Investment Opportunities in the Hydrocarbon Sector of Peru Eng. Winston Wusen January 14 th, 2013
PERÚ An attractive country to invest in oil and gas hydrocarbon activities
1. PERUPETRO S.A.
WHO IS PERUPETRO S.A.? State private law company, from the Energy and Mines Sector, created in 1993 by Law N 26221 Organic Law of Hydrocarbons NEGOTIATES MANAGES AND TRANSFERS ROYALTIES PROMOTES Subscribe Contracts MONITORS MANAGES CONTRACTS INFORMATION
CONTRACT LAW Established under Article 62 of the Political Constitution of Peru - 1993. 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.
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.
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.
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.
2. PERU GENERAL INFORMATION AND MAJOR PROJECTS
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 5 1 2 4. South Ucayali Basin: Gas and LNG in Camisea 3 PERU: 149 YEARS OF PRODUCTION HISTORY 4 5. Talara and Tumbes Basins: Light Oil
EXPLORATORY WELLS BY BASIN 32 MM has. (123.5 M sq. miles) available Exploratory Wells % 18 BASINS Talara 1,299 84.68 Marañón 115 7.50 Ucayali 59 3.85 Sechura 24 1.56 Tumbes - Progreso 13 0.85 Santiago 7 0.46 Madre de Dios 6 0.39 Trujillo 4 0.26 Titicaca 4 0.07 Pisco 1 0.07 Huallaga 1 0.00 Lima 1 0.00 Mollendo 0 0.00 Salaverry 0 0.00 Moquegua 0 0.00 Bagua 0 0.00 Ene 0 0.00 1,534 100.00 Océano Pacifico
NON DRILLED STRUCTURES 250Km (155miles)
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
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 8 28 7 8 1 3 3 5 4 10 250Km (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 6 12 9 13 9 11 LO Light Oil 3 HO Heavy Oil 3 GC - Gas / Condensates 6 NCG Non Conventional Gas 1
MBPD LIQUID HYDROCARBONS PRODUCTION er day) 400 320 240 160 80 0 1990 1995 2000 2005 2010 2015 2020 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.
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 30,715 874 04.03.1993 03.03.2013 III InterOil Perú S.A. (100%) Talara Province, Piura City 35,693 3,475 05.03.1993 04.03.2013 IX Petrolera UNIPETRO ABC S.A. Talara Province, Piura City 1,554.133 231 17.06.1993 16.06.2013 31 B/D The Maple Gas Co. del Perú, Peruvian Branch Loreto and Huánuco Cities (62,500 y 8,550) 342 30.03.1994 29.03.2014 VII-VI Sapet Development Perú Inc., Peruvian Branch Talara Province, Piura City 34,444.83 2,809 22.10.1993 24.07.2015 1-AB Pluspetrol Norte S.A. (100%) Alto Amazonas Province Loreto Northern Jungle 497,027.33 17,638 22.03.1986 29.08.2015 II Petrolera Monterrico S.A. Talara Province, Piura City 7,707.42 570 05.01.1996 04.01.2016
BLOCKS ABOUT TO EXPIRE OIL RESERVES ( MBLS) TO 31.12.2010 BLOCK REGION COMPANY PROVEN DEVELOPED NON DEVELOPED TOTAL PROVEN PROBABLE POSSIBLE II NOR WEST PETROLERA MONTERRICO 3,174 904 4,078 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 1,139 30 1,169 815 1,270 31 B /31 D CENTRAL JUNGLE MAPLE 1,669 560 2,229 968 584 1-AB NORTH JUNGLE PLUSPETROL NORTE 62,654 14,684 77,338 196,616 76,635 NATURAL GAS RESERVES (BCF) TO 31.12.2010 BLOCK REGION COMPANY PROVEN DEVELOPED NON DEVELOPED TOTAL PROVEN PROBABLE POSSIBLE II NOR WEST PETROLERA MONTERRICO 2.8 0.8 3.6 1.9 5.5 III NOR WEST INTEROIL PERU S.A. 0 0 0 19.5 10.2 IV NOR WEST INTEROIL PERU S.A. 0 0 0 6.2 8.7 VII/VI NOR WEST SAPET 12 4 16 5 9 IX NOR WEST UNIPETRO 0 0 0 0 2 31 B / D CENTRAL JUNGLE MAPLE 0 0 0 0 0 1-AB NORTH JUNGLE PLUSPETROL NORTE 0 0 0 72.7 28.4
Blocks II, III, IV, VI-VII, IX CONTRACTS ABOUT TO EXPIRE
Blocks 1-AB, 31 B-D CONTRACTS ABOUT TO EXPIRE
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.
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 2007 2008 2010 47 57 38 Companies that qualified 31 41 26 Blocks awarded 13 17 11 Claims and challenges of bidders 0 0 0 Minimum Royalty Average 26 32 26
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
SEISMIC AND WELLS AVAILABLE INFORMATION
NON DRILLED STRUCTURES 250Km (155miles)
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 http://www.perupetro.com.pe
PRIOR CONSULTATION 30.08.2011, 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). 02.04.2012, 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.
Thank you very much! www.perupetro.com.pe