New Projects Portfolio Hydrocarbons · talara basin hc province • first well in 1863 •...
Transcript of New Projects Portfolio Hydrocarbons · talara basin hc province • first well in 1863 •...
• By Ronald Egúsquiza
• Promotion Manager, Perupetro
18th Meeting, Iquitos- Peru, 04 March 2008
Business Network Forum
New Projects Portfolio
Hydrocarbons
Perupetro S.A.
With more than
2,000 km shore in front
the Pacif Ocean
It is becoming a "regional
hub" in the South
American Pacific Area.
Peru
Peru
84 E&P Contracts
19 Exploitation
65 Exploration
06 TEA
Coalbed
Methane
Diesel from
Bitumen
Peru
84 E&P Contracts
19 Exploitation
65 Exploration
Heavy Oil
Modernization
Talara Ref.
LNG Project
Petrochemical
Industry
Contract Stability
Competitive Royalties
Flexible work programs
Huge Natural Gas Potential
Heavy and Light Oil discoveries
Perupetro S.A.:
In process
to launch 2008
Bidding Round in Peru
Open acreage for E&P
License Contract
New Projects Portapolio: E&P License Contracts
According to law, its social objectives include amongst others :
Promote investment in hydrocarbons exploration and production activities.
Negotiate and subscribe oil contracts on behalf of the Peruvian State.
Exercise the supervision of such oil contracts.
Management of State Oil Revenues and transferral of these to Central Government.
PERUPETRO S. A. is a State Company created in 1993
by Law N° 26221 - Hydrocarbons Organic Law.
Started activities on 18.11.93.
PERUPETRO S.A. DEC, 2007
ADVANTAGES OF PERU’S CURRENT
HYDROCARBONS LAW (1993)
Freedom to bring in and repatriate funds
to and from Peru. No permits required.
Absolute freedom to sell all hydrocarbons produced.
Exports are tax exempt.
Absolute freedom to fix sales prices according to
supply and demand.
Possibility of International Arbitration.
LICENSE CONTRACTS IN PERU
Royalty Contract .
License instead of concession.
100% risk taken by Oil Companies.
Oil Companies own 100% property of hydrocarbons
extracted by them.
Terms: 30 years for oil, 40 years for Natural Gas.
Exploration 7 years, possible 3 years extension, to
complete up to 10 years.
Local labor: free market.
No quotas for local market.
Direct Negotiations and Public Biddings
PERUPETRO S.A. DEC, 2007
Stability: Macroeconomics
0
2
4
6
8
80 82 84 86 88 90 92 94 96 98 00 02 04 06
6,4
5,2
3,9
5,2
Peru
7,6
8,9
07*
Developed
World
GD
P G
row
th(A
nnual va
riation %
)
Sustained economic growth with average annual
forecast greater than 7% for 2006 – 2010*
(*)Forecasted by Central Reserve Bank of Peru and the Ministry of Economy and Finance.Source: International Monetary Fund and the Central Reserve Bank of Peru.
Source: Bloomberg
Sustained lower country risk compared with Latinamerica average risk index
Updated October, 20th 2007
100
200
300
400
500
600
Oct-
07
Aug-0
7
May-0
7
Mar-
07
Jan-0
7
Oct-
06
Aug-0
6
Jun-0
6
Apr-
06
Feb-0
6
Dec-0
5
Oct-
05
Aug-0
5
May-0
5
Mar-
05
Jan-0
5
Nov-0
4
Sep-0
4
Jul-04
EMBI + Peru Latinamerica
Dec 31, 2003:
27 (12 Ex, 15 Prod.)
2000
2001
2002
2003
1
4
2
2
2004
2005
2006
2007
Peru’s Signed Contracts
PERUPETRO S.A.
Actions already taken to improve exploration in Peru
Three lines of action:
• Improved technical information
accessibility.
• Enhanced economic incentives for
contracting. Let the market fix new
level of royalties for the State.
• Improved contract model allowing
shorter period of negotiations.
PERUPETRO S.A. DEC, 2007
Actions that we have taken:
• All technical information free of cost.
• New basin studies.
• Information available through internet
http://www.perupetro.com.pe
• Quality Control for technical data.
• Available information of open acreage.
Improved technical information accessibility
An innovative method for new royalties: “MINIMUM OF 5%” :
• Transparent – No negotiation.
• Easy to apply.
• TWO OPTIONS TO BE CHOSEN FROM BY THE E&P Co.:
a) Production Level
b) Economic Results
• The E&P Co. will choose its best option at the optimal
moment:
“At the point of announcing a commercial discovery”.
•Additional royalties to be added as part of bidding rounds.
Improved Economic Contract Conditions
PERUPETRO S.A. DEC - 2007
Actions that have been taken:
• New Royalties Method reduces negotiation period.
• Flexible Work Minimum Program based on
UTE’s (Unidades Técnicas de Exploración).
The Oil Company decides its best work program based on the available information.
• Flexible term of periods during the exploration phase,
depending on the amount and availability of
technical information in our Data Bank.
Improved Contract Model
PERUPETRO S.A. DEC- 2007
STABILITY OF CONTRACTS IS BASED ON:
Contract approved by Presidential Decree – same level as a Congress Law - “Contract–Law”.
Contract signed by Peru-Petro S.A. as a “Sociedad Anonima” follows corporate rules
So this Contract is signed “Enterprise to enterprise”.
International Arbitration is part of the Contract – there is a specific Clause for this.
Present Government – Took Political Decision not to modifiy the current Hydrocarbons Contract Model.
2000
2001
2002
2003
1
4
2
2
2004
2005
2006
6
15
16
24
Peru’s Signed Contracts
2007
?2008
PERUPETRO S.A. DEC, 2007
August, 2007, 64 (45 Ex, 19 Prod)Dec 31, 2004 31 (14 Ex, 17 Prod.)
PERUPETRO S.A. DEC, 2007
August, 2007, 64 (45 Ex, 19 Prod)
From 19 Blocks offered,
14 Blocks were signed
2007 Bidding
Round in
Peru
PERUPETRO S.A. SEPT, 2007
Dec, 2007, 84 (65 Ex, 19 Prod)
Peru offers:
Open areas
Competitive Contract
Royalty scheme
Information Free of cost
Bidding Round
Recent discoveries of
Natural Gas and Heavy
and Light Oil
HC PRODUCTION PERU
LIQUIDS
NEAR 120,000 BOPD
OIL
CONDENSATES
HC PRODUCTION PERU
GAS
255 MMCFD
North Peruavian Pipeline
• CAPACITY 200 MBPD
854 KM LONG
Maranon Production
Cum. Near 1,000 MMBO
• PRESENT PRODUCTION:
40,000 BPD
24”
306Km
16 MBPD36”
548 Km
16”
252 Km
24 MBPD
Camisea Pipelines
• CAPACITY
500 MMCFD
60 MBPD Cond
• PRESENT PRODUCTION:
250 MMCFD
36 MBPD Cond
Production & Infrastructure
COASTAL PRODUCTION
TALARA BASIN HC PROVINCE
• FIRST WELL IN 1863
• PRODUCTION
• Cum. 1,500 MMBO
2 TCF
• PRESENT PRODUCTION:
ONSHORE 22,400 BPD
OFFSHORE 12,100
• REFINERY CAPACITY
60,000 BPD
TUMBES BASIN
• BPZ ADD. FEW THOUSANDS
BOPD SINCE LATE, 2007
Cuenca
Maranón
Cuenca Lima
Cuenca Pisco
Cuenca
Titicaca
Cuenca
Huallaga
Cuenca
Ucayali
Yellow Areas represent
OPEN ACREAGE in
Sedimentary Basins
• Open for License Contracts
• Perupetro is studying this
areas for a next process
Presentations
• MARANON BASIN
• HUALLAGA BASIN
• UCAYALI
• LIMA & PISCO BASINS
• TITICACA BASIN
PROPOSAL EVALUATION
BIDDING ROUND
FINAL SCORE = TECHNICAL PROPOSAL SCORE + ECONOMIC PROPOSAL SCORE + GROSS REVENUES INDEX
PROPOSAL EVALUATION
FINAL SCORE = TECHNICAL PROPOSAL SCORE + ECONOMIC PROPOSAL SCORE + GROSS REVENUES INDEX
PROPOSAL
(Two sealed envelopes)
TECHNICAL PROPOSAL
ECONOMIC PROPOSAL
ENVELOPE N° 1
ENVELOPE N° 2
Application Letter
Documents for
qualifications required by
law
PASSFAIL
PASSFAIL
Two sealed envelopes:
Technical proposal
(envelope N° 1) and
Economic Proposal
(envelope N° 2).
ROUND OF BIDDING SCHEDULE
START ROUND OF BIDDING
Date for application will be announced
soon.
Information about OPEN ACREAGE can be requested as from now.
Later: Once Bidding started, Package of Specific Blocks will be produced and
delivered to applicants as a part of the Bidding Process.
After that: A period for questions and clarifications will be considered as part of this
process.
THANK YOU ALL VERY MUCH
Ronald Egúsquiza
PERUPETRO S.A.
Luis Aldana 320 – San Borja
Tlf. 6171800 – Fax. 6171801