Mining & Energy Statistical Report 2007
Mining & EnergyStatistical Report
2007
Presentation
The Mining & Energy sector has positioned as the most important activities that leads the economic and social development of Perú, because mining, hydrocarbons and electricity - that are made in a decentralized way - represent the opportunity of progress for the regions and communities, as they generate private investments which means more production and new jobs.
The evolution of the main numbers that allow us to know what the Mining-Energy sectors do is compiled by the Sociedad Nacional de Minería, Petróleo y Energía (SNMPE), through its publication Mining & Energy Statistical Report, document which in this moment shows information available up to 2007.
This document offers the necessary information to help the reader make his own analysis and evaluation of the real participation and impact of the mining, hydrocarbons and electrical sectors in the sustainable development of Peru.
Mining & EnergyStatistical Report
2007
EconomicIndicators
GDP
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Series1 6.7% -0.4% 1.4% 3.6% 0.2% 5.2% 4.00% 4.80% 6.70% 8.03% 8.99%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
GDP 1997- 2007 (% Variation)
Source: INEI
Agriculture7.60%
Fishery0.72%
Manufacturing15.98%
Construction5.58%
Commerce14.57%
Water0.41%
Other services39.25%
Taxes9.74%
Mining 3.71%
Oil0.96%
Electricity1.49%Mining-Eenrgy
Sector6%
Participation of the energy and mining sectorin the National GDP 2007
Source: INEI.
INFLATION
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Series1 6.50 6.01 3.70 3.73 -0.13 1.52 2.48 3.48 1.49 1.14 3.93
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
Annual Inflation, 1997-2007(% Variation)
Source: INEI
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
jul-0
3
sep-
03
nov-
03
ene-
04
mar
-04
may
-04
jul-0
4
sep-
04
nov-
04
ene-
05
mar
-05
may
-05
jul-0
5
sep-
05
nov-
05
ene-
06
mar
-06
may
-06
jul-0
6
sep-
06
nov-
06
ene-
07
mar
-07
may
-07
jul-0
7
sep-
07
nov-
07
Accumulated Inflation of 12 previous months,july 2003 - december 2007
(% variation)
Source: INEI
EXTERNAL SECTOR
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Series1 10,169 9,184 8,404 8,180 8,613 9,598 10,194 12,631 14,097 17,275 27,689
0
5,000
10,000
15,000
20,000
25,000
30,000
Net International Reserves, Million US$ (1997- 2007)
Source: Central Bank
0
100
200
300
400
500
600
700
800
900
ene‐99
abr‐99
jul‐9
9
oct‐99
ene‐00
abr‐00
jul‐0
0
oct‐00
ene‐01
abr‐01
jul‐0
1
oct‐01
ene‐02
abr‐02
jul‐0
2
oct‐02
ene‐03
abr‐03
jul‐0
3
oct‐03
ene‐04
abr‐04
jul‐0
4
oct‐04
ene‐05
abr‐05
jul‐0
5
oct‐05
ene‐06
abr‐06
jul‐0
6
oct‐06
ene‐07
abr‐07
jul‐0
7
oct‐07
(Basic Score)
PDI Stipped Spread Country Risk: 1999‐2007
Source: Reuters.
BALANCE OF TRADE
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Exports 6,824 5,757 6,087 6,951 7,007 7,647 8,863 12,547 17,336 23,749 27,433
Imports 8,567 8,262 6,793 7,407 7,273 7,440 8,431 9,818 12,076 14,896 19,409
0
5,000
10,000
15,000
20,000
25,000
30,000
Peruvian Balance of Trade, 1997-2007 (Million US$)
Source: Central Bank
Minig61.7%
Oil and By-products
8.6%
Fishery5.4%
Agriculture1.7%
Others22.7%
Structure of Exports, 2007
Source: Central Bank
MiningSector
PRODUCTION
MINING METALLIC PRODUCTION 1997 - 2007
(Units of fine content)
PRODUCT \YEAR
COPPER(TM)
LEAD (TM)
ZINC (TM)
SILVER (Kg)
GOLD (Kg)
IRON (TLF)
TIN (TM)
1997 506,498 262,466 867,691 2,090,311 79,117 2,960,165 27,9521998 483,338 257,713 868,757 2,024,570 94,214 3,230,431 25,7471999 536,387 271,782 899,524 2,231,390 128,486 2,672,630 30,6182000 553,924 270,576 910,303 2,437,706 132,585 2,645,991 37,4102001 722,035 289,546 1,056,629 2,673,834 138,022 3,038,401 38,1822002 843,213 297,704 1,221,830 2,686,563 157,013 3,056,055 38,8152003 842,578 308,874 1,372,790 2,920,922 172,619 3,484,900 40,2022004 1,035,574 306,211 1,209,006 3,059,829 173,219 4,247,174 41,6132005 1,009,898 319,345 1,201,671 3,193,146 207,822 4,564,898 42,1452006 1,048,897 313,325 1,201,794 3,470,725 203,286 4,784,601 38,4702007 1,190,281 329,154 1,444,354 3,493,909 170,127 5,103,597 39,019
Source: Ministry of Energy and Mines
Variation %COPPER
(TM)LEAD (TM)
ZINC (TM)
SILVER (Kg)
GOLD (Kg)
IRON (TLF)
TIN (TM)
2007/2006 13.5% 5.1% 20.2% 0.7% -16.3% 6.7% 1.4%
VARIATION
QUOTATIONS
QUOTATIONS OF MAIN MINING PRODUCTS, 1997-2007
COPPER LEAD ZINC SILVER GOLD TINTERM LME LME LME Handy & Harman London Final LME
US$/TM US$/TM US$/TM US$/Oz.Tr. US$/Oz.Tr. US$/TM1997 2,275.70 624.13 1,318.37 4.88 331.29 5,645.821998 1,652.88 528.42 1,023.26 5.53 294.07 6,540.581999 1,573.66 502.24 1,077.32 5.25 278.57 5,400.872000 1,814.26 454.22 1,128.11 5.00 279.10 5,434.762001 1,577.77 476.00 886.27 4.39 271.04 4,483.252002 1,557.50 452.58 778.56 4.62 309.68 4,061.692003 1,779.87 515.66 828.39 4.91 363.32 4,896.262004 2,865.89 886.47 1,047.75 6.68 409.21 8,512.732005 3,678.70 976.46 1,379.79 7.33 445.10 7,152.832006 6,730.60 1,287.49 3,272.62 11.58 603.77 8,620.112007 7,118.27 2,579.85 3,243.86 13.41 697.15 14,382.13
Source: London Metall Exchange
Var % COPPER LEAD ZINC SILVER GOLD TIN2007 / 2006 5.8% 100.4% -0.9% 15.8% 15.5% 66.8%
VARIATIONS
EXTERNAL SECTOR
PRODUCT / YEAR COPPER LEAD ZINC SILVERA IRON GOLD TIN OTHERS TOTAL
1997 1,096.3 237.0 539.2 104.8 76.5 500.1 133.2 43.4 2,730.51998 778.8 208.7 445.2 130.6 96.4 928.5 118.6 39.9 2,746.71999 776.3 177.1 462.4 169.3 66.7 1,192.5 132.9 30.8 3,008.02000 932.6 190.4 495.8 179.5 66.6 1,144.7 166.3 40.4 3,216.22001 985.9 196.0 419.4 168.6 81.4 1,166.2 130.3 38.8 3,186.52002 1,187.1 210.8 428.9 173.7 82.9 1,478.8 102.8 69.4 3,734.42003 1,260.5 201.3 528.7 191.0 94.1 2,044.7 151.4 101.5 4,573.32004 2,446.0 389.1 576.8 260.2 128.4 2,383.1 350.7 418.8 6,953.12005 3,360.3 491.4 805.1 280.6 216.1 3,165.5 269.8 1,170.7 9,759.52006 6,034.4 712.6 1,991.3 478.6 256.0 4,048.3 332.1 862.4 14,715.72007 7,240.9 1,033.0 2,532.8 537.5 285.4 4,024.6 252.5 1,009.3 16,915.9
Source: Central Bank
Product /Variation % COPPER LEAD ZINC SILVER HIERRO GOLD TIN OTHERS TOTAL
2007/2006 20.0% 45.0% 27.2% 12.3% 11.5% -0.6% -24.0% 17.0% 15.0%
Source: Central Bank
Exportations of main mining products 1997-2007(Million US$)
VARIATIONS
Tin1.5%
Molibdenum5.7%
Others0.3%
Copper42.8%
Lead6.1%
Iron1.7%
Zinc15.0%
Silver3.2% Others
23.8%
Mining Exports2007
COPPER (PERU: 3º worldwide producer 7.62% of the worldwide production)
0200,000400,000600,000800,000
1,000,0001,200,0001,400,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Metallic Mining Production, 1997-2007 (f tonne)
Source: Ministry of Energy and Mines
1,0002,0003,0004,0005,0006,0007,0008,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Quotation, 1997-2007 (US$/TM)
Source: London Metal Bulletin
40,000140,000240,000340,000440,000540,000640,000740,000840,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Stocks LME, 1997-2007 (TM)
Source: London Metal Bulletin
COPPER
Southern30%
Antamina29%
Xstrata Tintaya10%
Cerro Verde23%
Others8%
Main Producer Companies, 2007
(*) The data of production correspond to processes of concentration and hydrometallurgical process. Source: Ministry of Energy and Mines
LEAD (PERU: 4º worldwide producer 9.29% of the worldwide production)
150,000175,000200,000225,000250,000275,000300,000325,000350,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Metallic Mining Production, 1997-2007 (f tonne)
Source: Ministry of Energy and Mines
300600900
1,2001,5001,8002,1002,4002,700
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Quotation, 1997-2007US$/TM
Source: London Metal Bulletin
20,00045,00070,00095,000
120,000145,000170,000195,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Stocks LME, 1997-2007TM
Source: London Metal Bulletin
LEAD
Atacocha4%
Volcan 26%
El Brocal12%
Quenuales7% Chungar
9%
Milpo5%
Others37%
Main Producer Companies2007
(*)The data of production correspond to processes of concentration. Source: Ministry of Energy and Mines
ZINC (PERU: 3º worldwide producer 14.28% of the worldwide production)
0200,000400,000600,000800,000
1,000,0001,200,0001,400,0001,600,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Metallic Mining Production, 1997-2007 (f tonne)
Source: Ministry of Energy and Mines
750
1,250
1,750
2,250
2,750
3,250
3,750
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Quotation, 1997-2007US$/TM
Source: London Metal Bulletin
0100,000200,000300,000400,000500,000600,000700,000800,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Stocks LME, 1997-2007TM
Source: London Metal Bulletin
ZINC
Atacocha4%
Chungar4%
Antamina20%
Volcan18%
Quenuales13%
Milpo6%
El Brocal6%
Others29%
Main Producer Companies, 2007
(*)The data of production correspond to processes of concentration. Source: Ministry of Energy and Mines
GOLD (PERU: 5º worldwide producer 6.80% of the worldwide production)
025,00050,00075,000
100,000125,000150,000175,000200,000225,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Metallic Mining Production, 1997-2007(f kilograms)
Source: Ministry of Energy and Mines
200270340410480550620690760
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Quotation, US$ Oz. Tr. (1997-2007)
Source: London Metal Bulletin
GOLD
Horizonte3%
Madre de Dios10%
Yanacocha29%
Barrick29%
Buenaventura7%Ares
3%
Retamas2%
Santa Rosa3%
Aruntani3%
Others11%
Main Producers Companies, 2007
(*) The data of production correspond to processes of concentration and hydrometallurgical process. Source: Ministry of Energy and Mines
SILVER (PERU: 1º worldwide producer 16.58% of the worldwide production)
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Metallic Mining Production, 1997-2007 (f kilogram)
Source: Ministry of Energy and Mines
4.00
6.00
8.00
10.00
12.00
14.00
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Quotation, US$/Oz. Tr. (1997-2007)
Source: London Metal Bulletin
SILVER
Volcan14.5%Buenaventura
10.6%
Antamina9.9%
Ares9.2%
Others34.7%
Brocal6.3% Quenuales
4.2%Pan American
4.8%
Yanacocha2.1%
Southern3.8%
Main Producer Companies, 2007
(*) The data of production correspond to processes of concentration and hydrometallurgical process. Source: Ministry of Energy and Mines
CANON AND STRAIGHT OF USE
Mining Canon Generated and Distributed 1997-2007 (thousands of Soles)
Year Canon Generated Canon Distributed1997 136,924 110,9371998 52,684 169,4281999 68,665 86,5142000 90,288 55,3612001 168,537 81,2782002 369,606 116,2442003 532,000 285,8252004 1,158,500 451,2892005 2,166,293 898,9552006 4,254,379 1,746,379
2007 (*) 5,156,632Note: the mining canon generated by the 2006 was transferred in a single quota in June of 2007. The usual distribution in in 12 equal quotas, from June of the following year of the generation of the Canon.Source: Ministry of Economic and Finance
DISTRIBUTION OF THE STRAIGHT OF USE, 1997-2007Thousands of US$
Organizations / year Province District Extrem
Poverty INGEMMET INACC MEM Total
1997 4,826.78 5,141.30 0.00 7,439.11 3,717.92 3,719.55 24,844.661998 4,023.78 4,127.72 0.00 6,071.14 3,035.57 3,035.57 20,293.781999 3,641.16 3,676.77 0.00 5,436.21 2,718.10 2,718.10 18,190.352000 3,613.86 3,624.08 0.00 5,359.75 2,679.87 2,679.87 17,957.432001 3,724.53 4,501.75 6,338.08 1,872.47 1,904.21 942.08 19,283.112002 4,433.19 4,467.60 7,844.69 2,201.53 2,219.00 1,096.38 22,262.382003 4,738.70 4,761.43 8,361.90 2,314.49 2,347.75 1,157.25 23,681.532004 4,425.21 7,606.50 7,815.82 2,624.79 2,636.28 1,312.39 26,420.992005 0.00 15,917.41 0.00 2,099.02 2,102.23 1,049.42 21,168.082006 0.00 27,615.17 0.00 3,691.49 3,695.08 1,845.75 36,847.492007 0.00 30,073.98 0.00 6,986.15 1,023.48 2,001.75 40,085.37
TOTAL 33,427.21 111,513.70 30,360.49 46,096.14 28,079.49 21,558.12 271,035.16Source: National Institute of Concessions and Land Registry
Request Petitions per Year, 1997-2007
Quantity Hectares1997 4,892 3,197,5061998 3,119 1,677,1811999 3,166 1,774,9132000 2,844 1,488,0122001 1,687 716,6382002 3,045 1,465,5202003 4,799 2,247,8882004 5,130 2,329,2522005 5,052 2,253,8702006 6,748 3,187,8802007 8,159 3,648,497Total 48,641 23,987,157
Source: National Institute of Concessions and Land Registry
EMPLOYMENT
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Miles HHP 34 36 63 19 70 359 43 179 119 83 1456
0
200
400
600
800
1000
1200
1400
1600
Thousand hour/men lost by strikes in the mining sector(1997-2007)
Source: INEI
SAFETY
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Frecuency Index 13.3 11.1 7.4 6.2 6.2 4.7 5.3 5.4 4.4 4.4
0.02.04.06.08.0
10.012.014.0
Frecuency Index
Source: Ministry of Energy and Mines. Data available to the date of publication.
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Severity Index 4640 4450 3480 2035 2410 4577 2109 1756 1584 3989
0500
1,0001,5002,0002,5003,0003,5004,0004,5005,000
Severity Index
Source: Ministry of Energy and Mines
PROJECTS
In constructionCerro Corona (Gold Fields) - Cajamarca
The construction of the Project began in the first trimester of 2006 and it will be operate in the first trimester of 2008. The approximate investment is US$ 227 million and the life utility of the mine is calculated for 15 years. A production of 17.000 tons of mineral per day is considered, which will imply to obtain 150.000 ounces of gold and 30.000 tons of copper for each year. With contract
Michiquillay (Anglo American) - Cajamarca ProInversión signed with Anglo American the contract for the exploration of the Project Michiquillay in 2007, by a value of US$ 403 million. 50% of this amount will be destined for a Social Trust in the zone of influence of the project. The mining project is located in Cajamarca, between 3.000 and 3.600 meters, and is a porphyry copper deposit, with contents of gold and silver. The area of mining concession contains 18,978 hectares. It will be an open sky operation 40,000 tons per day. The mineral reserves (for a "cut-off" of 0.4% Cu), are 544 million of tons with 0.69% of Cu, from 0.1 to 0.5 g/metric ton of Au and from 2 to 4 g/metric tons of Ag. Interest Data
Toromocho (Peru Copper) – Junín The company announced the discovery of additional metallic reserves near the Toromocho deposit. The reserves contain minerals of copper, molybdenum, silver and zinc. Also, the company confirmed that the Feasibility Study will be concluded at the end of the 2007. Fosfatos de Bayovar (Vale Do Rio Doce) – Piura The company announced an investment of US$ 479 million for the production of 4,000 million tons of phosphoric rock and the construction of a port that allows the export of the minerals of this project, programmed to begin in the middle of the 2010. They start to the construction of the port in 2008 with an investment of US$ 30 million. Rio Blanco (Rio Blanco Copper) – Piura The company culminated the Feasibility Study of the project, where it indicates that it will need an investment of US$ 1,440 million to start the operation in the 2011. According to the Study, in the project exist 498 million tons of proven and probable reserves. The mining process will be an open sky operation Source: Empresas del sector.
HydrocarbonsSector
PRODUCTION
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
118.2 115.6 102.9 99.2 97.1 96.9 91.4 94.1 111.3 115.6 113.9
60
70
80
90
100
110
120
130
National Oil ProductionThousands barrels/day(1997-2007)
Source: Perupetro
0.00
40.00
80.00
120.00
160.00
200.00
240.00
280.00
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Natural Gas Controlled Production, 1997- 2007
(Million cubic feet)
Coast Continental Shelf Jungle
Source: Perupetro
COMPANY PRODUCTION
Pluspetrol Norte38.4%
Pluspetrol Peru Corp29.6%
Petrobras11.7%
Petrotech 10.4%
Aguaytia Energy2.6%
Sapet2.5%
Others4.7%
Oil Production, 2007
Source: Perupetro
Aguaytia 14.8%
Petrotech 5.4%
Petrobras3.9%Pluspetrol
73.0%
Sapet0.8%
GMP1.5% Olympic
0.5%
Gas Production 2007
94,485 Million cubic feet258.8 Million cubic feet / Day
Source: Perupetro
CANON
Loreto24.2%
Ucayali8.8%
Piura23.0%Tumbes
5.8%
Puerto Inca-Huánuco
0.1%
Cusco38.2%
Participation in Hydrocarbon Canon, 2007
Source: Perupetro
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Cusco 0.0 0.0 0.0 0.0 0.0 0.0 0.0 87.1 316.0 396.6 465.9
Puerto Inca-Huánuco 0.3 0.2 0.2 0.5 0.4 0.4 0.4 0.5 0.8 0.8 0.8
Tumbes 21.1 14.9 20.5 31.4 25.7 25.1 28.4 34.5 50.8 64.8 70.3
Piura 84.2 59.7 81.8 125.7 102.7 100.6 113.4 138.1 203.1 259.3 281.1
Ucayali 25.1 18.1 37.2 61.8 52.6 61.4 68.1 74.5 94.5 104.1 107.8
Loreto 100.2 59.4 116.1 187.8 151.5 177.9 188.9 191.6 247.0 284.8 295.0
0100200300400500600700800900
1000110012001300
Hydrocarbon Canon, 1997- 2007 (Millions of Soles)
Source: Perupetro
CAMISEA
01,0002,0003,0004,0005,0006,0007,0008,000
Janu
ary
Febr
uary
Mar
ch
April
May
June
July
Augu
st
Sept
embe
r
Oct
ober
Nov
embe
r
Dec
embe
r
Camisea Gas Production 2007(Million cubic feet)
Source: Perupetro.
020406080
100120140160180200
Sem II -2004
Sem I -2005
Sem II -2005
Sem I -2006
Sem II -2006
Sem I -2007
Sem II -2007
Royalties paid by Camisea (Lot 88), 2004-2007 (US$ Million)
Source: Perupetro.
SEISMIC
0
2,000
4,000
6,000
8,000
10,000
12,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Seismic Registered in Exploration Areas, 1997-20072D (Km)
Source: Perupetro
0
200
400
600
800
1,000
1,200
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Seismic Registered in Exploration Areas, 1997-20073D (Km2)
Source: Perupetro
WELLS
0
2
4
6
8
10
12
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Num
ber o
f wel
lsExplorations Wells
(1997-2007)
Source: Perupetro
020406080
100120140160180
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Num
ber o
f Wel
ls
Development Wells(1997-2007)
Source: Perupetro
EXTERNAL SECTOR
-1026.09
-753.92
-1201.89
-1465.20-1600.00
-1400.00
-1200.00
-1000.00
-800.00
-600.00
-400.00
-200.00
0.00
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Hydrocarbons Balance of Trade (1997-2007)US$ Million
Source: Ministry of Energy and Mines
2006 2007 Var % EXPORTSCrude Oil 465,777.56 587,012.88 26.0%GLP 5,108.39 66.19 -98.7%Gasolines 544,105.27 699,808.20 28.6%Medium Destilled
Keroturbo 236,647.69 293,643.22 24.1%Diesel 26,520.95 20,315.25 -23.4%
Residues Residual 6 50,175.22 142,046.34 183.1%
Others 274,359.43 354,364.82 29.2%TOTAL 1,602,694.51 2,097,256.90 30.9%
IMPORTS Crude Oil 2,156,672.91 2,667,649.26 23.7%Gasolines 57,698.52 63,588.57 10.2%Medium Destilled
Keroturbo 710.97 1,106.01 55.6%Diesel 450,643.24 622,078.47 38.0%Cut Material 11,069.37 17,020.44 100.0%
GLP 1,325.23 54,467.57 4010.0%Others 126,464.12 136,548.08 8.0%TOTAL 2,804,584.36 3,562,458.40 27.0%
BALANCE (1,201,889.85) (1,465,201.50) -21.9%
Hydrocarbons Balance of Trade
US$ Thousands
Source: Ministry of Energy and Mines
CONSUMPTION
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
134 149 155 148 144 140 135 145 136 134 139
100
110
120
130
140
150
160
Internal Oil Consumption, 1997-2007(Thousands barrels/day)
Source: Ministry of Energy and Mines
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Talara 57.5 57.0 61.1 60.7 62.6 58.4 57.0 64.0 67.0 62.6 62.6
Pampilla 83.4 91.0 71.7 68.3 76.5 78.1 78.2 70.9 81.6 77.4 85.0
Conchán 6.4 10.4 11.1 12.6 12.1 8.9 11.0 13.3 13.3 11.8 11.5
Iquitos 8.0 7.5 5.4 6.0 7.9 9.2 8.0 8.9 9.7 8.8 9.2
El Milagro 1.6 1.7 1.6 1.6 1.9 1.8 1.8 1.9 2.0 1.7 1.8
Pucallpa 0.9 1.9 3.0 3.1 3.0 3.2 3.0 2.9 3.0 2.8 2.5
TOTAL 157.8 169.6 153.9 152.3 163.9 159.5 159.0 162.0 176.6 165.1 172.6
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
Refinery Production, 1997-2007(Thousands barrels/day)
Source: Ministry of Energy and Mines
QUOTATIONS
10.0
25.0
40.0
55.0
70.0
85.0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
WTI Oil quotation , US$/Barrel (1990- 2007)
Source: Central Bank.
0
2
4
6
8
10
12
06/2000 01/2001 08/2001 03/2002 10/2002 05/2003 12/2003 07/2004 02/2005 09/2005 04/2006 11/2006 06/2007
Gas Quotation, Henry Hub 2000-2007 (Million US$ of BTU)
Source: EIA.
MARKETING
0.40
0.90
1.40
1.90
2.40
2.90
3.40
3.90
4.40
4.90
Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07
Evolution of the price of Fuels, 2002-2007US$ per Gallon
90 Oct 95 Oct Diesel 2 Kerosene GLP
Source: Ministry of Energy and Mines
2007
Departamento Supply Plants Carriers Direct Consumers
Retail Distributors
Gas Stations and Services
Stations
Gas Stations and Services
Stations
Variation (number)
Amazonas 1 19 8 1 49 48 1Ancash 1 151 99 10 88 87 1Apurimac - 23 5 - 39 35 4Arequipa 2 600 124 18 286 282 4Ayacucho - 41 12 - 81 76 5Cajamarca - 133 48 5 92 85 7Cusco 2 543 39 7 200 188 12Huancavelica - 10 13 - 9 9 0Huánuco - 50 7 2 51 50 1Ica 2 147 65 4 112 110 2Junin - 167 36 - 193 183 10La Libertad 3 377 116 9 157 160 -3Lambayeque 2 213 46 19 118 111 7Lima 19 1,668 711 245 1,140 1,121 19Loreto 3 124 55 - 101 101 0Madre de Dios - 6 28 - 64 61 3Moquegua 1 109 27 1 30 29 1Pasco 1 35 13 6 54 51 3Piura 4 182 101 18 118 116 2Puno 2 84 17 9 325 347 -22San Martin 2 83 17 2 99 92 7Tacna 1 62 9 12 51 47 4Tumbes - 8 15 - 14 13 1Ucayali 2 65 38 - 71 68 3TOTAL 48 4,900 1,649 368 3,542 3,470 72
2006Principales Indicadores de comercialización
Source: Ministry of Energy and Mines
PROJECTS
PERU LNG
The company continued the construction of the export project of the natural gas of Camisea,
which would enter operation in the 2010. It will require a total investment of US$ 3,800
million.
This private investment in our country will mean an increase of 0,7% of the GDP, an average
contribution of US$ 200 million to the State Treasury per year - calculated on the base of the
natural gas export that would annually fluctuate between US$ 800 million and US$ 1 billion-.
In 2007 the Banco Interamericano de Desarrollo approved a loan of US$ 400 million for this
project.
License Contracts– PERUPETRO
In November, PERUPETRO signed 18 license contracts, arriving at the record of 24 contracts
signed during the 2007.
Some of the contracts were signed by: The Russian Samaraneftegaz S.A.A., which obtained
the license for Block 130, located among the Provinces of Datem del Marañón, Alto
Amazonas and Loreto, in the Department of Loreto. The Korean SK Energy Co. Ltd., acquired
Block Z-46 located between Lambayeque and La Libertad, in the continental shelf. Also,
Vetra Energy Group LLC. will initiate exploration works in Block XXV located among Piura and
Tumbes. Pan Andean Resources Plc of Ireland obtained Blocks 131 and 141, located in the
Department of Ucayali, Huánuco, Pasco; and Puno respectively. Hunt Consolidated Inc. and
PetroVietnam Exploration Production Corporation, acquired Blocks 143 and Z-47, the first
one situated in the Department of Loreto and the second located facing the coasts of the
Departments of La Libertad and Ancash. BPZ Energy signed contract for Blocks XXIII and
XXII located both in Piura and Occidental Oil and Gas Peru, LLC, Sucursal del Peru for Block
142 located in the Department of Loreto
Among the consortiums that participated in the 2007 Bidding Round, the consortium
Talisman Energy Inc. and ECOPETROL INC. obtained Block 134. This association is formed by
the independent company based on Canada, Talisman Energy Inc., and ECOPETROL, a
Colombian corporation which is one of the 35 largest petroleum companies of the world and
is one of the top five enterprises of Latin America.
The investment considered in exploration for these contracts are US$ 800 million.
Source: Perupetro, Companies of the sector.
EnergySector
INSTALLED POWER CAPACITY AND PRODUCTION
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Installed Power Capacity Evolution per type of Generation, 1997-2007 (MW)
Termal Hydraulic
Source: Ministry of Energy and Mines
0
5000
10000
15000
20000
25000
30000
35000
2001 2002 2003 2004 2005 2006 2007
Electricity Production (GWh)2001-2007
Source: Ministry of Energy and Mines
0
2000
4000
6000
8000
Edeg
el
Elec
trope
rú
Ener
gía
del
Sur
Otra
s G
ener
ador
as Eg
enor
Egas
a
Term
osel
va
San
Gab
án
Elec
tro
Ande
s
Production by company (GWH) 2007
Source: Ministry of Energy and Mines
TRANSMISSION
Hydraulic68%Thermal
32%
National Interconnected System Production2007
Source: Ministry of Energy and Mines
Hydraulic27%
Thermal73%
Production of Isolated Systems2007
Source: Ministry of Energy and Mines
COVERAGE AND LOSSES
62.0%
64.0%
66.0%
68.0%
70.0%
72.0%
74.0%
76.0%
78.0%
80.0%
0.00.51.01.52.02.53.03.54.04.55.0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Electricity sector coverage indicators(1997 - 2007)
No. Clients (Million)
Electrification Coefficient
Source: OSINERG
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Series1 14.5% 12.4% 11.3% 10.4% 9.7% 9.1% 9.1% 8.7% 8.4% 8.0% 8.2%
7.00%
8.00%
9.00%
10.00%
11.00%
12.00%
13.00%
14.00%
15.00%
Evolution of energy looses in the Distribution Systems(1997 - 2007)
Source: OSINERG
DISTRIBUTION AND DEMAND
0
4000
8000
12000
16000
20000
24000
28000
2001 2002 2003 2004 2005 2006 2007
Sale of electrical energy to final clients (GWh) 2001-2007
Source: Ministry of Energy and Mines
1000
1400
1800
2200
2600
3000
3400
3800
4200
2001 2002 2003 2004 2005 2006 2007
Maximum Demand (MW)2001-2007
Source: Ministry of Energy and Mines
TARIFF
0.0
15.0
30.0
45.0
60.0
75.0
90.0
105.0
120.0
135.0
150.0
165.0
Jan-
02
Jun-
02
Nov
-02
Apr-0
3
Sep-
03
Feb
-04
Jul-0
4
Dec
-04
May
-05
Oct
-05
Mar
-06
Aug-
06
Jan-
07
Jun-
07
Nov
-07
US$Evolution of the Regulated Tariff and Spot
2002- 2007
Regulated Tariff Spot prices
Dic‐07
Source: OSINERG
PROJECTS
Electrical Generation
Thermal Power Station Chilca-I – Enersur The company put in commercial operation the second unit of the Chilca-I power station, with an installed power of 175 MW. Also, the company announced the construction of the third unit of the power station, which will provide 200 additional MW to the Interconnected National System. Thermal Power Station Kallpa The company inaugurated the commercial operation of the first natural gas turbine of the Thermal Power Station of Kallpa that will produce 168 MW. The company informed that this first unit will be complemented with 2 stages more that will generate 504 MW. The second stage will be in operation in the 2008 and third, that will imply a combined cycle, will be constructed according to the demand of the national power market.
Hydroelectric Power Station El Platanal The company started the construction of the Hydroelectric Power station, in the middle of the
2007, which will have a capacity of 220 MW and will imply a USS investment 180 million. Hydroelectric Power Station Santa Rita The project is in study. It will be located in Santa river (Ancash) and the installed capacity will be 225 MW. Also it will count on a substation and a line of communication of 47,22 km that will be connected with the Interconnected National System. Transmission
In November of the 2006 the Ministry of Energy and Mines published the Transitory Plan of Transmission, and in February of 2007 was published a modification including 2 projects. In addition, in agreement with the law "to assure the efficient development the electrical generation" ProInversión leads the processes of promotion of the deprived investment of the projects of transmission of the Plan, which was made opportunely. ProInversión have for the 2008 the following projects:
• Transmission Line Machu Picchu - Cotaruse – Socabaya o Reinforcing the Interconnection Center-South o Transmission Line Machu Picchu – Cotaruse
• Transmission Line Chilca – La Planicie – Zapallal • Transmission Line Vizcarra - Huallanca - Cajamarca - Carhuaquero and reinforcing the
Transmission Line Carhuamayo - Paragsha – Vizcarra. Source: Ministry of Energy and Mines, ProInversion, Companies of the sector.