Presentación de PowerPoint - IAPG. Houston · 2016-10-07 · Cuenca de Salado DF: 3245 mbnm* First discover Marta x-1, AGIP (1970) San Jorge Gulf basin PF: 2105 mbnm Tested 500 boe/d

ARGENTINA 2015

Introduction

Unconventional resources

Offshore

Regulatory Framework

00

01

02

03

Participation of oil & gas in the primary energy supply for different countries (%)

Renewable energy

Hydroelectricity

Nuclear energy

Coal

Natural gas

Oil

86% 75% 66% 60% 23% 59%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Notes: Secretaría de Energía, BP Stadistical Review World Energy 2014.

ENERGY CONSUMPTION SKEWED TOWARDS HYDROCARBON SOURCES

Source: Secretaría de Energía

ARGENTINA’S ENERGY MIX FROM PRIMARY SUPPLY TO FINAL DEMAND (2014)

UNCONVENTIONAL RESOURCES

Shale Oil resources(Billion barrels)

Russia 75

USA 58

China 32

Argentina 27

Libia 26

Venezuela 13

Mexico 13

Paquistan 9

Canada 9

Indonesia 8

World 354

Shale Gas resources(Trillion Cubic Feet)

China 1.115

Argentina 802

Argelia 707

USA 665

Canada 573

Mexico 545

Australia 437

South Africa 390

Russia 285

Brazil 245

World 7.299

Argentina has the 2nd largest reservoir of recoverable shale gas resourcesand the 4th of shale oil (10% of the world total shale resources)

SHALE OIL AND SHALE GAS ESTIMATED GLOBAL RESOURCES

NEUQUINA

GOLFO SAN JORGE

AUSTRAL

CUYANA

NOROESTE4,4

CHACO PARANAENSE

D-129 (shale oil / tight oil)

Thickness 1000 to 2000m

Vaca Muerta (shale oil / gas)

Noroeste - Tarija

Los Monos (shale gas)

Noroeste - Cretaceous

Yacoraite (shale / tight oil & gas)

Chaco Paranaense

Devonian – Permian (shale oil)

Cuyana

Cacheuta (shale oil)

Potrerillos (tight oil)

Austral

Inoceramus

Neuquina

Los Molles (shale / tight gas)

Agrio (shale oil)

Golfo San Jorge

Neocomiano (shale oil / gas)

Lajas (tight gas)

Mulichinco (tight oil / gas)

Area 30,000 km2

Thickness 25 to 500m

Notes: K: thousand; M: million; B: billion (109)

Tested and producing Other Opportunities

Argentinean formations are characterized by its larger thickness.

ARGENTINA’S SHALE & TIGHT FORMATIONS


Over 14,000 wells drilled to date of which ~400 are unconventional. Vaca Muerta is considered a “world class” source rock due to its size, thickness and carbon

content.

VACA MUERTA FORMATION AT NEUQUINA BASIN

RESOURCES: 308 TCF of gas and 16,2 billion barrels of oil

PHYSICAL AND CHEMICAL PROPERTIES:

A) Significant amount of Total Organic Carbon

B) High pressure

C) Good permeability

D) Good thickness vertical drilling OK,extraction cost significantly reduced.

GOOD DEPTH

More than 2500 meters and well below the freshwateraquifers. A safe reservoir reduces the environmental risks.

10

LOCATION

Far away from urban centers. It is located in the mainconventional oil and gas production field with the necessaryinfrastructure for the development of shale.

Its greatpotential isexplained by itsgeologicalcharacteristicsand thegeographicallocation.

VACA MUERTA FORMATION AT NEUQUINA BASIN

Vaca Muerta isboth very thick and laterally extensive.

Play Vaca Muerta Eagle Ford Bakken Barnett Haynesville Marcellus

FluidsOil & Liquid

Rich Gas

Oil & Liquid

Rich GasOil Gas Gas Gas

Area (ac) ~7,500,000 ~ 3,000,000 ~13,000,000 ~4,200,000 ~ 6,000,000 ~6,200,000

Thickness (ft) ~1,000 ~130 ~150 ~300 ~250 ~200

Source: Chevron Report. “Vaca Muerta unconventional plays review”

Marcellus


Bakken

Neuquen(Vaca Muerta)

Eagle Ford

Proportional area & thickness of target

Liquids Plays

Gas Plays

Barnett

Haynesville

RESOURCE PLAY COMPARISSON: PLAY AREA AND THICKNESS

Surface / Eagle Ford Vs. Vaca Muerta

Eagle FordWells: +11,000

CAPEX: USD+70Bn

Source: Chevron Report. “Vaca Muerta unconventional plays review” based on maturity cycle by Woodmackenzie

•Determine Optimal Development

o Completion Strategyo Testing Frac Intensityo IP Distribution

Maturity

TOC

Eagle Ford

Wolfcamp

VacaMuerta

Duvernay

1. Exploration 2. Delineation 3. Pilot 4. Factory Mode 5. Decline

•Delineation Drilling & Testing

o Thicknesso Thermal –Propo Dist of TOCo GOR

• Factory Mode

o Developing Well Type-Curveds

Sweet Spot Gate

• Scale Back Drilling•Abandonment

Loma Campana

Republic of ArgentinaNeuquina Basin

Neuquén Province

RESOURCE PLAY COMPARISSON: MATURITY CYCLE

1110

87

USD 0

USD 2

USD 4

USD 6

USD 8

USD 10

USD 12

2011 2012 2013 2014 YTD

VM Shale Oil/Gas Development (Boe/d)

194

+320 Wells in production Current Production + 41,000 boe/day

Gross production from concessions (LoCa, Band ,LaCh, Bañ, ElOr; PYga)

Location + Equipment

Completion Drilling

VM Vertical Well Cost (USD millions)

3.1

st/

we

ll

4.5

st/

we

ll

4.8

st/

we

ll

5 s

t/w

ell

0

10,000

20,000

30,000

40,000

50,000

01-2

013

02-2

013

03-2

013

04-2

013

05-2

013

06-2

013

07-2

013

08-2

013

09-2

013

10-2

013

11-2

013

12-2

013

01-2

014

02-2

014

03-2

014

04-2

014

05-2

014

06-2

014

07-2

014

08-2

014

09-2

014

10-2

014

11-2

014

12-2

014

01-2

015

02-2

015

Shale Gas

Shale Oil

SOME EARLY RESULTS OF YPF AT VACA MUERTA

Agreements under Decree 929/13

Other Agreements

YPF – DOW ARGENTINAAGREEMENT(September,

2013)

El Orejano Area, Neuquén. Vaca Muerta shale gas.

PILOT SCHEME• Investment: DOW USD 120 Million and YPF USD 68 Million (added to the USD 188 Million alreadyinvested) / Drilling Wells: 16• Potential Extraction: 113 MMCF/day

YPF PUBLIC/PRIVATE STRATEGIC AGREEMENTS

YPF – CHEVRONAGREEMENT(July, 2013)

Loma Campana Area, Neuquén. Vaca Muerta shale oil and shale gas.

PILOT SCHEME• Investment: USD 1,5 Billion (completed in December 2013) / Drilling Wells: 115• Extraction: 10 Mbbl/day

PROJECT• Drilling Wells: 1.500• Potential Production in 2017: 50 Mbbl/day (oil) and 105,9 MMCF/day (natural gas)

YPF – PETRONASAGREEMENT

(February, 2014)

La Amarga Chica Area (north of Loma Campana), Neuquén. Vaca Muerta shale oil.

PILOT SCHEME (2015-2017)• Investment: USD 422 Million / Drilling Wells: 115• Potential Extraction: 6 Mbbl/day

PROJECT (2018-2033)• Investment: USD 8,6 Billion / Drilling Wells: 847• Potential Production: 47 Mbbl/day

Other agreements

YPF – PETROLERA PAMPA

AGREEMENT(November, 2013)

Mulichinco Area in Rincón del Mangrullo, Neuquén. Tight gas.

• Investment: USD 151,1 Million• Pipeline: 55 kilometers long

YPF – BRIDASAGREEMENT

(December, 2013)

Bajada del Añelo Area, Neuquén. Shale gas.

PILOT SCHEME (2014-2015)• Investment: USD 1,5MBllion / Drilling Wells: 130• Potential Extraction: 120 MMCF/day

MOU with PPDVSA (Venezuela) for oil and gas projects (June, 2013)

Cooperation Agreement with YPFB (Bolivia) for the exploration and the explotation of oil and gas (June, 2013)

Cooperation Agreement with ANCAP (Uruguay) to develop oil and gas projects (January, 2013)

Creating of ¨YPF-Tech¨ in association with the Ministery of Science, Technology and Innovation, and theNational Council of Scientifiic and Technical Research (CONICET) (December, 2012)

Strategic Agreement with Gazprom (Russia): development of conventional gas, shale gas and LNG supply(September, 2012)

YPF PUBLIC/PRIVATE STRATEGIC AGREEMENTS

OFFSHORECONTINENTAL SHELF AND TERRITORIAL SEA OIL & GAS POTENTIAL

CUENCA MARINA AUSTRAL

15,4%

MAGALLANES2,0%

ON SHORE82,6%

CUENCA MARINA AUSTRAL 1

1,9%

MAGALLANES0,9%

ON SHORE97,2%

Natural gas (%)

Oil

(%)


OFFSHORE AREAS OIL & GAS PRODUCTION (2014)

Africa

African

Plate

Mid

Atlantic

Ridge

Hotspot

Ridge

Trench

Transform

Malvinas

San

Julian

San

Jorge

RawsonValdez

±

Malvinas

Norte

Malvinas

Oriental

Source: Secretariat of Energy

Exploratory activity * Offshore wells are only indicaded

First exploratory wellSamar D x-1, SUN OIL (1969)Cuenca de SaladoDF: 3245 mbnm*

First discoverMarta x-1, AGIP (1970)San Jorge Gulf basinPF: 2105 mbnmTested 500 boe/d of 33°API

First productionHydra field; TOTAL (1989)Austral Basin.

Continental SlopeDepth water: 1.000 – 4.000 m.Wells: noneSurface: ~160.000 km2

PlatformDepth water: 100 - 200 m.54 wells were drilled in borders (North Malvinas is not included), Basin center unexplored.Surface 300.000 km2

Austral - MalvinasDepth water : 100 - 800 m.18 wells (*) (Malvinas Oriental and Austral are not included). Surface: ~130.000 km2

18

*MBNM: meters under sea levelArgentina´s offshore resources of

aprox. 32 Billion BOES Source: YPF

OFFSHORE EXPLORATORY ACTIVITY

UPDATE ON ARGENTINA’S REGULATORY FRAMEWORK

Source: National Statistics and Census Institute (INDEC), Secretaría de Energía and ENARGAS.

NATURAL GAS &

ELECTRICITY SYSTEM

HIGHLIGHTS 2003 – 2014

(more users in the

market)

# of new households connected

+ 2.000.000 (+34%)

# of new NGV fueled cars

+ 780.000 (+86%)

Extended trunk pipeline

+ 2.800 km (+23%)

Increased power generation

+ 50.000 GWh (+61%)

75

100

125

150

175

200

225

IND

EX

(1993 =

100)

GDP (CONSTANT PRICES, 1993)

TOTAL FINAL ENERGY CONSUMPTION

NATURAL GAS SUPPLY

1993-2002GDP: -1%

ENERGY CONSUMPTION: 9%

NATURAL GAS SUPPLY: 44%

2002-2014GDP: 108%

ENERGY CONSUMPTION: 54%

NATURAL GAS SUPPLY: 38%

ARGENTINA. EXPANSION OF THE GDP, NATURAL GAS SUPPLY AND TOTAL FINAL ENERGY CONSUMPTION IN THE LAST TWO DECADES


ARGENTINA’S ENERGY BALANCE

In 2011, Argentina became a net energy importer.

Source: INDEC

Energy Trade Balance (Billion of dolars)

Goal for ARGENTINA: Achievement of energy self-sufficiency.

ENERGY TRADE BALANCE

4,9 4,8 4,65,4

6,27,0

7,86,9

7,86,4 6,5 6,6 6,7

5,64,5

-1,0 -0,8 -0,5 -0,5 -1,0 -1,5 -1,7-2,8

-4,3-2,6

-4,5

-9,4 -9,3

-11,3 -10,9

3,9 3,9 4,1 4,9 5,2 5,4 6,1 4,1 3,5 3,8 2,0

-2,8 -2,5 -5,8 -6,4

-15

-10

-5

0

5

10

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

Energy Exports Energy Imports Trade balance

RECENT REGULATORY CHANGES WERE DESIGNED TO PROMOTE INVESTMENT THE O&G INDUSTRY

7.5 USD/MMBTU for new gas production

Executive decree 929/13 Scheme to promote hydrocarbon investment > 1,000 MMUSD

29-8-2013

Development of the 1st unconventional area in Argentina

30-10-2014Amendment to theHydrocarbon Law

Fixed oil price at 63/77 USD/bbl

Production incentives: 2 extra dollars per barrel for maintaining production levels, and 3 extra dollars for increasing them.

New concession deadlines: 35 years for unconventional developments

Benefits for investments > 250 MMUSD

Standardization of the fiscal regime, block awards process and environmental requirements

Benefits for offshore, tertiary and heavy-oil projects

Neuquén approval: Loma Campana area for a 35-year period.

Energy self sufficiency policy

O&G resources understood as strategic

YPF control recovered

Drilling , workover and

pullingequipment in ARGENTINA

Source: YPF

119

155

56

123

166

72

0

50

100

150

200

DRILLING EQUIPMENT WORKOVER PULLING

2013 2014

Results: YPF Investment and economic outcomes

InvestmentBillionUSD

Net operating incomeBillionUSD

2.202.66

4.18

6.08

21%

90%

177%

0%

50%

100%

150%

200%

0

2

4

6

8

10

2011 2012 2013 2014

1.74 1.742.20 2.45

0%27% 41%

-200%

-150%

-100%

-50%

0%

50%

100%

150%

200%

0

2

4

6

8

10

2011 2012 2013 2014

+28,6%

+3,4%

+7,1%

YPF ARGENTINA

Total oil and gas wells

Producing oil and gas wells


493

697875

0

250

500

750

1,000

1,250

1,500

2012 2013 2014

384

600712

0

250

500

750

1000

1250

1500

2012 2013 2014

+85,4%

+77,5% 1,2251,302

0

250

500

750

1,000

1,250

1,500

2012 2013 2014

9501,056

1,152

0

250

500

750

1,000

1,250

1,500

2012 2013 2014

+21,3%

+17,2%1.436

YPF ARGENTINA


Natural gas production(mmscfd)

1,193 1,135 1,026999 1,019

1,147

-4.9% -9.6%

-2.6%

2.0%

12.5%

-10%

-5%

0%

5%

10%

15%

0

1,000

2,000

3,000

4,000

5,000

2009 2010 2011 2012 2013 2014

Oil production (kbbl/d) 604 589

553 549 540 532

-2.4%-6.1%

-0.7%-1.7% -1.4%

-10%

-5%

0%

5%

10%

0

100

200

300

400

500

600

700

2009 2010 2011 2012 2013 2014

205 204 189 194 201218

-0.5%

-7.6%

2.9% 3.3%

8.9%

-10%

-5%

0%

5%

10%

0

100

200

300

400

500

600

700

2009 2010 2011 2012 2013 2014

4,685 4,558 4,405 4,2574,035 4,014

-2.7% -3.4%-3.3%

-5.2%

-0.5%

-10%

-5%

0%

5%

10%

15%

0

1,000

2,000

3,000

4,000

5,000

2009 2010 2011 2012 2013 2014




29-8-2013











2014: New HC Law to promote investments in Oil & Gas

Fiscal Stability 12% royalties during the first concession period (+3% for extended periods).

Longer concession periods and

contractual predictability for

extensions

25 years for conventional concessions, 30 years for offshore and 35 years

for unconventional.

Subsequent 10 year extensions based upon development

Gas production incentives Law principle in line with 7,5 USD/MMBTU for new gas production

New investment promotionNew projects over 250 MMUSD are entitled to tax exemption on exports

after the 3rd year (20% for conventional and unconventional / 60% for

offshore on production basis).

Competitive bidsUniform bidding process agreed between Federal Government and

Provinces.

Offshore areas formerly assigned

to ENARSA were transferred to

the Federal Government

These areas will be opened to competitive bids.

Exploration permit periodsUp to 6 years for conventional areas (+5 years for extended periods) and 8

years (+5 years for extended periods) for unconventional and offshore.

Promotion of high-risk projects Royalties reduction (up to 50%) for offshore, extra heavy oil and tertiary

recovery on a case by case basis

International and local oil prices and rig count

Source: Secretaria de Energía, YPF, US Energy Information Administration and Baker Hughes.

98 91 89 91 90 94 97 96

50

100

137117 123 131 124 132 143 131 131

103.3

94.1 87.9

92.0

106.6 97.6

102.1 96.5

59.3 54.5

74.5 76.7 74.1 74.5 76.6 81.2 79.5 81.9 83.5

75.9

-50

-30

-10

10

30

50

70

90

110

130

0

50

100

150

200

250

300

350

400

450

500

I CUAT2012

II CUAT2012

III CUAT2012

I CUAT2013

II CUAT2013

III CUAT2013

I CUAT2014

II CUAT2014

III CUAT2014

I CUAT2015

US Activity Level (Rig Count) - INDEX ARGENTINA Activity Level (New Wells) - INDEX

WTI Price (USD/BBL) MEDANITO Price (USD/BBL)

AC

TIV

ITY

LEV

EL-

IND

EX I

20

12

= 1

00

BA

RR

ELP

RIC

E (U

SD/B

BL)




29-8-2013


Fixed oil price at 63/77 USD/bbl

Production incentives: 2 extra dollars per barrel for maintaining production levels, and 3 extra dollars for increasing them.










energia.gov.ar

Thank you

Documents

Presentación de PowerPoint - IAPG. Houston · 2016-10-07 · Cuenca de Salado DF: 3245 mbnm* First discover Marta x-1, AGIP (1970) San Jorge Gulf basin PF: 2105 mbnm Tested 500 boe/d