Transcript - International Pavilion

URUGUAY
ROUND 2009
Lic. Raúl Sendic
President of ANCAP
March 3rd, 2009, APPEX, London
1
SOME FACTS ABOUT
URUGUAY
•
•
•
•
•
Geography: Atlantic coast between Argentina and Brazil
Mild climate throughout the year
Population: 3,323,906 (2007)
Language: Spanish
Good living standard indicators:
–
–
–
–
–
–
•
Qualified Workforce: 33% technicians or professionals
Environment: 3° worldwide in environmental sustainability index
Education: 98% literacy
Electrification: 98% of the territory
Sanitation: 100% of Urban Population
Communications: 100% Digital Network
Economy:
– GDP (2007): 23,136 Million US$
– GDP Per Capita (2007): 6,960 US$
– Unemployment: 6,2% (2008)
2
WHAT IS SAID ABOUT
URUGUAY
•
•
•
•
•
•
•
“Full Democracy”, according to The Economist (2008)
Low perception of corruption: 23rd in the World and 1st in Latin America,
according to Transparency International.
Judicial Independence: 1st place in Latin America, according to The World
Economic Forum
Uruguay has the less unequal income distribution (Gini Index) in South America
Free Economy: The Heritage Foundation (2009) Uruguay’s economy is the 38th
freest in the world and its overall score is significantly higher than the world
average.
Economic Climate: Uruguay shows the most favorable climate in Latin America,
according to Getulio Vargas Foundation.
Property Rights Protection: 2nd place in South America, according to The World
Economic Forum
3
BUSINESS
ENVIRONMENT
•
•
•
•
•
•
•
•
•
Installation of foreign companies
Promotion of investments
Free transfer of capital and profits
Open foreign trade
International financial center
Free exchange
Free Zones
Free port
A door to the MERCOSUR (Common market of the South)
4
PUBLIC AND PRIVATE
SECTORS INVOLVEMENT
• ANCAP is the NOC of Uruguay
• The Executive Branch is the responsible of fixing the policy
and everything related to activities of hydrocarbon exploration
and exploitation.
• ANCAP is the one to execute the activities, business and
operations of hydrocarbons industry, by itself or by third
parties.
• IOC enter into agreements with ANCAP through competitive
bids subject to Executive Branch’s approval.
5
SCHEDULE
• 1st Announcement: Montevideo 1 to 3 December 2008
• Road Shows: Houston, London
• “Data Rooms”, to be scheduled with oil companies
• Submission of Letter of Intent and Qualification Application:
TH 2009
DEADLINE
FOR
BIDDERS
QUALIFICATION:
APRIL
30
December 1, 2008 to April 30, 2009
• Submission of queries: Until May 15, 2009
• Submission of Bids: From June 14, 2009 to July 1, 2009
until 2:00 pm, Local Time
• Opening of Bids: July 1, 2009 at 2:00STpm , Local Time
DEADLINE FOR BIDDS: JULY 1 2009, 2:00PM
6
OFFSHORE BASINS OF
URUGUAY
7
DATABASE
ANCAP’s “old data” (ANNEX M)
2D SEISMIC: 12.000Km, Well
logs and reports
MULTICLIENT GEOPHYSICAL
INFORMATION
2D SEISMIC
WAVEFIELD INSEIS 2007 and
2008, 10.034Km
8
9
QUALIFICATION OF OIL
COMPANIES
• Legal issues
– Annexes C, D, E, F and G
• Technical issues
– Top 100 Petroleum Intelligence Weekly
– Submit information stating yearly production and experience of
operations
• Economical & Financial issues
– Top 100 Petroleum Intelligence Weekly
– Investment grade rating
– Submit audited balance sheets of the last 3 years stating US$ 2
billion stock market capitalization or US$1 billion shareholders’
equity
10
CONTRACT MODEL
• PSA: Production Sharing Agreements for which
Contractor assumes all risks and costs of the activity.
• No royalty is applied
• No signature or production bonuses.
• Term: 30 years plus a maximum 10 year extension
• Exploration period: 4 + 2 + 2 + 1
11
OFFERS
Offers will be compared according 5 different criteria
1.
Minimum Exploratory Program (weight 30%):
–
2.
2D or 3D Seismic survey, Purchasing Wavefield Inseis ASA 2D seismic, 2D or 3D
electromagnetic survey and drilling of exploratory wells.
% Cost oil (weight 20%):
–
3.
variable according daily production ranges
% Profit oil for ANCAP (weight 30%):
–
4.
variable according accumulated production ranges
ANCAP’s profit oil increase (weight 10%):
–
5.
Increase in % if oil reaches a trigger price
ANCAP’s Association (weight 10%):
–
Maximum % (20 to 40) of ANCAP’s participation in contractor’s shareholding
12
OFFERED AREAS
Blocks Type A (Green): At least 1
exploratory well to be drilled in the
first exploration sub-period of 4 years.
Blocks Type B (Yellow): No minimum
requirements of exploratory work.
13
CONTRACTOR’S
ECONOMY
• No royalties applied
• The Contractor is paid with the part of
hydrocarbons produced corresponding to Cost
Oil and the Profit Oil
• Government’s take is only the Profit Oil
• Contractor is entitled to freely dispose and
export such oil, but ANCAP has the preferential
right to totally or partially purchase the oil, for
domestic consumption.
• Oil and gas valued at international prices
14
• Tax on Net Worth (IPAT)
• Consumption Taxes
– Value Added Tax (IVA)
– Specific Consumption Tax (IMESI)
• Custom Taxes
• Social Security Contributions (CESS)
(Hydrocarbons Law)
– Corporate Income Tax (IRAE)
– Income Tax on Non Residents (IRNR)
EXEMPTED
• Income Tax
INVESTMENT
PROMOTION
REGIME
GENERAL TAX REGIME
ON CORPORATIONS
15
CONCLUSION
• Why Uruguay?
–
–
–
–
Political, Economic and Social Stability
Serious business environment for investments
An unexplored and promising geology
Sound and fare bidding round terms
16
WEB PAGE
www.rondauruguay.gub.uy
•
•
•
•
•
•
•
•
Geological information about Uruguayan offshore basins
Available E&P database
Bidding round terms
Map of offered areas
Contract Model
FAQs
Contact information
Videos and presentations
17
THANK YOU FOR YOUR ATTENTION
18