Investment Opportunities in the Hydrocarbon Sector of Peru. Eng. Winston Wusen January 14 th, 2013

Transcription

1 Investment Opportunities in the Hydrocarbon Sector of Peru Eng. Winston Wusen January 14 th, 2013

2 PERÚ An attractive country to invest in oil and gas hydrocarbon activities

3 1. PERUPETRO S.A.

4 WHO IS PERUPETRO S.A.? State private law company, from the Energy and Mines Sector, created in 1993 by Law N Organic Law of Hydrocarbons NEGOTIATES MANAGES AND TRANSFERS ROYALTIES PROMOTES Subscribe Contracts MONITORS MANAGES CONTRACTS INFORMATION

5 CONTRACT LAW Established under Article 62 of the Political Constitution of Peru Contracts between Government agencies and private investors may only be modified by agreement of the Parties. Neither Congress nor the Government can amend the "Contract-Law." The Constitution guarantees equal treatment for domestic investment and foreign investment.

6 HYDROCARBONS LEGAL FRAMEWORK ORGANIC LAW OF HYDROCARBONS Imports of goods and services during the Exploration Phase is exempted from taxes. Early Return of General Sales Tax (GST) during the Exploration Phase. The Contractor shall freely dispose the hydrocarbons produced in the block, and can be exported free of charge. Freedom to set the selling prices of hydrocarbons according to supply and demand.

7 LICENSE CONTRACT IN PERU The Contractor owns 100% of the Hydrocarbons produced. Contract Term: 30 years for oil exploitation, and 40 years for non associated Natural Gas exploitation. Exploration Term: 7 years, with possibility of extension for 3 years. 100% of the risk is assumed by the Contractor. The Contract considers the payment of Royalties for the Fiscalized Hydrocarbons.

8 CONTRACT STABILITY IS BASED ON: The Contract is approved by Supreme Decree - the same level as a Congress Law Contract Law. The Contract is signed by PERUPETRO S.A. as a Public Limited Company", therefore is subject to the rules for private companies. International Arbitration is considered in the Contract; a specific clause for this matter is included.

9 2. PERU GENERAL INFORMATION AND MAJOR PROJECTS

10 HC OCURRENCE IN PERU THE SUBANDEAN MEGATREND IN PERU 1. West Marañón Basin: Light Oil 2. East Marañón Basin: Heavy Oil 3. North Ucayali Basin: HC occurrence South Ucayali Basin: Gas and LNG in Camisea 3 PERU: 149 YEARS OF PRODUCTION HISTORY 4 5. Talara and Tumbes Basins: Light Oil

11 EXPLORATORY WELLS BY BASIN 32 MM has. (123.5 M sq. miles) available Exploratory Wells % 18 BASINS Talara 1, Marañón Ucayali Sechura Tumbes - Progreso Santiago Madre de Dios Trujillo Titicaca Pisco Huallaga Lima Mollendo Salaverry Moquegua Bagua Ene , Océano Pacifico

12 NON DRILLED STRUCTURES 250Km (155miles)

13 HC PRODUCTIVE AREAS LIQUID HYDROCARBONS MARAÑON BASIN Cumulative 1,000 MMBO TALARA BASIN Cumulative 1,500 MMBO UCAYALI BASIN Cumulative 130 MMBC GAS Daily UCAYALI BASIN 82 MBCD 1,000 MMCFGD

14 LAST YEARS DISCOVERIES 3 BASIN YEAR HC TYPE 1. Marañón 2005 LO 2. Talara 2005 LO 3. Marañón 2005 HO 4. Marañón 2006 HO 5. Marañón 2006 HO 6. Ucayali Sur 2007 GC 7. Talara 2007 LO 8. Talara 2008 Gas Km (155millas) 9. Ucayali Sur 2005 GC 10. Ucayali Norte 2009 NCG 11. Ucayali Sur 2010 GC 12. Ucayali Sur 2011 GC 13. Ucayali Sur 2011 GC HC TYPE N LO Light Oil 3 HO Heavy Oil 3 GC - Gas / Condensates 6 NCG Non Conventional Gas 1

15 MBPD LIQUID HYDROCARBONS PRODUCTION er day) Oil LGN Camisea Liquid Natural Gas production has reversed the declining trend of oil production. Light and heavy oil discoveries in the Jungle increase production in the medium term.

16 CONTRACTS ABOUT TO EXPIRE Block Contractor Location Area (Ha) Production (B/D) Date of Subscription Ending Date IV InterOil Perú S.A. (100%) Talara Province, Piura City 30, III InterOil Perú S.A. (100%) Talara Province, Piura City 35,693 3, IX Petrolera UNIPETRO ABC S.A. Talara Province, Piura City 1, B/D The Maple Gas Co. del Perú, Peruvian Branch Loreto and Huánuco Cities (62,500 y 8,550) VII-VI Sapet Development Perú Inc., Peruvian Branch Talara Province, Piura City 34, , AB Pluspetrol Norte S.A. (100%) Alto Amazonas Province Loreto Northern Jungle 497, , II Petrolera Monterrico S.A. Talara Province, Piura City 7,

17 BLOCKS ABOUT TO EXPIRE OIL RESERVES ( MBLS) TO BLOCK REGION COMPANY PROVEN DEVELOPED NON DEVELOPED TOTAL PROVEN PROBABLE POSSIBLE II NOR WEST PETROLERA MONTERRICO 3, ,078 2,174 6,329 III NOR WEST INTEROIL PERU S.A. 10,619 4,435 15,054 7,330 11,700 IV NOR WEST INTEROIL PERU S.A. 4,131 1,730 5,861 1,225 10,000 VII/VI NOR WEST SAPET 13,971 4,580 18,551 5,582 9,730 IX NOR WEST UNIPETRO 1, , , B /31 D CENTRAL JUNGLE MAPLE 1, , AB NORTH JUNGLE PLUSPETROL NORTE 62,654 14,684 77, ,616 76,635 NATURAL GAS RESERVES (BCF) TO BLOCK REGION COMPANY PROVEN DEVELOPED NON DEVELOPED TOTAL PROVEN PROBABLE POSSIBLE II NOR WEST PETROLERA MONTERRICO III NOR WEST INTEROIL PERU S.A IV NOR WEST INTEROIL PERU S.A VII/VI NOR WEST SAPET IX NOR WEST UNIPETRO B / D CENTRAL JUNGLE MAPLE AB NORTH JUNGLE PLUSPETROL NORTE

18 Blocks II, III, IV, VI-VII, IX CONTRACTS ABOUT TO EXPIRE

19 Blocks 1-AB, 31 B-D CONTRACTS ABOUT TO EXPIRE

20 BIDDING ROUNDS The Organic Law of Hydrocarbons allows PERUPETRO to carry out contracting by direct negotiation or call for tender. To achieve greater transparency in hydrocarbon contracting and competitive Royalties payment for the State, and in accordance to international market scenery, PERUPETRO opted for public tenders, under the mode of Bidding Round. Bidding Rounds for Hydrocarbon Contracting were organized by PERUPETRO since 2007.

21 RESULTS OF THE BIDDING ROUNDS The Bidding Round 2010 is the third process carried out by PERUPETRO, based on royalty bids and exploratory works. The number of blocks awarded as well as the engaged Royalty average in the previous bidding rounds were as follows: Companies that submitted letters of interest Companies that qualified Blocks awarded Claims and challenges of bidders Minimum Royalty Average

22 BIDDING ROUND 2013 MARAÑON 30 BLOCKS IN 4 BASINS FOR HYDROCARBON EXPLORATION ACTIVITIES LAST QUARTER OF THE YEAR TRUJILLO UCAYALI MADRE DE DIOS For further information: promotion@perupetro.com.pe

23 SEISMIC AND WELLS AVAILABLE INFORMATION

24 NON DRILLED STRUCTURES 250Km (155miles)

25 THE DATA BANK 1. All seismic, well data and logs and technical reports available 2. To de downloaded immediately 3. Information and data free of cost

26 PRIOR CONSULTATION , was enacted the "Law of Right to Prior Consultation to Indigenous or Native Peoples, recognized by the Convention 169 of the International Labour Organization (ILO) , was enacted the Regulation of the Law N 29785, Law of the Right to the Prior Consultation to Indigenous or Native Peoples, recognized by the Convention 169 of the International Labour Organization (ILO). It is under evaluation as prerequisite to the launch of the Bidding Round 2012.

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28 Thank you very much!