TSX: PRE BVC: PREC BOVESPA: PREB
LNG Supply for Central America and the Caribbean Durable Energy.WTC. Willemstad. March 2012
WHERE TALENT AND KNOWLEDGE MEET OPPORTUNITY
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 Energy The Resource
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)
Significant asset portfolio with large exploration potential
Background
PACIFIC RUBIALES ENERGY: LARGEST PRIVATE SECTOR OIL AND GAS PRODUCER IN COLOMBIA
Properties
EXPLORATION & PRODUCTION ASSETS
LA CRECIENTE
Gas in place to support substantial development One of the largest Colombia natural gas discoveries in recent years. (100% WI for PRE) 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)
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Colombian Natural Gas
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Increasing Reserves in Colombia (TCF)
Colombia Natural Gas 2P Reserves 6,00 5,00
Probadas Proved
5.41
4.74 Probables Probable
Reserves (TCF)
4,00 3,00 2.90 2,00 1,00
1.16
0,00 2009
2010
Source: Presentation of Ministry of Energy and Mines, Colombia, October 18, 2011 9
Supply Index
N.B. Definitive Supply Index for 2011 was determined to be of 15 years by the Ministry of Mines and Energy
IA = Supply Index (years) = reserves/demand Source: Presentation of Ministry of Energy and Mines, Colombia, October 18, 2011
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Colombian Gas Export Regulation
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Colombian Natural Gas Regulation Natural gas production, transport and commercialization are government regulated • Gas Export Projects Gas producers in Colombia have the right to export gas without previous Government approval. To enter into new gas export contracts, overall reserves of the country have to be above a minimum limit set by the Ministry of Mines and Energy which is 8 years. After a contract is signed, this limit is no longer applicable to that commitment. • Bilateral negotiations Parties to gas export contracts may negotiate prices and other supply terms without restrictions.
EXMAR The Transporter
Exmar Group EXMAR Group LNG
Shipping Floating Storage, Liquefaction & Regas Design & Engineering Shipmanagement
LPG / NH3
Shipping
Offshore
Accommodation / Work Barge
Floating Storage
Floating Production & Storage
Design & Engineering
Design & Engineering
Shipmanagement
Operations & Maintenance
Services
Shipmanagement
Design & Engineering Belgibo Insurance Travel Plus
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Ship-To-Ship Transfer 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 mÂł LNG transferred
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“Small Scale” LNG
“Small Scale” Value Chain Liquefaction
EXPORT TM (Colombia)
Marine Transport
Shuttle LNG carrier
Regasification
FSRU (Customer)
SMALL SCALE LNG IS TAILORED ACCORDING TO END CUSTOMER NEEDS
LNG Integrated Supply Concept Floating liquefaction plant Dedicated LNG carrier Regas Plant
- 72 MMSCFD / Barge Storage:14,000 m3 - 10,000 -30,000 m3 - 50-100 MMSCFD supply capacity / Storage 14,000 m3
Storage Colombia 14,000 m3
Transit 10,000 m3
Client 14,000 m3
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Dedicated 10k-30k m3 LNG Carrier
Shallow draft (5.7 m) Redundant Electric Propulsion Two fully independent engine rooms Environmentally friendly (LNG regas fuel) High Maneuverability (no tugs required) Proven Technology
Floating Storage Regasification Unit •
Barge mounted FSRU. Deck supported / easily accessible regasification equipment
•
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
Simple and fast installation scheme based on spud piles (no new built jetty construction required)
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Advantages of “Small Scale” LNG •
Smaller storages as a function of distance from production to consumption – 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 US$/mmbtu Internal calculations
•
Conclusion – Total Cost of Ownership substantially reduced – Quicker time to market – Lower permitting risk
Export
TM
500,000 tpa of LNG production 14,000 m³ of LNG storage Length overall Breadth Depth Draught
124 m 32 m 18 m 4.5 m
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Technical description
• 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
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
Early Start-Up
1. FOB sales Colombia – Sale of spot cargoes – FSU ~120,000 – 130,000 m³ + 14,000 m³ storage EXPORT
Supply to the Caribbean markets
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
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!