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DESCRIPTION
presentation enriqueTRANSCRIPT
WHERE TALENTAND KNOWLEDGE
MEET OPPORTUNITY
TSX: PREBVC: PRECBOVESPA: PREB
LNG Supply for Central America and the Caribbean
Durable Energy.WTC. Willemstad. March 2012
Strategic Intent
MAKING OF COLOMBIA THE NEW LNG SUPPLIER IN THE CARIBBEAN
CONTENT
• Pacific Rubiales Energy Corp – The Resource• Colombian Natural Gas• Colombian Natural Gas Regulations• EXMAR– The Transporter• “Small Scale” LNG• Export TM
• Supply Strategies• Conclusions
Pacific Rubiales EnergyThe Resource
PACIFIC RUBIALES ENERGY: LARGEST PRIVATE SECTOROIL AND GAS PRODUCER IN COLOMBIA
Significant asset portfolio with large exploration potential
46 exploration and production blocks in Colombia, Perú and Guatemala
11 fold production increase since 2007
3 fold increase in 2P reserves since 2006: current 350 mmboe (June 2011)
90% crude and 10% gas
14 Producing blocks in Colombia
Gross Production in excess of 251,000 boepd (exit 2011)
Access, through equity, participation to main pipeline systems in Colombia
Listed in the Toronto Stock Exchange (TSX:PRE) and La Bolsa de Valores de Colombia (BCV:PREC)
Mkt. Value: CN$ 6.5BN (@Jan 20, 2012)
Background
EXPLORATION & PRODUCTION ASSETS Properties
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Significant production potential
2P gross reserves of 489 bcf (Dec 2010)
Exit production of 63.3 mmcf/d (estimated)
5 wells drilled (2006-2009) with potential to produce over 120 mmcf/d
New gas discovery in Apamate-1X well, drilled Dec´10 – Feb´11 incorporates additional 29.3 bcf net proved (undeveloped), totaling 50.2 bcf 2P @ Feb 28, 2011
Production restricted by current gas domestic market constraints
Expand production with small scale LNG export to Caribbean markets
Substantial resource upside
8 new prospects identified
Additional resource upside of over 1 tcf of OGIP, including 178 bcf of resources associated to the Apamate (1) discovery
(1) Mean Success Volume (company estimate)
LA CRECIENTEGas in place to support substantial development
One of the largest Colombia natural gas discoveries in recent years. (100% WI for PRE)
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Colombian Natural Gas
Increasing Reserves in Colombia (TCF)
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4.74
5.41
2.90
1.16
0,00
1,00
2,00
3,00
4,00
5,00
6,00
2009 2010
Res
erve
s (T
CF)
Colombia Natural Gas 2P Reserves
Probadas
Probables
Source: Presentation of Ministry of Energy and Mines, Colombia, October 18, 2011
Proved
Probable
Supply Index
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IA = Supply Index (years) = reserves/demand
Source: Presentation of Ministry of Energy and Mines, Colombia, October 18, 2011
N.B. Definitive Supply Index for 2011 was determined to be of 15 years by the Ministry of Mines and Energy
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Colombian Gas Export Regulation
Colombian Natural Gas Regulation
Natural gas production, transport and commercialization are government regulated
• Gas Export ProjectsGas producers in Colombia have the right to export gas withoutprevious Government approval.
To enter into new gas export contracts, overall reserves of the countryhave to be above a minimum limit set by the Ministry of Mines andEnergy which is 8 years. After a contract is signed, this limit is nolonger applicable to that commitment.
• Bilateral negotiationsParties to gas export contracts may negotiate prices and other supplyterms without restrictions.
EXMARThe Transporter
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EXMAR Group
LPG / NH3 Offshore
Design & Engineering
BelgiboInsurance
Travel Plus
LNG Services
Shipping Shipmanagement
Design & Engineering
Floating Storage
Design & Engineering
Floating Production & Storage
Design & Engineering
ShipmanagementShipmanagement Operations & Maintenance
Shipping
Floating Storage, Liquefaction & Regas
Accommodation / Work Barge
Exmar Group
EXMAR developed in house LNG STS transfer using proven technology and is widely accepted in the industry
2005 April – May Conceptual layout and selection of suppliers
2005 November First trials run ("dry-run")
2006 August First physical transfer
2007 February First commercial, full cargo transfer
2008 June First STS with 3rd party vessel
2011 June First 3rd party LNGC outfitted with STS kit and ship staff trained
2011 December +100 Successful operations with 12.5 million m³ LNG transferred
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Ship-To-Ship Transfer
“Small Scale” LNG
“Small Scale” Value Chain
Liquefaction RegasificationMarine Transport
EXPORT TM
(Colombia)Shuttle LNG carrier FSRU (Customer)
SMALL SCALE LNG IS TAILORED ACCORDING TO END CUSTOMER NEEDS
LNG Integrated Supply Concept
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Floating liquefaction plant - 72 MMSCFD / Barge Storage:14,000 m3
Dedicated LNG carrier - 10,000 -30,000 m3
Regas Plant - 50-100 MMSCFD supply capacity / Storage 14,000 m3
Client 14,000 m3
Colombia14,000 m3
Transit10,000 m3
Storage
Dedicated 10k-30k m3 LNG Carrier
Shallow draft (5.7 m)Redundant Electric PropulsionTwo fully independent engine roomsEnvironmentally friendly (LNG regas fuel)High Maneuverability (no tugs required)Proven Technology
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Simple and fast installation scheme based on spud piles (no new built jetty construction required)
Floating Storage Regasification Unit
• Barge mounted FSRU. Deck supported / easily accessible regasificationequipment
• Regasification nominal capacity: 50 MMSCFD (2 fully redundant trains x 100%)
• Storage: 14,000 m3 (3 tanks x 4,700 m3 c/u) Length: 115 m; Breadth: 32 m; Draft: 4 m
Advantages of “Small Scale” LNG
• Smaller storages as a function of distance from production toconsumption– Lower Investment cost– Smaller safety radius– Lesser enviromental effect
• Smaller supply vessels– Lower Investment cost– Smaller safety radius– Smaller draft and lower tonnage– Jetty infrastructure cost reduced
• Conclusion– Total Cost of Ownership substantially reduced– Quicker time to market– Lower permitting risk
US$/mmbtuInternal calculations
Export TM
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500,000 tpa of LNG production14,000 m³ of LNG storage
Length overall 124 mBreadth 32 mDepth 18 mDraught 4.5 m
• Liquefaction plant– 72 MMSCFD LNG production– CO2 removal– Dehydration – Black & Veatch Prico Technology– Single Mixed Refrigerant– Gas Turbine driven Compressor
• Cargo tanks– 14,000 m³ LNG storage– Cargo tanks IMO Type C (cylindrical tanks)
• Electrical power generation– Dual fuel engines
Technical description
Export TM: technical outline
• Fully classified according to BV offshore rules
• Fatigue life of 25 years for onsite conditions. Designed for continuous operation without dry-dock
• Complement of 20 people
• Power generation by three (3) dual fuel diesel engines
• Complete EXPORTTM operated from a central control room
• Integrated automation system covering topsides, cargo plant, ballast system and machinery systems
• Development EXPORTTM based on various safety & risk studies
Supply Strategies
1. FOB sales Colombia – Sale of spot cargoes – FSU ~120,000 – 130,000 m³ + 14,000 m³ storage EXPORT
Early Start-Up
2. Small scale LNG chain – Targeting Caribbean region– Dedicated trade for customer– 14,000 m³ EXPORT + 10,000 m³ LNGC + 14,000 m³ FSRU
• Minimizing investments in LNG storage
– One stop shop for infrastructure: delivery of regasified LNG
Supply to the Caribbean markets
Conclusions
• Tailor-made solution with competitive pricing
• Low project execution risk– Experienced global team– All skills within the team– Financial strengths– Proven and existing
technologies– Proven Track-record
• One-stop shop for Natural Gas supply to the Caribbean
QUESTIONS & WRAP UP
Thank you!