GAZPROM EP INTERNATIONAL 小ompany profile
March 2011
International upstream projects of OAO Gazprom
Gazprom strategic objective is the transformation into a global energy company bearing a presence in key regions of oil and gas production
GREAT BRITAIN* • Wingate and Emerald • Silimanite VIETNAM * - Agreement with PetroVietnam on offshore area development
NORTH AFRICA Libya - operator of blocks №19 and №64 (exploration) - 49% share in «Wintershall A.G.» which is the operator of oil concessions С96-97 (production) Algeria - operator of El Assel block (exploration)
LATIN AND SOUTH AMERICA - Venezuela – Ayacucho-3, Blanquilla-Tortuga, Mariscal Sucre, JV with PDVSA - Bolivia - gas projects Ipati, Aquio & Azero - Brazil - business development activities
CENTRAL AND WEST AFRICA - Nigeria – JV with Nigerian National Petroleum Corporation
INDIA* - Exploration works on block 26 in the Bay of Bengal - MOU with Indian National Gas Corporation: 6 blocks at the western coast and 7 blocks at the Eastern coast
SOUTHERN AFRICA: - Namibia – integrated Kudu gas project - South Africa – cooperation with PetroSA (including CBM projects)
The most of the projects are implemented by Gazprom EP International B.V. Projects with “*” sign are implemented by other companies of Gazprom Group
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Mission, principles and tasks Company profile Gazprom EP International B.V. (Gazprom Exploration & Production International B.V.) – is a wholly-owned subsidiary of OAO Gazprom for upstream operations outside Russia and CIS. Our project portfolio is comprised of exploration stage and production assets as well as service projects in the oil and gas industry in Africa (Algeria, Libya, Namibia, Nigeria) and Latin America (Bolivia, Venezuela).
Mission The mission of Gazprom EP International is dedicated to assisting OAO Gazprom with its transformation into a global energy company, bearing presence in world key regions of oil and gas production.
Principles Transparency Project-oriented business model Diversification of resource base and sale markets Integration of production chain
Targets Increase OAO Gazprom’s share value Enhance resource base and sale markets abroad Introduce cutting-edge technology; Seek and attract partners for risk allocation. 3
Gazprom EP International history May 2007 Decision of OAO Gazprom BD to establish Gazprom Netherlands B.V.
January 2008 Assets consolidation in Libya C96-97
April 2008 Consolidation of Gazprom Libya B.V. and Gazprom Latin America B.V.
May 2008 Setting up Gazprom Oil and Gas Nigeria Ltd.
November 2008 Setting up Gazprom Brazil Ltd.
Stakeholder’s decision to designate company’s managing directors
Supervisory Board
Andrey Kruglov Deputy Chairman of OAO Gazprom Management Committee
Alexander Medvedev Deputy Chairman of OAO Gazprom Management Committee
July 2009 Renaming of the company Gazprom EP International B.V. (previously known as Gazprom Netherlands B.V.)
Management Board
Andrey Akimov Chairman of OAO Gazprombank Management Committee
Vsevolod Cherepanov Member of OAO Gazprom Management Committee
Valery Gulev Managing Director Gazprom EP International B.V.
Karel Bernard van Polanen Managing Director Gazprom EP International B.V.
Olga Gugina Managing Director Gazprom EP International B.V.
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AFRICA. Overview of assets and prospects AFRICA
ALGERIA
LIBYA
El Assel Project Awarded in a bid round in
December 2008 Operator
Gazprom EP International B.V.
Block №19 Awarded in a bid round in December 2006 Operator Gazprom Libya B.V. Block №64 Awarded in December 2007 Operator Gazprom Libya B.V.
NIGERIA
Concessions C96-97 Cooperation
JV between Gazprom Oil
and Gas Nigeria and NNPC
Upon swap of assets with BASF
OAO Gazprom acquired a 49% stake in Wintershall A.G. which is the operator of concessions Production stage assets Additional prospective structures
(exploration)
NAMIBIA – SOUTH AFRICA New projects Integrated Kudu gas project Cooperation with PetroSA (including CBM projects)
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ALGERIA. El Assel Project Project description Awarded in a bid round in December 2008 Phase : Exploration (follow-up) The program envisages drilling of 4 wells Operator : Gazprom EP International B.V. Contract share : 49% Contract type : concession Partner : Sonatrach (51%)
Current status Operating company Gazprom Algeria established
Historical seismic data gathered and reinterpreted Work programs and budget approved until 2012 (2nd phase of exploration stage) Seismic survey and drilling bid rounds conducted 2700 km2 of 3D seismic survey completed March-October 2010 – drilling of the first wildcat well Rhourde Sayah-2 November 2010 - Hydrocarbon reserves discovered: the well RSH-2 showed daily production rate from the Ordovician deposits in the following volumes: 60 thousand cubic meters of gas and 49.38 tons of oil.
Short-term plans ZERP-1 exploration well construction
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LIBYA. Area №19
Current status 3D
seismic survey completed 3D seismic data processed Interpretation of available seismic, well data and other geological information completed Several targets identified and recommended for wildcat drilling First well drilling program under development Spud – Q2 2011 depending in rig availability
Project description License area was awarded in a bid round in December 2006 (3rd round PSA IV). PSA ratified in April 2007. Phase: Exploration Petroleum potential 2 License area: 10 300 km (offshore) Petroleum potential associated Contract type : EPSA-IV (Production Sharing Contract) with Cretaceous and Triassic Exploration program (2007-2011): complexes 2 • 3D seismic survey – 5000 km Possible accumulations of • wildcat drilling hydrocarbons in other intervals 7
LIBYA. Area №64 Участок №19
Project description License area was awarded in a bid round in December 2007 (fourth round PSA IV). PSA was ratified in June 2008. Phase : Exploration License area: 4 000 km2 (onshore, Ghadames basin) Contract type : EPSA-IV (Production Sharing Contract) Exploration program (2008 – 2012): • 3D/3D SPARSE seismic survey – 5 150 km2 • wildcat drilling
Petroleum potential Petroleum potential is associated with Silurian deposits Possible accumulations of hydrocarbons in other intervals Current status 3D
seismic survey completed 3D seismic data processed Interpretation of available seismic, well data and other geological information completed Several targets identified and recommended for wildcat drilling First well drilling program under development
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LIBYA. Concessions C96 и C97 Project description
GAZPROM LIBYEN VERWALTUNGS GMBH.
Swap of assets between OAO Gazprom and BASF
49%
51%
Триполи
Участок №19 C96 C97
Phase: declining production (9 fields) Remaining recoverable reserves : 7,5 bcm of gas and 167 mbbls of oil (in company stake WI) Production levels (total for 2010) : 31,3 mln. bbl. of oil equivalent (Gazprom Group’s share - mln. bbl. of oil equivalent )
100%
Long-term development plan • exploration works • field infrastructure development • gas hub establishment for neighboring blocks • elaboration of measures for production rate optimization (flooding pattern) Stake acquired through the swap of assets with BASF Swap of assets deal completed in December 2007 OAO Gazprom stake in Wintershall A.G. (operator of concessions C96-97) - 49% Wintershall A.G. Governing board was formed (3 representatives from OAO Gazprom) Currently, trilateral negotiations are underway to convert existing concessions to EPSA-IV type contracts. 9
WEST AFRICA. NIGERIA Business development June 2008 Opening of Gazprom Oil and Gas Nigeria branch office in Abuja September 2008 Signing of MOU with Nigerian National Petroleum Corporation in Moscow June 2009 Visit of the President of the Russian Federation Dmitry Medvedev to Nigeria. Signing of constituent documents for the JV between Gazprom Oil and Gas Nigeria and NNPC. The new joint company was named Nigaz Energy Company Limited October 2009 Geodata Technical Services Ltd - JV between Gazprom Oil and Gas Nigeria and Nigerian company Geokinetic - was established. The company provides services for seismic data processing and storage Areas for cooperation OAO Gazprom - NNPC
Design and construction of associated gas gathering system Development of oil and gas fields Construction of pipeline net Construction of power generating facilities LNG, LPG production LNG – piped gas swap deals
Other affiliate companies of OAO Gazprom are planned to be attracted as subcontractors 10
SOUTH WEST AFRICA. NAMIBIA Business development June 2009 Visit of the President of the Russian Federation to Namibia. The MOU was signed between OAO Gazprombank and Namibian National Oil Corporation for the organization of funding to construct a gas turbine plant. The Kudu gas field is intended to serve as a raw material base for this plant. October 2009 Granting to Gazprom EP International a conventional non-binding license for 2 years to undertake a feasibility study for Kudu* project. Within 2 years license holders have the right to examine the data and conduct a scoping study. An investment decision and a license agreement shall be made and signed before October 2011. JV Gazprom-Namcor stake – 54% Other partners to project: Tullow Oil (UK) – 31%, Itochu (Japan) – 15% January – October 2010 Negotiations between partners to Kudu project. Negotiations with South Africa on purchase of power from Namibia. * Integrated Kudu gas project encompasses production of natural gas from Kudu field (offshore Namibia), gas transportation to power station and power supply to Namibia and South Africa.
Integrated Kudu gas project
Namibia Power Station
Subsea gas pipeline
Kudu field License № 002
South Africa 11
LATIN AMERICA. AMERICA. Overview of assets and prospects BRAZIL VENEZUELA Ayacucho-3 Agreement on evaluation and
certification of heavy oil reserves Gas Production Projects: BlanquillaTortuga, Mariscal Sucre MOU with Venezuelan National Petroleum Corporation PDVSA Natural gas production offshore Venezuela and LNG
Entering new market November 2008 Setting up Gazprom Brazil Exploration and Production Ltd. New projects Evaluation of prospective projects in cooperation with State Petroleum Company Petrobras and other Brazilian companies
BOLIVIA Service sector 2009 – establishment of joint service company with PDVSA – Servicios Venrus
Gas exploration Ipati and Aquio blocks with Total and Tecpetrol (appraisal/development) Azero block with Total and YPFB (explo) Prospective projects Ownership in Petroandina
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VENEZUELA. Exploration and production
Ayacucho-3
In July 2008, an agreement between Gazprom Latin America and PDVSA was signed on evaluation and certification of heavy oil reserves on Ayacucho-3 block. On November 26, 2008, Gazprom Latin America and PDVSA signed an agreement on joint examination of reserves to develop a feasibility study. The estimate of in-place reserves exceed 5 bln t completed; negotiations are underway to delegate the project to the Consortium of the Russian Petroleum Companies. Blanquilla - Tortuga On September 19, 2008, Gazprom Latin America together with ENI, Petronas and EDP (Portugal) signed a Memorandum of Understanding with PDVSA for natural gas production on offshore block Blanquilla-Tortuga with further production of LNG. Technical and economic feasibility study underway. Аякучо 3
Mariscal Sucre Gazprom Latin America bid for a tender for gas and LNG production offshore Venezuela. The project is under consideration.
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BOLIVIA. Business development Gas exploration and production On September 18, 2008, OAO Gazprom –Total – YPFB signed a Memorandum of Understanding for the joint operations on the Azero block. Total offers a stake in the Ipati and Aquio blocks where a gas discovery is made. On
September 30, 2010 Gazprom Group and French petroleum company Total signed a share assignment agreement within the Bolivia’s Ipati and Aquio blocks exploration project. Upon the approval of this transaction by Bolivian authorities, the equity stake of Gazprom Group (Gazprom EP International B.V) in the project will make up 20 per cent, Total – 60 per cent, TecPetrol – 20 per cent. The
project participants are planning to perform joint exploration and development within the Ipati and Aquio licensed blocks. According to tentative forecasts, gas production from the field will be started in 2013. Possible ownership in Petroandina On September 18, 2008, OAO Gazprom-PDVSA-YPFB signed a Memorandum of Understanding on possible purchase of Petroandina shares by OAO Gazprom. General gas industry development scheme In February 2009, OOO Gazprom-VNIIGAZ, Gazprom Latin America and YPFB signed a Memorandum on developing the general gas industry development scheme for Bolivia. 14
GAZPROM EP INTERNATIONAL B.V. Prins Hendriklaan 28, 1075BD, Amsterdam, The Netherlands Tel.: +31 2030 50 980 Fax: +31 2030 50 988 Tel.: +7 (495) 725 7727 (Moscow office) Fax: +7 (495) 725 77 47 (Moscow office) info@gazprom-ep-int.com