INVESTMENT OPPORTUNITIES AND FUTURE BIDDING ROUNDS IN PERU Dr. Daniel Saba De Andrea Chairman of the Board 17th Latin Oil Week RIO DE JANEIRO 2011
PERÚ An attractive country to invest in E&P activities
PERÚ Area : 1 285,215 sq km. Population: 30 million inhabitants Urban : 70 % (Lima 30%) Rural : 28% GDP Total : MMUS$ 150,000 GDP per cápita : US$ 5,000
GEOGRAPHY OF PERU 3 REGIONS: Coast Andean Mountains Amazon Rainforest
PERU: More than 2,000 km long shore In front of the Pacific Ocean It is becoming a regional hub in the South American Pacific area.
GDP GROWTH Sustained economic growth during the last 10 years Growth
GDP GROWTH FORECAST GDP Growth is expected to increase in 2011 2013 (%) 2011 2012 2013 GDP 5.0 5.5 6.0 - AGRICULTURE 3.0 3.1 3.2 - FISHING 5.0 3.3 3.2 - MINING AND HYDROCARBONS 5.0 6.5 8.0 - MANUFACTURE 5.2 5.7 6.1 - ELECTRICITY AND WATER 5.0 5.2 5.2 - CONSTRUCTION 8.8 10.5 12.0 - TRADE 5.2 5.3 5.7 - SERVICES 5.0 5.2 5.3 - PROD & IMPORT TAXES 4.7 5.2 5.3 Ministry of Economy & Finance of Peru
CONTROLED INFLATION 2.3% Average during the last 10 years
Special conditions to attract investment in E&P hydrocarbon activities PERU
HC OCCURRENCE IN PERU Peru is located within one of the most prolific hydrocarbon mega trends in South America: The Sub Andean Megatrend 1.. Light Oil Areas in the Western Marañon Basin 2. Heavy Oil areas in the Eastern Marañon Basin 3. Ucayali Basin Hydrocarbon Occurrence 5 1 3 2 4 4. Camisea and Adjacent condensates and gas fields Hydrocarbon producing fields with nearly 150 years of producing history 5.. Light Oil Areas in the Tumbes and Talara Basins
18 SEDIMENTARY BASINS REGION BASINS COAST 10 AMAZON RAINFOREST 6 INTER MOUNTAIN 2 TOTAL AREA : 83 MM ha
11 HC DISCOVERIES IN THE LAST 6 YEARS
MAIN HYDROCARBON PROVINCES MARAÑON BASIN Cumulative: 1,000 MMBOP Daily: 30,000 BOPD TALARA BASIN Cumulative: 1,500 MMBOP Daily: 44,000 BOPD 33 MMCFGD Trench UCAYALI BASIN Cumulative: 31 MMBOP 105 MMBC 0.3 TCFG Daily: 600 BOPD 85,000 BCD 1,000 MMPCFGD
PRODUCTION AND FORECAST er day) LIQUID HYDROCARBONS 400 320 MBPD 240 160 80 0 1990 1995 2000 2005 2010 2015 2020 Oil NGL Natural Gas Liquids from Camisea and the last light and heavy oil discoveries will increase production within the next years.
PRODUCTION AND FORECAST NATURAL GAS 1800 1600 1400 1200 MMCFD 1000 800 600 400 200 0 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Petrochemical LNG Internal Market Natural Gas from Camisea produced a sustained growth in gas sales.
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
PERU: INSTITUTIONAL GUARANTY CONTRACT LAW Established under Article 62 of the Peruvian Constitution. Contracts between Government agencies and private investors may only be modified by agreement of the Parties. The Constitution guarantees equal treatment for domestic investments and foreign investments.
FRIENDLY ENVIRONMENT FOR INVESTMENT Non discriminatory treatment for the foreign investment. Guarantee private property. Investment agreements with the Government and Dispute Resolution Agreements (OPIC o MIGA). Peru is adherent to the OECD Declaration of International Investment and Multinational Enterprises.
COMPANIES OPERATING IN PERÚ
CONTRACTED AREAS
CONTRACTS SUBSCRIBED 1994-2010 EXPLOITATION : 12 EXPLORATION : 120
CONTRACTS IN FORCE
INVESTMENTS E&P 2000-2010 MM US $ 1600,0 1400,0 1200,0 1000,0 800,0 600,0 400,0 200,0 0,0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Total 120,4 194,3 383,1 359,6 276,8 351,3 688,2 1106,0 1493,7 1149,9 1323,6 Exploitation 108,3 163,8 351,8 347,4 232,8 254,9 551,9 855,0 1128,1 610,8 576,5 Exploration 12,1 30,5 31,3 12,2 44,0 96,4 136,3 251,0 365,6 539,1 747,1
BIDDING ROUNDS The Organic Law of Hydrocarbons allows PERUPETRO to carry out contracting by direct negotiation or call - 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 Rounds.
RESULTS The Bidding Round 2010 is the third process carried out by PERUPETRO, based on royalty bids and exploratory works. The number of blocks awarded in the previous bidding rounds was as follow: 2007 2008 2010 Companies that submitted letters of interest 47 57 38 Companies that qualified 31 41 26 Blocks awarded 13 17 14 Claims and challenges of bidders 0 0 0
CONTRACTED AREAS As a consequence of promotion and international biddings, PERÚPETRO has 85 License Contracts in force and 14 contracts to be subscribed shortly. At present, investments are mainly focused in light and heavy oil production in the North Jungle and Natural Gas and Condensates production in Camisea and adjacent blocks. There will be an important increase of exploration investments in different areas of the country.
Thank you very much for your attention www.perupetro.com.pe