Oil & Gas in Peru: Past, Present & Future Rio de Janeiro, March 2009 Dr. Daniel Saba de Andrea...
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Transcript of Oil & Gas in Peru: Past, Present & Future Rio de Janeiro, March 2009 Dr. Daniel Saba de Andrea...
Oil & Gas in Peru:Past, Present & Future
Rio de Janeiro, March 2009
Dr. Daniel Saba de AndreaChairman of the Board
PERUPETRO S.A.
A little of history:
In Peru oil extraction and utilization began more than 10 centuries ago, when the natives used oil from outcrops or superficial reservoirs in the Northern Coast and in the South Highlands.
Oil was used mainly for roads and buildings as well as for home and medical applications.
First Oil well drilled in South America
A tubular well which discovered oil at 24 meters depht was drilled in November 1863 in the Tusillal stream, Zorritos, Tumbes, Northern Coast of Peru.
This well, that began producing 60 barrels per day of 35° API oil, was the first well drilled in South America, and one the first succesfully drilled worldwide.
Peru is located within one of the most prolific mega tendencies in hydrocarbons in South America, the subadean southamerican megatendency.
Fuente: Adaptado de USGS
The areas with hydrocarbon potential in Peru are included in 18 Sedimentary Basins.
Hydrocarbon exploitation in Peru has been developed during 140 years. Productive areas are located in four areas of the territory:
Northern Coast since 1879.
Central Jungle since 1939.
Northern Jungle since 1971.
South Jungle since 2004.
Costa Norte
Peru, Milestones in Hydrocarbon Industry Peru, Milestones in Hydrocarbon Industry
1863: First well drilled in South America, Zorritos Field, Tumbes, Northern Coast.
1869: First well in Negritos, Talara.
1939: First well and production Agua Caliente Field, Central Jungle.
1959: Belco and Peruvian Pacific, first offshore well, Northern Coast.
1971: Discovery of Corrientes Field, North Jungle.
1977: Starts Northperuvian Pipeline Operation.
1984-1986: Discovery of Camisea gas fields.
1993: Establishement of PERUPETRO
2004: Starts production of Camisea Gas Fields.
Discoveries in Peru Discoveries in Peru
0
500
1000
1500
2000
2500
1863-1990 1939-1961 1961-2005 1971-2002 1984-1986 1998
Talara
SelvaCentral
Zócalo
SelvaNorte
Selva SurCamisea
Selva SurPagoreni
Million Oil Barrels Equivalent
As exploration activity increases, new hydrocarbon discoveries appear.
Peru, Oil Historic ProductionPeru, Oil Historic Production
PRODUCCION LIQUIDOS - PERU1879 - 2005
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,00018
79
1883
1887
1891
1895
1899
1903
1907
1911
1915
1919
1923
1927
1931
1935
1939
1943
1947
1951
1955
1959
1963
1967
1971
1975
1979
1983
1987
1991
1995
1999
2003
BO
PD
Costa Zócalo Selva Central y Sur Selva Norte
Present times:
Peru is performing promotion and contracting campaigns in order to intensify the Hydrocarbon Exploration.
Abril, 2008,83 Contratos (64 Ex, 19 Prod)
Dec 31, 2004 31 Contratos (14 Ex, 17 Prod.)
0
22
44
66
88
110
Contratos de Exploración Contratos de Explotación
An evident new virtuous cycle of oil contracting began in 2006.
It is estimated 100 Contracts in force for 2009.
CONTRACTS IN FORCE
Fuente: Elaboración Propia
Area Contratada
18 SEDIMENTARY BASINS
MM Ha MM acres
Total Area 83.3 205.83
Areas Under Contract 37.30 92.50
Areas under Negotiation 2.60 6.44
Intangible Areas 8.53 21.08
Areas under Agreement 7.10 17.61
Available Areas 27.77 68.86
% Free areas for contracting 33.45 %
18 SEDIMENTARY BASINS
MM Ha MM acres
Total Area 83.3 205.83
Areas Under Contract 37.30 92.50
Areas under Negotiation 2.60 6.44
Intangible Areas 8.53 21.08
Areas under Agreement 7.10 17.61
Available Areas 27.77 68.86
% Free areas for contracting 33.45 %
There are 79 contracts in force in Peru and 70 companies working as contractors, within we can mention the following: Petrobras, Repsol,
Pluspetrol, Hunt Oil, Talisman, Perenco, Conoco-Philips,SK Corp., CNPC (Sapet),
Sonatrach, Tecpetrol,
Which Companies Operate in Peru?
Producción Nacional Mil Barriles por Día
0
20
40
60
80
100
120
140
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Petróleo Condensados
Reactivation of drilling and production activities allows to maintain production of mature fields. Start of Camisea Natural Gas Liquids Production in June 2004, overturned the declining tendency of production.
LIQUID HYDROCARBON PRODUCTION
0
100
200
300
400
Mill
on
es d
e P
ies
Cú
bic
os
po
r d
ía
Talara Talara-Zócalo Aguaytía Camisea
Production – Natural Gas Sales
Production of Camisea Natural Gas originated a sales sustained growth.
Sales of Camisea increased in average 50% per year since 2006, which originated an important change in energy consumption.
PERU – LEGAL FRAMEWORKORGANIC LAW OF HYDROCARBONS
In force and without changes since 1993.
The property right over hydrocarbons is transferred to the Lincensee at the moment of entering into a License Contract.
Contract-Law, ratified by the Ministry of Economy and Finance and the Ministry of Energy and Mines.
License and Services Contracts ruled by private law.
Contract Term of 30 years for Oil and 40 for Gas.
PERU – LEGAL FRAMEWORKORGANIC LAW OF HYDROCARBONS
Contractor tiene libre disponibilidad de los Hidrocaburos y puede exportarlos libre de todo tributo.
La importación de bienes e insumos para la fase de exploración, se encuentra exonerada de todo tributo.
Devolución anticipada del IGV durante la etapa Exploratoria.
El Estado garantiza los regímenes cambiarios y tributarios vigentes a la fecha de celebración del Contrato.
El Banco Central de Reserva garantiza a las Empresas la disponibilidad de divisas
MILESTONES•AGUAYTIA NATURAL GAS PILOT PROJECT
•CAMISEAS NATURAL GAS INTEGRAL PROJECT (Block 88)
•INTEGRATION OF ELECTRICAL GENERATION WITH NATURAL GAS
•OPENING OF NATURAL GAS MARKET
•PAGORENI NATURAL GAS PROJECT (Block 56)
PROJECTS IN EXECUTION
•PROJECT OF LIQUIFIED NATURAL GAS FOR EXPORT
•GAS PIPELINE PROJECTS TO SOUTHERN REGIONS.
DEVELOPMENT OF NATURAL GAS IN PERU
CAMISEA PROJECTCAMISEA PROJECT
ECUADORCOLOMBIA
BRASIL
BO
LIV
IA
CHILE
LimaLima
PERU
Acre
Titicaca LakeREFERENCIASREFERENCIAS
GASODUCTOGASODUCTO
DUCTO LIQUIDOSDUCTO LIQUIDOS
PLANTA PLANTA CRIOGENICACRIOGENICA
PLANTA DEPLANTA DEFRACCIONAMIENTOFRACCIONAMIENTO
GA
SG
AS
LIQUIDOS
LIQUIDOS
CamiseaCamisea
NAFTANAFTAEXPORTACIONEXPORTACION
LPG EXPORTACIONLPG EXPORTACION
LPGLPG
EXPLOITATIONEXPLOITATION Camisea Gas FieldsCamisea Gas Fields
Gas Processing in Malvinas - Gas Processing in Malvinas - CamiseaCamisea
Gas Liquids Fractionation in Gas Liquids Fractionation in the Coast (Pisco)the Coast (Pisco)
Gas Pipeline: Camisea - City Gas Pipeline: Camisea - City Gate in LimaGate in Lima
Gas Liquids Pipeline: Gas Liquids Pipeline: Camisea – PiscoCamisea – Pisco
DISTRIBUTIONDISTRIBUTION
Gas Distribution Network in Gas Distribution Network in Lima and CallaoLima and Callao
TRANSPORTTRANSPORT
PROJECT IN OPERATION SINCE JUNE 2004
Export Project (Perú LNG)
6,1
4,2
TC
FProven and Probable Reserves (at Medium Term)
and Natural Gas Demand (Period 2008 – 2027) Blocks 88, 56, 57, 58 and other
Local Demand (20 Years)
Total 35 TCF
Total 10,3 TCF
Reserves Demand
E C U A D O RC O L O M B IA
B R A S IL
BO
LIV
IA
C H IL E
L im aL im a
P E R U
L a g o T it ic a c a
G A S O D U C T OG A S O D U C T O
P O L ID U C T O P O L ID U C T O
P L A N T A S d e S E P A R A C IO N Y C R IO G É N IC A S
P L A N T A F R A C C IO N A M IE N T O
C A M IS E AC A M IS E A
P L A N T A L N GK m 1 6 9
P is c oP is c o
E C U A D O RC O L O M B IA
B R A S IL
BO
LIV
IA
C H IL E
L im aL im a
P E R U
L a g o T it ic a c a
G A S O D U C T OG A S O D U C T O
P O L ID U C T O P O L ID U C T O
P L A N T A S d e S E P A R A C IO N Y C R IO G É N IC A S
P L A N T A F R A C C IO N A M IE N T O
C A M IS E AC A M IS E A
P L A N T A L N GK m 1 6 9
P is c oP is c o
LNG Project
Operator: PERU LNG
Start of Operation: Year 2010
Status: In construction
Main facilities:
LNG Plant
New Gas Pipeline (Expansion)
Dock and loading facilities
Investment Performed: 2,200 MMUS$
Total Investment: 3,800 MMUS$
A PROMISING FUTURE
As consequence of intensive promotion and international biddings 2006-2008, PERUPETRO will have more that 100 contracts signed in 2009.
At present investments are mainly focused in 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 investment in different areas of the country.
CONTRACTED AREAS
GREAT NATURAL GAS POTENTIALGREAT NATURAL GAS POTENTIALCamisea and neighbouring areas, Peruvian
South Jungle
Proven reserves of Natural Gas are 16 TCF, however
the area has a Gas Potential (probable and
possible reserves) of additional 35
TCF.
HEAVY OIL DISCOVERIES
OIL DISCOVERIES IN NORTH JUNGLE
Heavy Oil in North Jungle Development of new areas
Within 500-600 million barrels discovered between 1998-2006 in Blocks 39 and67.
Blocks 39 and 67 partially explored. Potential of additional resources of more than 500 million barrels.
In 1970 and 1980 400 MMB were discovered in Block 1-AB.
TALARA BASIN •Cum. Production:
1,400 MMBO13,200 WELLS
•Production: 30,000+ BOPD
•BASIS FOR THIS STUDY:Potential undiscovered hydrocarbon reserves in both basins:
UP TO 2,000 MMBO(70%+ OFFSHORE)
•.
•First Oil well drilled in 1863.......
TUMBES & TALARA BASINS,
Offshore & Onshore exploration in old and new areas
Proyección Producción Hidrocarburos Líquidos
0
100
200
300
400
500
Mil
Ba
rril
es
po
r D
ía
Petróleo Condensados Petróleos Pesados Selva Norte
Hydrocarbon Net Export since 2012 year.
Production increase mainly due to heavy oil and Natural Gas Liquids.
Fuente: Elaboración Propia
Liquid Hydrocarbons Estimated Production
0
500
1000
1500
2000
2500M
illo
ne
s d
e P
ies
Cú
bic
os
po
r d
ía
Petroquímica Exportaciones GNL M.I. Tradicional
In 2004, started commercial production of Camisea Natural Gas.
In 2010, Peru will be the first exporter of liquified natural gas of the region.
ESTIMATED PRODUCTION – NATURAL GAS SALES
Up to 2008, Hydrocarbons represent the 5% of GDP of Peru.
Al thought the world financial crisis it is estimated a GDP growth of 4.0 % in 2009, and 7% in the following years.
Increase of contracts, investment, and future production shall increase participation of hydrocarbons in the GDP up to 8.6% since 2015. Peru is in the way to became a net hydrocarbon exporter in approximately 4 years.
Possibilities to use natural gas in new industries as Petrochemistry, will place Peru as exporter in South America.
The execution of the Liquified Natural Gas Project will place Peru as the most important hub of Pacific - America.
Full force of a competitive contracting scheme, macro economic stability and legal safeguards of the country contribute to the present and future succes.
MUCHAS GRACIAS
THANK YOU VERY MUCH
Daniel Saba De Andrea
www.perupetro.com.pe