PetroSeychelles. SEYCHELLES PLATEAU SAYA DE MAHLA MAURITIUS

PetroSeychellesPetroSeychelles

The Seychelles Petroleum Licensing Initiative


Seychelles - Geographic Extent

Geological Background

Legal Framework and Fiscal Regime

Current Licensees

Licensing Initiatives

Conclusion

Contents of the Presentation

PetroSeychelles

Seychelles

Hong Kong

PetroSeychelles

SEYCHELLES PLATEAU

SAYA DE MAHLA

MAURITIUS

PetroSeychelles

Aldabra group

Farquhar group

Coetivy

PlatteAmirante

EEZ ~ 1.33 million Sq.Km Land Area = 455 sq.Km

GRANITIC ISLANDS


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THE PETROLEUM SECTOR

•Currently there is no production and no refinery in Seychelles.

•PetroSeychelles is the arm of the Government that oversees the Upstream Petroleum Sector.

•Seychelles Petroleum Company (SEYPEC), is also government owned and its operations are in the downstream sector.


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Geological background

PetroSeychelles

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750,000,000 years old

Unique by a thousand miles

PetroSeychelles

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Seychelles at the heart of Gondwana in

the Early Permian (300

Ma)

Tectonic Evolution

PetroSeychelles

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Tectonic Evolution

Early Cretaceous (~150 Ma) After separation of East and West Gondwana

The complexity of the tectonic evolution of the Mascarene Plateau is due to the imposition of three phases of rift/drift tectonics that eventually cleaved the microcontinent from the centre of Gondwana.

Early Late Cretaceous (~80 Ma).Seychelles/India split from Madagascar

Paleocene (~60 Ma). During the separation of India from Mascarene Plateau.

PetroSeychelles

Exploration Provinces

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PetroSeychelles

12Geology

StratigraphyC

C

C

LEGEND

This stratigraphic column is a compilation from all four wells and available seismic data. It also pulls in regional elements from the Bombay High and Madagascar area, both of which were juxtaposed against Seychelles prior to plate tectonic break up.

Age of the Jurassic salt is speculative, but is reasonable when compared against East Africa and Madagascar analogues. Distribution of Jurassic salt is also unknown

Age of oldest sediments in the Karoo basin is unknown. In Northern Madagascar the oldest known Karoo is Permian. The oldest Permian in northernmost Madagascar is marine, and therefore it is highly likely that any Permian in Seychelles is also marine and therefore a good oil prone source rock

Maastrichtian/Palaeocene marine

shale and volcaniclastics

Base Palaeocene marine shales

Upper Cretaceous marine shales

Lower Cretaceous-Uppermost Jurassic

marine shales

Mid-Late Jurassic Salt

Lower Jurassic-Triassic Karoo continental

shale

Intra Eocene/Palaeocene marine shales

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LEGEND

Source intervals encountered in the wells

In the Amoco wells, several source horizons were encountered within the Upper Triassic to mid Jurassic section

Source Rocks

PetroSeychelles

Seismic Data coverage Map

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29,000 line km of seismic, gravity & magnetic20,000 Km of M2D Data Acquired by Fugro

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Improved Imaging

Geophysical Database

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Mapped Leads

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PetroSeychelles

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The Act vests the ownership of petroleum accumulations within Seychelles in the State.

The Act permits the Government to grant a non-exclusive licence to companies to carry out petroleum exploration operations

The Act also permits Government to enter into a Petroleum Agreement with an oil company under which the company is granted exclusive rights to explore for and produce petroleum within Seychelles.

The size and location of acreage to be included in a Petroleum Agreement is settled by negotiations. Size must not Exceed 10,000 Sq Km

Petroleum Mining Act



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The Model Petroleum Agreement

Government’s thinking regarding the nature of the contractual framework which it wishes to be considered at the time of negotiation, is reflected in the Model Petroleum Agreement.

A Petroleum Agreement has a duration of 34 years if a commercial discovery takes place.



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Contractual period

The contractual period is divided into two phases:

An Exploration Phase of 9 years which is made up of three Periods of 3 years + 3years + 3 years.

A Development and Production Phase which commences on

the date on which commercial viability of the field is decided on by the company and continues for 25.



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The economic and fiscal package comprises three principal revenue sharing mechanisms and these are summarized below: A royalty of 10% is levied on the market value of oil

produced and saved during each month.

Petroleum Income Tax of 35% and is paid in accordance to the Petroleum Income Tax Act of 2008.

Fiscal Regime



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Petroleum Additional Profits Tax (PAPT)

PAPT is a resource rent tax levied on cash flows. Currently the Model Petroleum Agreement provides for a two-tier structure for PAPT. The first tier of PAPT will become due once the Company has earned a particular threshold rate of return on its investment. The second tier of PAPT will be due after the company has earned an even higher post-tax rate of return.

Fiscal Regime



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Petroleum Additional Profits Tax (PAPT)

The first threshold rate of return which triggers payment of the PAPT is 15% and the tax rate is 25%

The second threshold rate of return and tax rate are negotiable .

Fiscal Regime



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Current Licensees

PetroSeychelles

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Currently Held Acreage

WHL

Afren


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The Licensing Initiative


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What type of award process for a Petroleum Agreement ?License Round or Open File process ?

Open File award process Applications for a 10,000sq km area may be made at anytime.

PetroSeychelles verifies if minimum application criteria are met

Notice of application filing & solicitation of competitive applications

No need to reveal identity of applicants or proposed terms

Prescribed period for competitive application filing (90 days)



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Area Relinquishment TermsWork Program Fiscal TermsRental Payments Training Commitment

What should be the variables in the Petroleum Agreement ?

Duration of Exploration Phase and Periods ?

Period 1 (Years 1-3) work program must include at least funding for seismic ($15M)

Period 2 (Years 4-6) work program must include funding for at least one well ($25-$60M)

Period 3 (Years 7-9) work program must include funding for at least one well



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What are the recommended minimum acceptable Applicant qualifications ?

Technical & professional capacity

Financial ability



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Afren/Avana

WHL Energy

Study Area

Exclusion Area



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SUMMARY

LEGAL AND FISCAL TERMSEXPLORATION PHASE

RELINQUISHMENT TERMS

PRODUCTION PHASE

RENTAL PER SQ KM

ROYALTY

PETROLEUM INCOME TAX

STATE PARTICIPATION

PETROLEUM ADDITIONAL PROFITS TAX

9 YEARS, 3 x 3 x 3

40% 30% Balance

25 YEARS

US$10 US$15 US$20

10% Except for Marginal Fields

35%

NO

TIER 1 Tax of 25% at ROR of 15% TIER 2 Negotiable

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Seychelles Plateau

Saya de Malha Bank

Madagascar

Extended ContinentalShelf submitted to CLCS

East Africa

Joint Submission with

MauritiusArea : 387,000 sq km

Northern Area Submission

Area : 22,143 sq km


CONCLUSIONSSeychelles is a frontier area and the data acquired so far confirm that a

working petroleum system exists with all necessary ingredients (source,

reservoir, seals, structures) to make the area an oil Province.

Large volume of data are available and interesting leads have been

mapped

The government has recognized the importance the discovery of

petroleum would have on the economic objectives and has put in place

the required legal framework to facilitate exploration and eventual

production within its maritime boundaries.


There are opportunities for companies to farm into existing licenses or submit a proposal or bid in the forthcoming licensing initiative.

Seychelles is politically stable and the working physical environment is pleasant year round.

CONCLUSIONS


Thank you

Visit us at : www.petroseychelles.com

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PetroSeychelles. SEYCHELLES PLATEAU SAYA DE MAHLA MAURITIUS