EIC LIVE E-VENTS: LATIN

AMERICA PROJECT UPDATE

14 February 2023

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• 15 February - Breakfast in Rio: Gas to Power opportunities in Brazil with Eneva and Radix

• 01 March - Webinar - Overview on Guyana's O&G Market

• 23 March - Breakfast in Rio: Offshore Services: OPEX and ABEX Opportunities with Ocyan

• 04 April - Fundamentals of Offshore Wind

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Our co-host: Further opportunities
Our line-up of speakers: Further opportunities

Clarisse Rocha Pietro Ferreira Felipe Pestana Pablo Brusco Jorge Moscoso Jeisson Gomez
Director(Americas) Regional Analyst ​ Director Partner Partner Business Director
All sectors (Americas)​
OVERVIEW OF ENERGY
OPPORTUNITIES IN LATIN AMERICA

Pietro Ferreira, Senior Regional Analyst - Americas

14 February 2023
Regional overview 6
60

16
30
3
Key countries by CAPEX and number of projects
1,000,000 700

900,000
600
800,000

700,000 500

600,000
400
500,000
300
400,000

300,000 200

200,000
100
100,000

0 0
Brazil Mexico Argentina Chile Guyana Colombia Peru Bolivia Venezuela Ecuador

CAPEX (million USD) Number of projects

Brazil – Oil and gas
O&G CAPEX in Brazil FPSO deployment by Major subsea contract awards
Downstream
2028 since 2020
8% 23 8

7
Mi ds tream
9% 6

US$164bn 3

2
3
1 1 1 1

0
Ups tream
83%

Petrobras Equinor Enauta

Shell BW Energy
Project highlights
Brazil – Clean energy Key hydrogen developers by CAPEX and no. of projects
10,000 8
8,000 6
Key RE segments by CAPEX 6,000
4
Bi omass Energy from Wa ste 4,000
2,000 2
4% 1%
0 0
Hydroelectric
8%

Top OFW developers by proposed capacity (MW)

20,000
18,000
US$75.1bn Sol ar – PV
16,000
14,000
12,000
56% 10,000
Ons hore Wind 8,000
6,000
31% 4,000
2,000
0
Project highlights
Market insights by Felipe Pestana, Grupo Planus
• 184 out of 190 countries on the easiness of calculating / declaring taxes (The World Bank,
Doing Business Archive)
• Strict labor law (likes of continental Europe)
• English not widespread
• Flow of international funds is free, if the correct paperwork is in place
• Business inside the Country must be in Brazilian Real
• No risk of permanent establishment
• Taxes on the import of services
• Dividends are not taxed at the moment
• Tax system has a long learning curve but allows for substantial tax planning
• Service companies have a comprehensible tax structure. Product taxation can be highly
complex
• Double tax treaties with 37 countries (+UK)
Email:
felipe@grupoplanus.com.br
Argentina
Key sectors by CAPEX Key developers by CAPEX and number of projects
Tra ns mission & 40,000 10
Downstream Di s tribution 9
35,000
3% 1% 8
30,000
Hydrogen 7
8% 25,000 6
20,000 5
15,000 4
Ups tream 3
10,000
Renewables 33% 2
15% 5,000 1
0 0
US$107bn

Mi ds tream
18%

Power
22% CAPEX (million USD) Number of projects
Project highlights
Market insights by Pablo Brusco, Brons & Salas Abogados
• Ranked 126 out of 190 countries in the “Ease of Doing Business" (WB list).
• Strict labor law (likes of continental Europe). Country: Argentina
• English not widespread.

• More common business entities:

• S.A., S.A.U., or S.R.L. (limited liability);
• Minimum corporate capital is required;
• Legal rep. can be a foreigner; but majority of BOD/M shall reside in Argentina.
. Branch office (Unlimited liability of parent company).

• Foreign Exchange controls: Legal currency: ARS.

• Mandatory to repatriate/convert into pesos export proceeds; Double tax treaties: with 22
• Limitations on transfers of funds abroad; counties, (including UK)
• Limitations on payment of imports; Tax rate:
• Central Bank prior authorization to pay dividends abroad. VAT: 21%
WHT: 5% - 35%
• Taxes:
• Income Tax for Companies: 25% to 35%; payable annually and subject to advanced payments;
• Dividends: ITW 7% (on dividends distributed to individuals/foreign entities). www.brons.com.ar
Market insights by Pablo Brusco, Brons & Salas Abogados
Contact Info

Country: Argentina
Pablo D. Brusco
Partner
Brons & Salas Abogados
Olga Cossettini 363
Edificio Yacht VI - Puerto Madero
Ciudad Autónoma de Buenos Aires - Argentina
D: (54-11) 4319-7129
E: pbrusco@brons.com.ar
www.brons.com.ar
Chile
Key sectors by CAPEX Key clean energy developers by CAPEX and project type
Tra ns mission & 12,000
Mi ds tream
Di s tribution Downstream
Energy Stora ge 0.7%
3.0% 0.5%
3.1%
10,000
Power
4.6%
8,000

6,000
Sol ar – PV
4,000 Onshore Wind
US$93.5bn Hydroelectric
2,000 Green H2
Hydrogen Renewables Battery
32.2% 55.9%
0
Project highlights
Market insights by Jorge Moscoso, Moscoso y Cia.
Market insights by Jorge Moscoso, Moscoso y Cia.
• 60th place in the "Doing Business" of the 190 that make up this ranking.
• Strict labor law (likes of continental Europe).
• English not widespread.
• There are no restrictions for international transfers.
• Business inside the Country must be in Chilean Pesos.
• There are 34 international tax conventions.
Best business entity.
SPA, : Widely used, easy to incorporate, and can be held by one single shareholder.
Legal rep. must be Chilean, or can be a foreigner with local residency.
Taxes:
• National taxes are annually declaration, except VAT that is monthly.
• Withdrawal of Profits, There is the so-called "CHILE law", which regardless of the existence of
treaties, taxes the withdrawal of profits with a final rate of 35%.
• TAX Rates: VAT 19%, Annual Rate: 27%
Colombia
Key sectors by CAPEX Key developers by number of projects and CAPEX
Tra ns mission & Mi ds tream 12 18000
Di s tribution 3%
3% 16000
10
Power 14000
3% 8 12000
Ups tream
4% 10000
6
8000
4 6000
4000
2
2000
Downstream
13% US$49bn 0 0

Renewables
74%

Number of projects CAPEX (million USD)

Project highlights
 Name: Jeisson Fernando Gómez Ortiz
Position: General Subdirector
Email: jgomez@gydconsulting.com
Mobile: +57 3176392651
www.gydconsulting.com

Market insights by Jeisson Gómez, G&D Consulting Group

• 67th place in the "Doing Business" of the 190 that make up this ranking.
• Strict labor law (likes of continental Europe)
• English not widespread
• Flow of international funds is free, if the correct paperwork is in place
• Best business entity to register considering energy industry and business:
• S.A.S.: Widely used, easy to incorporate, and can be held by one single shareholder.
• There is no minimum share capital for a new S.A.S. entity.
• Legal rep. can be a foreigner. Legal currency: COP.
Branch office: Corporate ownership - head office is exposed to direct liability. Double tax treaties: 16
+67 counties, (UK Operative)
• Taxes: TLC: (+18) (UK operative)
▪ National taxes are annually declaration, except VAT, bimonthly and four-monthly. Tax rate:
▪ Taxes on the import of services: VAT: 19%
▪ Self-WHT on some exports 1% on exports for the mining, oil, and gas industry. WHT: 20 - 33%
▪ The Self-WHT is creditable against the CIT liability. WHT DTT’s: 10%
▪ Dividends are taxed at the moment. Dividends: 20 – 48%
Non-Conventional Energy Sources benefits – (UPME) Free trade zone: +166
• Income deduction of 50%.
• Exclusion of VAT.
• No import fee over purchase of machinery or elements of the project.
• Income tax surtax deduction of up to 50% (Green and blue hydrogen projects).
Guyana
Number of discoveries at the Key EPC and subsea awards since
Operator Offshore block Stabroek block per year 2019
10 5
Stabroek 9

8 4
ExxonMobil Kaieteur
7
3
Canje 6

5
Tullow Oil Orinduik 2
4

Repsol Kanuku 3
1
2
Corentyne 1
0
CGX Energy 2019 2020 2021 2022
0
Demerara 2015 2016 2017 2018 2019 2020 2021 2022 2023 Saipem SBM Offshore TechnipFMC
Project highlights
Mexico
Key sectors by CAPEX Key developers
Tra ns mission & Energy Stora ge
Hydrogen 70000 40
Di s tribution 0.4% 0.4%
0.5% 60000 35
Power
6.8% 30
50000
25
Renewables 40000
11.0% 20
30000
Downstream 15
29.9% 20000
10
10000 5
US$150bn 0 0

Ups tream
23.9%

Mi ds tream
27.2%

Sum of Value Million U S D Count of Project Name

Project highlights
Looking ahead
Key energy sectors in LATAC by CAPEX Key energy sectors in LATAC by CAPEX (start-up by 2028)
Tra ns mission &
Di s tribution Energy Stora ge Tra ns mission & Energy Stora ge
Hydrogen
1.8% 0.3% Hydrogen Di s tribution 0.5%
5.6%
7.8% 2.7%
Downstream
6.1%
Power
Power 8.5%
6.1% Ups tream
31.8%

Mi ds tream
6.2%
US$1.48trn
Mi ds tream
8.7%
US$894.4bn
Renewables
53.6%

Downstream
Ups tream 9.7%
20.4%

Renewables
30.2%
Thank you!
Pietro Ferreira
Senior Regional Analyst, Americas
Energy Industries Council (EIC)
Contact information
Further opportunities

Pablo Brusco Felipe Pestana

Partner Director​
(: +54 11 4319 7100 | *: pbrusco@brons.com.ar (: +55 21 99526 5616 | *: felipe.pestana@grupoplanus.com.br

Jorge Moscoso Jeisson Gomez

Partner Business Director
(: +56 2 2 570 59 00 | *: moscoso@moscoso.cl (: +57 1 8059112 | *: jgomez@gydconsulting.com
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