Oil Exploration Algarve Workshop 2015

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ASMAA

© 2014 – ASMAA – Algarve Surf and Marine Activities Association© 2015 – ASMAA – Algarve Surf and Marine Activities Association All rights reserved.

PETROLEO E GAS NO ALGARVE

OIL AND GAS IN THE ALGARVE

UPDATE OCT 2015

#Oilgarve #AlgarveSaysNOtoOil

#AlgarveDizNaoAoPetroleo


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© 2015 – ASMAA – Algarve Surf and Marine Activities Association

OIL AND GAS EXPLORATION WHERE? WHEN? WHO?ONDE? QUANDO? QUEM?

UPDATE


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CONCESSION AREAS IN PORTUGAL

Source: enmc.pt


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AWARDED CONCESSIONS IN PORTUGAL

RepsolPartex

PortfuelGalpENI


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BACIA DO ALGARVE CONCESSIONS – DEEP OFFSHORE

REPSOL / PARTEX (GULBENKIAN FOUNDATION)

10c PER BARREL

25c PER BARREL

6% first 5 million barrels8% 5 to 10 million barrels12% more than 10million barrels

1 barrel = 6000 cubic feet

Benefits for Portugal per barrel


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BACIA DO ALENTEJO CONCESSION – DEEP OFFSHORE

GALP / ENI





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ALJEZUR CONCESSION – INLAND / ONSHORE

PORTFUEL (SOUSA CINTRA)




Sagres

Lagos Portimao





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TAVIRA CONCESSION – INLAND / ONSHORE

PORTFUEL (SOUSA CINTRA)

Santa Luzia

Luz

Cabanas





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DRILLING

1 well 2016

1 well 2016

EXPLORATION WELLSDRILLING PLANNED FOR 2016


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CONTRACTS / CONTRATOS

CONTRACTS


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PORTUGAL CONCESSION PROCESS

CONCESSION CONTRACTS

Source: enmc.pt

Nome Area Max Duração Atividades permitidas Obrigações minimas

Licenca de avaliacao previa

35 lotesCa. 2800 Km²

6 meses Avaliacao de dados existentes e levantamentos geologicos

Relatorios dos resultados da avaliacao

Contrato de concessao

16 lotes*Ca. 1300 Km²

(* podem ser mais lotes e a duracao pode ser superior nas concessoes deep-offshore)

Period de pesquisa: 8 anos (+2 ext de 1 ano cada)

Levantamentos geologicos, geoquimicos e geofisicos; sondagens de prospecao e pesquisa

Anos 1 a 3: Negociavel

Anos 4 a 8:**1 poco por ano

(** o numero de sondagens pode ser inferior nas concessoes deep-offshore)

Periodo de producao: 25 anos (ext ate 40 anos)

Sondagens de dessenvolvimento e producao

Nenhuma


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TYPICAL INTERNATIONAL GENERAL TERMS


• Under a concession agreement, an oil and gas company is granted exclusive rights to exploration and production of the concession area, and owns all the oil and gas production.

• Oil and gas companies typically pays royalties and corporate income tax.

• There may also be other payments to government, such as:

• Bonuses

• Rentals

• Resource taxes

• Special petroleum or windfall profit taxes

• Export duties

• Etc.


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PORTUGUESE CONCESSION AGREEMENTS


• The oil and gas companies are granted exclusive rights to exploration and production of the concession area, and owns all the oil and gas production.

• The oil and gas companies pays royalties AFTER ALL EXPENSES HAVE BEEN RECOVERED (Few exceptions on some contracts)

• Pays Portuguese corporate income tax. (But most head offices are located in offshores and have subsidiaries in other countries)

• Pays surface rentals.

• Provide initial funding for:

a) Technology transfer programsb) Acquisition or renewal of specialized technical equipmentc) Preservation of technical data in digital and other formats.


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TOTAL NUMBER OF CONTRACTS SIGNED TO DATE


• 15 contracts signed

• September 2015 – 6 contracts signed

• Repsol / Partex on 4 September 2015 (2)

• Portfuel on 25 September 2015 (2)

• Australis on 30 September 2015 (2)


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GENERAL CONCERNS WITH CONTRACTS


• Lower royalties than standard

• Risky clause for Portugal on 6 contracts “Changes and amendments to this contract SHALL NOT UNDER ANY CIRCUMSTANCES reduce or increase the rights and obligations of the concessionary. The rights and obligations of the concessionary shall be the same that existed prior to any legal dispensation or rules being enacted or passed into law.”

• Some contracts do not have clear indication on what constitutes “Allowable project expenses”


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ROYALTIES

CONTRACTS


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PORTUGAL O UNICO PAIS NO MUNDO A RECEBER CENTIMOS POR BARRIL DURANTE TODA A VIDA DO CONTRATO

CONTRACTS NEEDING INVESTIGATION

=10cLagostim LAGOSTIM

CONCESSION


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PORTUGAL O UNICO PAIS NO MUNDO A RECEBER CENTIMOS POR BARRIL DURANTE TODA A VIDA DO CONTRATO

CONTRACTS NEEDING INVESTIGATION

=25cLagosta LAGOSTA

CONCESSION


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OTHER COUNTRIES OIL BENEFITSBENEFICIOS FISCAIS OUTROS PAISES


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Portugal average excluding Lagosta and Lagostim

Portuguese Royalties range from 2% to 12%

International Royalties Average from 10% to 30%


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Portugal average including Lagosta and Lagostim


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QUESTIONS?

WHAT, WHERE AND WHO


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EU DIRECTIVES

EU LEGISLATION


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EU IMPLEMENTATION DEADLINES

• 18 July 2013Directive came into force

• 19 July 2015 Member States must bring into force the laws, regulations and administrative provisions necessary to comply with the Directive

• TRANSITIONAL PROVISIONS

• 19 July 2016Laws, regulations and administrative provisions are to be applied to owners and operators of planned production installations and operators planning or executing well operations

• 19 July 2018Member States are to apply the laws, regulations and administrative provisions to existing installations

WHAT DOES THE EU SAY?


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SAFETY

• On 10 June 2013 the EU adopted a Directive on safety of offshore oil and gas operations. The new rules (initially proposed to take the form of a regulation) will make sure that the highest safety standards will be followed at every oil and gas platform across Europe.

• It will also ensure that we react effectively and promptly should an accident nevertheless occur. This would help minimise the possible damage to the environment and the livelihoods of coastal communities.

• The new directive sets clear rules that cover the whole lifecycle of all exploration and production activities from design to the final removal of an oil or gas installation.



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OIL LICENSING

• EU countries have to follow strict rules when issuing licenses for searching for, drilling for and producing oil: the Hydrocarbons Licensing Directive (94/22/EC) ensures a competitive, non-discriminatory and transparent European market and improves the security of supply.

• Directive 94/22/EC of 30 May 1994 on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

• National governments can determine the geographical areas for prospecting, exploring for and producing hydrocarbons.

• However, they have to follow a specific procedure when granting licences: an invitation for applications has to be published in the Official Journal of the EU at least 90 days before the closing date for applications. This notice should specify information such as the geographical area, the type of authorisation and selection criteria for applicants. All interested companies can submit applications.

• In their annual reports, EU countries have to inform the European Commission (EC), amongst others, on the geographical areas opened and the licences issued to companies.



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LIABILITY FOR ENVIRONMENTAL DAMAGE

• The Directive requires Member States to ensure that licensees are financially liable for the prevention and remediation of environmental damage, as defined under the Environmental Liability Directive (ELD), caused by offshore oil and gas activities carried out by, or on behalf of, the licensee or the operator.

• This means that a licensee that is not the operator is still liable under the ELD.

• The Directive contains an amendment to the ELD under which the ELD provisions dealing with water damage now also apply to the marine waters of Member States. Consequently, liability under the ELD has been extended.

• The Directive does not contain any provisions on civil liability on the part of licensees for loss or damage suffered by third parties. However, in 2012 the European Commission ordered a study into issues relating to such liability, so this topic may very well be covered by EU legislation in the near future.



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TRANSPARENCY AND INFORMATION SHARING

• Under the Directive, Member States must ensure that operators (or owners) provide the relevant competent authority with the information described in Annex IX to the Directive.

• This includes information relating to any unintended release of oil or gas, any failure of a safety and environmental critical element, any fatal accident, any evacuation of personnel, helicopter accidents, etc. Member States are also required to make such information publicly available.

• When reporting the requisite information, operators and owners must do so using a common data reporting format, to be drawn up by the Commission. Member States must submit annual reports to the Commission on offshore safety and environmental impact based on the information provided by operators.



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RECAP – EU WIDE SAFETY STANDARDS

• before exploration or production begins, companies must prepare a Major Hazard Report for their offshore installation. This report must contain a risk assessment and an emergency response plan.

• technical solutions which are critical for the safety of operators' installations must be independently verified. This must be done prior to the installation going into operation

• national authorities must verify safety provisions, environmental protection measures, and the emergency preparedness of rigs and platforms. If companies do not respect the minimum standards, EU countries can impose sanctions, including halting production

• information on how companies and EU countries keep installations safe must be made available for citizens

• companies will be fully liable for environmental damages caused to protected marine species and natural habitats. For damage to marine habitats, the geographical zone will cover all EU marine waters including exclusive economic zones and continental shelves.



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IS PORTUGAL COMPLYING?

WILL THE OIL & GAS COMPANIES COMPLY?

QUESTIONS WITH NO ANSWERS


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LOOKING FOR ANSWERS

RECAP OF BENEFITS FOR PORTUGAL


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QUESTIONS?

WHAT, WHERE AND WHO


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OIL AND GAS DO WE REALLY NEED IT?

SITUATIONUNCONVENTIONAL, UNNECESSARY AND UNWANTED


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WHY IS IT A GAMBLE THAT PORTUGAL DOES NOT NEED TO TAKE?

1. The Government gave the green light to many oil and gas companies without any public consultation, poor disclosures and without the necessary EIA’s having been done.

ASMAA believes that this is a misguided gamble that we do not need to take.

• Oil and Gas exploration helps to keep us hooked on fossil fuels instead of moving towards an energy system based on energy saving and renewable sources;

• Brings serious risks to the local environment, people’s health, and will not cut energy bills or create jobs.

UNCONVENTIONAL, UNNECESSARY AND UNWANTED


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WHAT ARE THE RISKS FOR THE ALGARVE?QUAIS SAO OS RISCOS PARA O ALGARVE?

RISKS


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OUR MARINE WILDLIFE / A NATUREZA MARITIMA

• The Algarve marine environment includes many unique and fragile ecosystems, and is home to many species, including seabirds, shorebirds, whales and dolphins. A deep sea oil or gas disaster will leave our local marine flora and fauna vulnerable to the toxic effects of oil and gas.

• O ambiente marinho no Algarve inclui muitos ecossistemas únicos e frágeis, e é o lar de muitas espécies entre elas aves marinhas, baleias e golfinhos. Um desastre de petróleo ou gás vai deixar a nossa flora e a fauna marinha totalmente vulneráveis e ate desfeitos por causa dos efeitos tóxicos do petróleo ou do gás.

THE IMPACT

From this

To this


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THE FISHING INDUSTRY / A PESCA

1.Commercial fishing rank as one of our most economic mechanisms that needs to be preserved, while recreational fishing is one of the Algarve’s most popular activities. A deep sea oil or gas disaster as well as seismic surveys impacts directly on our local fishing industries resulting in both the loss of valuable fish stocks and the loss of industry jobs.

2.A pesca comercial e um dos nossos mecanismos económicos que precisa de ser preservado, enquanto que a pesca desportiva é uma das atividades mais populares do Algarve. Um desastre de petróleo ou de gas no mar, tambem como as pesquisas impacta diretamente nas nossas indústrias de pesca, resultando em perdas de valiosos recursos e tambem a perda de muitos postos de trabalho na indústria.

THE IMPACT

From this

To this


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TOURISM - TURISMO

1.The pristine coastlines and unique wildlife of the Algarve attract tens of thousands of international tourists annually, injecting an economic boost into the region.

A deep sea oil or gas disaster will have a pivotal role in tourists' decisions to visit the Algarve.

2.As zonas costeiras que são nesta altura ainda imaculadas e a vida selvagem que existe no Algarve atrai dezenas de milhares de turistas por ano, injetando um impulso económico para a região.

O perigo de um desastre de petróleo terá um papel negativo na decisão dos turistas visitarem o Algarve.

THE IMPACT

CLOSED BEACH

From this


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RECREATIONAL WATER SPORTS / DESPORTOS AQUATICOS

1.The Algarve offers unparalleled opportunities for ocean sports such as surfing, kayaking, wind surfing, jet skiing, diving and boating. A deep sea oil or gas disaster will invariably impact many local businesses, organisations, and individuals who enjoy the Algarve’s waters.

2.O Algarve oferece oportunidades sem paralelo para desportos marítimos e de atividades de aventura, como o surf, caiaque, windsurf, jet ski, mergulho e passeios de barco entre outros. Um desastre de petróleo ou de gas no mar, invariavelmente vai ter um impacto negativo nas muitas empresas que prestam esses servidos aos nossos turistas e visitantes, e para todas as organizações e indivíduos que gostam da praia, do mar e do sol do Algarve.

THE IMPACT

From this

To this


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ALGARVE ASSETS / BENS E RECURSOS NATURAIS

1.We should be protecting our national assets, not selling them off to be exploited by foreign corporations, or endangering them by oil or gas drilling without adequate safety measures.

2.Devemos estar a proteger os nossos bens e recursos naturais, e não a vendê-los para ser explorados por empresas estrangeiras, ou pôr esses recursos em perigo e assim resultar na perca da nossa sustentabilidade por causa da exploração do petróleo no mar Algarvio sem medidas de segurança adequadas e aseguradas.

THE IMPACT


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CLIMATE / CLIMA

1.The climate change impacts of fossil fuels are disastrous. Portugal should be investing in clean energy solutions instead of investing in extracting the last drops of oil from the ends of the earth. We should be climate pioneers not fossil fools.

2.Os impactos climáticos devido a exploração de petróleo e gás são desastrosos. Portugal deve investir em soluções de energia limpa e ecologica em vez de investir na extração das últimas gotas de petróleo dos confins da terra e do mar. Devemos ser pioneiros na área climática e não "tolos" ou "malucos" fósseis.

THE IMPACT


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OUR WAY OF LIVE / A NOSSA MANEIRA DE VIVER

1.This is a fundamental part of living in the Algarve, whether you are Portuguese or an Expat, and we must protect it not only for ourselves, but also for all of our visitors and for future generations.

2.Esta é uma parte fundamental de viver no Algarve, e se é Português ou um Expat, nos temos a responsabilidade de proteger a costa Algarvia, não só para nós próprios e as nossas famílias, mas também para todos os nossos visitantes e turistas, e pensando no bem estar e a sustentabilidade das futuras gerações.

THE IMPACT


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WHAT DO WE WANT?O QUE QUEREMOS?

SOLUTIONS


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O QUE QUEREMOS1. A suspensão imediata da exploração de Petróleo e Gás Natural na costa

marítima da região do Algarve;

2. Recolher 100000 assinaturas no âmbito da petição pela suspensão imediata da exploração de Petróleo e Gás Natural na costa Algarvia com o objectivo de a entregar à Assembleia da República e a Comissao Europeia;

3. Promover campanhas de sensibilização junto da população do Algarve sobre o problema da Exploração de Petróleo e Gás Natural na Costa Algarvia e motivar as comunidades a fazer perguntas a membros do governo;

4. Exigir estudos de impacte económico, social e ambiental que suportem o debate sobre a Exploração de Petróleo e Gás Natural no Algarve;

5. Exigir transparência pública e política em tudo o que diz respeito à Exploração de Petróleo e Gás Natural na Costa Algarvia;

6. Exigir uma discussão pública (não uma consulta pública so) alargada sobre os custos e benefícios para toda a região do Algarve da instalação da indústria petroquímica nos mares do Algarve.

We need to move away from fossil fuels. We need safe and clean energy sources that don’t create significant amounts

of waste. Renewable Energy Sources offer this.

OUR DEMANDS


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A POBRE REALIDADE – O ALGARVE MAIS DE 300 DIAS DE SOL


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PORQUÉ?

• Porque é preciso criar-se uma imagem renovada do mar e das suas capacidades e potencialidades sendo no entanto um factor indispensável para a sustentabilidade da economia de Portugal e especialmente a regiao do Algarve.

• Porque é preciso educar “todos” sobre o impacto que o mar tem na nossa economia – todas as actividades directa e indirectamente relacionadas com o mar, com as praias, os rios e com as zonas costeiras.

• Porque precisamos de contabilizar o turismo melhor – com embarcações de recreio, desporto de competição, com as actividades de mergulho, observação da natureza, com o surf, com o windsurf, o parasailing, o kitesurf, restaurantes e snack-bars de alta qualidade, atividades de praia, etc.

• Porque ha alternativas para optimisar a nossa economia e reduzir a nossa dependencia em hidrocarbonetos. Petroleo e gas nao sao as solucoes que o pais precisa.

SOLUTIONS


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WHAT CAN WE DO?O QUE PODEMOS FAZER?

SOLUTIONS


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COMO? HOW?

SOLUTIONS ACT - PARTICIPA


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GET INVOLVED … PARTICIPA

• There are many ways that you can get involved in the campaign.

• Here are three things that YOU can do TODAY to get you started:

1. Write to your local and national newspapers

2. If you have a local radio - contact them

3. Write to your local, regional and national decision makers – attend local municipal meetings, ask questions from local mayors, etc.



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• Organise a Oilgarve #ISayNOtoOilinAlgarve talk in your town - at your community centre, workplace, college, school, local cafe, local club, etc – we will try and be available to speak about the campaign to your invited audience

• Distribute Flyers and Posters in your community, collect signatures

• Join the protests and days of solidarity

• Organise an information stall in your town

• Get other civic organisations in your area to collaborate with ASMAA on this campaign – we already collaborating with the Transition Movement in Algarve. Lagos em Transicao, Lagoa em Transicao e Tavira em Transicao.



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• Organise a music night/ fundraiser for Oilgarve #ISayNOtoOilinAlgarve

• Make an Oilgarve #ISayNOtoOilinAlgarve sticker for your windows and car

• Share the campaign info with your family and friends via E-mail, on Facebook, Linkedin, Twitter, etc …

• Sign the petitions online and share it with your friends and family

• Get hold of the presentations on SlideShare to discuss it with friends and family

• Donate to the Oilgarve #ISayNOtoOilinAlgarve campaign fund



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“First they ignore you, then they laugh at you, then they fight you, then you win”

Mahatma Gandhi

SOLUTIONS


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SOLUTIONS ACT - PARTICIPA – CAMPAIGN POSTERS


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SOLUTIONS ACT - PARTICIPA ACT - PARTICIPA – CAMPAIGN POSTERS


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SOLUTIONS ACT - PARTICIPA ACT - PARTICIPA – CAMPAIGN POSTERS


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DONATE

ACT - PARTICIPA

You Can Help us Keep on Running! Donate Now!

Donate 10 €, 25 €, 50 €, 100 € or whatever amount you see as appropriate.

PAYPAL Donate Button on our site http://asmaa-algarve.orgor use [email protected]

OR DONATE VIA DIRECT BANK TRANSFER

NAME: ASMAA ALGARVE SURF AND MARINE ACTIVITIES ASSOCIATIONNIB: 0038 0000 4030968177132 (IF YOU ARE IN PORTUGAL)IBAN: PT50 0038 0000 4030968177132 (INTERNATIONAL PAYMENTS)BIC: BNIFPTPL

REF: SAY NO TO OIL


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SIGN THE PETITION

ACT - PARTICIPA

Sign and share the petitions / Assinem e partilhem a peticao sff.

Petition / Petiticao - http://tinyurl.com/nxqqrg2Say No to OIL in Algarve


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© 2014 – ASMAA – Algarve Surf and Marine Activities Association© 2015 – ASMAA – Algarve Surf and Marine Activities Association All rights reserved.

Contact details

[email protected]@oilgarve.org

Facebook: https://www.facebook.com/groups/asmaaalgarve/

WebsitesASMAA: http://asmaa-Algarve.orgENMC (Gov): http://enmc.pt


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THANK YOU FOR YOUR TIME.MUITO OBRIGADA


ASMAA


End of presentation

Oil Exploration Algarve Workshop 2015

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