28-09-2015 Pesquisa de Petróleo em Portugal, ENMC, Fundação Caloute Gulbenkian, Lisboa

Hydrocarbons Exploration and Productionin Portugal

Luís Guerreiro

September 28th 2015

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Outline

• Energy and richness

• Oil price: question for a crystal ball

• Exploration efforts in Portugal

• Portugal attractiveness

• Oil myths

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GDP worldwide

Source: World Energy Outlook 2014

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How difficult is to estimate the oil price

Source: World Energy Outlook 2014

Source: DOE/EIA, Annual Energy Outlook 2015, April 2015

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Global Oil Production 2013-2014

The silent revolution

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Over plus volumes

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0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

K B

OE/

D

ANOS

Oil and gas consumption

Petróleo Gás natural

What is happening in Portugal

Source: Pordata

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How much does Portugal pay for energy?

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• Operations in oil and gas upstream activities

• Participations in concessions and joint ventures worldwide

• Exploration, development, production and sales

• Organization by geographical areas

• Two management units:

Partex Services Portugal (Lisbon)

Partex Management Oil Services (Liechtenstein)

Partex Oil and Gas worldwide

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Partex Oil and Gas in Portugal

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Oil and gas in Portugal, yes or no?

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Geologic Risk : 5 magic factors

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Pangea and the Continental Drift

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COS = 18%5 wells : 1 discovery

Chance of success or dry wells probability

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Bacias Interiores (Onshore/Offshore pouco profundo)

• Bacia do Porto• Bacia Lusitânica• Bacia do Algarve

Portuguese basins

Bacias Exteriores(Offshore mais profundo)

• Bacia Interior da Galiza• Bacia de Peniche• Bacia do Alentejo• Bacia de Sagres• Bacia do Golfo de Cadiz

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Exploration efforts in Portugal

Onshore Offshore

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Exploration Efforts in Portugal

0

500

1000

1500

2000

2500

30002814

2635

2519

1955

1161

1070997 979

725653

591530

382

282 267 248165 156

137 132 120 106 94 83 79 7333 29

13 12 9 7 4 4 4 1

0

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Is Portugal tax attractive for the oil Companies?

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The threat of oil spills

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Source: http://www.whoi.edu/oceanus/feature/while-oil-gently-seeps-from-the-seafloor

Source: Wall Street Journal, “An Oasis of Oil in Kurdistan” Source: Analysis of U.S. Oil SpillageAPI PUBLICATION 356 AUGUST 2009

The source of oil spills

Source: Analysis of U.S. Oil Spillage Regulatory and Scientific Affairs Department PUBLICATION 356 AUGUST 2009

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Source:COMMISSION STAFF WORKING PAPER IMPACT ASSESSMENT, ANNEX IAccompanying the document PROPOSAL FOR A REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCILon safety of offshore oil and gas prospection, exploration and production activitiesBrussels, 27.10.2011SEC(2011) 1292 final

Blowout probabilities – European Waters

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Environmental Impact Assessments (EIA) must comply with the following internationalstandards (non-exhaustive list):

• World Bank (WB)

• International Finance Corporation Guidelines (IFC)

• International Association of Oil & Gas producers Guidelines (OGP or E&P Forum)

• A Guide to Social Impact Assessment in the Oil and Gas Industry (IPIECA, 2004); International Petroleum Industry Environmental Conservation Association (www.ipieca.org)

• Health, Safety & Environment Case Guidelines for Mobile Offshore Drilling Units (IADC, 2010): International Association of Drilling Contractors (www.iadc.org)

• Environmental Guidelines for Exploration Operations in Near-shore and Sensitive Areas (UKOOA, 1995); United Kingdom Offshore Operators Association (www.oilandgasuk.co.uk)

Oil companies Internal HSE and EIA Standards and Procedures

Environmental practices

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Environmental practices

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Reduce energy imports aiming to reduce external dependence

Ensure the continuous supply of energy at reduced prices

Promote the development of local energy fonts, as well as support their production and management in a decentralized manner

Reduce dependence on hydrocarbons and diversify its suppliers

Diversify sources of energy and ensure security of supply

Reduce the environmental impact caused by the production and use of energy

Reduce energy bills

Increase efficiency and energy conservation

Promote the hydrocarbon potential to boost exploration and possible exploitation of oil and natural gas in the Portuguese territory

Support the integration of the national energy market in the EU energy market

Increase the quality of service

Portuguese Energy Policy

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Thank you!