Business Network Forum18th Meeting, Iquitos- Peru, 04 March 2008 CAMISEA PROJECT Project Description, Status and Perspectives By Norberto Benito Peru Country Manager, Pluspetrol LOCATION : 430 kms east of Lima BLOCK 88 230 kms north of Cusco TWO CONTRACTS : Block 88 - Camisea- in production since 2004, further development required. Block 56 – Pagoreni, under developmentPRELIMINARY APPROACH OFIQUITOS FIELD DEVELOPMENT PLAN Two additional exploration contracts (blocks 57 & 58) with other Operators CAMISEA RESERVOIR G&G LIMA CAMISEA TCM Buenos Aires, Nov 15th, 2006 pluspetrol CAMISEA - BACKROUND 17 years 1981 • Shell’s 1st contract October 1983 • SM1X discovered July 1988 • Shell declines May 1996 – July 1998 • Shell / Mobil Contract • Project Bid in 2 Segments: Upstream - T&D May 1999 17 Months • Upstream awarded to Pluspetrol, Hunt y SK February 2000 consortium • T&D awarded to Techint, Pluspetrol, Hunt, SK, October 2000 Sonatrach and GyM Consortium December 2000 • Upstream and T&D Contracts signed 44 Months 2001 - 2004 • Project Construction August 2004 • Gas in Lima CAMISEA Y PAGORENI-GENERAL SCHEME Power generation PAGORENI-under development Homes, industry, cars PG-A PG-B LIMA CLUSTER CLUSTER PeruLNG plant LNG GAS PLANT Under PIPELINE SM1 SM3 CLUSTER CLUSTER construction MALVINAS PRIMARY SEPARATON COMPRESSION SAN MARTIN Natural Gas Producing PISCO Liquids FRACTIONATION pipeline PLANT CR1 CR2 CR3 CLUSTER CLUSTER CSTER CASHIRIARI Starting development From Camisea to Lima TRANSPORTADORA DE GAS DEL PERU –TGP-PIPELINES P I S 10” 14 ” C O 560km L I M M 18 ” 24 ” 32 ” C A A 730km M I 1300km of pipe = 187,000tns. S E A Highest altitude: 4800 m. . . . . . . . . . . . . . . . . . Difficult conditions ENVIRONMENTALLY SENSIBLE AREA 730 km. 600 500 400 300 200 100 0 Km from Camisea Humay COASTAL DESERT HIGH ANDEAN RANGE MOUNTAINS JUNGLE LIMA- Area of the distribution contract Lurín (City Gate) Lima Ventanilla (ETEVENSA) Pacific Ocean El Callao UPSTREAM SEGMENT Operator : Pluspetrol Two areas , completly different : Jungle, near Lower Urubamba river Development of reserves • 3D seismic acquisition • Drilling gas wells • Flowlines from wells to plant • Gas processing plants Coast - Lobería beach, Pisco : Transform liquids into products • NGL fractionation plant and marine terminal CAMISEA & PAGORENI MIPAYA PAGORENI CAMISEA PAGORENI ESTIMATE RESERVES SAN MARTIN GAS : 13.6 TCF MALVINAS LIQUIDS : 800 MMbls CASHIRIARI EXPLORATORY POTENTIAL OF GREAT CAMISEA KINTERONI MIPAYA BLOCK 57 - REPSOL BLOCK 58 - PETROBRAS Block 88 PAGORENI SAN MARTIN URUBAMBA CASHIRIARI OUR CHALLENGES...during the initial period • Regional Instability • Financing difficulties • Latin American Risk 1400 • Total Investment: 1,700 MM$ 1200 • Peruvian Risk 1000 800 600 400 200 0 Jan.01 May.01 Sep.01 Jan.02 May.02 Sep.02 Jan.03 May.03 Sept.03 Ene.04 • Logistic and Technological • Socio- Environmental Sensibility Complexities • Biodiversity • Navigation Windows • Native Communities • Operation in Jungle • World Cultural and Natural Heritage • Automated Production- Heli Operated COMPLEX LOGISTICS HOUSTON MIAMI PANAMA OCEAN MATERIAL TROMPETEROS TRANSPORTATION IQUITOS ATLANTIC OCEAN PACIFIC OCEAN CAMISEA LIMA SAN PABLO HOUSTON-IQUITOS HOUSTON-CALLAO S.PABLO - IQUITOS S.PABLO-PAN-CALLAO S.PABL.-C.HORNOS-CALLAO ITALIA - CALLAO CP. HORNOS LOGISTICS: RIVER TRANSPORT • Construction of 10 barges • Construction of 10 motorscows • Over 120 barges and pushers employed in operations • 116,000 tons transported 2002/04 Native communities near Camisea ÁREA DE INFLUENCIA - UPSTREAM Main considerations for the Communities Relationship Program • early consultation program (since 2000) • participative process • local concerns included in the programs • fair compensation programs • local employment opportunities • strengthening of local organizations • respect to cultural and archeological heritage CAMISEA BIODIVERSITY MONITORING PROGRAM www.pmb.camisea.com DRILLING SM - 1 LOCATION SAN MARTIN 1 – JUNE 2001 SAN MARTIN 1 – FEBRUARY 2003 Contract commitment : 4 wells Drilled and completed : 6 wells Total wells in two clusters : 8 ( 6 +2 existing) 5 producers and 3 for gas injection San Martín 1 May 2004 Flowlines welding : Las Malvinas-San Martin 1, Aug. 2002 MALVINAS FACILITIES AERIAL VIEW PISCO COASTAL FACILITIES Aereal view before start of works PARACASN ational Reserve border EPC-G Subsea Pipelines - Flat Pack Description • 4000 m. Pipe installation • 24” * 20” Butane / propane (pipe in pipe) • 24” * 20” Butane / Propane (pipe in pipe) • 24” Naphtha • 10” Diesel • 1000 m on shore (from plant to shore) Floating devices • 3000 m off shore (from shore to berth) Ties Wood spacers Conveyors -Rails FIRST NAPHTHA CARGO EXPORTS : 280THOUSAND BARRELS EACH 20 DAYS Over 400 vessels loaded without spills since start-up POSIBLE GAS DEMAND by sector Fuente: DGH Pagoreni & Cashiriari Projects Currently being developed Gas from Pagoreni to feed Perú LNG plant ACTIVITIES & INVESTMENTS Investments in Details Comments • 363 Km2 - 3D Completed in Seismic • 33 km – 2D 2005 6 wells in • Production wells Drilling Two locations 1 vertical 5 Directional (slant) Pagoreni (A & B) 5 drilled 1 drilling 360 720 • Gathering 360 • Re-injection 310 Flowlines 310 or 1 X 18” / 24” ( gathering) • Gathering 720 1 x 18” ( gather or reinject) MALVINAS- enlargement of processing capacity Investments Details Comments 720 MMpcd Capacity MMpcd NGL unit (Cryogenic) 2 x 360 current: 440 MMpcd Future : 1,160 Compresion • Reinjection 310 (4000 psi) 2 x F5D or (2 x 43 MPH ISO) Delivery 620 (2130 psi) Malvinas BOP Plant service equipment Plant ( Balance of Plant ) And inter-conncections (BOP) pluspetrol EPC-PC: PAGORENI A - AERIAL VIEW Malvinas EPC-11: Erection of Deethanizer Tower N°03 & 04 June 2007 pluspetrol Pagoreni Project - Block 56 ELECTROMECHANICAL WORKS AT MALVINAS (EPC-11) CASHIRIARI – WORK PROGRAM Investment Details Remarks • Production Wells • 4 Directional wells 4 Wells 1 Workover • 1 Workover Drilling 1 Well Pad • 1 Well Pad Cashiriari 1 Malvinas – CR1 Flowlines • Production • Length 33,2 km 1 X 24” Reinjection 310 (4000 psi) Malvinas or 1 MS502D 5°Compressor ( 1 x 43 MPH ISO) Delivery 620 (2130 psi) Gas Flow Rate in MMSCFD pluspetrol B88 & B56 OVERVIEW Next slide PAGORENI B Block 56 PAGORENI A SAN MARTIN 1 Block 88 SAN MARTIN 3 MALVINAS PLANT CASHIRIARI 2 CASHIRIARI 1 CASHIRIARI 3 Block 58 CR 1 Flowline – Total length (Regular line & special crossings) = 33,2 Km pluspetrol Pisco Expansion Plant Pisco Thank you very much for your kind attention