Скачать презентацию CHINA S ENERGY POLICY TOWARDS LATIN AMERICA THE JOURNALISTS Скачать презентацию CHINA S ENERGY POLICY TOWARDS LATIN AMERICA THE JOURNALISTS

69e0fb08cdbca0a7a5e93fb24dc14fb8.ppt

  • Количество слайдов: 41

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA THE JOURNALISTS AND EDITORS WORKSHOP ON LATIN AMERICA’S CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA THE JOURNALISTS AND EDITORS WORKSHOP ON LATIN AMERICA’S ENERGY FUTURE Miami, Florida May 6, 2011 Simin Yu, LL. B. , M. A. , J. D. Senior Associate Wenya Group

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA The Figures: 1. In 2010 alone, China made CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA The Figures: 1. In 2010 alone, China made US 20 bn-worth of oil and gas deals in Latin America, up from: zero in 2009; US$ 1 billion in 2008; zero in 2007; US$ 0. 43 billion in 2006; and US$ 1. 42 billion in 2005 2. estimated that by 2010, Chinese firms have secured deals in LA worth at least $65 billion in stakes of various projects. 3. Latin America as a region has supplied around 8 -9% of China's total oil imports in 2010, up from 6 -7% in 2009. 4. Chinese companies have spent $24. 6 bn on overseas oil and gas acquisitions in 2010, accounting for a fifth of deal activity in the sector over the period.

The above investments are limited to LA’s oil and gas sector. Source: author’s calculation The above investments are limited to LA’s oil and gas sector. Source: author’s calculation

Chinese NOC Expansion in Latin America Chinese NOC Expansion in Latin America

China’s Investments in Latin America Unit: US$ million Source: MOFCOM China’s Investments in Latin America Unit: US$ million Source: MOFCOM

China’s Investments in Latin America, cumulative Unit: US$ million Source: MOFCOM China’s Investments in Latin America, cumulative Unit: US$ million Source: MOFCOM

China’s Investments in Latin America, cumulative Unit: US$ million Source: MOFCOM China’s Investments in Latin America, cumulative Unit: US$ million Source: MOFCOM

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA China’s Energy Policy towards LA: The Chinese government CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA China’s Energy Policy towards LA: The Chinese government unveiled a policy paper on “Latin America and the Caribbean” in November, 2008. The following is what commonly considered as key aspects of China’s energy policy towards LA: 1. Trade - Further diversify China’s crude oil import sources. 2. Investment - Through government level initiative, encourage and facilitate China’s NOCs’ involvement in Latin America’s energy sector.

Sources of China's Crude Oil Imports Gradual increase of oil imports from Africa, corresponded Sources of China's Crude Oil Imports Gradual increase of oil imports from Africa, corresponded with a recent decrease of Middle East crude. Source: Dow Jones, Reuters

Dominate LAC Trade to China (2009) Five Countries, Eight Sectors Source: UN Commodity Trade Dominate LAC Trade to China (2009) Five Countries, Eight Sectors Source: UN Commodity Trade Statistics

China’s Average Annual Trade Growth, by Key Regional Partner, 1990 – 2009 (%) China’s Average Annual Trade Growth, by Key Regional Partner, 1990 – 2009 (%)

China’s Rank as a Trading Partner for Selected Countries in Latin America, 2000 and China’s Rank as a Trading Partner for Selected Countries in Latin America, 2000 and 2008

China’s Import from Latin America: Value and Percentage of World Total China’s Import from Latin America: Value and Percentage of World Total

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA China’s Energy Policy towards LA: The Chinese government CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA China’s Energy Policy towards LA: The Chinese government unveiled a policy paper on “Latin America and the Caribbean” in November, 2008. The following is what commonly considered as key aspects of China’s energy policy towards LA: 1. Trade - Further diversify China’s crude oil import sources. 2. Investment - Through government level initiative, encourage and facilitate China’s NOCs’ involvement in Latin America’s energy sector.

China’s NOCs in numbers China’s NOCs in numbers

Estimated Chinese share of overseas equity in oil exporting countries, Q 1 2010 Estimated Chinese share of overseas equity in oil exporting countries, Q 1 2010

Major Chinese Acquisitions in Latin America Source: Kevin Gallaher Major Chinese Acquisitions in Latin America Source: Kevin Gallaher

Major Chinese Acquisitions in Latin America, 2005 - 2010 Source: Heritage Foundation Major Chinese Acquisitions in Latin America, 2005 - 2010 Source: Heritage Foundation

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Argentina Acquisition – CNOOC bought a 50% stake CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Argentina Acquisition – CNOOC bought a 50% stake in Bridas Corporation in March 2010 for US$ 3. 10 billion • forming the CNOOC / Bridas JV • financing – CNOOC internal resources • CNOOC’s first major acquisition in Latin America, giving CNOOC 318 million barrels of reserves – a 12% increase for CNOOC’s global portfolio Acquisition – CNOOC / Bridas JV acquired BP’s 60% stake in Pan America Energy in November 2010 for US$ 7. 06 billion • acquisition limited to PAE’s assets in Argentina, excluding its assets in Bolivia • financing - CNOOC contributed US$ 2. 47 billion, Bridas Energy Holdings contributed US$ 2. 47 billion, with the remaining US$ 2. 12 billion to be satisfied by third party loans to be arranged by Bridas or additional contribution from CNOOC and BEH

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Argentina Acquisition – Sinopec acquired Occidental Petroleum’s operations CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Argentina Acquisition – Sinopec acquired Occidental Petroleum’s operations in Argentina in November 2010 for US$ 2. 45 billion, closed in February 2011 • the agreement was signed two weeks after CNOOC’s acquisition in PAE • one month before that, in October 2010, Sinopec signed a US$ 7. 10 billion deal to buy 40% of Repsol SA’s Bazillion assets • Sinopec’s first investment in Argentina’s upstream oil and gas sector • Occidental Argentina had gross proven and probable reserves of 393 million barrels of oil equivalent, and an interest in 23 production and exploration concessions in Santa Cruz, Mendoza and Chubut provinces in Argentina • Occidental Argentina’s 2010 production – 15 million BOE and 14 billion cubic feet of natural gas equivalent Acquisition (downstream) – PAE, 30% indirectly controlled by CNOOC, agreed in February 2011 to purchase Exxon. Mobile’s downstream business in Argentina, Uruguay and Paraguay • PAE currently has no downstream exposure • PAE will acquire the 87, 000 barrel per day (b/d) Campana refinery as well as 500 service stations in Argentina and a further 220 in Uruguay and Paraguay • price not officially released, media report at around US$800 -850 million

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Brazil Acquisition – Sinopec acquired 20% stakes in CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Brazil Acquisition – Sinopec acquired 20% stakes in two offshore blocks from Petrobras in April 2010 • Sinopec would take stakes in the BM-PAMA-3 and BM-PAMA-8 blocks in deep waters of the Para. Maranhao basin in northern Brazil • value of the sale not disclosed Acquisition – Sinochem acquired a 40% stake in Peregrino field from Norwegian Statoil ASA for US$ 3. 07 billion in May 2010, closed in April 2011 • Sinochem, China’s biggest chemicals trading firm, make its first oil and gas investment in 2003 and is now operating 12 projects in the Middle East, Asia and Latin America • The field has an estimated 460 million barrels, operation started in April 2011 • Statoil is to maintain the remaining 60% ownership, as well as the operatorship of the field • CNOOC was also in the bidding process Acquisition – Sinopec acquired a 40% stake in Repsol’s Brazil arm for US$ 7. 1 billion in October 2010, closed in December 2010 • through new share subscription • the second-largest overseas purchase by a Chinese company

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Brazil Oil-for-Loan Deal – China Development Bank agreed CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Brazil Oil-for-Loan Deal – China Development Bank agreed to lend US$ 10 billion to Petrobras in April 2009 in exchange for long-term supplies of oil • Petrobras agreed to sell Sinopec 200, 000 barrels of oil per day – roughly a tenth of Petrobras’s current oil production – from 2010 to 2019 • The oil will be bought at a market price but has the benefit of securing supply to Sinopec • in April 2011, Petrobras confirmed that it is in talks with China Development Bank for a new loan, deals yet to be agreed Gas Pipeline Construction Project – • GASCAC project - 974 -kilometer-long pipelines, work extension in GASENE project, Sinopec’s largest overseas petroleum engineering project by then, financed by China Development Bank with US$ 750 million, operation started in 2010 • GASCAV project - 303 -kilometer-long pipelines , another part of the GASENE project, commenced in June 2006 and finished in 2007

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Venezuela Joint Venture – Sumano Oil Company, CNPC’s CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Venezuela Joint Venture – Sumano Oil Company, CNPC’s JV with PDVSA, awarded exploration rights in the Sumano field in 2007 • CNPC to take a 40% interest in any commercial production in the block Joint Venture – CNPC agreed in April 2010 to invest US$ 900 million in another joint venture with PDVSA, with CNPC holding 10% ownership • to develop Junin 4 oil block in Orinoco heavy oil basin • Sinopec owns Junin 8 block Joint Venture – it is reported in February 2011 that CNOOC will team up with Malaysia's Petronas, Algeria's Sonatrach, and a Russian consortium to develop offshore natural gas project Mariscal Sucre • the project is estimated to hold around 14. 7 trillion cubic feet of gas • PDVSA has spent more than a decade searching for partners to develop its Mariscal Sucre project

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Venezuela Wide range JV cooperation – • upstream CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Venezuela Wide range JV cooperation – • upstream oil exploration and production – Sinovensa, CNPC holds 40% and PDVSA holds 60% • Oil Transport JV – CNPC and PDVSA each holds 50% • downstream oil refinery JV – located in both China and Venezuela, CNPC holds 60% and PDVSA holds 40% • rig manufacturing JV – capable of producing eight rigs per year, PDVSA has an 85% stake in the JV and CNPC 15%

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Venezuela Loans-for-Oil Deal – “Long-Term and High Volume CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Venezuela Loans-for-Oil Deal – “Long-Term and High Volume Loan” – • signed in 2010, 10 -year, US$ 20 billion credit line with China Development Bank • to be repaid with future oil shipments • earmarked for infrastructure projects, housing and agriculture ICBC Loan – • signed in 2011, totaling US$ 4 billion, with Industry and Commerce Bank of China • for housing projects in Venezuela, mostly to address an acute housing shortage in Venezuela • to be repaid with future oil shipments Joint Investment Fund – • set up in 2007 with an initial contribution of US$ 6 billion, (US$4 billion from China, and US$ 2 billion from Venezuela) • doubled its size to US$ 12 billion in 2008 (same contribution ratio) • Two previous Chinese installments into the bilateral fund, totaling $8 billion, have been mostly repaid by Venezuela • a third round injection in the amount of US$ 4 billion will soon be made by China Development Bank, agreed in March 2011, for housing project, bringing CDB’s total loans up to US$ 24 billion • repaid by crude and oil products

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Colombia Acquisition – in 2006, Sinopec and ONGC CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Colombia Acquisition – in 2006, Sinopec and ONGC teamed up to buy a 50% stake in Omimex de Colombia for US 4 850 million • Omimex de Columbia's blocks in Columbia have proven reserves of around 157 million barrels E&P – CNPC in 2008 formed a consortium with Pluspetrol (Argentine privately-held oil firm) and KNOC (Korea National Oil Corporation) • to explore oil in CPE 7 field, located in Llanos, eastern Colombia, which has about 130 oil fields under production • KNOC owns a 30 percent stake in the field, while Pluspetrol and CNPC own 40 percent and 30 percent, respectively Acquisition – Sinochem indirectly acquired the following E&P contracts in Colombia when it purchased Emerald Energy in 2009 • Matambo Association Contract, Gigante field • Campo Rico Association Contract, Campo Rico & Vigia Fields • Fortuna Association Contract • Maranta E&P Contract • Ombu E&P Contract • Helen E&P Contract • Jacaranda E&P Contract

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Ecuador Acquisition – in September 2005, Andes Petroleum CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Ecuador Acquisition – in September 2005, Andes Petroleum Corporation, a joint venture of CNPC and Sinopec (CNPC owns 55%, Sinopec owns 45%), purchased all of Canada-based En. Cana’s oil and pipeline interests in Ecuador for US$ 1. 42 billion, closed in February 2006 • Assets acquired in this action include three oil tracts with a crude oil output of 7 200 barrels per day • in August 2008, Andes Petroleum signed a new contract with Ecuadorean state oil company Petroecuador, tripling the Ecuadorean state participation in the production of crude from its two oil concessions, Blocks 14 and 17. Andes Petroleum will receive a fee for extracting oil in Ecuador instead of keeping a portion of the crude it produces. • Andes Petroleum planned to further invest $103. 9 million in Ecuador over the next 10 years. Signing of the following Agreements Not Confirmed: • 2009 - Sinopec’s reported US$ 1. 1 billion JV project with state-owned Petroecuador to conduct E&P in Ishpingo-Tiputini-Tambococha, ITT oil field • 2010 - Sinopec’s reported US$ 500 million investment in Ecuador’s Olgan block

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Ecuador Prepayment-for-Oil Deal – CNPC’s publicly listed arm, CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Ecuador Prepayment-for-Oil Deal – CNPC’s publicly listed arm, Petro. China, signed the agreement with Petrocuador in February 2011 • Under the new two-year agreement, Ecuador received US$1 billion from Petro. China as “prepayment” in full for 69 million barrels of crude, which it will begin to ship to China this August • This agreement is an update to the 2009 contract signed, which will expire July 2011, Ecuador received its first $US 1 billion through its loans-for-oil deal with China in 2009, following Ecuador’s US$ 3. 2 billion bonds default in 2008. • The new 2011 payment will be used to finance investment project already budgeted for 2011, in addition, the money will be invested in Petroecuador's Strategic Operational Plan and will help pay off the company's prior debts. • The contract does not entail an oil prepayment as do regular contracts, since the Ecuadorian state will have to pay an interest rate of 7%, higher than the ones typically offered by IMF or World Bank • It is said to be a Loans-for-Oil deal in guise – a money loan from China, guaranteed with petroleum and including the payment of interests Loan for hydroelectric plant and other public projects • not loans-for-oil deal • US$ 1. 68 billion from China Eximbank, carrying a 6. 9% interest rate, signed in 2010, for construction of the Coca Codo Sinclair hydroelectric dam • Additional US$ 1 billion, also signed in 2010, energy, oil and telecommunications projects

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Cuba Framework Agreement with CNPC – • signed CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Cuba Framework Agreement with CNPC – • signed in 2008, no details have been outlined in the agreement • on expanded cooperation in engineering services, oil equipment and joint exploration of Cuba’s offshore oil and gas fields Production Sharing Agreement with Sinopec – • signed in 2005 • between Sinopec’s unit Shengli Oilfield Administration Bureau and Cupet • explore Block 3 in the northern part of Pinar Del Rio province and covers 1700 square kilometres

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Peru Sinochem – • Emerald Energy, bought by CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Peru Sinochem – • Emerald Energy, bought by Sinochem in 2009 and now its wholly owned subsidiary, won exploration contracts in five blocks offered by Peru. Petro in November 2010 CNPC – • Block 6/7 project in Talara Oilfield - the first overseas oilfield development project CNPC operated, taken over by CNPC in January 1994 and October 1995 respectively • Blocks 8 and 1 A/B – CNPC acquired a 45% stake from Argentine PLUSPETROL’s Peruvian oil fields in 2003, making CNPC the second largest oil producer in Peru after Pluspetrol • Block 111 and Block 113 in the MDD basin – CNPC signed these two risk exploration contracts with Peru in 2005

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Bolivia Energy-related Loan – • Bolivian government borrowed CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Bolivia Energy-related Loan – • Bolivian government borrowed US$ 60 million from China’s central bank in 2009 for completing its domestic gas networks and purchase of two drilling rigs. Framework Agreement – • In September 2005, China's Shengli International Petroleum Development Co. Ltd. signs a framework pact with state-run Yacimientos Petroliferos Fiscales Bolovianos to invest $1. 5 billion over 40 years in Bolivia's onshore oil and gas sector. • There are no follow-ups being reported

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Costa Rica Refinery Projects – • CNPC invested CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Costa Rica Refinery Projects – • CNPC invested US$ 1 billion in a JV with Costa Rica’s state-run Recope for a refinery upgrading project in 2008; • CNPC is planning a US$ 5 billion investment to build a new refinery there, aimed to provide fuels through the region and its neighbors from Costa Rica

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Uruguay Acquisition (downstream) – PAE, 30% indirectly controlled CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Uruguay Acquisition (downstream) – PAE, 30% indirectly controlled by CNOOC, agreed in February 2011 to purchase Exxon. Mobile’s downstream business in Argentina, Uruguay and Paraguay • PAE currently has no downstream exposure • PAE will acquire the 87, 000 barrel per day (b/d) Campana refinery as well as 500 service stations in Argentina and a further 220 in Uruguay and Paraguay • price not officially released, media report at around US$800 -850 million • its assets in Bolivia • financing - CNOOC contributed US$ 2. 47 billion, Bridas Energy Holdings contributed US$ 2. 47 billion, with the remaining US$ 2. 12 billion to be satisfied by third party loans to be arranged by Bridas or additional contribution from CNOOC and BEH

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Paraguay Acquisition (downstream) – PAE, 30% indirectly controlled CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Paraguay Acquisition (downstream) – PAE, 30% indirectly controlled by CNOOC, agreed in February 2011 to purchase Exxon. Mobile’s downstream business in Argentina, Uruguay and Paraguay • PAE currently has no downstream exposure • PAE will acquire the 87, 000 barrel per day (b/d) Campana refinery as well as 500 service stations in Argentina and a further 220 in Uruguay and Paraguay • price not officially released, media report at around US$800 -850 million

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Trinidad & Tobago Acquisition – Sinopec acquired Canadian CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Trinidad & Tobago Acquisition – Sinopec acquired Canadian oil company Taliman’s local assets in 2009, through its subsidiary SOOGL Antilles (Trinidad) Ltd (SOOGL stands for Sinopec Offshore Oil and Gas Ltd. ) purchased assets portfolio • a 25% non-operating interest in the Angostura development area of block 2(c) • a 36% interest in the block 2(c) Howler assessment area • a 26% interest in the Greater Ruby-Delaware appraisal area of block 3(a) • a 40% interest in the exploration area of block 3(a) • a 65% operating interest in the onshore East Brighton block net total proved reserves in Trinidad & Tobago – 6. 23 billion cubic meter of natural gas and 4. 3 million barrels of oil and NGLs

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Major Chinese approaches to energy & resources: I. CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Major Chinese approaches to energy & resources: I. Long term contract + negotiation of price II. Investing in equity at company level III. Investing in specific project / asset IV. Loans-for-Oil Deals V. Cooperation with other multinational companies VI. buying other IOC’s local assets VII. Joint Development Model

Source: author’s calculation Source: author’s calculation

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Interpreting Chinese NOCs’ Strong Interests in LA: 1. CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA Interpreting Chinese NOCs’ Strong Interests in LA: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. LA has vast reserves that are concentrated geographically; Recent new oil discoveries in Latin America; China has a real need to secure long term supply of oil; Less competition with other IOCs; China has a longer-term horizon; Despite their deep pockets, Chinese NOCs have mostly been unwelcome in other parts of the world; To diversify imports; A number of LA countries are cash-strapped; Many LA countries in favour of like-minded state-owned national oil companies for E&P join ventures; ICOs in the region willing to sell assets; A change of pace by Chinese resource companies over the past two years in terms of acquisition activity; Chinese firms will seek to establish more consumer bases

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA A Few Observations: - Geopolitical Considerations How importance CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA A Few Observations: - Geopolitical Considerations How importance of Latin America for China’s energy security? - Chinese NOCs’ Challenge - Policy Uncertainty, - Drastic Increase in Crude Imports? Investment Boom expected to continue? Regulatory Framework, Social Risks, Intense Market Competition, Environmental Clauses, Transportation Costs, Technology of refinery

CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA THANK YOU Simin Yu, LL. B. , M. CHINA’S ENERGY POLICY TOWARDS LATIN AMERICA THANK YOU Simin Yu, LL. B. , M. A. , J. D. Senior Associate Wenya Group Email: [email protected] ca