brochure general-junio-ing
DESCRIPTION
March 04th, 2012. March 04th, 2012. September 14th, 2012 / 15:00. September 14th, 2012 / 15:30. August 24th 2012 / 15:30. August 07th, 2012. Evaluation and selection of Oil Companies. Until August 17th, 2012. Until August 31st, 2012. Notification to the Companies about the selection process result. International Calling Publication July 16th 2012 / 15:30. Signing of Contracts Presentation of the documents for qualification. July 27th, 2012 / 15:00. July 27th, 2012 / 15:30. Written Inquiries.TRANSCRIPT
General Outline
First International Round of Blocks Promotion
Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) invites to all interested companies to invest in Bolivia’s hydrocarbon exploratory and production activities, under modalities of Exploration & Production Contracts and Research Agreements.YPFB estimates that Bolivia has a prospective gas resource potential of over 60 TCF and more than 2.500 MMbbls of prospective oil resources. These amount of resource is distributed in 53,5 MM hectares of our National territory.
Submission of proposals conditions
Opportunities for Oil & Gas Exploration in Bolivia
• Independent o�er submission for each block. • All companies wishing to participate must include proof of interest purchase of the Condition Documents (E&P Contract and/or Research Agreements), according to the types of agreements to sign. In case o�ers are presented through a consortium, each member of it must buy the mentioned documents.
SCHEDULE
International Calling Publication
Sale of the Bidding Conditions Document (DBL)
and Data Package.
Sale of Study Agreements Condition Document (DBCE)
the Data Package.
Written Inquiries.
Clarification Meetings.
Publication of DBL amendments or DBCE (if any).
Presentation of “Envelope A” and “Envelope B” for qualification.
Presentation of the documents for qualification.
Envelope opening ceremony.
Evaluation and selection of Oil Companies.
Notification to the Companies about the selection process result.
Signing of Contracts
Activity Study AgreementOil Service Contract (E&P Contract)
March 04th, 2012.
-
From June 11th 2012 to
July 06th 2012.
Until July 11th, 2012.
July 16th 2012 / 15:30.
Until July 20th, 2012.
-
July 27th, 2012 / 15:00.
July 27th, 2012 / 15:30.
From July 30th 2012 to
August 03th, 2012.
August 07th, 2012.
From August 08th, 2012
to October 05th, 2012.
March 04th, 2012.
From June 11th 2012
to August 10th 2012.
-
Until August 17th, 2012.
August 24th 2012 / 15:30.
Until August 31st, 2012.
September 14th, 2012 / 15:00.
-
September 14th, 2012 / 15:30.
From September 14th 2012
to September 21th, 2012.
September 24th, 2012.
From October 01 st, 2012
to November 30th, 2012.
Proved Reserves
Probable Reserves
Possible Reserves
Prospective Resources
(*) Millions of Barrels
Natural Gas (TCF)
9,94
3,71
6,27
60
Oil (MMBbl)(*)
209,81
98,22
4.34
2500
Bolivian Hydrocarbons Potential
Consultations and Clarification of Terms • Any company may access to consultations and clarifications of the conditions Documents through letters addressed to YPFB. All the consultations and clarifications will be answered by YPFB.
• YPFB will notify the companies who have purchased the Condition Documents and sent the intention letters.
• Likewise, YPFB will publish on its web page: www.boliviapromocionareas.com the answers to the consultations and clarifications requested by all interested Oil Companies.
Oil Companies Qualification
All interested companies in participating of the selection process, must submit the following: Intention LetterAlso must comply with: Technical Aspects • All companies must have service and operations experience in oil and gas exploration activities of at least 3 years. In the case of a Consortium, the added years of experience among members should not be less than 6 years.• Companies must prove their professional staff to develop and execute exploratory activities must have at least 10 years of experience, whether they are executive, managerial or technical personnel. Financial Aspects • Equity average of the last three years must be over US$ 20 MM, in order to become a bidder in any block.• Additional Equity average of US$ 10 MM per each additional block of interest.
All companies must render services and operations and they must submit all legal documentation to validate all technical and financial requirements.
• Exploration and Exploitation, also known as Risk Service Contract, allows the systematic Exploration of blocks and development and Exploitation of Hydrocarbons. In this case, a Mixed Economy Society (SAM) between YPFB (>= 51% share) and the investing company (=<49% participation) is constituted.
Research agreement Signing sequence of E&P Contracts
• Signing of the Research Agreement of the block.• Final report of the Research Agreement (No more than a year) • Signing of the E&P Contract (In case of interest of the Oil Company)
Financial Benefits for the Investment Company
From the perspective of incurred costs:Devolution of the investments of the exploration activities, in case of exploratory success, with the same field production. The exploration cost will be passed to the company, applying a discount rate according to the current USA inflation.
From the perspective of income:• Incomes according to the percentage share of the Exploitation block < 51%. (E&P Contract).
Contents, Data Package, Condition Documents and Assurances
Content
Data Package
Condition Documents
Assurances
Geological report of the exploratory leads.Determination of the lead Hydrocarbon potential.exploratory activities and investments programPreliminary Plan of the future Exploitation Project and investment.Evaluation of the Project and risk analysis.Production Forecast with expected cash flows.Geological Maps, structural, stratigraphic analysis, production capacity of the potential reservoirs and characteristics.Delimitation proposal of the selected block for the exploration.
Data package price is subject to each available reserved block.Seismic InformationGeological InformationWell InformationElectric LogSeismic Kingdom Project PresentationsBrochuresModel of the Study Agreement and/or E&P ContractModel of Statute for a Mixed Economy Society
(US$ 1,000.00)Research Agreement Document (DBCE), contains the following conditions: administrative, technical and economical, evaluation methodology and procedures.
(US$ 250,000.00)Fulfillment Assurance
Exploration PlanCommitted UTEs Estimated InvestmentsExploratory Activities Schedule
(US$ 2,000.00)Bidding Base Document (DBL), to subscribe E&P Contracts under the provision of services type contains the following conditions: administrative, technical and economical, evaluation methodology and procedures.
(US$ 50,000.00)Assurance of a serious proposal
Research Agreement E&P Contract
Type of Contract
Note: It is not a condition to make a Research Agreement for signing an E&P Contract.
• Research Agreement, it has the purpose to evaluate the Hydrocarbon potential of an block and to identify the corresponding exploitation opportunities which could enable an E&P Contract.
Blocks Technical DataGeological Provinces - Exploration Acreage
Beni
Santa Cruz
La Paz
Potosi
Pando
Oruro
Tarija
Cochabamba
Chuquisaca
27
1
57
60
58
63 8564
5
17
18 12
84
48
79
Geological Provinces - Exploration Acreage
References
Geological Provinces
Altiplano
Beni Plain
Chaco Plain
Madre de Dios Basin
Pantanal
Foothill
North Subandean
South Subandean
Explorations Acreage
Cities
Geological Provinces
Foothills
Southern Subandean
Altiplano
Madre de Dios Basin
Beni Plain
CedroCarandaitiLa GuardiaIvirzaAlegria
PelicanoHuacareta
CoipasaCorregidores
CobijaManuripiNueva EsperanzaMadre de Dios
LitoralEl Chore
99 775100 00090 62573 75076 500
46 250453 750
515 000655 000
333 750189 375372 500500 000
212 500262 500
5357203530
611
5179
278274
3148
735,122020,93334,90394,12557,16
177,54219,63
1740,461917,69
962,12364,03724,14178,82
767,821016,57
Yes - Yes - Yes
- Yes
- -
- - - Yes
- -
- Yes - Yes -
Yes -
YesYes
Yes Yes Yes
YesYes
Available Blocks Area (Has) Total Seismic Line
Seismic Line Length (Km) E&P Contract Research
Agreement
Blocks Technical Data
COIPASA
COBIJA
EL CHORE
CORREGIDORESHUACARETA
MADRE DE DIOS
LITORAL
MANURIPI
NUEVA ESPERANZA
CEDRO
IVIRZA
ALEGRIA
CARANDAITI
LA GUARDIA
PELICANO
BENI
SANTA CRUZ
LA PAZ
POTOSI
PANDO
ORURO
TARIJA
CHUQUISACA
COCHABAMBA
RIO
BEN
I
Río YataR
IO M
AM
OR
E
Río
Bla
nco
Río Pilcom
ayo
Río Piray
RIO A
BUNA
RIO ITENEZ O GUAPORE
Río Madidi
Río Ibare
Río Yacuma
Río
Beni
cito
Río Grande
Río Secure
Río
Neg
ro
Río Mercedes
Río Parapeti
Río Yapacani
Río
Tija
muc
hi
Río Manuripi
Río Isiboro
Río Rap
ulo
Río
Par
agu
a
Río San Pablo
Río Mizque
Río
Hea
th
Río
Man
upar
e
Río Desaguadero
Río Ichoa
Río Tuichi
RIO ORTHON
Río
Cha
pare
Río
Bar
ras
Río Sajama
Río Ichilo
Río Tahuamanu
Río SajtaRío Mauri
Río Guarayos
Río Tucavaca
RIO ACRE
Río C
hore
Río Tarija
Río Yuatre
Río San Martin
Río San Luis
Río Tarvo
Río La Paz
Río Caine
Río Geneshuaya
RIO ALTO BENI
Río
Man
urim
i
Río Coroico
Río Cub
eren
e
Río Boopi
Río
Cur
iche
Gra
nde
Río Pajta
Río V
ilcas
Río Chipamanu
Río
Man
iqui
Río Unduavi
Río Verde
Río Pesca
Río Altamachi
Río C
otacajes
Río Tupiza
Río Berm
ejo
RIO
MA
DER
A
Río
Cab
ito
Río Pailas
Río
Zong
o
Río Sabaya
Río A
yopaya
Río K
aka
Río Zapocoz Sud
Río
Lim
eta
Río Zapoco
z Norte
Río Pacahuaras
Río Quiquibey
Río Piraypani
Río
Quim
om
e
Río Chayanta
Río
Ñan
cahu
azu
Río Colorado
RIO
PAR
AG
UAY
Río Mulato
Río
Cie
nag
a
Río Camblaya
Río San Diablo
Río Atocha
Río M
oroco
Río
San
Mat
eo
Río
Jilc
he
RIO BENI
Río San Pablo
Río
Neg
ro
Río Pailas
Salar de
Coipasa
Salar de
Uyuni
References
Seep
River
Explorations Acreage
Lake
Cities
0 190 38095
Kilometers
0 190 38095
Kilometros
Oil Seeps Map
BENI
SANTA CRUZ
LA PAZ
POTOSI
PANDO
ORURO
TARIJA
CHUQUISACA
COCHABAMBA
Seismic Coverage and Exploratory Wells
Seismic Lines
Wells
Explorations Acreage
References
Cities
Current State Well
Producer
-
2
-
3
-
-
-
-
-
4
-
1
-
-
-
-
-
-
-
-
-
-
-
-
1
-
-
-
-
1
12
5
-
-
-
1
-
-
-
-
-
-
-
3
-
1
3
1
1
-
-
-
-
-
-
-
-
-
-
-
-
15
-
-
5
-
-
-
2
-
-
3
1
2
-
-
-
1
-
-
-
-
-
-
-
-
4
1
-
1
-
20
-
1
-
-
-
-
-
-
-
-
-
-
1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2
Abandoned
Total Wells
Dry Well
3
Closed Well
Nº Wells
5
3
5
3
1
-
2
-
-
7
1
3
4
-
1
4
1
1
-
-
-
-
-
-
5
-
1
-
1
1
49
In The Block
Near
In The Block
Near
In The Block
Near
In The Block
Near
In The Block
Near
In The Block
Near
In The Block
Near
In The Block
Near
In The Block
Near
In The Block
Near
In The Block
Near
In The Block
Near
In The Block
Near
In The Block
Near
In The Block
Near
Geological Provinces
Foothills
Blocks
Cedro
Carandaiti
La Guardia
Ivirza
Alegria
Pelicano
Huacareta
Coipasa
Corregidores
Cobija
Manuripi
Nueva Esperanza
Madre de Dios
Litoral
El Chore
Southern Subandean
Altiplano
Madre de Dios Basin
Beni Plain
Evaluation of Proposals
Working Unit Exploration (UTE), is the Bolivian nomenclature that systematizes the duties of the Exploration Activities (geophysics, magnetometry, gravimetry, drilling of exploratory Wells and other exploratory activities) and which must be performed by the investing company in the different Exploration phases.
Commited Exploration Program, equal or higher to the one defined by YPFB in UTEs
Increase of the participation of YPFB > to 51% of a Mixed Economy Society (SAM)
Number of requested Exploratory blocks in this choice, under Reserch Agreement type
Direct Participation of YPFB
Technical and Financial company’s Capacity.
50%
25%
10%
10%
5%
The submitted proposals will be evaluated by YPFB based on the following considerations:
Qualification criteria E&P Contract
Exploratory Activities
Seismic:
Each kilometer of the 2-D seismic line registered, processed, interpreted, mapped and also in the case of not being technically interpretable or mapped.
Each kilometer of 2-D seismic line Pre - existing before the e�ective date of the contract which is reprocessed, interpreted and mapped.
Each square kilometer of 3-D seismic which is registered, processed, interpreted, mapped and also in the case of not being technically interpretable or mapped.
Magnetometry:
Each lineal kilometer registered, interpreted and mapped with minimum spacing of 400 Meters of grids.
Gravimetry
Each lineal kilometer recorded, interpreted and mapped with minimum spacing of 1000 Meters of grids.
Exploratory Wells (Depth) (*):
1 5 Parcels> 5 10 Parcels> 10 20 Parcels> 20 40 Parcels> 40 80 Parcels> 80 120 Parcels> 120 160 Parcels> 160 200 Parcels> 200 300 Parcels> 300 400 Parcels
(*) For intermediate depths, equivalences in UTE will be determined by interpolating the two approximate values of depth.(**) 1 Parcel = 25 km2
5007009001200------
2.50
Size by Parcel block (**) Traditional Zone UTE Nontraditional zone UTE
1.000 meters2.000 meters3.000 meters4.000 meters5.000 meters6.000 meters7.000 meters
250.00440.00740.001.300.001.980.003.250.005.400.00
UTE Equivalent
Parameters of UTEs
300400500600700800900105012001300
0.15
6.50
0.01
0.02
Hydrocarbons Sale The natural markets of the hydrocarbons produced in Bolivia are Brazil and Argentina, currently guaranteed by long term contracts to buy/sell (Brazil 1999-2019, Argentina 2006-2026). In 2011, gross production of natural gas, reached an average of 45.07 MMm3/day and crude oil production and condensated reached 44.60 MBbl/day. In February 2012, the highest production of natural gas was attained with 48 MMm3/day. Approximately 80% of the natural gas production is intended for exporting markets.
Taxes • Companies Utility Tax (IUE), 25% over the annual net utility. In Upstream activities, tax regulation determines a straight-line depreciation of few years, encouraging oil operations in their first years.• Royalties (18%)• Direct tax on Hydrocarbons (IDH), 32% on the measured production in the tax point.• All other taxes are deductibles except Royalties. IUE and IDH.
Environmental Protection
The company which decides operating in Bolivia should develop environmental prevention and mitigation activities, ensuring conservation and protection of the enviroment, using the most advanced techniques, in accordance with the Bolivian regulations. Acting responsibly is a fundamental requirement for companies operating exploratory activities, specially in the development of environmental impact controls.
Legal Security
Each E&P Contract is approved by the Congress of the Plurinational State of Bolivia.
July
August
September
October
November
December
January
February
March
10.20
10.20
10.20
10.73
10.73
10.73
10.62
10.62
10.62
8.30
8.31
8.30
8.74
8.74
8.57
8.60
8.93
8.98
2011 - 2012 Selling price to Argentina (US$/MMBtu)
Selling price to Brazil(US$/MMBtu)
www.boliviarondaexploracion.com