A Focus on New Heavy Oil Developments - Peru

A Focus on New Heavy Oil
Developments - Peru
Luis Ortigas Cuneo
Chairman of the Board
March , 2014
1
CONTENT
1. Peru: an under explored country
2. General Remarks
3. Contract Terms
4. New Bidding Rounds - 2014
5. The Data Bank
6. Hydrocarbons: General Considerations
7. Heavy Oils Occurrence in South America and Canada
8. Reserves of Heavy Oils
9. 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
2
Light oil areas in Western Marañon Basin
1
2.
Heavy oil areas in Eastern Marañon Basin
3.
Hydrocarbon Occurrence in Ucayali Basin
4.
Camisea and adjacent gas and condensate
fields
5
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 BBO
Daily
25,000 BOD
TALARA BASIN
Accumulated
1,500 BBO
Daily
38,000 BOD
0.3 BCFGD
UCAYALI BASIN
Accumulated
31BBO
130 BBC
0.8 TCFG
Daily
300 BOD
106,000 BCD
1,181 BCFGD
5
Distribution of Wildcats in 18 Sedimentary 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 …
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 …
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 …
Source: Banco Central de Reserva del Perú, Ministerio de Economía y Finanzas
* Estimated data
10
Investment
… which represents near 22 % of the 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
12
Degree of Investment and Confidence
Peru has deserved a good investment rate and the investors confidence
due to its favorable economic policy
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
17
Contract term about to end – Marañon basin
BLOCK 1AB
18
Next Bidding Round – Block 1 AB
Block 1-AB:
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
19
Next Bidding Round - New Blocks
26 Blocks for
Exploration
activities in the
Jungle basins
For further information:
[email protected]
20
Next Bidding Round - New Blocks
6 Blocks for
Exploration Activities
in Offshore Basins
For further information:
[email protected]
21
5. The Data Bank
22
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
23
A Focus on New Heavy Oil
Developments - Peru
Elmer Martinez G.
Senior Geologist
March , 2014
24
6. Hydrocarbons: General
Considerations
25
Classification of Hydrocarbons
1.
Gas and Condensates: Camisea, Aguaytía
2.
Conventional Oils:
>22º API
3.
Heavy oils:
<22º API
4.
Extra-Heavy Oils:
< 10º API
5.
Oil Sands and Bitumen:
Solid
North Peruvian Pipeline transports oils from 23º API up
26
Characteristics of Heavy Oils
1. Conventional Oils:
• Brent-West Texas crude oil,
• Talara:
2. Heavy Oils:
• Viscosity:
PERU:
>22º API
38 a 40° API
35° API
<22º API
1-10 cP
12-22º API, ........12-15º (Block 67)
3. Extra-Heavy Oils:
• Viscosity:
4. Oil Sands and Bitumen:
< 10º API
< 20 - > 1MM cP
Solid to Environment Temperature
27
Heavy Oils – General Considerations
• Heavy oils have become a very important issue in
the Petroleum Industry.
• There are more E&P operators for this type of
resources all over the world every day.
• It is well known where the heavy oils are located.
• Heavy oils are needed now and for the future.
PERU IS NOT AN EXCEPTION
28
7. Heavy Oils Occurrence in South
America and Canada
29
Origin of Heavy Oils
Causes of oils degradation
• Microbial biodegradation is responsible of
fractioning of heavy and light oils components.
• Light components escape leaving the heavy ones.
• Flushing, physical media.
• Fractioning of phases, chemical media.
30
Occurrence of Heavy Oils
• The Resource /“Reserves” of heavy and extra heavy oils happen to be more than
double of conventional oils....70 vs 30 %
RESERVES and RESOURCES OF OIL IN THE WORLD
9-13 TBO
(Oilfield Review, Schlumberger, 2006)
Oil Sands and
bitumen 30%
Extra heavy oil
25%
Conventional oil
30%
Heavy oil 15%
HEAVY AND EXTRA HEAVY OIL AND BITUMEN=70%
31
Occurrence of Heavy Oils
In similar geological environments:
• In borders of Foreland basins.
• Long migration route since the kitchens.
• Super-giant surface deposits, frequently with no
seal.
• PERU: reservoirs to 2,000 m deep.
32
Occurrence of Heavy Oils
• Examples of heavy oil fields
1.
2.
3.
4.
Venezuela
Canada
Ecuador
Peru
33
Occurrence of Heavy Oils
1.
Venezuela North Central portion
34
Occurrence of Heavy Oils
1. Venezuela
• The first discovery: Mene Grande, 1914
• Numerous fields, including the important
Orinoco Belt
35
Occurrence of Heavy Oils
Venezuela (cont.)
1.Recoverable conventional oil: 76.8 BBO
2.Orinoco Oil Belt, the biggest individual heavy and
extra heavy oil accumulation of the world to Nov
1999:
• OOIP: 750 BBO, 6-12° API
• Recoverable: 36.6 BBO
• Bitumen OOIP: 277 BBls
OOIP: Original Oil in Place
36
Occurrence of Heavy Oils
2.CANADA
• Alberta Basin, West Canada:
o The world biggest combined accumulation of
heavy, extra heavy oils and bitumen.
o 81% World Recoverable Resources.
• The oil sands projects: become the first heavy oil
source in West Canada.
• Reserves: 1,700 BBO
37
Occurrence of Heavy Oils
3. ECUADOR
•Ishpingo-Tambococha-Tiputini (ITT)
o Ishpingo and Tiputini: 2,700 y 400 MMBO OOIP
of heavy oil of 12-16° API
• Capiron, Tivacuno, Yuturi, Iro, Amo and Pañacocha:
20-22°API, NW of ITT
o Yuturi and Iro: 600 MMBO OOIP each
o Amo: 500 MMBO OOIP
• Remnant recoverable reserves to Dec 2,006:
o 2 BBO 10-20° API
38
Occurrence of Heavy Oils
Heavy oils in
Peru
• 18 Hydrocarbon
Sedimentary
Basins
• Heavy oil only in
North Marañon
Basin
39
Occurrence of Heavy Oils
Colombia
Ecuador
SP CHONTA
Cuenca s
Tumbes
talara
Lancones
SP PUCARA
ARCO DE IQUITOS
SP
CRETACEOTERCIARIO
Cuenca s
Trujillo
Salaverry
Brasil
SP AMBO
Cuenca
Ucayali
SP ENE
SP AMBO
SP CABANILLAS
Cuenca
M. de Dios
Cuenca
Pisco
SP AMBO
SP SIPIN
200 km
Areas de Cocina
Cuenca
Titicaca
40
Bolivia
Petroleum Systems
and ¨Kitchens¨ in
Peruvian
hydrocarbon basins
Cuenca
Marañón
4
Occurrence of Heavy Oils
• Barrier for heavy oil
accumulation.
• Jurassic Petroleum
System, Unknown
Potential.
Colombia
Ecuador
SP CHONTA
STILL UNKNOWN
Cuenca
Marañón
Cuenca s
Tumbes
talara
Lancones
ARCO DE IQUITOS
SP PUCARA
SP
CRETACEOTERCIARIO
Cuenca s
Trujillo
Salaverry
Brasil
Cuenca
Ucayali
SP AMBO
SP ENE
SP AMBO
SP CABANILLAS
Cuenca
M. de Dios
Cuenca
Pisco
SP AMBO
SP SIPIN
200 km
Areas de Cocina
Cuenca
Titicaca41
Bolivia
• In the border of the
Foreland Basin – Marañón.
• Long Migration route since
the kitchens in the SubAndean Trend.
• Surface Deposits, to 2,000
meters deep.
• Origin, Cretaceous
Petroleum System.
Ocurrencia....
4
Occurrence of Heavy Oils
4
3 ITT, 1970-93
1
2
1
2
3
6
5
BARRET
REPSOL
UNION
OXY
Basins:
Marañon in Peru
Oriente in Ecuador
BARRET, 1998
UNION, 1974
2
1
REPSOL,2005-06
1
4 3
3
OXY, 1978-88
2
42
8. Reserves of Heavy Oils
43
Reserves of Heavy Oils
ORIGINAL OIL IN PLACE (OOIP) AND RESERVES 2P (PROVEN + PROBABLE) PER FIELD AND RESERVOIR
Chonta
Field
Piraña
OOIP (MMstb)
Reserves (MMstb)
Recovery Factor (%)
Basal Tema
30.1
3
10.00%
Vivian
0
0
0.00%
Glauconitic
and Upper
Member
125.7
19.2
15.30%
Cetico
227
65.8
29.00%
TOTAL
383
88
23%
Perenco Block 67
Paiche
OOIP (MMstb)
Reserves (MMstb)
Recovery Factor (%)
Dorado Sur
OOIP (MMstb)
Reserves (MMstb)
Recovery Factor (%)
Dorado Central
OOIP (MMstb)
Reserves (MMstb)
Recovery Factor (%)
Dorado Norte
OOIP (MMstb)
Reserves (MMstb)
Recovery Factor (%)
Total Dorado
OOIP (MMstb)
Reserves (MMstb)
Recovery Factor (%)
BLOCK 67 TOTAL
OOIP (MMstb)
Reserves (MMstb)
Recovery Factor (%)
193.7
58.1
48.4
14.5
25.00% 25.00%
54.3
6.1
11.20%
128.4
32.1
25.00%
435
101
23%
8.7
0.7
8.00%
0
0
0.00%
24.4
2.8
11.40%
60.3
17.5
29.00%
93
21
22%
3.9
0.3
8.00%
0
0
0.00%
23.3
2.7
11.50%
14.4
3.9
27.00%
42
7
17%
0
0
0.00%
0
0
0.00%
19.5
0
0.00%
101.1
0
0.00%
121
0
0.00%
12.6
1
8.00%
0
0
0.00%
67.2
5.5
8.10%
175.8
21.4
12.20%
255.5
27.9
10.90%
236.4
58.1
52.4
14.5
22.20% 25.00%
247.2
30.8
12.50%
531.2
119.3
22.50%
1073
217
Source: Block 67 Reserves Yearly Book, to
December 31, 2011 (Perenco Peru)
44
Reserves of Heavy Oils
SUMMARY of Reserves Block 67 Perenco
Fields
Piraña
Dorado
Paiche
Total Block 67
Total (2P)
Proven + Probable
Recovery
OOIP
Reserves
Factor
MMBO
%
MMBO
383
23%
88
256
11%
28
435
23%
101
1073
20%
217
Total (3P)
Proven + Probable + Possible
Recovery
OOIP
Reserves
Factor
MMBO
%
MMBO
521
24%
124
304
14%
114
501
23%
114
1326
21%
280
Source: Block 67 Reserves Yearly Book, to December 31, 2011 (Perenco Peru)
45
Reserves of Heavy Oils
Estimated Production
Block 67 Perenco
Source: Block 67 Reserves Yearly Book, to December 31, 2011 (Perenco Peru)
46
Reserves of Heavy Oils
Reserves REPSOL Block 39
Recent Discoveries:
1. Buenavista
2. Delfín
3. Raya
Old Wildcats:
1. Cunambo 1X, drilled in 1974
2. Arabela 1X, drilled in 1994
47
Reserves of Heavy Oils
Repsol Block 39
Probable Oil Reserves
Block
MMBO/well N° Wells
Field
Buena Vista
1.74
50
39
Delfin
1.74
53
Raya
1.74
55
Total Probable Reserves
MMBO
87
92
96
275
Possible Oil Reserves
Block Field
MMBO/well N° Wells
Buena Vista
1.74
15
39
Delfin
1.74
20
Raya
1.74
24
Total Possible Reserves
MMBO
26
34
41
100
Ministry of Energy and Mines (December 31, 2011)
48
Reserves of Heavy Oils
Resources Repsol Block 39
Block
39
Probable
MMBO
275
Oil Resources
Field
MMBO/well N° Wells
Cunambo
1.5
12
Tangarana
1.5
17
Arabela
1.5
15
Raya 4
1.7
20
Total Resources
Possible
MMBO
100
Resources
MMBO
100
Ministry of Energy and Mines (December 31, 2011)
MMBO
18
26
23
34
100
TOTAL
MMBO
475
49
Reserves of Heavy Oils
PLUSPETROL Block 1AB
HEAVY OIL (MMBO) PLUSPETROL BLOCK 1AB
PROVEN
ACCUMULATED
RESERVES °API PRODUCTION
(MMBO)
OOIP (MMBO)
FIELDS
BARTRA
JIBARO / JIBARITO
SAN JACINTO
TIGRE
TOTAL
242.4
530.0
673.4
50.8
1,496.6
11.4
10.4
15.6
11.0
30.74
98.84
67.08
196.66
MER (Maximun Recovery Efficiency) Pulspetrol Norte S.A. Block 1AB January 2012
50
Reserves of Heavy Oils
HEAVY OIL PRODUCTION PLUSPETROL
BLOCK 1AB
31 December 2013
FIELDS
BOPD
°API
JIBARITO
2,904
10.4
JIBARO
1,221
10.5
SAN JACINTO
2,778
15.6
TOTAL
6,903
Reserves and Expectations of Resources, Pluspetrol Norte S.A. Block 1AB December 31, 2013
51
Prospects and Leads
Blocks 67 y 39
52
9. Final Remarks
53
Final Remarks
 Occurrence of Heavy Oil (10-23º API) in portion North East of Marañon
Basin, produced since the early 70’s - Iquitos Arch and surrounding
areas.
 Heavy Oil in the Structural Alignment with ITT (Ishpingo, Tambococha y
Tiputini) from Ecuador
 Numerous prospects and ¨leads¨ in areas where Cretaceous source
rocks discoveries took place (Chonta formation)
 Highly attractive potential in Iquitos Arch where Jurassic Pucara
formation source rocks are located.
54
Final Remarks
Occurrence of Heavy Oils in Maranon Basin

PERENCO commercial heavy oil, BLOCK 67, 3 fields 16.5 °API
o OOIP 1,073 MMBO, Estimated Reserves (2P) 217 MMBO (Recovery Factor 20%)
o OOIP 1,326 MMBO, Estimated Reserves (3P) 280 MMBO (Recovery Factor 21%)

REPSOL 3 heavy oil discoveries, BLOCK 39 10.5 – 13.2 °API
o Probable reserves: 275 MMbls
o Possible reserves: 100 MMbls
o Resources: 100 MMbls

PLUSPETROL Old exploitation of heavy oil 10-15º API, Block 1AB, 4 fields
(including Bartra)
o Accumulated production: 196.66 MMBO, OOIP 1,496.6 MMBO (RF 18.7%)
o Actual production: 6,903 BOPD 10-15º API
55
Final Remarks
•
Peru has 18 sedimentary basins with 83 million hectares (ha), most of them under an
immature exploration stage.
•
There are 73 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 would be 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.
56
Final Remarks
•
New bidding rounds in 2014:
a. 26 new blocks for hydrocarbon exploration activities in the Jungle Amazon region.
b. 6 Offshore blocks for hydrocarbon exploration activities.
c. 1 Block with current production – Block 1-AB
•
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.
57
Thank you for your attention…
www.perupetro.com.pe
58

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