Exploration Day

Exploration Update
Marcos Mozetic, MD Exploration
January 2012
Disclaimer
ALL RIGHTS ARE RESERVED
© REPSOL YPF, S.A. 2012
Repsol YPF, S.A. is the exclusive owner of this document. No part of this document may be reproduced (including photocopying), stored, duplicated, copied, distributed or
introduced into a retrieval system of any nature or transmitted in any form or by any means without the prior written permission of Repsol YPF, S.A.
This document does not constitute an offer or invitation to purchase or subscribe shares, in accordance with the provisions of the Spanish Securities Market Law (Law 24/1988,
of July 28, as amended and restated) and its implementing regulations. In addition, this document does not constitute an offer of purchase, sale or exchange, nor a request for an
offer of purchase, sale or exchange of securities in any other jurisdiction. In particular, This document does not constitute an offer to purchase, subscribe, sale or exchange of
Repsol YPF's or YPF Sociedad Anonima's respective ordinary shares or ADSs in the United States or otherwise. Repsol YPF's and YPF Sociedad Anonima's respective ordinary
shares and ADSs may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended.
This document contains statements that Repsol YPF believes constitute forward-looking statements which may include statements regarding the intent, belief, or current
expectations of Repsol YPF and its management, including statements with respect to trends affecting Repsol YPF’s financial condition, financial ratios, results of operations,
business, strategy, geographic concentration, production volume and reserves, capital expenditures, costs savings, investments and dividend payout policies. These forwardlooking statements may also include assumptions regarding future economic and other conditions, such as future crude oil and other prices, refining and marketing margins and
exchange rates and are generally identified by the words “expects”, “anticipates”, “forecasts”, “believes”, estimates”, “notices” and similar expressions. These statements are not
guarantees of future performance, prices, margins, exchange rates or other events and are subject to material risks, uncertainties, changes and other factors which may be
beyond Repsol YPF’s control or may be difficult to predict. Within those risks are those factors described in the filings made by Repsol YPF and its affiliates with the Comisión
Nacional del Mercado de Valores in Spain, the Comisión Nacional de Valores in Argentina, the Securities and Exchange Commission in the United States and with any other
supervisory authority of those markets where the securities issued by Repsol YPF and/or its affiliates are listed.
Repsol YPF does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance,
conditions or events expressed or implied therein will not be realized.
The information contained in the document has not been verified or revised by the Auditors of Repsol YPF.
1
Some relevant events of 2011
Positive
1. Were able to advance an additional wildcat not included in the programme in Brazil in promising
Campos 33.
2. Maintained a healthy success rate in the annual programme (+40%).
3. Secured permits and rigs in time to spud during the winter of 2011/2012 our first four wells in Alaska.
4. Successfully extended our acreage position in Portugal, Norway, Alaska, Ireland, Tunisia, Canada,
Russia and finalised signature of Angola.
Negative
1. Drilled two dry wells in Morocco that have suspended monetisation of the gas discovered in Anchois.
2. Failed in locating a suitable rig to drill in Zhambay (Kazakhstan) and are now negotiating an
extension or reassignment of the block.
2
Changes in our Exploration “Tanker”
Appraisal
Engine Room*
Guara
Huacaya
Kinteroni
Perla
Reggane
Med Spain
Carioca,
Piracuca
Tanks
Buckskin
Abare West, Panoramix & other Brazil
Presalt Albacora
Sierra Leone & Liberia
*Pushing the boat forward
3rd Q 2011
Yellow: transferred or on their way to Business units
Exploration
Alaska, Brazil NFW,
Peru Block 57 Exploration,
GoM and onshore Louisiana
North Atlantic Margins (NE
Canada, Norway & Ireland)
Libya and Algeria
Bulbous Bow
*
*”Pulling the boat ahead”
•
•
•
•
•
•
•
Opening underexplored folded belts in Peru
Iraqi Kurdistan folded belt
Folded belt offshore Tunisia
Unexplored offshore basins in Indonesia
Exploring Russia
Mediterranean unconventional
Several Regional Assessments which will end in
acreage positions in the future
3
Our Exploration “Tanker” now
Tanks
Appraisal
Engine Room*
Guara
Huacaya
Kinteroni
Perla
Reggane
Med Spain
Carioca,
Piracuca
Buckskin
Abare West, Panoramix & other Brazil
Presalt Albacora
Sierra Leone & Liberia
C-33 (Seat, Gavea, Pão de Açúcar)
*Pushing the boat forward
Now: “loading the engine room”
Exploration
Alaska, Brazil NFW,
Peru Block 57 Exploration,
GoM and onshore Louisiana
North Atlantic Margins (NE
Canada, Norway & Ireland)
Libya and Algeria
Bulbous Bow
*
*”Pulling the boat ahead”
•
•
•
•
•
•
•
Opening underexplored folded belts in Peru
Iraqi Kurdistan folded belt
Folded belt offshore Tunisia
Unexplored offshore basins in Indonesia
Exploring Russia
Mediterranean unconventional
Several Regional Assessments which will end in
acreage positions in the future
Yellow: transferred or on their way to Business units
4
Highlights for 2012
•
Our initial estimations for year 2012 included finalising 23 wells (20 NFW), which in itself
would have allowed a continuation of our resource objectives.
•
Key wells delayed from 2011, like Itaboraí, Pão de Açúcar (Brazil), Sararenda (Bolivia),
Jagüey (Cuba), Jaguar (Guyana), Ulvetanna, Bonna (Norway) and the testing of Abaré
and Tinguá, statistically support a very robust prospective resource scenario for 2012
when grouped together with the programme initially envisaged for 2012.
5
Initial 2012 Programme
23 Exploration wells (20 NFW)
USA
<30 MBOE
30-200 MBOE
> 200 MBOE
Brazil
Low risk
Middle risk
High risk
3
6
Best case 2012 Programme
34 Exploration wells (30 NFW)
USA
<30 MBOE
30-200 MBOE
> 200 MBOE
Brazil
Low risk
Middle risk
High risk
7
Some projects in the bow
Iraqi Kurdistan folded belt:
Opened the office, tendering seismic,
awarding potential methods
Unexplored offshore basins in Indonesia:
Finalising seismic tender
Opening underexplored folded belts in
Peru:
Farming down where portfolio
management makes it convenient
Mediterranean unconventional:
Start core drilling
Folded belt offshore Tunisia:
Advancing reprocessing
Exploring Russia
Next page….
8
Exploration acreage and areas of interest in Russia
TIMAN
PECHORA
SIBERIA
OESTE
Kumolsky
Karabashsky
Salymsky
200 0
600
1200 km.
Our current postion
Our current postion
Our immediate goal
7 exploration blocks (5703 km2)
7 exploration
blocks (5703 km2)
2
+10000 km ) in +10 blocks in our plays
99
West Siberia update
West Siberia
• Finished our first seismic campaign in Karabashky
• Working on the logistics for our first well next winter
• Will shoot seismic in Kumolsky also next winter
10
Norway - Acreage Position
PL-531
PL-530
PL-529
PL557
PL589
PL-512
PL-356
PL-541
PL-642
PL-640
PL-656
PL-658
PL-644
PL-557B (Extension PL-557)
Repsol (O)
RWE
Talisman
Concedo
Marathon
GdF (O)
Repsol
Front Expl.
Rocksource
North Energy
ENI (O)
Wintershall
DONG
OMV
Repsol
OMV (O)
Repsol
Skagen
Wintershal (O)
Repsol
RWE
Det Norske (O)
Repsol
Svenska
Bayerngas
Det Norske (O)
Repsol
Repsol (O)
Edison
Skagen
40%
25%
25%
20%
10%
30%
10%
20%
20%
20%
30%
20%
20%
20%
10%
50%
40%
10%
40%
30%
30%
30%
25%
25%
20%
60%
40%
50%
35%
15%
Repsol (O)
OMV
Spring
Petoro
Talisman (O)
Repsol
E.ON Ruhrgas (O)
Dong
Repsol
North energy
Petoro
Dong (O)
Repsol
OMV (O)
Repsol
Centrica
Faroe
Skagen44
OMV (O)
Repsol
Skagen44
40%
20%
20%
20%
60%
40%
30%
20%
20%
10%
20%
50%
50%
30%
20%
20%
20%
10%
50%
40%
10%
PL-658
PL-531
PL-529
PL-530
PL-644
PL-656
PL-557
PL-557B
PL-589
PL-512
PL-642
PL-640
PL-356
Existing operated
PL-541
New operated
11
Acreage Consolidation in Alaska
12
East Coast Canada - Exploration Activity
EL 1074R
CVX (OP) 55%
REPSOL 20%
Statoil
15%
EL 1123
Statoil (OP) 75%
REPSOL 25%
a
Canad
u
Newfo
ndland
2 New Parcels
Statoil (OP) 50%
CVX
40%
REPSOL 10%
EL 1110, EL1121
HUSKY (OP) 67%
REPSOL
33%
EL 1111
HUSKY (OP) 67%
REPSOL
33%
EL 1110
HUSKY (OP) 40%
SUNCOR
40%
REPSOL
20%
13
New Ventures in Colombia
14
Ireland
Perla
Source
Dunkin
Top Chalk
Base Chalk
Source
Tracing of seismic line
1 km
Expecting to drill in 2013
15
Kurdistan Exploration - Piramagrun and Qala Dze PSC’s
Office in Erbil active, planning to start acquisition of airborne potential
methods and seismic in March/April
Qala Dze PSC
100% working interest
Area: 1852km2
Initial commitment seismic, drilling contingent to seismic
Erbil
Piramagrun PSC
100% working interestered by MNR to Repsol. Area: 901km2
Suleymaniya
Seismic and one firm well
16
Angola: Block Location
Blk-34
Blk-19
Block 35
Blk-36
Looking for Brazilian Presalt
Analogues
Blk-20
Block 37
Blk-21
Blk-38
Contract signed on 21 December
2011 Opening office in Luanda,
ready to award seismic
Block 22
Blk-23
Blk-39
Blk-40
Blk-24
From IHS
17
Central Peru Foldbelt
• The Peruvian Foldbelt is largely under explored
with a very low well density due to logistical
challenges.
• Repsol YPF has a long history and has built its
expertise in Andean foldbelts, from Argentina to
Venezuela.
• Despite the complexities of this operational
environment, Repsol aims at building a leading
position in this play.
• Looking at optimising our portfolio through some
strategic farm outs.
18
A short look back:
Drillmax: Our first long term ultra deep water Campaign
Buckskin
Buckskin
Malbec
Malbec
Seat
Seat
Gato
Gato do
do Mato
Mato
(Shell)
(Shell)
Pao
Pao de
de Azucar
Azucar
Gavea
Gavea
Guara
Guara
W.
W. Abare
Abare
Malvinas
Malvinas
(YPF)
(YPF)
Operated
Non Operated
YPF
Assignments
Discoveries
Dry holes
19
A successful campaign from many points of view

Decision taken in 2007, completed contract on December 31st 2011
(continued under “well in progress”)

86% success rate in participated wells

Activity developed during 5 years without any substantial downtime

Proved Repsol as an efficient operator in GOM

Excellent performance – almost no down time

Allowed Repsol to develop an aggressive exploration campaign with
high control on the activities

Even under most conservative estimates the campaign has discovered
+3Bbbls in resources

What comes next in offshore exploration operations?
20
What comes next in offshore exploration operations?

Extended Scarabeo 9 contract to cover contingencies in Cuba and Brazil

We have secured a 6th generation semi and a heave jackup for our first
operated wells in Norway (2013)

In conversations for a rig for shallower water Santos

Selecting rigs for our Spain & Portugal programmes

Screening market for slots in GoM

Closing rig pools for Angola
21
Exploration Update
Marcos Mozetic, MD Exploration
January 2012
22