PERU: A Country to Invest in

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PERU A Country to Invest in
PROMOTIONAL CAMPAIGN FOROIL AND GAS EXPLORATION
Ronald Egúsquiza Promotion and Planning Manager
Perú Petro S.A.
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PERU A Country to invest in
Peru has a vast surface area with recognized
hydrocarbon potential, BUThas had a very low
rate of ex-ploration activity per square mile.
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PERU A Country to invest in

• PERU has made big changes to encourage
  exploration in open areas.
• A UNIQUE, UNRIVALED, AND SIMPLE oil and gas
  license contract is available.
• PERUPETRO presents new play concepts to explore
  for hydrocarbons IN PERU.
• The most important feature PERU offers
  stability.

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PERU stability
Peru has progressively reduced its fiscal deficit
...
0,0
-0,5
-1,0
-1,5
-1,4
Fiscal Deficit ( of GDP)
-2,0
-1,9
-2,2
-2,3
-2,5
-3,0
-3,1
-3,2
-3,5
1999
2000
2001
2002
2003
2004(F)
Source Central Reserve Bank of Peru.
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PERU stability
..maintaining economic growth during the last 30
months ...
7
6,3
6,0
6
5,1
4,7
4,9
5
4,5
4,0
Growth of GNP (Variation with respect to the
same quarter previous year, )
3,6
4
3,5
3,6
3,2
2,9
3
1,7
2
1
0
IIIQ01
IVQ01
IQ02
IIQ02
IIIQ02
IVQ02
IQ03
IIQ03
IIIQ03
IVQ03
2004(F)
IQ04
IIQ04
Source Central Reserve Bank of Peru.
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PERU stability
... Boosted by the increase of private investment
...
21
20,1
19,6
19,1
19
18,5
17,4
16,7
Private Investment ( of GDP)
17
16,1
15,7
15,5
15,2
14,9
14,6
15
13
11
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004(F)
Source Central Reserve Bank of Peru, Forecast
Macroconsult.
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PERU stability
... With this in mind What is offered by Peru
in the exploration oil and gas business...
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• ADVANTAGEOUS CONTRACT.
• REDUCED ROYALTIES.
• VALIDATED AND FREE OF COST SEISMIC AND WELL DATA.
• AVAILABLE AREAS.
• BLOCKS UNDER PROMOTION.

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Advantages of Peru

• An innovative method for new royalties MINIMUM
  OF 5
• Transparent No negotiation.
• Easy to apply.
• Two options to be chosen by Contract holder
  At the point of announcing a
  commercial discovery.
• Contract holder chooses between
• a) Sliding Scale - Production Level
• b) Economic Results

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Advantages of Peru
Upon completion of each exploration period the
Company has the option to void the Contract.
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Advantages of Peru

• Stability is based on
• Contract approved by Presidential Decree same
  level as a Congress Law - ContractLaw.
• Contract signed by Peru-Petro S.A. as a
  Sociedad Anonima follows corporate rules
  for Oil Contracts. Enterprise to
  enterprise. This is not a government
  contract.
• International Arbitration as a part of the
  Contract a clause.

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Advantages of Peru
ACTORS
A consistent Program with Communities
Government.
Civil Society
Company
Indigenous Communities
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Meeting Communities
Participationof Ministry and theCompany
14
Indigenous Communities Meetings
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Peru ..... A Country to Invest in

• Recent discoveries
• Offshore - tested 36º API, 1 200bpd
• (Petro-Tech)
• Onshore tested 14º API, 3 000bpd
• (Repsol)
• have refreshed expectations for new exploration
  activity.

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Other aspects Repsol is on the way to be part
of the LNG plant for exporting gas. Brazil,
Uruguay, Argentina, Chile has presented the
proyect to buy natural gas from Peru. Block 58
beside Camiseas blocks 88, 56, 57, owned by
Petrobras gives new impulse to activitiy en Peru.
Discovery of 36º API offshore has awakened
interest for the offshore norwest of Peru.
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A window of Opportunities
Peru-Petro Announces the Opening of Offshore
Exploration Acreage
Call for Letters of Intention requesting areas
for License, TEA or PEA. Deadline August 15th,
2005
For further information contact Promotion_at_perupet
ro.com.pe Phon. (51 1) 617 1800 Ext. 1600
www.perupetro.com.pe www.perugasoilexplor.com
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Peru ..... A Country to Invest in
promotion_at_perupetro.com.pe rees_at_perupetro.com.pe w
ww.perupetro.com.pe www.perugasoilexplor.com
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Peru ..... A Country to Invest in
Welcome to Peru