1. The Seychelles Petroleum
Licensing Initiative

2. Contents of the Presentation
Seychelles - Geographic Extent
Geological Background
Legal Framework and Fiscal Regime
Current Licensees
Licensing Initiatives
Conclusion

3. Hong Kong
Look at top row picture on the Beta.
Seychelles 3

4. SEYCHELLES PLATEAU SAYA DE MAHLA MAURITIUS 4
Look at top row picture on the Beta.
MAURITIUS 4

5. EEZ ~ 1.33 million Sq.Km Land Area = 455 sq.Km Amirante Platte Coetivy
GRANITIC ISLANDS
Amirante
Platte
Coetivy
Aldabra group
Farquhar group
EEZ ~ 1.33 million Sq.Km
Land Area = 455 sq.Km

6. 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.

7. Geological background

8. Unique by a thousand miles
750,000,000 years old

9. Seychelles at the heart of Gondwana in the Early Permian (300 Ma)
Tectonic Evolution
Seychelles at the heart of Gondwana in the Early Permian (300 Ma)

10. Tectonic Evolution Early Late Cretaceous (~80 Ma).
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.
Paleocene (~60 Ma). During the separation of India from Mascarene Plateau.
Early Late Cretaceous (~80 Ma).
Seychelles/India split from Madagascar
Early Cretaceous
(~150 Ma)
After separation of East
and West Gondwana

11. Exploration Provinces

12. Stratigraphy C
LEGEND
Intra Eocene/Palaeocene marine shales
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
Base Palaeocene marine shales
Maastrichtian/Palaeocene marine shale and volcaniclastics
Upper Cretaceous marine shales
Lower Cretaceous-Uppermost Jurassic marine shales
Mid-Late Jurassic Salt
Lower Jurassic-Triassic Karoo continental shale
Geology

13. Source intervals encountered
Source Rocks
In the Amoco wells, several source horizons were encountered within the Upper Triassic to mid Jurassic section
LEGEND
Source intervals encountered
in the wells

14. Seismic Data coverage Map
20,000 Km of M2D Data Acquired by Fugro
29,000 line km of seismic, gravity & magnetic

15. Improved Imaging
Geophysical Database

16. Mapped Leads

19. Legal Framework and Fiscal Regime
Petroleum Mining Act
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

20. Legal Framework and Fiscal Regime 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.

21. Legal Framework and Fiscal Regime
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.

22. Legal Framework and Fiscal Regime
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.

23. Legal Framework and Fiscal Regime
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.

24. Legal Framework and Fiscal Regime
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 .

25. Current Licensees

26. Currently Held Acreage
WHL
Afren

27. The Licensing Initiative

28. The Licensing Initiative License Round or Open File process ?
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) 28

29. The Licensing Initiative
What should be the variables in the Petroleum Agreement ?
Area Relinquishment Terms
Work Program Fiscal Terms
Rental Payments Training Commitment
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

30. The Licensing Initiative
What are the recommended minimum acceptable Applicant qualifications ?
Technical & professional capacity
Financial ability

31. The Licensing Initiative
Study Area
WHL Energy
Afren/Avana
Exclusion Area

32. SUMMARY LEGAL AND FISCAL TERMS EXPLORATION PHASE RELINQUISHMENT TERMS
PRODUCTION PHASE
RENTAL PER SQ KM
ROYALTY
PETROLEUM INCOME TAX
STATE PARTICIPATION
PETROLEUM ADDITIONAL PROFITS TAX
9 YEARS, x x
40% % 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 32

33. Shelf submitted to CLCS
Extended Continental
Shelf submitted to CLCS
Northern Area Submission
Area : 22,143 sq km
East Africa
Seychelles Plateau
Joint Submission with
Mauritius
Area : 387,000 sq km
Saya de Malha Bank
Madagascar

34. CONCLUSIONS
Seychelles 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.

35. CONCLUSIONS
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.

36. Visit us at : www.petroseychelles.com
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