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

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

3. 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

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

5. WORLDWIDE
JULY

6. 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

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

8. 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

9. Source: BP Statistical
JULY

10. Source: BP Statistical
JULY

11. PERU
JULY

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

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

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

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

16. 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

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

18. 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

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

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

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

22. NEW PRODUCTION DEVELOPMENT - PERU
TOTAL PERU
SUPERVISED GAS PRODUCTION
JULY

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

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

25. 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

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

27. 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

28. INVESTMENT AND OBJECTIVES
OPTIMIST SUPPLY OF ADJACENT LOTS (NEW EXPLORATION)
BASE SUPPLY OF ADJACENT LOTS (NEW EXPLORATION)
SUPPLY OF BATCHES
(ONGOING EXPLORATION)
SUPPLY OF LOTS
(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

29. 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

30. 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 ( ), 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

31. 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

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

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

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

35. 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

36. 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

37. THANK YOU
JULY