Falcn state in the city of Punto
Fijo, in western Venezuela.
Padrn, who replaces Jess Snchez, had been the

general manager at Puerto La Cruz since 2005.
Padrn is an Electrical Engineer who graduated from
Venezuela's Universidad de Los Andes (ULA by its
Spanish acronym), reports the daily Panorama.
Padrn has nearly 35 years of experience in the
hydrocarbon sector including work in the E&P sector
in Zulia and 14 years at the CRP where he was
general assistant manager in 2004. In April 2002, he
worked with the Engineering Installations
Department at the CRP. [LatinPetroleum.com,
30.Mar.2016]
BOARD OF DIRECTORS APPROVES ADJUSTMENTS TO
THE ORGANIZATIONAL STRUCTURE OF PEMEX
The Board of Directors of Pemex approved the
adjustments to the company's organizational
structure in order to generate savings, and make its
operations more efficient in the face of new
challenges in today's economic climate.
During the Board's session, chaired by the Minister
of Energy, Pedro Joaqun Coldwell, the elimination of
the corporate divisions of Human Resources, and
Research and Technological Development was
approved; their functions will be absorbed by the
Corporate Direction of Administration and Services,
and by Pemex Exploration and Production
respectively.
In the same manner, a reduction was approved of
the four executive coordination offices of the
Director General into a single Chief Office.
The Board instructed management to submit new
modifications to the organizational structure of both,
the corporate division, as well as, the productive
subsidiary companies as part of the adjustment to
the budget approved on 26 February 2016.
New appointments
Also, at the request of Director General, Jos
Antonio Gonzlez Anaya, the Board approved the
appointments of Carlos Alberto Trevio Medina as
Corporate Director of Administration, and Jorge
Eduardo Kim Villatoro as Legal Director.
Trevio Medina is a graduate of the Instituto
Tecnologico de Estudios Superiores de Monterrey,
where he studied Food Industry Engineering and
obtained master's degrees in Business Administration
and Science in Food Engineering.
Prior to joining Pemex, he was Director General of
Strategic Planning of the Quality Growth Commission
of the Presidency of the Republic, and Senior Official
at the Ministries of Economy and Energy.
At Pemex he served as Corporate Director of

Finance and Corporate Director of Administration.
He also served as Undersecretary of Expenditures
at the Ministry of Finance and Public Credit, Director
General of Financiera Rural, and Director of Finance
at the Mexican Social Security Institute.
For his part, Jorge Kim obtained a Law Degree
from the Universidad Anahuac; he has a diploma in
International Taxation from the Autonomous
Technological Institute of Mexico, and a master's
degree in Law from University of Kent in the UK.
He served a Director General of Appeals Against
Administrative Acts in the Fiscal Prosecutors Office,
and Chief of the Tax Law Unit in the Department of
Revenue of the Ministry of Finance and Public Credit.
He also served as director of the Contentious "A"
in the Fiscal Prosecutor Office of the Federation, and
as Legal Director of the Mexican Social Security
Institute. [Pemex, 4.Mar.2016]
PEMEXS DIRECTOR GENERAL MEETS WITH THE
POLITICAL COORDINATION GROUP AT THE
CHAMBER OF DEPUTIES
Pemex's Chief Executive Officer, Jos Antonio
Gonzlez Anaya, met with the members of the
Political Coordination Committee at the Chamber of
Deputies to explain the measures to be taken under
the 100 billion pesos adjustment plan, to meet the
company's financial balance goal.
Csar Camacho Quiroz, chairman of this legislative
body, backed the actions that the present
administration of Pemex will execute in order to face
the global impact derived from the significant drop in
oil prices.
Camacho highlighted that the meeting was a step
forward to show the plural approach to consensus,
and reflected the open-mindedness of both parties,
to establish a respectful dialog that encourages the
financial strengthening and support to Pemex, so
that the company can continue to be the Mexican
flagship.
During his participation, the CEO mentioned that
the needed adjustment addresses the liquidity
problem of the company. Also, he stated that the
plan reconsiders and rescales Pemex based on its
new role as a state-owned productive company,
without compromising its long-term viability.
Gonzlez Anaya assured that personnel safety and

infrastructure integrity would be preserved at all
times, and emphasized that the use of the new
instruments allowed by the Energy Reform will be
maximized, in order to develop associations and
strategic alliances that attract both, investments and
new technologies, to every segment of the value
chain.
He also shared that with the tools and flexibility
gained from the Energy Reform, it will be possible to
reverse the production drop and to stabilize it in the
medium term.
Furthermore, he shared that the fundamental
lines of action to execute the adjustment plan are: to
generate efficiencies and reduce costs; to defer or
reconsider investments minimizing the impact on
future production; and to adjust the expenditures
and investments to the drop from $50/bbl to
$25/bbl. He also remarked that Pemex will not
produce crude oil that is unprofitable under the
current levels of prices.
During the meeting, the legislators exchanged
points of view and expressed their concerns on
several topics such as exploration in deep waters,
refined products imports, future income of the
company, current financial conditions, pension
regime and relation with suppliers, as well as the
overall international hydrocarbon market.
Both parties agreed on the need to strengthen the
accountability and transparency mechanisms that
will allow Pemex to be more competitive and
efficient in the new environment resulting from the
market opening in Mexico.
Along with, Camacho Quiroz, from the PRI, Marko
Corts, Francisco Martnez Neri, Jess Sesma, Norma
Roco Nahle, Jos Clemente Castaeda, Luis Alfredo
Valles and Alejandro Gonzalez, parliamentary
coordinators of the PAN, PRD, PVEM, Morena,
Movimiento Ciudadano and Nueva Alianza, were
present at the meeting.
Also, Deputy Georgina Trujillo Zentella (PRI),
president of the Energy Commission at the Chamber
of Deputies, and Felipe Sols Acero, Deputy Secretary
of Legislative Communication at the Secretary of the
Interior, attended the meeting.
On behalf of Pemex, Juan Pablo Newman, Chief
Financial Officer; Carlos Trevio, Acting Corporate
Director of Management and Services; Ren Curiel,
Executive Coordinator at the CEO's Office; and
Rosario Brindis lvarez, Head of the Legislative
Liaison Unit, also attended the meeting. [Pemex,
2.Mar.2016]
JOS ANTONIO GONZLEZ ANAYA TOOK OFFICE AS

PEMEXS DIRECTOR GENERAL
Following appointment by Mexican President Pea
Nieto, Pedro Joaqun Coldwell, Secretary of Energy
and Chairman of the Board of Pemex, presented Jos
Antonio Gonzlez Anaya today as the new Director
General of the state-owned productive company.
Mr. Coldwell highlighted that the new Director of
Pemex has distinguished himself for an admirable
performance in preceding appointments.
Additionally, he noted that in these volatile times he
will have the full support and backing of the Ministry
of Energy. Finally, he wished him success in this new
task.
Mr. Gonzlez Anaya thanked the President for his
appointment, which he considered the most
important of his professional career. After noting
that Pemex faces major challenges in light of the
international oil and gas environment, he stressed
that the company has the talent and commitment of
its employees to grow for the benefit of Mexico.
During the presentation ceremony, held at the
Pemex Executive Tower, Mr. Coldwell also expressed
his recognition to the work carried out by Emilio
Lozoya Austin during the past three years, who in
turn, acknowledged the support given to him by the
Board of Directors, the executive committee and the
employees during his tenure.
Mr. Gonzlez Anaya holds a Bachelor's Degree in
Economics and Mechanical Engineering from the
Massachusetts Institute of Technology and a
Master's Degree and PhD in Economics from Harvard
University.
From 1996 to 2000 he worked at the World Bank
as Senior Economist. Later, he was Head of the Latin
America research program, and professor and
researcher at Stanford University. In 2002 he joined
the Ministry of Finance and Public Credit (SHCP) as
Unit Head of Insurance, Securities and Pensions.
From 2006 to 2012, Mr. Gonzlez served as
Undersecretary of Income at the Ministry of Finance
(SHCP), and from the beginning of President Pea's
administration until 8 February 2016, he served as
Director General of the Mexican Institute of Social
Security (IMSS).
Mr. Gonzlez has published several works on
economics and public policy. [Pemex, 9.Feb.2016]
ANNUAL GENERAL SHAREHOLDERS' MEETING OF

ECOPETROL S.A.
The CEO of Ecopetrol S.A. called on Shareholders
to attend the Annual General Shareholders' Meeting
to be held on 31 March 2016, starting at 9 a.m., at
the International Center of Business and Exhibitions
(Centro Internacional de Negocios y Exposiciones,
Corferias), Bogota, Colombia.
The agenda for the meeting will be:
-- Safety guidelines
-- Quorum Verification
-- Opening by the Chief Executive Officer
-- Approval of the Agenda
-- Appointment of the Meeting's President
-- Appointment of the Commission in charge of
scrutinizing elections and polling
-- Appointment of the Commission in charge of
reviewing and approving the minutes of the meeting
-- Presentation of the report concerning the Board of
Directors' activities, the Board's evaluation of the
Chief Executive Officer's performance, as well as the
company's compliance with the corporate
governance code
-- Presentation of 2015 performance report by the
Board of Directors and by the Chief Executive Officer
-- Report by the Minority Shareholders
Representative
-- Review and consideration of financial statements
and consolidated financial statements as of
December 31, 2015
-- Review of the External Auditor's Report
-- Approval of reports presented by the
Management, and the External Auditor and approval
of Financial Statements
-- Approval of proposal for dividend distribution
-- Election of the External Auditor and assignment of
remuneration
-- Election of the Board of Directors
-- Propositions and miscellaneous
As from 7 March 2016, shareholders will exercise
the right to inspect the books and documents that
the Colombian Commercial Code refers to. This
information may be consulted at the Company's main
offices (Cra. 7 No. 37-69 Bogota, Colombia), in a time
schedule from 7:30 a.m. to 4:00 p.m. 2015
performance report may be consulted on Ecopetrol
Web site.
The resumes of candidates for the Board of
Directors and for the External Auditor are available to
the shareholders on Ecopetrol Web site.
Shareholders that may not attend the

Shareholders Meeting may be represented through
a proxy, granted in writing, which gathers the
requisites established in Colombian Commercial Law.
Shareholders may download from the Web site the
proxy models that may be used.
Except for the cases of legal representation,
managers and employees of Ecopetrol shall not
represent shares other than their own, while in
exercise of their posts, or substitute the powers of
attorney conferred to them. Neither shall they be
able to vote on the year-end financial statements.
In all events, shareholders representation shall
strictly comply with the rules established under
Colombian Securities Law and Regulations, regarding
illegal, unauthorized and unsafe practices of the
issuers of securities. [Ecopetrol S.A., 26.Feb.2016]
DIVESTMENT TRACKER
SELLER
AMOUNT ($)
SUMMARY
Petrobras
$25 mln
Petrobras Argentina (PESA)
$101 mln
COL govt
Ecopetrol
$2.6 bln
--
Petrobras signed with PetroRio S.A. contracts for the sale of 20% of
its stake in the concessions of Bijupir and Salema fields, currently
operated by Shell.
Sale of all of Petrobras Argentina (PESA) assets in the Austral Basin
(province of Santa Cruz) to Compaia General de Combustibles S.A.
(CGC).
Sale of interest in hydroelectric co. postponed until 2015-2016
Ecopetrol to divest of 6.87% stock interest in Empresa de Energa de
Bogot S.A. [El Tiempo]
M&A TRACKER
BUYER
TARGET
AMOUNT ($ MLN)
SUMMARY
Unclosed
Propilco S. A.
1.5 bln Colombian

pesos
Gran Tierra Energy Inc.
PetroGranada Limited
$19 mln
Ecopetrol's board of directors

approved the initial sale of the
company's 100% interest in
Polipropileno del Caribe S. A.
(Propilco S. A.).
Gran Tierra to acquire all issued and
outstanding shares of PetroGranada
Colombia Limited (PGC), which holds
a full 50% undivided working interest
in the E&P contract for the
Putumayo-7 block, in the Putumayo
Basin of Colombia.
PBF Energy Inc.
Chalmette Refining, LLC
$322 mln
Pluspetrol Black River

Corporation
Apco Oil and Gas

International Inc.
CGE
$470 mln
Harvest Natural Resources
$400 mln
Grupo Gas Natural Fenosa

(GNF)
Pluspetrol
$3.3 bln
ExxonMobil and PDVSA reached an

agreement with PBF Energy Inc. for
the sale and purchase of their 100%
in Chalmette Refining, LLC in
Chalmette, Louisiana.
An all-cash transaction
GNF is an indirect owner of
Electricarine, among other
companies while CGE, via Gasco,
controls 20.5% of Colombia's LPG
market.
On 16.Dec.2013 Pluspetrol agreed to
buy Harvest's Petrodelta stake for
$400 mln in two cash transactions:
$125 mln (Dec.2013) and $275 mln
(pending).
EQUITY/DEBT TRACKER
COMPANY
AMOUNT ($)
SUMMARY
Pemex
Pemex
Pemex
Pemex
$750 mln
$1,250 mln
$3,000 mln
0.900 bln
Pemex
1.350 bln
Pemex
5 bln pesos
YPFB Transierra S.A.
$76.35 mln
Phoenix Park Gas Processors

Ltd.
Trecsa
--
Bond matures in Feb.2019 and offers a return (yield) of 5.50%.

Bond matures in Feb.2021 and offers a return (yield) of 6.375%.
Bond matures in Feb.2026 and offers return (yield) of 6.90%.
Bond matures in Mar.2023, offers return (yield) of 5.213% and
coupon of 5.125%.
Bond matures in Mar.2019, offers return (yield) of 3.808% and
coupon of 3.75%.
Pemex issued stock certificates, which mature in Oct.2019 and pay
coupon of TIIE28 + 135 points.
YPFB Transierra S.A., a subsidy of YPFB, issued bonds on Bolivian
stock exchange.
IPO of the shares held by the National Gas Company (NGC) of
Trinidad & Tobago in Phoenix Park Gas Processors Ltd.
Terpel
--
Pemex
$2.5 bln
$87 mln
Empresa de Energa de Bogot (EEB) affiliate Trecsa obtains credit for

electric transmission project.
Terpel stock offering came in at 14,740 Colombian pesos or
$7.71/share.
Co. issues bonds.
LATIN AMERICA RIG COUNT TRACKER

ROTARY RIG COUNT
Oil
Gas
Misc.
LatAm
Land
OS
LatAm
Dec.2012
Dec.2013
Dec.2014
352
364
329
57
49
40
5
4
0
414
417
369
341
341
287
73
76
82
414
417
369
Jan.2015
Feb.2015
Mar.2015
319
307
315
31
26
34
1
22
2
351
355
351
272
283
284
79
72
67
351
355
351
Apr.2015
May.2015
Jun.2015
296
302
288
26
23
25
3
2
1
325
327
314
261
258
252
64
69
62
325
327
314
Jul.2015
Aug.2015
Sep.2015
289
297
294
23
20
24
1
2
3
313
319
321
259
266
265
54
53
55
313
319
321
Oct.2015
Nov.2015
Dec.2015
272
260
242
20
23
25
2
1
3
294
284
270
239
232
213
55
52
57
294
284
270
Jan.2016
Feb.2016
Mar.2016
216
209
195
24
24
20
3
4
3
243
237
218
192
187
178
51
50
40
243
237
218
Source: Baker Hughes
ROTARY RIG COUNT (LAND, OFFSHORE)
Argentina
Bolivia
Brazil
Chile
Colombia
Costa Rica
Ecuador
Mexico
Peru
Trinidad
Venezuela
Other
Total LatAm
Mar.2016
Land
OS
Feb.2016
Land
OS
Jan.2016
Land
OS
Dec.2015
Land
OS
67
5
15
2
4
0
3
10
1
2
67
2
178
64
5
18
3
7
0
4
16
1
2
65
2
187
71
6
19
3
8
0
1
18
0
2
62
2
192
90
5
17
1
11
0
2
18
2
2
63
2
213
1
0
13
0
0
0
0
17
0
5
4
0
40
1
0
17
0
0
0
0
23
0
5
4
0
50
1
0
15
0
0
0
0
25
0
5
5
0
51
1
0
21
0
1
0
0
24
0
5
5
0
57
ROTARY RIG COUNT (OIL, GAS, MISC.)
Argentina
Bolivia
Brazil
Chile
Colombia
Costa Rica
Ecuador
Mexico
Peru
Trinidad
Venezuela
Other
Total LatAm
Oil
Mar.2016
Gas
Misc.
LatAm
61
3
26
0
3
0
3
23
0
3
71
2
195
7
2
2
2
1
0
0
1
1
4
0
0
20
68
5
28
2
4
0
3
27
1
7
71
2
218
0
0
0
0
0
0
0
3
0
0
0
0
3
Oil
Feb.2016
Gas
Misc.
LatAm
56
3
33
1
6
0
4
32
0
3
69
2
209
9
2
2
2
1
0
0
3
1
4
0
0
24
65
5
35
3
7
0
4
39
1
7
69
2
237
LatAm
92
5
38
1
12
0
2
42
2
7
68
2
270
0
0
0
0
0
0
0
4
0
0
0
0
4
ROTARY RIG COUNT (OIL, GAS, MISC.)
Argentina
Bolivia
Brazil
Chile
Colombia
Costa Rica
Ecuador
Mexico
Peru
Trinidad
Venezuela
Other
Total LatAm
Oil
Jan.2016
Gas
Misc.
LatAm
Oil
Dec.2015
Gas
Misc.
63
2
32
1
8
0
1
37
0
3
67
2
216
9
4
2
2
0
0
0
3
0
4
0
0
24
72
6
34
3
8
0
1
43
0
7
67
2
243
81
2
36
0
11
0
2
36
2
3
67
2
242
10
3
2
1
1
0
0
3
0
4
1
0
25
0
0
0
0
0
0
0
3
0
0
0
0
3
0
0
0
0
0
0
0
3
0
0
0
0
3
EP PETROECUADOR EXPORT OIL PRICE

EP PETROECUADOR EXPORT OIL PRICE ($/BBL)
Month
2014
2015
2016
January
February
March
$91.63
$98.36
$96.56
$41.53
$41.57
$42.92
$21.74 e
$22.48 e
$27.78 e
April
May
June
$98.24
$95.97
$99.23
$55.32
$56.67
$53.60
July
August
September
$91.08
$86.27
$83.50
$41.45
$36.71
$40.12
October
November
December
$73.25
$61.45
$45.05
$37.85
$31.14
$27.07
Source: EP PetroEcuador
Note: E: = Estimates
VENEZUELA EXPORT OIL PRICE VS WTI AND BRENT

VENEZUELA EXPORT OIL PRICES ($/BBL)
Venezuela
WTI
Brent
AVG.2014
$88.42
$93.06
$99.61
Jan.2015
Feb.2015
Mar.2015
$40.30
$47.77
$47.09
$47.63
$50.78
$47.99
$49.99
$58.32
$57.30
Apr.2015
May.2015
Jun.2015
$50.50
$56.35
$56.35
$53.89
$59.39
$59.87
$60.46
$65.67
$63.90
Jul.2015
Aug.2015
Sep.2015
$49.38
$40.22
$41.10
$51.73
$42.80
$45.68
$57.23
$48.12
$48.85
Oct.2015
Nov.2015
Dec.2015
AVG.2015
$40.39
$36.53
$30.33
$44.65
$46.26
$43.24
$37.55
$48.86
$49.29
$46.21
$39.21
$53.66
Jan.2016
Feb.2016
Mar.2016
$24.33
$24.25
$29.72
$31.65
$30.65
$37.83
$31.77
$33.53
$39.65
YTD AVG.2016
$27.46
$35.22
$36.94
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Since 2000

CITGO Petroleum Emerges

LATAM ENERGY INVESTOR

Venezuela Hikes Price

HEARD ON THE STREET

Chinese Not Happy In

LATAM RIG COUNTS

5-7 .. HEARD ON THE STREET

8-32 .. NRG BRIEFS

26 .. LatAm Energy Investor

69 .. ECUADOR EXPORT PRICE

Venezuela: LatAm country with most attractive crude

33-34 .. COMPANY BRIEFS

34-35 .. RATING UPDATES

49 .. Citgo Interest Arises In

60-63 .. EXECUTIVE SUITE

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Valero Energy's Aruba Refinery in San Nicolas.

MISC. TABLES (11)

ALL OTHER COUNTRIES

HEARD ON THE STREET

* It only takes a second to reflect on how PDVSA is

* To save energy, Venezuela decrees all Fridays in

* Venezuela: Annual inflation in OPEC country

Oil Reserves and Oil Production

* Venezuela's oil reserves rose 0.4% to 300.9 bln bbls

* Lake Maracaibo oil service cos.' expropriated by

* Venezuela's domestic market consumed 579 Mb/d

Rosneft Petromonagas Deal

* PDVSA oil exports in 2015 were 2.448 MMb/d and

* Rosneft plans to pay $500 mln to PDVSA to boost

Orinoco Heavy Oil Belt or Faja

Mining, Petrochemical and Other

* With Venezuela's oil price below $25/bbl, the Faja

* Water levels at Venezuela's Guri hydroelectric dam

* Venezuela moving forward with plans to certify

* The only way for PDVSA to rid itself of a nearly $15

* Venezuela's chemical sector working at between

* Venezuela's President Nicolas Maduro raised the

* If Venezuela moves away from an oil-dependent

* Since a large majority of vehicles in Venezuela use

* Gold Reserve Inc. announces proposed $38 mln

Operating income was negatively impacted by the

GRAN TIERRA ENERGY UPDATES ON PERU AND

Argentina is looking to increase tariffs and also

ARGENTINA IMPUTES FORMER OFFICIAL FOR

YPF SETS APRIL DATE FOR DEPARTURE OF CEO

ARGENTINA LOOKS TO SAVE $4 BILLION WITH

ARGENTINA PAYS REMAINING DEBT FOR THE

The amount Argentina owed Bolivia had reached

BOLIVIA TO CONTINUE SEARCH FOR OIL DESPITE

BOLIVIA'S GRAN CHACO PLANT TO HAVE INSTALLED

COMPANY DELEGATION FROM HOLLAND VISITS

Morales said he would seek assistance from the

REPSOL AND YPFB TO WORK TO DEVELOP 4 TCF IN

Bolivia seeks to use more of its domestically

The Nueva Esperanza project includes the

The unit will allow the refinery to produce an

BOLIVIA PLANS OIL EXPLORATION AND

BOLIVIA AIMS TO PRODUCE LITHIUM IN THREE

BOLIVIA EXPECTS HYDROCARBON INVESTMENTS OF

PETROBRAS INITIATES PROCESS TO DIVEST OF

COLOMBIA STUDIES USE OF GRAPHITE OXIDE FOR