#1TOGETHER WE ASPIRE THE GOVERNMENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO TRINIDAD ONSHORE BID ROUND 2013 Image: Thontes Schwin MINISTRY OF ENERGY AND ENERGY AFFAIRS POWER. PROSPERITY. PROGRESS.#2TOGETHER WE ASPIRE TOGETHER WE ACHIEVE TRINDAD O T AGENDA TRINDAD TRINDAD Advantages of doing business in Trinidad and Tobago Exploration Joint and Competitive Operating Production Licence Bid order Agreement MINISTRY OF ENERGY AND ENERGY AFFAIRS POWER. PROSPERITY. PROGRESS.#3TOGETHER WE ASPIRE TOGETHER WE ACHIEV Commercial oil production began 104 yrs ago Oil Production (end of Nov 2012)- 78,846 bopd The World 20° 60° 180° 140° 100° 60° 80° 20° ARCTIC 20° 60° 100° 140° 180° ARCTIC OCEAN 80° EUROPE 40° NORTHE AMERICA PACIFIC OCEAN ATLANTIC OCEAN CARIBBEAN AFRICA 0-Equator OCEANIA 20 40° SOUTH AMERICA ATLANT OCEAN 60° ASIA 40° PACIFIC OCEAN 20° INDIAN OCEAN 0° OCEANIA 20° 40° PACIFIC OCEAN 60° 2,000 Miles 000 Kilometers 20° SOUTHERN OCEAN TRINIDAD & TOBAGO 80 160° 120° 80° 40° 0° ANTARCTICA 40° 80° 120° 160 © MAPQUEST. Gas utilization began 60 yrs ago Avg. Gas Production (end of Nov 2012)- 4.1 bcf/d Northeast of Venezuela Southernmost islands of the Caribbean MINISTRY OF ENERGY AND ENERGY AFFAIRS POWER. PROSPERITY. PROGRESS.#4TOGETHER WE ASPIRE TOGETHER WE ACHIEV Trinidad & Tobago Business Advantages Fundamental Human Rights and Freedoms guaranteed in Constitution Stable democratic nation with orderly and peaceful transitions of power History of observing sanctity of contract MINISTRY OF ENERGY AND ENERGY AFFAIRS POWER PROSPERITY. PROGRESS.#5TOGETHER WE ASPIRE TOGETHER WE ACHIEV Trinidad & Tobago Business Advantages Access to Developed and Emerging Markets by virtue of location and historical dealings Highly Skilled and Trained English Speaking Labor Force No Restrictions On Repatriation Of Capital, Profits, Dividends, Interest, Distributions Or Gains On Investment. Only Withholding Tax Applies. MINISTRY OF ENERGY AND ENERGY AFFAIRS POWER PROSPERITY. PROGRESS.#6TOGETHER WE ASPIRE TOGETHER WE ACHIEVE Trinidad & Tobago Business Advantages Cont'd Bi-lateral investment treaty with US, CANADA, UK and other countries Double taxation treaties with US International Arbitration MINISTRY OF ENERGY AND ENERGY AFFAIRS POWER PROSPERITY. PROGRESS.#7TOGETHER WE ASPIRE TOGETHER WE ACHIEVE O ANNOUNCEMENT OF BID ROUND THE PETROLEUM REGULATIONS (ONSHORE COMPETITIVE BIDDING) ORDER, 2013 invites bids for the grant of Exploration and Production Licences for three blocks located onshore in the southern basin of Trinidad MINISTRY OF ENERGY AND ENERGY AFFAIRS POWER. PROSPERITY. PROGRESS.#8TOGETHER WE ASPIRE TOGETHER WE ACHIEV LICENCE TO BE EXECUTED AN EXPLORATION AND PRODUCTION (PUBLIC PETROLEUM RIGHTS) LICENCE IN ACCORDANCE WITH THE PETROLEUM ACT MINISTRY OF ENERGY AND ENERGY AFFAIRS POWER. PROSPERITY. PROGRESS.#9TOGETHER WE ASPIRE THE GOVERNMENT OF THE REPUBLIC OF TRINIDAD AND TO CHANGES BASED ON FEEDBACK AT LAST MEETING IN CALGARY SIZE OF BLOCKS PRIVATE PETROLEUM RIGHTS - COMMITAL LETTERS PRIVATE PETROLEUM RIGHTS - AREAS EXCISED HEAVY UPFRONT WEIGHTING OF INVESTMENT SPEED OF PROCESS - MODEL LICENCE AND JOA MINISTRY OF ENERGY AND ENERGY AFFAIRS POWER. PROSPERITY. PROGRESS.#10TOGETHER WE ASPIRE TOGETHER WE ACHIEVE TERM OF LICENCE Initially period of six years Upon the achievement of a commercial discovery, field renewed for an additional 19 years If no commercial discovery, Licence terminates automatically MINISTRY OF ENERGY ANDENERGY AFFAIRS POWER. PROSPERITY. PROGRESS.#11TOGETHER WE ASPIRE TOGETHER WE ACHIEVE LOCAL CONTENT CONTRACTOR REQUIRED TO COMPLY WITH THE LOCAL CONTENT AND LOCAL PARTICIPATION FRAMEWORK FOR THE REPUBLIC OF TRINIDAD AND TOBAGO - LOCAL CONTENT - LOCAL PARTICIPATION MINISTRY OF ENERGY ANDENERGY AFFAIRS POWER. PROSPERITY. PROGRESS.#12TOGETHER WE ASPIRE THE GOVERNMENT OF THE REPUBLIC TRINIDAD AND ASSISTANCE BY THE MINISTER LAND USE RIGHTS LICENCES FOR TRANSPORTATION CUSTOMS REGULATIONS VISAS FOR FOREIGN EMPLOYEES AND SUB CONTRACTORS WORK PERMITS ACCESS TO INFORMATION ON THE CONTRACT AREA DEALING WITH GOVERNMENT AUTHORITIES MINISTRY OF ENERGY AND ENERGY AFFAIRS POWER. PROSPERITY. PROGRESS.#13TOGETHER WE ASPIRE TOGETHER WE ACHIEVE JOINT OPERATING AGREEMENT TO BE EXECUTED A JOINT OPERATING AGREEMENT WITH PETROTRIN MODEL JOINT OPERATING AGREEMENT BASED ON AIPN MODEL JOA NON-NEGOTIABLE IF RESERVATIONS EXPRESSED IN BID THEY MAY BE CONSIDERED BUT WE ARE UNDER NO OBLIGATION TO ACCEPT MINISTRY OF ENERGY ANDENERGY AFFAIRS POWER. PROSPERITY. PROGRESS.#14TOGETHER WE ASPIRE TOGETHER WE ACHIEVE Ⓒ PETROTRIN CARRY The Petroleum Company of Trinidad and Tobago has a twenty per cent participating interest in each block awarded and a carry for the execution of the Minimum Work Obligations only MINISTRY OF ENERGY ANDENERGY AFFAIRS POWER. PROSPERITY. PROGRESS.#15TOGETHER WE ASPIRE THE GOVERNMENT OF THE REPUBLIC OF TRINIDAD AND TO PETROTRIN CARRY INCLUDES: MINIMUM WORK OBLIGATIONS FINANCIAL OBLIGATIONS UNDER THE LICENCE SECONDEE PROVISION OF DATA TRANSACTION AUDIT MINISTRY OF ENERGY AND ENERGY AFFAIRS POWER. PROSPERITY. PROGRESS.#16TOGETHER WE ASPIRE TOGETHER WE ACHIEVE PETROTRIN BRINGS TO THE LEASES AND OWNERSHIP OF SOME PETROLEUM RIGHTS KNOWLEDGE OF THE LOCAL HABITS AND CUSTOMS TABLE: WIDE EXPERIENCE IN OPERATING IN THE TERRAIN A WELL ESTABLISHED LAND MANAGEMENT SYSTEM A DATA BASE OF THE OWNERSHIP OF THE PETROLEUM RIGHTS IN THE AREA DATA ON ADJOINING BLOCKS MINISTRY OF ENERGY ANDENERGY AFFAIRS POWER. PROSPERITY. PROGRESS.#17TOGETHER WE ASPIRE TOGETHER WE ACHIEV OWNERSHIP OF PETROLEUM RIGHTS IN BLOCKS 95% OF SUB SURFACE RIGHTS CAN BE OPERATED UPON 4.78% EITHER 91% OWNED BY THE STATE 4.22% OWNED BY PRIVATE OWNERS AND LEASED BY PETROTRIN OPEN ACREAGE OR A LETTER OF COMMITTAL HAS BEEN OBTAINED MINISTRY OF ENERGY ANDENERGY AFFAIRS POWER. PROSPERITY. PROGRESS.#18TOGETHER WE ASPIRE TOGETHER WE ACHIEVE COMPETITIVE BIDDING ORDER COMPETITIVE BIDDING ORDER PUBLISHED UNDER THE PETROLEUM ACT INCLUDED IN DATA PACKAGE AND ON WEBSITE MINISTRY OF ENERGY AND ENERGY AFFAIRS POWER. PROSPERITY. PROGRESS.#19TOGETHER WE ASPIRE TOGETHER WE ACHIEV Requirements for Bidding The Bid Participation fee is US $40,000 This fee entitles the bidder to receive a data package which includes data for all three blocks bid on any or all of the blocks MINISTRY OF ENERGY ANDENERGY AFFAIRS POWER. PROSPERITY. PROGRESS.#20TOGETHER WE ASPIRE TOGETHER WE ACHIEV Contents of Data Package The Petroleum Regulations Onshore Competitive Bidding Order 2013) The Model Exploration and Production ( Public Petroleum Rights) Licence 2013 for the Onshore Areas The Local Content and Local Participation Policy Framework for the Republic of Trinidad and Tobago dated October 7th 2004 The Model Joint Operating Agreement Relevant Information with respect to the blocks ENERGY ANDENERGY AFFAIRS POWER. PROSPERITY. PROGRESS.#21TOGETHER WE ASPIRE TOGETHER WE ACHIEVE Documents to Accompany Bid Signed Declaration, indicating that the Model Licence has been examined and the terms agreed to Documents showing Cash Flow in relation to Commercial Evaluation Documents demonstrating Legal Identity of Bidder Evidence of Technical Competence and experience in Petroleum Operations Documents showing the corporate and financial structure and banking of the Bidder AFFAIRS POWER. PROSPERITY. PROGRESS.#22TOGETHER WE ASPIRE TOGETHER WE ACHIEVE TRONDAD IC Bid should include: TRINDAD き TRONCAD L T TECHNICAL AND COMMERCIAL EVALUATION OF THE BLOCK THE MINIMUM WORK PROGRAMME THE MINIMUM EXPENDITURE OBLIGATION MINISTRY OF ENERGY AND ENERGY AFFAIRS POWER. PROSPERITY. PROGRESS.#23TOGETHER WE ASPIRE TOGETHER WE ACHIEVE TIE BREAKER Where more that one bidder for a particular block is awarded the same number of points, each bidder shall be required to bid a signature cash bonus for the purpose of determining the preferred bidder for that block. MINISTRY OF ENERGY ANDENERGY AFFAIRS POWER. PROSPERITY. PROGRESS.#24TOGETHER WE ASPIRE TOGETHER WE ACHIEVE TRONDAD IC TIME LINE TRINDAD き TRONCAD L T Bidding Period ends on 30 August, 2013 Successful bids to be announced by October 31, 2013 Licence and JOA to be executed by November 30, 2013 MINISTRY OF ENERGY AND ENERGY AFFAIRS POWER. PROSPERITY. PROGRESS.