Why Invest in Peru

Why Invest in Peru ?

Peru has an open door policy towards international oil companies. Besides a prospective and challenging geology, Peru offers an excellent working climate and very friendly terms. In Peru all exploration and production activities involving upstream petroleum and natural gas are carried out by companies who sign contracts with Perupetro.

The Peruvian coastal region can support extensive marine exploration activities. It has a great weather and an excellent transportation and operational infrastructure.The jungle region, is located within the Sub-Andean trend, which is a prolific hydrocarbon producer in South America. Hydrocarbons have been produced from the Marañon and Ucayali Basins since the seventies.

Technical information covering these regions includes extensive geophysical seismic surveys, as well as a number of technical evaluations and geological field studies that help to determine the potential for hydrocarbons of the areas. This is an unrivaled opportunity to access the exploration potential of promising areas in Peru.

CONTRACTUAL REASONS

Standard Contract Model
Simplifies the negotiation and makes that the agreements of the contract be achieved in short periods.

Flexible Works Programs
Relaxation of the Minimum Program of Exploratory Work, they can be set in Exploratory Work Units (EWU), whereby the Contractor is free to establish works that allow the compliance of the agreed number of EWUS for each period.

Free Technical Information
Perupetro, the National Hydrocarbons Agency, has established as a policy of transfer of technical information at no cost to the Investor or Contractor.

Refund of General Sales Tax during the Exploration Phase
During the exploration phase of the Contracts and execution of technical evaluation Agreements, the Companies that underwrote the Contracts or Agreements referred to in Articles 6º and 10º of Law 26221, Organic Law of Hydrocarbons, shall be entitled to the final repayment of the General Sales Tax and Municipal Promotion Tax that pay for the execution of activities directly related to exploration.

This right is part of the tax regime subject to the tax stability guarantees in the Contracts or Agreements with companies that subscribe with Perupetro S.A. from the force of Law No. 27624, Law providing for the Return of General Sales Tax and Municipal Promotion Tax for the Exploration of Hydrocarbons.

OTHER ASPECTS OF INTEREST

There are many exploratory wells (drilled during the period of 1970 - 1980), with traces of hydrocarbons left behind by technological limitations. There are also unsuccessful Drilled Wells by wrong location. Mainly in the Marañon Basin.

3There are structures in which hydrocarbon accumulations were discovered that were left uncompleted by the time prices - about 9 U.S. $ per barrel-.

The Technical Information, contained in the Data Bank is available to all oil Companies interested in investing in Hydrocarbon Exploration and Exploitation Activities.

New technologies for hydrocarbon exploration and exploitation, open new possibilities for re-evaluation of structures already drilled.

GEOLOGICAL REASONS

Historically, our Basins , is under explored, therefore, there is few seismic and well information. In the past 30 years have seen in the Data Bank of Perupetro, the following information:

Onshore Basin

Marañon: 106 Exploratory Wells, approximately 50,000 km of 2D seismic lines in Digital Format. Basin sub-explored for Palaeozoic Objectives (Deep). Proven existence of heavy Crude structures in the North-East side of the Basin.

Ucayali: 42 Exploratory Wells, approximately 20,000 Km of 2D seismic lines in Digital Format. Basin sub-explored in its central and north part, for Palaeozoic Objectives (Deep), Camisea Fields - Gas and Condensate-, in the extreme south of the basin.

Santiago: 04 Exploratory Wells, approximately 1,711 Km of 2D seismic lines in Digital Format. Abundant samples of crude on surface. This Basin contains an Active Oil System. Lack of exploration.

Huallaga: 01 Exploratory Well, approximately 2,000 Km. of 2D seismic lines in Digital Format. Samples of crude on surface.Lack of exploration.

Madre de Dios: 06 Exploratory Wells, approximately 1,500 Km of 2D seismic lines in Digital Format. Gas Basin (Candamo Deposits ) sub-explored.

Titicaca: 04 Exploratory Wells and about 500 Km of 2D seismic lines in Digital Format. This basin produced 300,000 Bbls of light oil in very old fields (Pirin). This Basin is still sub-explored.

Ene: Approximately 300 Km of seismic lines. There has been no exploratory well drilled. Lack of exploration.

Bagua: Unexplored Basin, but with a high Prospective potential.

Offshore Basins

Trujillo and Salaverry: 04 Exploratory Wells, approximately 14,000 Km of seismic lines. Outcrops on sea surface, which demostrate the existence of an Active Petroleum System. There are various types of stratigraphic Traps to explore.

Talara and Tumbes Basins: Extensive seismic information and plentiful quantity of Wells. Over-explored Basin.