Some Big boys are contemplating some steam
http://blog-economiaonline.com/2015/01/26/nelson-queroz-tanure-apresenta-os-planos-da-petrorio-ex-hrt/ Nelson Queiroz Tanure presents plans PetroRio
Nelson Queiroz Tanure 1 The influential journalist Geraldo Samor, which took passage by the Wall Street Journal, published in its SEE Markets column an ??interview with the executive Nelson Tanure Queiroz, son of Nelson Tanure businessman who led a major change in the management of PetroRio, the new brand of oil HRT. Objective and frank, Nelson Q. Tanure, director of the company's projects, explained the company's plans, which just bought the fields of Bijupirá and Salema, Shell.
Here is the full interview:
HRT oil company is undergoing a transformation that simply seemed unlikely, leaving behind its history of megalomaniac promises, cash burn and erratic execution. In the new narrative, which begins to please the market: opportunistic acquisitions and preserve cash.
As OGX of Eike Batista, HRT made ??a espetaculoso IPO and years later flipped spectacularly, leaving its shareholders with the proverbial paintbrush in mão.Nelson Queiroz Tanure
But in recent months, and under new management, the company started selling non-core assets, cut costs ambeviana obsession, and - to complete - bought two Shell oil fields that will triple its production. To leave no doubt about the break with the past, the company also has just changed its name to PetroRio.
Behind this new agenda is the Nelson Tanure entrepreneur, the largest single shareholder of PetroRio, and his son, Nelson Tanure Queiroz, director of the company's projects, who spoke to SEE markets yesterday.
In the dictionary of Tanure, 'projects' means doing more of the same: buy other assets in production, low prices that make PetroRio the consolidator of an industry that lives today with oil at $ 50 per barrel and the aversion of the majors ( the largest oil companies in the world) to invest in Brazil.
Only in the three trading days since the purchase of Shell's fields, PetroRio more than doubled its market value. Yesterday, the company, which had 400 million reais in cash at the end of the third quarter, ended the day worth 187 million.
How did the opportunity to buy the Bijupirá and Salema fields Shell?
Shell had relationship with some people of PetroRio, and they began a formal process of asset sales. We were one of the guests, and essentially were Brazilian and Chinese companies who participated.
You are selling non-core assets, such as the Solimões Basin and Namibia concessions. How is this process?
Bijupirá-Salema is part of the company's plan to buy assets in production, assets that represent a lower risk against the company and was done in the past. In relation to assets that the company still has this past, especially the blocks in the Solimões and the blocks in Namibia, both are part of the previously announced plan of divestiture to have an exploratory profile. Given the company's strategy to reduce risk, they no longer fit in our profile.
When you expect to have completed these divestments?
By the end of February, early March, for sure.
Why Glencore is financing the transaction? She was already trading company that bought those oil fields?
No. Glencore is financing the transaction for a few reasons. The first is because she likes the asset. Second, she likes the PetroRio and wants closer ties with the company, and we want to strengthen our relationship to it. The third is because she has naturally interest in selling the oil that we produce both the Polvo field [where PetroRio holds 60%] and, in a very short in Bijupirá. Today, it is the trading Shell marketing the oil Bijupirá.
After this purchase, as is the PetroRio cash position?
Glencore is funding 80% of the purchase price, and we are paying 20% ??with our cash. We have a very strong policy to preserve cash. The company has no debt. Her box today enough to pay all debts and still have money.
When you entered the HRT, there was almost a war on the board, with each proposing a direction for the company. What direction did you choose?
One of the things we have done more in the company is to introduce common sense. Márcio [Mello, founder of HRT] has all the qualities, is a guy entrepreneur, a great guy. But it's amazing how the company lacked common sense. From the moment we entered the company - we invested a year - much of what we did and that has generated value for the company are obvious things. You saw a decision being taken, you stopped to ask two or three questions, or they had no answers, or the answers did not satisfy.
In addition, we have given chance and resources for executives who are good and well prepared for them to have autonomy and responsibility. We have taken those with state culture, that it's time he wants and leaves the time you want, with giant salaries regardless of result .. that ended within the company! What's there today are very prepared people, very qualified, very autonomy and many goals. People wearing the shirt. The new office is all open, everyone is on the same floor without rooms. The directors sit in front of others. All the talk there has to be good and make sense to anyone who is listening or agree or disagree with you, to improve what is being done. Did you try an approach with OGpar (formerly OGX) to a merger with PetroRio. How are these conversations?
Look, we are studying all the assets in the market: those for sale and those that are not. As for OGPar, make much sense, because the Tubarão Martelo field is adjacent to the Polvo field, then it has a lot of synergy there. They also have the BS-4 up there, the fields of Atlanta and Oliva, which are developing fields and will start producing in a few years. In 2013, when we began to study the oil and gas sector, we study the two companies: HRT and OGPar. Study these very companies. We currently have no ongoing negotiation with them.
A possible merger with OGPar bring debt to PetroRio?
No, because all debts it is being converted into shares.
You want to lead the consolidation of small businesses, taking advantage of this time to market?
This oil and gas industry has a very interesting thing. When oil falls much more worthwhile for a company to buy another that is cheap and has various fields with more certain perspective than buying an exploratory field and having to make any investment ... So this time of low oil is conducive for mergers and acquisitions. Who has box will be able to buy a company that has multiple active, good executives and everything working. It is better to buy a company so than spend money running the exploration risk of an asset, make all the seismic, etc.
You want to make a story to the capital market, or will administer PetroRio as a family business?
Let's play that company we play all our other: meritocracy, growth, bedding, result. Oil fell a lot and we are taking all measures to restructure the company, renegotiate contracts and can buy ideally solid companies with good assets and cheap. Our vision is long term and based on the foundation and delivery of results.
But you want that the market is on board?
Yes, for sure. We are starting a working relationship with the banks and other players in the industry, but our vision with respect to the capital market is to deliver results. In the case of Bijupirá Salema, we think they did a good buy, we pay a good price, and then we will do the same Octopus: we operate it more efficiently and cheaper than Shell, ideally. This is already a reality: we already operates Octopus with more efficiency than BP [who HRT bought the field].