President Energy LLC, an international company focused on oil and gas exploration and production in South America, announced last month that based on studies conducted in the Pirity region of Paraguay, there is an estimated gross recoverable oil reserve of more than 159 million barrels of oil. The combined size of this concession together with Pirity Hidrocarburos and Crescent Global Oil is in excess of 16,000 km², located in the department (province) of Boqueron, near the border with northern Argentina.
According to a previously defined agreement, President Energy LLC is expected to process more than 94 million barrels of prospective recoverable oil resources and it will soon share with the public further results of a 3 D seismic program that is currently under way; in the oil rich region of Pirity.
The leadership of President Energy are expecting to find three reservoirs. According to a study conducted in the border region by President Energy in September, it is observed that the Palmar Largo Field Structures and its reservoir improves towards the east in Paraguayan territory. Surprisingly, there have not been any seismic drilling in Paraguay since 1987. President Energy has been conducting seismic tests since the beginning of this month.
According to President Energy Chairman Peter Levine, “the combined blocks in Paraguay have a gross risked recoverable resource potential of greater than 150 million barrels, with a net success case NPV10 estimated at over US$25 per barrel, thus giving over net USD2 billion of net value on a success basis; assuming President earns its full working interests.”
Paraguay is one of the first countries that explored mining resources in South America. During the Spanish colonial period, Catholic missions built by Jesuit missionaries were decorated with gold and silver, for example. Located in the heart of South America, Paraguay has an enormous geological potential in its Pre-Cambrian and alkaline regions, mining is considered as another important component for the development of its economy, especially in regions with lower agricultural production and cattle grazing.
The department of Concepcion is rich with gold, copper, zinc, barium, tin, tungsten, quartz, and marble as well as diamond gems.
The Department of Misiónes, located in the southern part of Paraguay, along the border shared with Argentina, has been determined to have a long list of precious minerals including: iron ore, gold, lead, silver, nickel and chrome.
The department of Ñeembucu has vast resources of peat which is harvested as an important source of fuel in various regions of the World. Peat is an important component for farmers who mix it with fertile soil to improve its structure and to increase acidity. Another important property of peat is retaining moisture in soil when it is dry and yet preventing the excess of water from killing roots when it is wet.
In the Department of Alto Paraguay are discovered a number of mineral resources such as: Iron ore, silver, zinc, manganese, copper, lead, gypsum, Petroleum and natural gas. Kaolinite clay deposits are found in the eastern region of Paraguay, while on the other hand great deposits of gypsum (in high quality) can be found in the western arid region of the country known as Chaco. The Chaco is available for exploiting mineral deposits for processing in-country and for export.
Paraguay has also a very favorable fiscal and tributary system; after the approval of National Constitution of 1992, the government highly reduced its interference with the operations of private companies in the country, additionally the so called legislation of 60/90 provides ample fiscal exemptions, administrative and legal facilities to foreign and national investors.
Paraguay, where both Spanish and the native Guarani are official languages, has an economic system based on open commerce, unrestricted taxes on investments and capital flow; it does not have personal income tax, while value added tax is only 10 percent. The central government does not apply a strict price control policy and it has a strict program of monetary stabilization, with fiscal measures in order to control inflation appropriately.
Spero columnist Peter M. Tase writes on Latin American trade and diplomatic issues.