URUGUAY ROUND 3 - Mining Press · · 2017-09-21from 1970 to 1982 • Lobo and Gaviotin wells ......
Transcript of URUGUAY ROUND 3 - Mining Press · · 2017-09-21from 1970 to 1982 • Lobo and Gaviotin wells ......
URUGUAY ROUND 3 BIDDING ROUND TERMS AND MAIN FEATURES OF
CONTRACT MODEL
HOUSTON, 18TH OF SEPTEMBER 2017
M. ENG SANTIAGO FERRO
EXPLORATION & PRODUCTION
ANCAP
Index
• General Features
• Qualification of Oil Companies
• Database
• Offers Comparison
• Final Remarks of the bidding process
• Contract Model
• Final Remarks
Index
• General Features
• Qualification of Oil Companies
• Database
• Offers Comparison
• Final Remarks of the bidding process
• Contract Model
• Final Remarks
Purpose
ANCAP is calling Oil Companies interested in carrying out exploration and exploitation of Hydrocarbon activities in the República Oriental del Uruguay Economic Exclusive Zone, under Production Sharing Agreements
Schedule
ACTIVITY DATE
Official Announcement 18 September 2017
Submission of Intention Letter and
documents for the Qualification of Oil
Companies.
From 18 September 2017 to 6 April
2018
Notification of Qualification of Oil
Companies Until 13 April 2018
Inquiries and clarifications Until 13 April 2018
Answers to Inquiries and
clarifications. Until 20 April 2018
Submission of proposals. From 22 April 2018 to 26 April 2018
at 14:00, Local time.
Opening of proposals. 26 April 2018 at 15:00, Local time.
Promotion Activities
HOUSTON Official Announcemnt 18/9 Data Rooms: 18/9 – 23/9
SEG ANNUAL MEETING HOUSTON
24/9 – 29/9
AAPG ICE LONDON
15/10 – 18/10
LONDON Road Show: 20/10 Data Rooms: 18/10 – 24/10
HOUSTON Presentation at IAPGH Meetings and Data Rooms
November 2017
NAPE WINTER SUMMIT HOUSTON
5/2/18 – 9 /2/18
APPEX GLOBAL 2018 LONDON
27/2/18 – 1/3/18
MONTEVIDEO Meetings and Data Rooms to be arranged at any time
with ANCAP. 18/9/17 – 20/4/2018
Offered Areas AREAS TYPE I
AREAS TYPE II
AREAS TYPE III
General Conditions
• Only qualified companies may submit offers. • Qualified companies might submit offers for a maximum of
4 areas as operators. • The proposals are independent for each area • Offers in Spanish (except for technical documents and/or
annual reports that may be submitted in English) • e-mail: [email protected] • ANCAP is the only one to interpret the Bidding Round
Terms. • Purchasing Bidding Round Terms: 5.000US$ • If a Consortium submit offers, the Operator must qualify on
Technical aspects, and participate with a minimum of 40%.
Index
• General Features
• Qualification of Oil Companies
• Database
• Offers Comparison
• Final Remarks of the bidding process
• Contract Model
• Final Remarks
Legal Aspects
• Documents proving the existence and representation of the company.
Financial Aspects
For Exploration Only • Average Equity of the last 3
years greater than: – 100MMUS$ for areas Type I – 200MMUS$ for areas Type II – 300MMUS$ for areas Type III
to qualify and be able to offer for one Area.
• Additional Equity of – 25MMUS$ for areas Type I – 50MMUS$ for areas Type II – 100MMUS$ for areas Type III
for each additional Area.
For Exploration and Production • Top 100: Ranking The World’s Oil
Companies, or • Average Equity of the last 3 years
greater than: – 200MMUS$ for areas Type I – 400MMUS$ for areas Type II – 600MMUS$ for areas Type III
to qualify and be able to offer for one Area.
• Additional Equity of – 50MMUS$ for areas Type I – 100MMUS$ for areas Type II – 200MMUS$ for areas Type III
for each additional Area.
Technical Aspects (for Operators only)
AREA FOR EXPLORATION ONLY FOR EXPLORATION AND PRODUCTION
Areas Type I
• Top 100 with international operations experience, or
• Offshore operations, and • International operations experience.
• Top 100 with international operations experience, or • Average production of 500 BOE/day during the last 3
years • Offshore operations, and • International operations experience for more than 5
years.
Areas Type I and
Areas Type II
• Top 100 with international operations experience, or
• Offshore operations at a higher water depth of 200m, and
• International operations experience.
• Top 100 with international operations experience, or • Average production of 2000 BOE/day during the last 3
years • Offshore operations at a higher water depth of 200m,
and • International operations experience for more than 5
years.
Areas Type I, Areas Type II
and Areas Type III
• Top 100 with international operations experience, or
• Offshore operations at a higher water depth of 2000m, and
• International operations experience.
• Top 100 with international operations experience, or • Average production of 5000 BOE/day during the last 3
years • Offshore operations at a higher water depth of
2000m, and • International operations experience for more than 5
years.
Results of the Qualification Process
• Company submits documentation for ANCAP’s review to be considered qualified as (operator / non operator), for Areas Type (I / I and II / I, II and III), for the (Exploration Period / Exploration and Exploitation Periods).
• Only qualified companies can submit offers and can do it only under the conditions they have been qualified.
• Legal issues: qualifies or not • Financial issues: qualifies for E&P, qualifies for exploration only or
doesn’t qualify. In case the company qualifies, ANCAP will inform the number of Areas for which the company may submit offers (according to its average Equity).
• Technical issues: qualifies as operator for all areas, qualifies as operator for areas Type II and Type I, qualifies as operator for areas Type I, for E&P or for exploration only, or not qualifies as operator.
If a company that qualified for exploration only makes a commercial discovery…
• A discovery is made • Submit appraisal program for approval • Execute appraisal program • Contractor decides to declare commerciality of the
discovery (or not) • To be able to do the declaration of commerciality and
delimit the Exploitation Lot, the company needs to: – Prove that fulfills by itself at the moment of declaration of
commerciality the requirements set today in the bidding round terms for qualification for E&P contracts as operator
– Farm out at least 40% to a company that fulfills such requirements
Index
• General Features
• Qualification of Oil Companies
• Database
• Offers Comparison
• Final Remarks of the bidding process
• Contract Model
• Final Remarks
Available database
Data that can be licensed directly from ANCAP
• Legacy Datapackage
• UR07 2D Seismic
• UR08 2D Seismic
• UR2011 2D Seismic
• UR3D Seismic
Data that can be licensed from Service Companies • AGI
– Micro seeps detection program
• CGG / ROBERTSON – 2 Geological Reports
• ION – UruguaySPAN 2D Seismic – Uruguay Repro 2D Seismic
• PGS – UR12 3D seismic
• Schlumberger / FIT – Fluid Inclusions in Lobo and Gaviotin
• Schlumberger – Advanced processing ofUR2011 2D Seismic
• Spectrum – UR02 2D Seismic – UR13 2D Seismic – UR14 2D Seismic
• TGS – Well logs
From ANCAP
Legacy Datapackage
• 12000Km of 2D Seismic from 1970 to 1982
• Lobo and Gaviotin wells Reports and Logs
• 3 Lines of UR2011 2D Seismic
From ANCAP
UR07 UR08
UR07: 7125 Km UR08: 2909 Km
• Acquired by Wavefield Inseis, ANCAP Operator • Processed by Geotrace, PSDM only • Gravimetry and Magnetometry
From ANCAP
UR 2011
• 6293,6 Km
• Operator ANCAP
• Acquired by Reflect Geophysical
• PSTM and PSDM
• Gravimetry and Magnetometry
From ANCAP
UR 3D
• Acquired in 2013
• 2074 Km2 FF
• Operator YPF
• Acquired and Processed by Western Geco
From Amplified Geochemical Imaging
PROGRAM FOR THE MICRO-SEEPS DETECTION OF HYDROCARBONS INTO SEDIMENT SAMPLES OFFSHORE
Contact Details
• Amelia de Coster
• Mark Arnold
From CGG
Geological Reports
• South Atlantic Petroleum Geological Evaluation – Uruguay Report (2012)
• Petroleum Geology in Uruguay: Complementary Study of Pelotas, Laguna Merín and Punta del Este Basins (2014)
Contact Details
• Thomas Graf
From ION
UruguaySPAN, 2800Km Uruguay Reprocessing, 10000Km Contact Details
• Andy Bliss
• Doug Allinson
• [email protected] • http://www.iongeo.com/content/documents/Resource
%20Center/Brochures%20and%20Data%20Sheets/Data%20Sheets/Data%20Library/DS_GEO_UruguaySPAN.pdf
From PGS
Pelotas Basin - Uruguay - 2012 - 2013 Uruguay 3D GeoStreamer Contact Details
• David Hajovsky
• [email protected] • https://www.pgs.com/data-library/north-and-south-
america/south-brazil--uruguay/uruguay/
15,611Km2
From Schlumberger / FIT
Punta del Este Basin, Uruguay Fluid Inclusion Stratigraphy (FIS) Study
• A Charge Potential Evaluation of 2 wells with GCMS / CSIA module
• RESULTS – Present and Past Distribution of
Petroleum – Petroleum Type and Quality – Proximal Undrilled Pay & Bypassed
Pay – Seals – API Gravity – Evidence for Bacterial/Thermal
Alteration – Reservoir Compartments – Petroleum Source and Maturity
Contact Details
• Don L. Hall
• Douglas Langton
From Schlumberger
Advanced data interpretation • Angle stacks
• Seismic AVO attributes: gradient (G), intercept (P), product (P×G)
• ISIS suite of reservoir characterization technology full-stack relative inversion: acoustic impedance (AI)
• Horizons interpretation
• ISIS simultaneous AVO inversion: AI, Vp/Vs, density (RHO)
Contact Details
• Fernando Álvarez
• [email protected] • http://www.multiclient.slb.com/south-
america/uruguay.aspx
From Spectrum
UR2002, 1840Km 2D seismic UR13, 3200Km 2D seismic UR14, 3740Km 2D seismic
Contact Details
• Gladys Reyes
• http://www.spectrumgeo.com/seismic-data-library/multi-client-library/interactive-map?region=south-america
From TGS
Uruguay Well Log and LAS Plus Data Contact Details
• [email protected] • http://www.tgs.com/News/2016/TGS_announces_exclu
sive_commercial_well_log_agreement_with_ANCAP_in_Uruguay/
New Data that might be available for Uruguay Round 3
• There are some other multiclient contracts in pre-acquisition phase, with products that might be available in the next months.
• If ANCAP receives other information due to relinquishment of contracts in force, ANCAP will make public the technical characteristics of such data, their value in Working Units and its price.
Index
• General Features
• Qualification of Oil Companies
• Database
• Offers Comparison
• Final Remarks of the bidding process
• Contract Model
• Final Remarks
Offers Comparison
321 ScoreScoreScoreTotalScore
maxmaxmax
1 *40*40*20X
X
UT
UT
A
AScore
'
max
'
maxmax
2 *40*40*20X
X
UT
UT
A
AScore
maxmaxmax
3 *40*40*20G
G
X
X
UT
UT
A
AScore
For Oil ºAPI >25
For Oil ºAPI < 25
For Natural Gas
WEIGHTING FACTOR OF OFFERS TERMS
TERM WEIGHING FACTOR
Maximum Percentage of Association 20%
Committed Exploratory Program 40%
Increase of Profit Oil for the Uruguayan State 40%
% ANCAP’s Association
• The bidding company must propose the maximum ANCAP’s association percentage, in the range between 20% and 40%.
UT: Unidades de Trabajo (WU: Working Units) Committed Exploratory Program (PEC)
WELLS WATER DEPTH (m) VALUATION (UT)
Type 3 and Stratigraphic More than 500 30.000 UT
Type 2 100 to 500 20.000 UT
Type 1 Less than 100 10.000 UT
NEW EXPLORATORY WORK VALUATION (UT)
3D Seismic 2,0 UT/Km2
2D Seismic 0,1 UT/Km
Electromagnetism 10,0 UT/receptor
Geochemistry on seabed samples 3,0 UT/recovered sample
SPECIAL PROCESSING OVER ANCAP’S SEISMIC DATA VALUATION (UT)
Special Processing over ANCAP’s 2D Data, Annex L (2D seismic of 2007, 2008 y 2011). 0,04 UT/Km
Special Processing over ANCAP’s 3D Data, Annex L. 0,08 UT/Km2
LICENSING TYPE 2 DATA VALUATION (UT)
Licensing 3D data inside the Area (according to Annex L, Annex M and Annex N). 2,00 UT/Km2
Licensing 3D data outside the Area (according to Annex L, Annex M and Annex N). 0,50 UT/Km2
LICENSING TYPE 1 DATA VALUATION (UT)
Licensing 2D seismic data processed in depth PSDM (according to Annex L, Annex M and Annex N). 0,1 UT/Km
Licensing ANCAP’s legacy data-package (according to Annex K) 40 UT
Licensing: Petroleum Geology of Uruguay Report, Complementary Study to Petroleum Geology of Uruguay Report , Study of
Fluid Inclusions (according to Annex M). 6 UT/report
Licensing the Study of Micro-seeps detection of hydrocarbons into sediment samples (according to Annex M). 30 UT
Licensing the Uruguay Well Log and LAS Plus Data (according to Annex M). 0,5 UT/well
Licensing the Advanced 2D seismic UR2011 processing (according to Annex M). 0,04 UT/Km
DEVELOPMENT OF ULTRADEEP WATERS TECHNOLOGY VALUATION (UT)
Budget for research in development of technology of exploration in ultra-deep waters (just applicable for areas Type III). 200 UT/MMUS$
Committed Exploratory Program Some comments (1/2)
1. The total depth of any proposed well (water depth + sediments) has to be according the exploratory target to be tested. A stratigraphic well can be offered in Areas Type III.
2. 2D and 3D seismic offered refers to Km or Km2 FF and processing in Depth
3. EM refers to CSEM with a maximum spacing between receptors of 2.5Km
4. The licensing of any data is not mandatory. The licensing of any data would have to be proved by submitting with the corresponding annex, the receipt of purchasing the data.
5. The licensing of ANCAP’s 2D seismic data can be partial, but only complete lines. The licensing of ANCAP’s 3D can’t be partial, and only the entire 3D volume could be licensed.
Committed Exploratory Program Some comments (2/2)
6. Special Processing can be offered over ANCAP’s 2D and 3D seismic data only.
7. Budget for research in development of technology of exploration in ultra-deep waters has to be undoubtedly related to the activities in Uruguay
8. It won’t be considered as working unit, the purchasing of any data that has already been counted as part of the PEC in previous Bidding Rounds.
9. Exploratory Works exceeding the PEC of previous contracts, can be counted as part of an offer, prorated to the working interest of the company in the previous contract, if such work is offered in this bidding round.
Committed Exploratory Program A B C D E
Areas
Working Units
required in the
Minimum
Exploratory
Program
Maximum of WU
to be computed by
the licensing Type
1 Data
Computable New Exploratory Work
Maximum %of WU
to be carried out that
can be computed by
new work.
10 2000 1000
Wells Type 1,2 or 3
3D Seismic
2D Seismic
EM
Geochemistry on seabed samples
Special Processing
Licensing Type 2 Data
Unlimited
Unlimited
70%
85%
70%
10%
Unlimited
Table shows the Minimum Exploratory Program for each Area for the Basic Subperiod. Working units can be offered to fulfil the Minimum Exploratory Program resulting from wells, new exploratory work, special processing over ANCAP’s seismic data, licensing data and development of ultradeep waters technology, according to:
• The maximum number of working Units that will be computed by licensing Type 1 Data is limited by the value shown on Column C.
• The working units that can be proposed by new exploratory work, can be fulfilled by the options shown in Column D, but will be computed with the limits shown on Column E.
• That percentage limit shown on Column E is applied over the difference of the WU of the Minimum Exploratory Program (Column B) and the WU offered by licensing existing data.
• For the new exploratory work committed that is unlimited, all the WU offered are computed.
Economic Proposal
• The bidding company must propose the value of the increase of the Uruguayan State’s Profit Oil (X) for each range of R Factor, according to the following Table.
• The R Factor is the relationship between cumulated Gross Income and cumulated Cost Oil.
• X between 0 and 70. • X has to be offered for light oil, heavy oil and natural gas
R Factor % Profit Oil State
<1 8 + X
1-1,5 15 + X
1,5-2 20 + X
>2 30 + X
Index
• General Features
• Qualification of Oil Companies
• Database
• Offers Comparison
• Final Remarks of the bidding process
• Contract Model
• Final Remarks
Final remarks about the bidding process
• The Area will be awarded to the highest score offer.
• In case there are similar offers (less than 5% in Total Score), ANCAP will invite the companies to improve their offers, in a term of 5 days.
• Offer guarantee is 50.000US$
• The Executive Branch has to authorize by Decree the signature of the Contract.
• The awarding company has to register an Uruguayan company. If the Area is awarded to a Consortium, it has to be formed by Uruguayan companies.
Index
• General Features
• Qualification of Oil Companies
• Database
• Offers Comparison
• Final Remarks of the bidding process
• Contract Model
• Final Remarks
Legal Framework
• Specific applicable laws – Decree Law N°14.181 Hydrocarbons Law – Mining Code Law N°15.242 – Law 18.083 Tax System
• Fields are State property (original domain). • Extracted substances are State property (common
domain). – One portion for ANCAP to cover production costs (Cost Oil)
and contractor’s compensation (Contractor’s Profit Oil) – One portion for the State (Uruguayan State’s Profit Oil)
Contract
• PSA: Production Sharing Agreements for which Contractor assumes all risks, costs and responsibilities of the activity. – No royalties are applied – No signature or production bonuses. – No surface rentals – No taxes paid to provinces or municipalities – No Ring fencing inside the contract area
• PARTIES’ OBLIGATIONS – Contractor: Perform on behalf of ANCAP all operations (exploration,
devolpment, exploitation, supplementary and ancillary operations) in the area allocated.
– ANCAP: Pay Contractor its compensation and assist it in the fulfillment of its obligations.
Contract Term
• 30 years which can be extended to 40 years • EXPLORATION: maximum 9 years (3 + 3 + 2 + 1) for Areas
Type I and II, and 11 years (4 + 4 + 2 + 1) for Areas Type III – Basic Subperiod: Comply with the Committed Exploration
Program (PEC). Guarantee: 10% of PEC. PEC is biddable – Supplementary Subperiod: Comply with the Agreed Exploration
Program (PEA) (at least one exploratory well). Guarantee 5% of PEA.
– Extension Subperiod: Comply with the Agreed Exploration Program (PEA) (at least one exploratory well). Guarantee 5% of PEA. Relinquish 30% of the area.
• EXPLOITATION: 25 years subject to maximum contract term. Guarantee: 5% of investments.
Contractor’s Economy
• Contractor’s compensation – Cost oil
• Recovery limit 60% in case of oil production and 80% in case of natural gas production for Areas Type I and II, 70% in case of oil production and 90% in case of natural gas production for Areas Type III
• Costs recovered quarterly and investments recovered in 20 quarterly installments.
– Profit oil • Variable according R factor. Profit oil split is biddable.
• Contractor has the right to freely dispose hydrocarbons warranted from its compensations.
• ANCAP has the preferential right to purchase such hydrocarbons for domestic demand only.
• Hydrocarbons valued at international market prices.
ANCAP’s Association Option
• ANCAP’s right
• Limit of ANCAP’s association is biddable
• Exercised within 120 days as from the demarcation of the Exploitation Lot
• Payment within 180 days as of the execution agreement, % of: – Productive exploratory wells
– Evaluation wells (up to 25% non productive wells)
– 15% for indirect costs
Taxation
• Income Tax – Corporate Income Tax (IRAE)
– Income Tax on Non Residents (IRNR)
• Tax on Net Worth (IPAT) – Consumption Taxes
– Value Added Tax (IVA)
• Specific Consumption Tax (IMESI)
• Custom Taxes
• Social Security Contributions (CESS)
EXEM
PTE
D
(Hyd
roca
rbo
ns
Law
)
Income Tax in Exploration phase was exempted for subcontractors by a special Decree
Index
• General Features
• Qualification of Oil Companies
• Database
• Offers Comparison
• Final Remarks of the bidding process
• Contract Model
• Final Remarks
vs.
• Qualification for exploration period only.
• Training fee 50.000$ for ANCAP and 50.000$ for the Ministry, instead of 100.000$ for ANCAP
• Some definitions added
• Rearranging of some clauses
• Exploration Period 11 years and higher Cost Recovery Limits in case of Type III Areas
• Approval of the Ministry of Energy and ANCAP of the Appraisal and Development Programs
Very small modifications with regards to the bidding round terms
and the contracts signed as a result of Uruguay Round II
Summary
Official Announcement Road Shows, Meetings
and Data Rooms
Submission of offers 26 April 2018
Qualification of Oil Companies Until 6 April 2018
Lower qualification criteria & Qualification for
Exploration Only
BIDDABLE ITEMS A: ANCAP’s Association X: Profit Oil Split UT: Committed Exploratory Program Very low Working Units requirement.
Most of the areas can be awarded just by licensing existing data
ANCAP is only carried through exploration
Excellent opportunity of frontier exploration, to acquire an asset with very good contract terms and very low work commitments
THANK YOU FOR YOUR ATTENTION