Petro Rio S.A. ADR fka HRPTY

[DrillaHill]

"100,000bbl/d by the end of 2016" - 01/28/2016

www.petronoticias.com.br/archives/79555

google translator:

PETRORIO EXPANDS INVESTMENT IN PRODUCTION AND STUDIES TO BUY ASSETS OF PETROBRAS

In a market with increasingly active sale, some Brazilian companies swim against the tide and enjoy the moment of crisis to invest in short-term production projects. It is with this vision that works today PetroRio, a company that is focusing on the expansion of its productivity and is seeking to acquire new fields to consolidate in a future resumption of the oil and gas sector. The oil, which accounts for an average production of 9000 barrels per day at Polvo field in the Campos Basin, seeking to reach the mark of 100 thousand barrels per day by the end of 2016 and evaluates the purchase of areas that are starting their life. According to Project Director PetroRio, Queiroz Nelson Tanure, the company is studying acquire Petrobras assets to expand its project portfolio, which in addition to Octopus, has only the fields of Bijupirá and Salema, still with its pending acquisition in National Petroleum Agency (ANP). The company is expected to release already happening in the first quarter of this year, which will raise your productivity to the level of 30,000 barrels per day.

Despite the economic losses from the low price of oil, the company designs optimistic goals for 2016. According to the financial director of Business Development and Relations blener mayhew Roberto Monteiro Investors Blener Mayhew (left.), The expectation is that the company finished the year with a turnover of R $ 800 million and R $ 1.5 billion. In addition to the cash generation with new inputs into production, PetroRio continues to cut spending and renegotiating contracts in Polvo field, which since 2014 was down $ 75 million in its total cost. The oil company has been adapting its operations to a leaner and more efficient model, according to the Operations Director, Roberto Monteiro (right.). Although smaller, the courts applied this year will reduce by 30% the total cost of the company.

What is today the PetroRio strategy to grow in the market?

Since 2014, the PetroRio is fully focused on production company. Before we had our focus on exploration, but sell these projects and today we have a major asset, which is the Polvo field in the Campos Basin. It is an area that currently produces 9000 barrels per day. In addition, we are awaiting the approval of the purchase of Bijupirá and Salema fields, which produce around 20,000 barrels per day. That's our focus.

At what stage is the production at Polvo field?

We are currently making a redevelopment campaign, and our expectation is that the field skip up to 11 thousand barrels per day when completed.

When this should happen?

In the short term. The campaign is scheduled to end between the next 30 to 50 days.

There is already planning for a new stage?

Depending on the results and the data collected, we will evaluate new reentry around each of the prospects. There are new targets, but we need to confirm some reservoir of information that we are doing today to assess future. All these entries generate return, even though it has decreased.

What are the company's plans for the purchase of new assets?

We all focus on production. We hope that buying Bijupirá and Salema is approved soon, in the first quarter of this year, and it will go up for a quite substantial scale. But still looking to acquire assets. We become one company with two very important assets, both in production and we are ready to go shopping. We cost and low debt, and have box. In addition, we have strong partnerships with funds and banks ready to invest, both to be partners and to finance new acquisitions. So looking ahead in 2016, one of the few positive factors with the oil drop is the number of assets for sale, and it is precisely this movement that we want to capture.

The PetroRio evaluates acquire Petrobras projects?

Petrobras is one of the major vendors in this market, and we have every interest in participating in this process. We bought Bijupirá, which was 20% Petrobras and 80% of Shell, and already there we had a successful acquisition. We are called to some other assets that were selling, and must be called to those who still come. Surely buy Petrobras assets is something that interests us.

How is this process?

We are managing to look very active at the same time and make a decision to go ahead or not. A peculiar feature of PetroRio that larger companies do not have, we can be a nimble company due to our size. Among evaluate one or more assets, we go through the decision-making process, talking to banks about financing, all very fast. This has been an advantage.

Some assets are in advanced stages of negotiation?

Not yet. We want areas that have just come into production. The earlier in life the better. We prioritize Brazil, but we are looking to Latin America. Already participate in some projects in the North Sea, the other in Africa, and we evaluate today the global stage.

The company focuses on some basin in Brazil?

We are interested in the Campos Basin, the location and for being the most prolific in Brazil, but also in the Santos Basin. Proven basins are the best for us, not try to do anything border.

The PetroRio continues with the goal of reaching 100,000 barrels per day by the end of the year?

To be continued. The sooner we can, in fact, but should be within this year.

The company is reducing costs in Polvo field?

We have already reduced many costs Octopus. In 2013, when it was BP, it cost about $ 220 million; in 2014, it stood at $ 180 million. We hope to close in 2015 with the cost around US $ 105 million, and by 2016 we should have a greater reduction yet. This is how the company has responded to the drop in oil prices. We are feeling a direct impact on our every sale, but the entire industry feels. Contractors are tightening and renegotiating, and we have managed to significantly reduce the cost of the company.

The company is renegotiating its contracts?

All. Without citing numbers, we will reduce significantly as well. Now that the oil reached $ 30, we expect suppliers to be cooperative, as we have seen, and reduce prices further.

This renegotiation has been made with a main focus?

We renegotiated support boats several times, aircraft, supplies and service providers. We renegotiated our 20 major contracts, which represent around 90% of costs. In addition, we changed the scope of some areas. We exchanged our logistics base, our supplier of helicopters and our operation in the fixed platform. Nothing remained the way it was. We try to operate with as little as possible while preserving efficiency and safety.

That reduction in forecast total cost of the company in 2016?

Between 2014 and 2015, the company had a drastic reduction. Now, in 2016, it will not be as strong. This cut was made ??with project closure in Namibia, in the Solimões, from offices in Canada, in Houston, firing people and other factors. No more will all this reduction, because the company is leaner and we have the team we need to grow. We have adopted most of the measures in advance, renegotiate everything. Then this year we can expect a smaller reduction of 20% to 30%, but we downsizing.

How many layoffs have been made so far?

Eventually we had 600 people in the company in 2013. In 2014, there was already a natural cut the old administration for 200 people. Since then, we have 80 employees.

How do you assess the current situation of the Brazilian oil industry?

There are many vendors and Petrobras is pressed to sell production assets. In addition, with the acquisition of BG, Shell must put assets for sale, as well as other relevant producers in the country. This is the scenario of the global market, but can be viable with low oil and take advantage of opportunities through smart acquisitions.

The PetroRio works today with that barrel price recovery forecast?

We cheered for the best and prepare for the worst. For the purposes of our budget, we use a low price, around US $ 30. But the recovery of the industry, in turn, can start to happen later this year or early 2017.