Hydrocarbon Opportunities in Peru

HYDROCARBON
OPPORTUNITIES IN PERU
Oscar Miro Quesada
Manager of Promotion and Communications
October , 2014
1
CONTENT
1. Peru: an underexplored country
2. General Remarks
3. Contract Terms
4. New Bidding Rounds, 2014 - 2015
5. The Data Bank
6. Final Remarks
2
1. Peru: An under explored Country
3
Large available areas for Exploration
Peru is located within one of the most prolific
hydrocarbon trends in South America:
“The Sub Andean Megatrend”
1
Light oil areas in Western Marañon Basin
2.
Heavy oil areas in Eastern Marañon Basin
3.
Gas and oil areas in Ucayali Basin
4.
Camisea and adjacent gas and condensate
fields
2
5
1
3
4
Areas with historical production of over 150 years
5.
Light oil areas in Tumbes and Talara Basins
4
Hydrocarbon Producing Areas
MARAÑÓN BASIN
Accumulated
1,000 BBlsO
Daily
25,000 BlsOD
TALARA BASIN
Accumulated
1,500 BBlsO
Daily
38,000 BlsOD
0.3 BCFGD
UCAYALI BASIN
Accumulated
31BBlsO
130 BBlsC
0.8 TCFG
Daily
300 BlsOD
106,000 BlsCD
1,181 BCFGD
5
Distribution of Wildcats in 18 basins
Ucayali
BASIN
Talara
%
WILDCATS
Sechura
Talara
Marañón
Marañón
1,299
84.68
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
Huallaga
1
0.00
Lima
Lima
1
0.00
Mollendo
Mollendo
0
0.00
Salaverry
Salaverry
0
0.00
Moquegua
Moquegua
0
0.00
Bagua
0
0.00
Ene
0
0.00
1,534
100.00
Marañón
Ucayali
Sechura
Tumbes - Progreso
Santiago
Madre de Dios
Trujillo
Titicaca
Pisco
Talara
Bagua
Ene
98% Wildcats: 4 basins
6
2. Peru: General Remarks
7
Sustained GDP growth
During the last 10 years the Peruvian economy increased very rapidly …
Real GDP 1952 – 2011
(Annual average variation %)
Real GDP 2002 – 2014
(Variation %)
GDP 2002 – 2014
(Billion US$)
Source: Banco Central de Reserva del Perú, Ministerio de Economía y Finanzas, IMF y ProInversión
* Estimated data
8
Sustained GDP growth
… and will continue leading the regional growth making the GDP to
become higher than the world average by 2020 …
Real GDP Projections for Latin America 2013 – 2015
(Annual average variation %)
GDP per capita, PPA
($ to international constant prices of 2005)
Source: Banco Central de Reserva del Perú, Ministerio de Economía y Finanzas, IMF y ProInversión
9
The economic growth
The economic growth has been impelled by the high private investment …
Private Investment 2002 - 2014
(Variation %)
Private Investment 2002 - 2014
(Billion US $)
Source: Banco Central de Reserva del Perú, Ministerio de Economía y Finanzas
* Estimated data
10
Investment
… which represents near 22 % of the GDP …
Total Investment 2002 – 2014*
(% of GDP)
Total Investment – Latin America 2012
(% of GDP)
Source: Banco Central de Reserva del Perú, Ministerio de Economía y Finanzas, IMF y ProInversión
* Estimated data
11
Foreign Direct Investment
… Peru is attractive for Foreign Direct Investment, which registered a
level up to 12,000 million US $ in 2012
Net foreign direct investment flow 2002 – 2014*
(Billion US $)
Foreign direct investment – Latin America 2012*
(% of GDP)
12
Degree of Investment and Confidence
Peru has deserved a good investment rate and the investors confidence
due to its favorable economic policy
Investment degree qualification
Latin America comparison
Countries as prime destiny for Direct Foreign Investment
(World ranking among 21 countries)
Source: Banco Central de Reserva del Perú, Ministerio de Economía y Finanzas, IMF y ProInversión
* Estimated data
13
3. Contract Terms
14
The model of the contract: A Contract Law
PERU:
CONSTITUTIONAL GUARANTY
“CONTRACT LAW”
• Established under Article 62° of the Peruvian Constitution.
• Contracts between PERUPETRO and Contractors may only be
modified by agreement of the Parties.
• The Constitution guarantees equal treatment for domestic
investments and foreign investments.
15
License Contract Remarks
• Flexible Work Programs: can be set in Exploratory Work Units
(EWU).
• Technical Information available free of charge.
• No signing bonus for the Contract.
• Free decision of the Contractor to continue the exploration during
the production phase.
• International arbitration as part of the License Contract.
16
4. New bidding rounds, 2014 - 2015
17
Productive Areas in the Marañón Basin
ITT
100Km
ECUADOR
62.1millas
COLOMBIA
SITUCHE CENTRAL 2X
TANGUINTZA
Nor Peruvian Pipeline
BRASIL
Available areas
SHANUSI
Pipeline
Wells
18
Excellent opportunities for investment
BLOCK 192
(Includes Block 1-AB)
19
Excellent opportunities for investment
Block 192
Marañon Basin:
Active wells: 116
Fields under Production: 12
Production:
Accumulated: 718 MMBO
Daily: 14,800 BPD
Reserves: 71.1 MMBO
Access ways: air and river
Rivers: Tigre, Corrientes
and Pastaza
20
Excellent opportunities for investment
BLOCK 192 – VIVIAN – OIL GRAVITY
International on going Bidding Round
BLOCKS III y IV
Blocks III and IV are located in the southern
part of the Talara Basin
22
International on going Bidding Round
Blocks III and IV – Talara Basin
Oil Production in the Blocks III and IV: January 1994 – November 2013
The Talara Basin is one of the most productive basins so far discovered in Peru.
Eighty% of the total oil production (more than 1.5 Billion barrels of oil) comes
from onshore fields that occupy a small part of the area in the basin. Blocks III
and IV are examples of this concept.
23
International on going Bidding Round
BLOCKS III and IV – TALARA BASIN
Technical Information to June 2014
BLOCK III
BLOCK IV
Seismic 3D, km2
39.7
0.0
Active oil producing wells
216
245
Abandoned wells – ATA
168
55
Abandoned wells – APA
26
12
Abandoned wells – DPA
89
91
42,981
18,505
Estimated proved oil reserves
MMBO (*)
20.05
6.55
Oil production, BOPD
1,433
617
Gas in Solution
Gas in Solution
Monthly oil production, BLS
Reservoir driven mechanism
* Information to December 2012
24
Excellent opportunities for investment
26 blocks for
exploration activities
in the jungle basins
7 blocks will be
announced first
For further information:
promocion@perupetro.com.pe
25
Excellent opportunities for investment
164
BLOCKS 199 and 164
MARAÑON BASIN
199
BLOCK
164
199
EXTENSION
(ha)
638,652
474,129
AVAILABLE INFORMATION
PROSPECTS
1,282 Km of 2D Seismic
221 Km of 2D Seismic and 1 wildcat
4
0
26
Excellent opportunities for investment
BLOCKS 195, 189, 169 and 175
UCAYALI BASIN
169
189
195
175
BLOCK
195
169
189
175
EXTENSION
(ha)
340,703
491,892
681,821
516,067
AVAILABLE INFORMATION
PROSPECTS
590 Km of 2D Seismic
394 Km of 2D Seismic
2,317 Km of 2D Seismic
1,177 Km of 2D Seismic
0
1
4
4
27
Excellent opportunities for investment
BLOCK 187
MADRE DE DIOS BASIN
BLOCK
187
EXTENSION
(ha)
561,555
187
AVAILABLE INFORMATION
PROSPECTS
446 Km of 2D Seismic
0
28
Excellent opportunities for investment
6 Blocks for
Exploration Activities
in Offshore Basins
For further information:
promocion@perupetro.com.pe
29
Excellent opportunities for investment
BLOCK Z – 50
LIMA BASIN
Z-50
BLOCK
EXTENSION (ha)
AVAILABLE INFORMATION
PROSPECTS
Z-50
876,753
741 Km of 2D Seismic
None
30
Excellent opportunities for investment
Z-53
Z-54
BLOCKS Z-53, Z-54 and Z-55
LIMA PISCO BASIN
BLOCK EXTENSION (ha) AVAILABLE INFORMATION
Z-55
PROSPECTS
Z-53
823,617
2,493 Km of 2D Seismic
7 leads
Z-54
717,518
856 Km of 2D Seismic
6 leads
Z-55
651,145
515 Km of 2D Seismic
5 leads
There is a great variety of structural
and stratigraphic traps, as well as
big
leads
(18)
in
Tertiary
sequences,
which
must
be
confirmed with additional seismic.
31
Excellent opportunities for investment
BLOCKS
Z-56 and Z-57
SALAVERRY TRUJILLO
BASIN
Z-56
Z-57
BLOCK
EXTENSION
(ha)
AVAILABLE INFORMATION
PROSPECTS
Z-56
716,294
3,305 Km of 2D Seismic and 1 wildcat
6 leads
Z-57
578,859
2,051 Km of 2D Seismic and 2
wildcats
4 leads
- Morsa Norte 1X, Delfin 2X and Ballena 8X
wildcats showed a significant potential
for discovering big hydrocarbon reserves
- Large size of mapped prospects/leads
- Presence of seismic amplitude anomalies
32
5. The Data Bank
33
The Data Bank
1. All seismic, well
data, well logs and
technical reports
available.
2. To be downloaded
on request
3. No charge for Data
and Reports
http://www.perupetro.com.pe
34
The Data Bank
http://www.perupetro.com.pe
35
The Data Bank
36
6. Final Remarks
37
Final Remarks
•
Peru has 18 sedimentary basins with 83 million hectares (ha), most of them under an
immature exploration stage.
•
There are 72 contracts of exploration and exploitation with 33 million hectares. There is
a remaining of 50 million ha for new contracts.
•
It is estimated that Peru will have a total of up to 4,000 million boe of proved reserves
during 2014, in which the natural gas and NGL are the major volume.
•
As a result of the new discoveries, the proved reserves of oil, natural gas and NGL have
had a sustained increment during the last 20 years.
•
The maintenance of an investment level of around 2,000 million of US $ per year is
required for the purpose of improving the actual reserves level.
38
Final Remarks
•
New bidding rounds in 2014-2015:
a. 26 new blocks for hydrocarbon exploration activities in the Jungle Amazon region, 7 of
them will be announced first.
b. 6 Offshore blocks for hydrocarbon exploration activities.
c. 1 Block with current production in Marañon Basin – Block 1-AB
d. 2 Blocks with current production in Talara Basin – Blocks III and IV
•
Excellent projects for a still underexplored country. 98% of the wildcats drilled is
concentrated in just four basins.
•
Peru offers the best economic framework and business environment as a destination for
foreign investment.
•
The Data Bank offers technical information regarding these basins free of charge for
enterprises interested in hydrocarbon exploration and exploitation activities in Peru.
39
Thank you for your attention…
www.perupetro.com.pe
40