1	URUGUAY ROUND 2009 Lic. Raúl Sendic President of ANCAP March 3^rd, 2009, APPEX, London
2	SOME FACTS ABOUT URUGUAY Geography: Atlantic coast between Argentina and Brazil Mild climate throughout the year Population: 3,323,906 (2007) Language: Spanish Good living standard indicators: Qualified Workforce: 33% technicians or professionals Environment: 3° worldwide in environmental sustainability index Education: 98% literacy Electrification: 98% of the territory Sanitation: 100% of Urban Population Communications: 100% Digital Network Economy: GDP (2007): 23,136 Million US$ GDP Per Capita (2007): 6,960 US$ Unemployment: 6,2% (2008)
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4	BUSINESS ENVIRONMENT Installation of foreign companies Promotion of investments Free transfer of capital and profits Open foreign trade International financial center Free exchange Free Zones Free port A door to the MERCOSUR (Common market of the South)
5	PUBLIC AND PRIVATE SECTORS INVOLVEMENT ANCAP is the NOC of Uruguay The Executive Branch is the responsible of fixing the policy and everything related to activities of hydrocarbon exploration and exploitation. ANCAP is the one to execute the activities, business and operations of hydrocarbons industry, by itself or by third parties. IOC enter into agreements with ANCAP through competitive bids subject to Executive Branch’s approval.
6	SCHEDULE 1^st Announcement: Montevideo 1 to 3 December 2008 Road Shows: Houston, London “Data Rooms”, to be scheduled with oil companies Submission of Letter of Intent and Qualification Application: December 1, 2008 to April 30, 2009 Submission of queries: Until May 15, 2009 Submission of Bids: From June 14, 2009 to July 1, 2009 until 2:00 pm, Local Time Opening of Bids: July 1, 2009 at 2:00 pm , Local Time
7	OFFSHORE BASINS OF URUGUAY
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10	QUALIFICATION OF OIL COMPANIES Legal issues Annexes C, D, E, F and G Technical issues Top 100 Petroleum Intelligence Weekly Submit information stating yearly production and experience of operations Economical & Financial issues Top 100 Petroleum Intelligence Weekly Investment grade rating Submit audited balance sheets of the last 3 years stating US$ 2 billion stock market capitalization or US$1 billion shareholders’ equity
11	CONTRACT MODEL PSA: Production Sharing Agreements for which Contractor assumes all risks and costs of the activity. No royalty is applied No signature or production bonuses. Term: 30 years plus a maximum 10 year extension Exploration period: 4 + 2 + 2 + 1
12	OFFERS Offers will be compared according 5 different criteria Minimum Exploratory Program (weight 30%): 2D or 3D Seismic survey, Purchasing Wavefield Inseis ASA 2D seismic, 2D or 3D electromagnetic survey and drilling of exploratory wells. % Cost oil (weight 20%): variable according daily production ranges % Profit oil for ANCAP (weight 30%): variable according accumulated production ranges ANCAP’s profit oil increase (weight 10%): Increase in % if oil reaches a trigger price ANCAP’s Association (weight 10%): Maximum % (20 to 40) of ANCAP’s participation in contractor’s shareholding
13	OFFERED AREAS
14	CONTRACTOR’S ECONOMY No royalties applied The Contractor is paid with the part of hydrocarbons produced corresponding to Cost Oil and the Profit Oil Government’s take is only the Profit Oil Contractor is entitled to freely dispose and export such oil, but ANCAP has the preferential right to totally or partially purchase the oil, for domestic consumption. Oil and gas valued at international prices
15	GENERAL TAX REGIME ON CORPORATIONS Income Tax Corporate Income Tax (IRAE) Income Tax on Non Residents (IRNR) Tax on Net Worth (IPAT) Consumption Taxes Value Added Tax (IVA) Specific Consumption Tax (IMESI) Custom Taxes Social Security Contributions (CESS)
16	CONCLUSION Why Uruguay? Political, Economic and Social Stability Serious business environment for investments An unexplored and promising geology Sound and fare bidding round terms
17	WEB PAGE www.rondauruguay.gub.uy Geological information about Uruguayan offshore basins Available E&P database Bidding round terms Map of offered areas Contract Model FAQs Contact information Videos and presentations
18	THANK YOU FOR YOUR ATTENTION