2018 Offshore Technology Yearbook

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2018 OFFSHORE TECHNOLOGY YEARBOOK | KEY PLAYERS 18 | December 2017 | second-quarter 2017 was the third consecutive quarter that the company saw positive net results. Net income in second-quarter 2017 was 33 billion Mexican pesos ($1.7 billion), compared with a net income loss of 83 billion Mexican pesos ($4.3 billion) in the second quarter of 2016. In 2016, Pemex discovered two fields in deep- water GoM and three in shallow water. Nobilis and Doctus were discovered in the deepwater of the Cinturón Plegado Perdido and contain 301 MMboe. Teca, Pokche and Uchbal were discov- ered in shallow water near Tabasco, Mexico, with 383 MMboe. Pemex implemented a $5.4 billion (MXN 100 billion) budget cut in 2016. Pemex has opened the bidding process for farm-outs in four blocks: Trion, Ogarrio, Cárdenas-Mora and Nobilis-Max- imino. BHP Billiton signed a farm-out agreement to develop the deepwater Trion Block with a con- sortium of Pemex. The push for farm-outs is in line with Pemex's financial strategy to share risks and stabilize and increase production. During Mexico's National Hydrocarbons Com- mission Round 1.4, Pemex, in consortium with Chevron and INPEX, was awarded Block 3 north of the Plegado Perdido Belt in the GoM. In CNH's Round 2.1, Pemex was awarded two blocks in Round 2.1: Block 2 in the Tampico-Misantla Basin, west of the Gulf of Mexico, and the Southwest- ern Basins. Pemex signed contracts with Deutsche Erdoel AG in Block 2 and Ecopetrol in Block 8 to jointly explore the areas. Pemex is operator of both blocks with a 70% stake in Block 2 and a 50% stake in Block 8. The Ogarrio and Cárdenas-Mora blocks were awarded to Deutsche Erdoel AG and Cheiron, respectively. In addition, the bidding process for Nobilis- Maximino will be held in January 2018. Pemex was assigned a new area in deepwater Gulf of Mexico in the Cinturón Plegado Perdido area, located south- west of Nobilis and the Chachiquin exploratory prospect. Petrobras • Ranked No. 75 on Fortune's Global 500 list • Began production in Lula South area Petrobras, Brazil's state-run energy company, is active in 19 countries with more than 68,800 employees. The company produces more than 2.7 MMboe/d. The company's operations are focused in Brazil. Its portfolio is concentrated in the south- east region, with most of the oil reserves located in maritime fields in deep and ultradeepwater located in the Campos, Santos and Espírito Santo basins. In first-half 2017, Petrobras achieved a net income of R$4.765 billion (US$1.45 billion), com- pared with a loss of R$876 million (US$266 million) in first-half 2016. During this period, Petrobras recorded an average production of oil and natural gas of 2,791 Mboe/d, with 2,671 Mboe/d produced in Brazil, 6% higher than in the first quarter of 2016. By 2021, Petrobras expects to achieve total pro- duction of 3.41 MMboe/d, and will have invested US$60.6 billion in upstream operations, with an emphasis on deep water according to the 2017- 2021 business and management plan. This equates to 82% of the company's total investment, up slightly from the 81% share of capex for upstream in the 2015-2019 plan. Overall, capex is down 25% for the 2017-2021 plan period compared with the 2015-2019 business and management plan, from US$98.4 billion to US$74.1 billion. Petrobras is prioritizing deepwater production, working pri- Pemex's 2017- 2021 Business Plan outlines how the com- pany is to reach its primary sur- plus in 2017 and achieve finan- cial balance in 2019/2020. (Photo courtesy of Pemex)

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