IN-VR 2020 LATAM & CARIBBEAN Oil, Gas & Energy Summit
This Oil, Gas and Energy Summit was held on October 15th, 2020 by IN-VR (https://www.in-vr.co/), an organiser of government-backed oil & gas marketing campaigns. This significant online event was a great opportunity to show current situation in the field of Oil & Gas developments among the LATAM & Caribbean countries.
Here we list some of the regional facts and energy developments that were identified at the meeting.
Plata Energy highlighted the significant hydrocarbon resources potential in Latin America and the Caribbean countries and the fact of the reduced exploitation of them until now. (According to BP 2020 Statistical Review the Oil Reserves / Production index for the region is almost 144 years, the highest index in the world for a region. For Natural Gas the Index is 46 years).
In this regard, it is worth to mention as hydrocarbon significant locations the Oil Pre-Salt layer in Brazil, the Orinoco Belt in Venezuela, the Caribbean natural gas (Colombia, Venezuela, Trinidad & Tobago) , Guyana offshore oil play, Camisea natural gas in Peru and the Unconventional Oil & Gas resources in Vaca Muerta, Argentina among others.
In addition, it was mentioned that a weakness in Latin America governments that plays against the required foreign investment needed to develop the energy resources, are the waves of nationalism that have been present in some countries.
Shell talked about the importance of suitable adjustments of the fiscal systems during project lifecycle considering project cost and price. They presented the concepts of progressive/regressive taxation according to price scenario and Government take / Fiscal Yield.
Brazil, the 10th largest oil producer is concentrating their efforts in offshore environment with the goal to accelerate the pre-salt exploration and development as mentioned by ANP, their official agency for oil & gas regulations, contracting and supervision. Brazil is updating and improving regulations. They are unifying separate requirements for technical, environmental, safety and port state in a single regulation and they are stablishing a decommissioning program with different terms for onshore and offshore operations. In addition, they are reducing royalties for small and medium operators as well as simplifying regulation for marginal fields.
Argentina, according to Andes Energy Consulting is developing its Vaca Muerta formation in the Neuquén basin which involves both unconventional oil and gas production with favorable impacts in both regional and national level. Current oil production is around 123,000 B/D and 1.1 BCF/D of natural gas. Considering the vast amounts of unconventional oil & gas resources existing within the formation, Argentina is challenged to provide an attractive foreign investment regulation for the high level of investment required for their development, which is in the order of 60 billion dollars.
Ecopetrol, the NOC of Colombia, presented their energy transition policy where they rely on natural gas as an strategic priority. With a market share of 80% in the country, they are strengthening their E&P efforts to increase the producing fields and production of natural gas while at the same time increasing natural gas penetration in the energy market. Their E&P activity will be placed at Caribbean offshore, foothills and Caribbean onshore and at unconventional resources location.
Perú is issuing an oil bid round regarding 9 blocks in three different basins (Talara, Marañón and Ucayali). This is according to PERUPETRO, the official agency for contracting E&P investment activities which is in the process to improve the country regulations to make investments more attractive. Seven blocks correspond to Talara basin in the north west side of the country. The blocks have oil producing fields and have a good potential to increase production either through conventional operations, secondary recovery, Enhanced Oil Recovery (six blocks) or Deepwater exploration (one block). The area where they are located has available infrastructure and is around Talara Refinery which is being modernized.
In Chile, imported fossil fuels supply 70% of energy. According to the Ministry of Energy, their energy policy seeks to change the energy matrix to a major presence of renewables through a carbon neutrality goal (2050) and with an agreement to phase out coal fired power plants (2040). In addition, Chile is developing a Green Hydrogen strategy to support decarbonization in their energy market.
Trinidad & Tobago through the Ministry of Energy and Energy Industries presented some details about their Deep Water Competitive Bid Round 2020/2021. The country produced 56,625 B/D of crude oil and 3.4 BCF/D of natural gas in June 2020. This would be the fifth round of a series initiated in 1996 with successful results.