petroseychelles. seychelles plateau saya de mahla mauritius
TRANSCRIPT
PetroSeychellesPetroSeychelles
Seychelles - Geographic Extent
Geological Background
Legal Framework and Fiscal Regime
Current Licensees
Licensing Initiatives
Conclusion
Contents of the Presentation
PetroSeychelles
Aldabra group
Farquhar group
Coetivy
PlatteAmirante
EEZ ~ 1.33 million Sq.Km Land Area = 455 sq.Km
GRANITIC ISLANDS
PetroSeychellesPetroSeychelles
6
THE PETROLEUM SECTOR
•Currently there is no production and no refinery in Seychelles.
•PetroSeychelles is the arm of the Government that oversees the Upstream Petroleum Sector.
•Seychelles Petroleum Company (SEYPEC), is also government owned and its operations are in the downstream sector.
PetroSeychelles
9
Seychelles at the heart of Gondwana in
the Early Permian (300
Ma)
Tectonic Evolution
PetroSeychelles
10
Tectonic Evolution
Early Cretaceous (~150 Ma) After separation of East and West Gondwana
The complexity of the tectonic evolution of the Mascarene Plateau is due to the imposition of three phases of rift/drift tectonics that eventually cleaved the microcontinent from the centre of Gondwana.
Early Late Cretaceous (~80 Ma).Seychelles/India split from Madagascar
Paleocene (~60 Ma). During the separation of India from Mascarene Plateau.
PetroSeychelles
12Geology
StratigraphyC
C
C
LEGEND
This stratigraphic column is a compilation from all four wells and available seismic data. It also pulls in regional elements from the Bombay High and Madagascar area, both of which were juxtaposed against Seychelles prior to plate tectonic break up.
Age of the Jurassic salt is speculative, but is reasonable when compared against East Africa and Madagascar analogues. Distribution of Jurassic salt is also unknown
Age of oldest sediments in the Karoo basin is unknown. In Northern Madagascar the oldest known Karoo is Permian. The oldest Permian in northernmost Madagascar is marine, and therefore it is highly likely that any Permian in Seychelles is also marine and therefore a good oil prone source rock
Maastrichtian/Palaeocene marine
shale and volcaniclastics
Base Palaeocene marine shales
Upper Cretaceous marine shales
Lower Cretaceous-Uppermost Jurassic
marine shales
Mid-Late Jurassic Salt
Lower Jurassic-Triassic Karoo continental
shale
Intra Eocene/Palaeocene marine shales
PetroSeychelles
13
LEGEND
Source intervals encountered in the wells
In the Amoco wells, several source horizons were encountered within the Upper Triassic to mid Jurassic section
Source Rocks
PetroSeychelles
Seismic Data coverage Map
14
29,000 line km of seismic, gravity & magnetic20,000 Km of M2D Data Acquired by Fugro
PetroSeychellesPetroSeychelles
The Act vests the ownership of petroleum accumulations within Seychelles in the State.
The Act permits the Government to grant a non-exclusive licence to companies to carry out petroleum exploration operations
The Act also permits Government to enter into a Petroleum Agreement with an oil company under which the company is granted exclusive rights to explore for and produce petroleum within Seychelles.
The size and location of acreage to be included in a Petroleum Agreement is settled by negotiations. Size must not Exceed 10,000 Sq Km
Petroleum Mining Act
Legal Framework and Fiscal Regime
PetroSeychellesPetroSeychelles
20
The Model Petroleum Agreement
Government’s thinking regarding the nature of the contractual framework which it wishes to be considered at the time of negotiation, is reflected in the Model Petroleum Agreement.
A Petroleum Agreement has a duration of 34 years if a commercial discovery takes place.
Legal Framework and Fiscal Regime
PetroSeychellesPetroSeychelles
21
Contractual period
The contractual period is divided into two phases:
An Exploration Phase of 9 years which is made up of three Periods of 3 years + 3years + 3 years.
A Development and Production Phase which commences on
the date on which commercial viability of the field is decided on by the company and continues for 25.
Legal Framework and Fiscal Regime
PetroSeychellesPetroSeychelles
22
The economic and fiscal package comprises three principal revenue sharing mechanisms and these are summarized below: A royalty of 10% is levied on the market value of oil
produced and saved during each month.
Petroleum Income Tax of 35% and is paid in accordance to the Petroleum Income Tax Act of 2008.
Fiscal Regime
Legal Framework and Fiscal Regime
PetroSeychellesPetroSeychelles
23
Petroleum Additional Profits Tax (PAPT)
PAPT is a resource rent tax levied on cash flows. Currently the Model Petroleum Agreement provides for a two-tier structure for PAPT. The first tier of PAPT will become due once the Company has earned a particular threshold rate of return on its investment. The second tier of PAPT will be due after the company has earned an even higher post-tax rate of return.
Fiscal Regime
Legal Framework and Fiscal Regime
PetroSeychellesPetroSeychelles
24
Petroleum Additional Profits Tax (PAPT)
The first threshold rate of return which triggers payment of the PAPT is 15% and the tax rate is 25%
The second threshold rate of return and tax rate are negotiable .
Fiscal Regime
Legal Framework and Fiscal Regime
PetroSeychellesPetroSeychelles
2828
What type of award process for a Petroleum Agreement ?License Round or Open File process ?
Open File award process Applications for a 10,000sq km area may be made at anytime.
PetroSeychelles verifies if minimum application criteria are met
Notice of application filing & solicitation of competitive applications
No need to reveal identity of applicants or proposed terms
Prescribed period for competitive application filing (90 days)
The Licensing Initiative
PetroSeychellesPetroSeychelles
29
Area Relinquishment TermsWork Program Fiscal TermsRental Payments Training Commitment
What should be the variables in the Petroleum Agreement ?
Duration of Exploration Phase and Periods ?
Period 1 (Years 1-3) work program must include at least funding for seismic ($15M)
Period 2 (Years 4-6) work program must include funding for at least one well ($25-$60M)
Period 3 (Years 7-9) work program must include funding for at least one well
The Licensing Initiative
PetroSeychellesPetroSeychelles
30
What are the recommended minimum acceptable Applicant qualifications ?
Technical & professional capacity
Financial ability
The Licensing Initiative
PetroSeychellesPetroSeychelles
31
Afren/Avana
WHL Energy
Study Area
Exclusion Area
The Licensing Initiative
PetroSeychellesPetroSeychelles
3232
SUMMARY
LEGAL AND FISCAL TERMSEXPLORATION PHASE
RELINQUISHMENT TERMS
PRODUCTION PHASE
RENTAL PER SQ KM
ROYALTY
PETROLEUM INCOME TAX
STATE PARTICIPATION
PETROLEUM ADDITIONAL PROFITS TAX
9 YEARS, 3 x 3 x 3
40% 30% Balance
25 YEARS
US$10 US$15 US$20
10% Except for Marginal Fields
35%
NO
TIER 1 Tax of 25% at ROR of 15% TIER 2 Negotiable
PetroSeychelles
33
Seychelles Plateau
Saya de Malha Bank
Madagascar
Extended ContinentalShelf submitted to CLCS
East Africa
Joint Submission with
MauritiusArea : 387,000 sq km
Northern Area Submission
Area : 22,143 sq km
PetroSeychellesPetroSeychelles
CONCLUSIONSSeychelles is a frontier area and the data acquired so far confirm that a
working petroleum system exists with all necessary ingredients (source,
reservoir, seals, structures) to make the area an oil Province.
Large volume of data are available and interesting leads have been
mapped
The government has recognized the importance the discovery of
petroleum would have on the economic objectives and has put in place
the required legal framework to facilitate exploration and eventual
production within its maritime boundaries.
PetroSeychellesPetroSeychelles
There are opportunities for companies to farm into existing licenses or submit a proposal or bid in the forthcoming licensing initiative.
Seychelles is politically stable and the working physical environment is pleasant year round.
CONCLUSIONS