EXPLORATION PROGRESS AND HYDROCARBON PRODUCTION DEVELOPMENT INTERNATIONAL CONGRESS “ENERGY DAY” EXPLORATION PROGRESS AND HYDROCARBON PRODUCTION DEVELOPMENT PRIVATE SECTOR VISION PEDRO GRIJALBA JULY 2012

NEW PRODUCTION DEVELOPMENT EXPLORATION PROGRESS NEW PRODUCTION DEVELOPMENT AGENDA PRIVATE SECTOR VISION JULY

BASIN DISTRIBUTION MAP LOTS CONTRACTS OIL 39 1AB 8 64 ECUADOR COLOMBIA PERU BASIN DISTRIBUTION MAP TUMBES GAS – CONDENSATE 58 57 88 56 Z-1 MARAÑON TALARA GAS – CONDENSATE - OIL BRASIL SECHURA UCAYALI PACIFIC OCEAN MADRE DE DIOS ENE PISCO CANDAMO BOLIVIA CHILE JULY

BASINS UCAYALI– ENE– MADRE DE DIOS CERTIFICATED RESERVES 11 TCF & 611 MMBLS POTENTIAL RESOURCES 50 TCF & 2700 MMBLS UCAYALI ENE MADRE DE DIOS EXPLORATION DISCOVERED RESERVES DEVELOPED GAS UNDEVELOPED GAS PROSPECTS POTENTIAL RESOURCES

WORLDWIDE JULY

EXPLORATIONPROGRESS - WORLDWIDE 2000’s: Horizontal Tomography between wells / Wireless Seismic 1990’s: 4D Seismic/ Neural Networks 1980’s: 3D Seismic/ Imaging Technology 1970’s: Seismic stratigraphy / VSP 1960’s: Synthetic seismograms / Vibrator Trucks JULY

EXPLORATION PROGRESS - WORLDWIDE SEISMIC FACIES BASIN PROGRESS VISUALIZATION SEISMIC RECORD WHILE DRILLING JULY

NEW PRODUCTIONDEVELOPMENT - WORLWIDE TECHNOLOGY SMART FIELDS INTEGRATION DIGITAL CONNECTION OF OILFIELDS MULTILATERAL WELLS APPLICATION IMPROVED RECOVERY TECHNOLOGY APPLICATION GEOSCIENCES NEW CONCEPTS AND MODELS FOR MATURE FIELDS INTEGRATED GEOLOGICAL MODELS FOR MATURE FIELDS RESERVOIR MANAGEMENT TO OPTIMIZE MATURE FIELDS JULY

Source: BP Statistical JULY

Source: BP Statistical JULY

PERU JULY

EXPLORATION PROGRESS - PERU TOTAL 2D SEISMIC PERIOD 2002-2011 222 km EXPLOITATION AREAS – PERU 2D SEISMIC (km) – Period 2002-2011 TOTAL 3D SEISMIC PERIOD 2002-2011 2,712 km2 EXPLOITATION AREAS – PERU 3D SEISMIC (km2) – Period 2002-2011 SOURCE: PERUPETRO - MINEM JULY

EXPLORATION PROGRESS - PERU TOTAL 2D SEISMIC PERIOD 2002-2011 38,169 km EXPLORATION AREAS – PERU 2D SEISMIC (km) – Period 2002-2011 AREAS IN EXPLOITATION – PERU 2D SEISMIC (km) – Between the year 2002 to 2011 TOTAL 3D SEISMIC PERIOD 2002-2011 14,518 km2 AREAS IN EXPLORATION – PERU 3D SEISMIC (km2) – Period 2002-2011 SOURCE: PERUPETRO - MINEM JULY

EXPLORATION PROGRESS - PERU EXPLORATORY DRILLING PROGRESS Exploratory Wells FOREST SOURCE: PERUPETRO - MINEM JULY

EXPLORATION PROGRESS - PERU RATIO: 2D Seismic and Exploratory Wells for exploration contracts km/contract Wells/contract Kms / contract Wells / contract SOURCE: PERUPETRO - MINEM JULY

EXPLORATION PROGRESS - PERU Magazine Zona Petrolera January 2011 Venture capital attraction constitutes a fairly complex and huge process EXPLORATION PROGRESS - PERU DISCOVERIES AND IMPLEMENTATIONS Discoveries charts Accumulations Discoveries Implementations SOURCE: PERUPETRO - MINEM JULY

EXPLORATION PROGRESS - PERU IINVESTMENT TOTAL PERIOD 2002-2011 USD 6,469 MM EXPLOITATION INVESTMENTS – PERU Period 2002 - 2011 INVESTMENT TOTAL PERIOD 2002-2011 USD 2,754 MM EXPLORATION INVESTMENTS – PERU Period 2002 - 2011 SOURCE: PERUPETRO - MINEM JULY

EXPLORATION PROGRESS - PERU “INVESTMENT / No. CONTRACTS” PROGESS Contract Exploitation Exploration YEAR 2011 CURRENT EXPLOITATION CONTRACTS : 20 CURRENT EXPLORATION CONTRACT : 62 TOTAL CURRENT CONTRACTS: 82 YEAR 2011 No. OF LOTS WHERE INVESTMENTS WERE MADE OVER USD 50 MM, IN EXPLOITATION: 04 OVER USD 10 MM, IN EXPLORATION: 12 SOURCE: PERUPETRO - MINEM JULY

NEW PRODUCTION DEVELOPMENT EXPLORATION PROGRESS NEW PRODUCTION DEVELOPMENT AGENDA PRIVATE SECTOR VISION JULY

NEW PRODUCTION DEVELOPMENT - PERU PRODUCTION OF LOT X OIL PRODUCTION IN LOT X WAS DOUBLED New Old JULY

NEW PRODUCTION DEVELOPMENT - PERU OIL PRODUCTION (NORTHWEST) + than 22,000 b/d IN 8 YEARS, PRODUCTION WAS DOUBLED JULY

NEW PRODUCTION DEVELOPMENT - PERU TOTAL PERU SUPERVISED GAS PRODUCTION JULY

NEW PRODUCTION DEVELOPMENT EXPLORATION PROGRESS NEW PRODUCTION DEVELOPMENT AGENDA PRIVATE SECTOR VISION JULY

NO INVESTMENT, NO NEW PRODUCTION RELATION BETWEEN NEW PRODUCTION – INVESTMENT AND DRILLING - NORTHWEST Wells and USD MM BLS/year PRODUCTION DRILLED WELLS INVESTMENT JULY

INVESTMENT AND OBJECTIVES CONSERVATIVE SCENARIO OPTIMIST SCENARIO Source: Strategic Plan of Sustainable Energy and Strategic Environmental Assessment, as planning instruments– MEF-MINEM-BID / 2012 JULY

INVESTMENT AND OBJECTIVES GDP Optimist Pesimist SOURCE: STRATEGIC PLAN OF SUSTAINABLE ENERGY AND STRATEGIC ENVIRONMENTAL ASSESSMENT, AS PLANNING INSTRUMENTS– MEF-MINEM-BID / 2012 JULY

INVESTMENT AND OBJECTIVES HYDROCARBONS TRADE BALANCE BACKGROUND AND STRATEGIC PLAN SOURCE: STRATEGIC PLAN OF SUSTAINABLE ENERGY AND STRATEGIC ENVIRONMENTAL ASSESSMENT, AS PLANNING INSTRUMENTS– MEF-MINEM-BID / 2012 JULY

INVESTMENT AND OBJECTIVES OPTIMIST SUPPLY OF ADJACENT LOTS (NEW EXPLORATION) BASE SUPPLY OF ADJACENT LOTS (NEW EXPLORATION) SUPPLY OF BATCHES 88+56+57+58 (ONGOING EXPLORATION) SUPPLY OF LOTS 88+56+57 (NO EXPLORATION) INCREMENTAL SUPPLY PROGRESS ACCORDING TO EXPLORATORY PLAN (MMSCFD) SOURCE: STRATEGIC PLAN OF SUSTAINABLE ENERGY AND STRATEGIC ENVIRONMENTAL ASSESSMENT, AS PLANNING INSTRUMENTS– MEF-MINEM-BID / 2012 JULY

INVESTMENT AND OBJECTIVES INVERSION Y OBJETIVOS Chart R.E.16: CAPEX + OPEX of Gas Plan Chart R.E.14: Exploration Program of Camisea Gas CURRENT VALUE SOURCE: STRATEGIC PLAN OF SUSTAINABLE ENERGY AND STRATEGIC ENVIRONMENTAL ASSESSMENT, AS PLANNING INSTRUMENTS– MEF-MINEM-BID / 2012 JULY

E&P PROJECTS – LONG TERM AND RISK RECOVERY GROWTH – MATURE FIELDS IN PERU, MORE THAN 90% OF OIL PRODUCTION COMES FROM MATURE FIELDS. IT IS IMPORTANT TO PLAN STRATEGICALLY TO INCREASE THE RECOVERY FACTOR FROM 15% TO 35%. IT IS NECESSARY TO EVALUATE (ECONOMIES OF SCALE) THE IMPLEMENTATION OF WELL PROJECTS "INFILL“, DEEP WELLS, HYDRAULIC FRACTURING OF DEEP PENETRATION AND MASSIVE, NEW POTENTIAL HORIZONS, FLUID INJECTION, EQUIPMENT DESIGN AND TOOLS MORE EFFICIENT AND LOW COST. WITHIN 8 YEARS (2004-2011), OIL PRODUCTION NORTHWEST HAS ACHIEVED DOUBLE. CAN WE TRIPLE OIL PRODUCTION? IN HOW MANY YEARS? IT IS POSSIBLE ONLY WITH STRATEGIC PLANNING OF PRIVATE SECTOR OR STATE PLANNING IS REQUIRED? VISION: COMBINED WITH STRATEGIC PLANNING COMPANY - STATE (LONG TERM), INVESTMENT AND TECHNOLOGY, IT IS POSSIBLE TO TRIPLE OIL PRODUCTION. JULY

PROJECTS E&P – LONG TERM Y RISK NEW PRODUCTION – NEW FIELDS PERU, REQUIRES IMPLEMENTING / EXECUTING NEW PROJECTS FOR DEVELOPMENT AND PRODUCTION OF OIL AND GAS. IT IS IMPORTANT THAT THE DISCOVERED GAS HAS BEEN MONETIZED FOR THE WELFARE SOCIETY AND BUSINESSES. NATURAL GAS DOMESTIC MARKET CONSUMPTION GROWS AT A RATE OF 23%, AND IT IS NECESSARY TO MAINTAIN A RATIO RESERVES/ MINIMUM CONSUMPTION OF 20. THE TOTAL CONSUMPTION IN THE COUNTRY IS APPROX. 0.4 TCF PER YEAR (YEAR 2011). IT IS NECESSARY TO CARRY OUT EXPLORATION EFFORTS FOR GAS AND OIL. WITHIN 8 YEARS (JUN 2004 – MAY 2012), PROVED NATURAL GAS RESERVES HAS BEEN CONSUMED 1.3 TCF. CAN WE INCREASE PROVED RESERVES OF NATURAL GAS AND OIL? IN HOW MANY YEARS? IS IT POSSIBLE ONLY WITH STRATEGIC PLANNING OF PRIVATE SECTOR OR STATE PLANNING IS REQUIRED? VISION: COMBINED WITH STRATEGIC PLANNING COMPANY - STATE (LONG TERM), INVESTMENT AND TECHNOLOGY, IT IS POSSIBLE TO INCREASE NATURAL GAS AND OIL RESERVES JULY

PILLARS OF BUSINESS STRATEGY GROWTH SOCIAL AND ENVIRONMENTAL RESPONSABILITY SUSTAINABLE DEVELOPMENT PROFITABILITY JULY

INTER-RELATION BETWEEN PRIVATE AND DOMESTIC SECTOR INFRASTRUCTURE INVESTMENT ENERGY – ROYALTIES - CANON DEVELOPMENT - SUSTEINABILITY EFFICIENT STATUS ON TIME PERMITS JULY

STRATEGIC BUSINESS DRIVERS DISCOVER RESERVES / RESOURCES INCREASE OIL AND GAS RECOVERY JULY

INVESTMENT VALUE CHAIN RESOURCES DISCOVERIES THROUGH EXPLORATION ACCESS TO DISCOVERED RESOURCES DISCOVERY THROUGH EXPLOITATION PROSPECTS INVESTMENT INFORMATION IN PRODUCTION PROVED RESERVES INFRASTRUCTURE INVESTMENT IN JULY

CHALLENGES AND OPPORTUNITIES – LONG TERM GROWTH HUMAN RESOURCES, INFRASTRUCTURE AND LOGISTICS, AVAILABILITY OF INVESTMENTS, DOMESTIC INDUSTRY COMPETITIVENESS, COST OPTIMIZATION APPROVALS “JUST IN TIME” OPPORTUNITIES ECONOMIC GROWTH, MARKET GROWTH, ATTRACTIVENESS TO OTHER COMPANIES, ENHANCEMENT OF RESOURCES, INFRASTRUCTURE GROWTH HIGHER PRODUCTION AND ROYALTIES. JULY

THANK YOU JULY