1

IAGC contribution

Brazil, Mexico and other countries

SEG - Dallas

September 2016

Andreia Leao Owens

Regional Consultant – South and Latin America

2

Agenda

• Brazil - Main Events and IAGC contribution

• Now and Next

• Mexico

• Current Scenario

• Draft Regulations

• Other Countries – Uruguay, Colombia and Trinidad & Tobago

3

Brazil

Main Events and IAGC contribution

1999 ANP 1st Bid Round- Creation of the National permitting Office for Oil and Gas (“ELPN/CGPEG”)

- Start of seismic permitting / general regulation for environmental permitting

- Seismic data acquired without Permits: data considered illegal

Environmental Cooperation Agreement revalidated the data

2002

ELPN Seminar on Terms of Reference (ToR)

2004 / 2005Publication of CONAMA Resolution 350 and guidelines

- Regulation specific for seismic permitting

- Permits issued in general between 60 days to 1 year for permit issuance

Support on draft regulation and approval

4

Brazil

2005 – 2010

Favorable market conditions and stable permitting

In 2006 IAGC International Workshop in Rio “Seismic and the Environment”

2011 - 2012

- Publication of Portaria 422 unifying regulations for O&G activities

- Ratified previous procedures with small changes

- Market downturn reflecting lack of Concession Bid Rounds

2013 onwards

- ANP 11th Bid Round with Focus on Equatorial Margin

- Basins with insufficient socio and environmental data

- Multiple requests for Permits in the same areas

- ToRs including extra and costly extra environmental projects (research)

- CGPEG not complying with legal deadlines for ToRs issuance (2.5 years / 1 year class 3)

5

Brazil

Source: CGG

6

Brazil

Seismic data acquired and estimation for 2014/2015

804 467 82

75,890

32.47

244.27

33.38 5,742

390.66

33.2525.00

12.00

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: ANP

7

Brazil

Industry reaction (with IAGC support)

- Technical meetings with CGPEG

- PAM Workshop

Government reaction

- Situation Room

- Promoted by Mines and Energy Ministry (MME)

- ANP, IBP and Environmental Ministry (MMA)

- G&G companies were invited and joined

IAGC participation

- Official interface with Government

- Challenged extra environmental projects

- Review of main alleged non-compliance procedures / implementation of the Biota Monitoring Guideline over the last 5 years

8

Brazil

Q: How to streamline back the permitting ?

A: Diminishing the subjective and bringing predictabilityto the permitting process !

IAGC contribution (on progress):

- Environmental and Socio Data Base

- Environmental Sensitivity Matrix

- Matrix with applicable regulation

- Environmental and socio characteristics of Sedimentary Basins

- General EIA for seismic operations

- Joint initiative with IBP to offer IBAMA a draft guideline for the permitting process

2015 – 2016 third quarter

- December (Rousseff Impeachment)

- Government slowed down all initiatives

9

10

Brazil

Now

- Comments on the draft general environmental law

- MME officials contacting IAGC for support

- Bring to new MME officials IAGC concerns and positive agenda

- Workshop for the Universities and Institutes to present the results of environmental projects (research)

Next

- Attempt to have the environmental projects (research) subside by an official fund or “bought” by the E&P companies for implementation within concession contracts (1% for R&D Projects / available > 5.3 bi Reais / 1.6 bi USD)

- Push for continuity on the efforts to streamline the permitting

11

Mexico

Current scenario

- Market recently opened

- New Environmental and Safety Agency (ASEA)

- Government seeking for collaboration

- Preparations for upcoming and last phase of the 1st Bid Round (offshore)

IAGC engagement with Governmental Agencies

- Establishing contact with officials and collaborative work

- Educating on seismic activities

- Addressing main issues to operate in the country

- Comments to draft regulations

12

Mexico

Draft Regulations

Secreteria de Energia de Mexico - SENER

General Administrative Dispositions for Evaluation of Social Impact in the EnergySector (Disposiciones Administrativas de Carácter General sobre la Evaluación de Impacto Social en el Sector Energético)

Comments to two drafts, third on progress

Workshop in Mexico City in September

- Attendend by SENER, CHN, ASEA

- IAGC presentation on land seismic

IAGC’s comments to the draft regulation

- Change seismic operations from category “C” to category “A”.

- Alterations to allow SENER deciding when a project does not require to have a Social Management Plan, based on its low social interaction, and

- Allow SENER to provide exemptions to social authorization when the project does do not have any interaction with communities.

13

Mexico

Draft Regulations

Agencia de Seguridad, Energia y Ambiente - ASEA

Administrative Provisions of general character to established guidelines for Industrial Safety, Operational Security and Environmental Protection for Seismic, Exploration and Production of Hydrocarbons. (Disposiciones administrativas de carácter general que establecen los lineamientos en materia de Seguridad Industrial, Seguridad Operativa y protección al medio ambiente para realizar las actividades de Reconocimiento y Exploración Superficial, Exploración y Extracción de Hidrocarburos)

Introductory meeting in Mexico in September

- Attended by ASEA Directors and technical staff

- ASEA presentation on how to obtain the CURR and permitting framework

- IAGC request to not have seismic submitted to the draft regulation

Draft Regulation on public consultation / comments on progress

Upcoming Workshop on ASEA procedures and offshore seismic

14

Other Countries

Uruguay – 2016

Comments to the Guideline for the Evaluation of the Marine Seismic AcquisitionsEnvironmental Impact

Colombia - 2015

Comments to the ToR for preparation of Environmental Impact Evaluation forseismic projects in waters up to 200m depth

Trinidad and Tobago - 2014

Comments to the Draft Guidelines for Offshore Seismic Surveys and related required documentation

15

Thank you

Obrigada

Gracias