New resources of petroleum and untaped mining sector in Paraguay
By Peter M. Tase
In November 13, 2012, President Energy LLC, an international company focused on oil and gas exploration and production in South America, from studies conducted in the Area of Pirity, Paraguay, can be is an estimated gross recoverable oil reserve of more than 159 million barrels. 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 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 cross border region, by President Energy, in September, 2012, it is observed that the Palmar Largo Field Structures and its reservoir improves towards the east (Paraguayan territory), surprisingly, there have not been any seismic drilling in Paraguay since 1987. 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 have explored mining industry in South America, since the Spanish period, in which artistic work of Jesuits was decorate
d with gold and silver. 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, in the border with Argentina, is found 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 are found in the eastern region of Paraguay on the other hand great deposits of gypsum (in high quality) can be found in the Occidental region (Chaco Paraguay), which is available to be mined, used for local industry or exported.
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. The Guarani speaking nation has an economic system based on open commerce, unrestricted taxes on investments and capital flow; it does not have personal income tax and the added value tax is only 10 percent. Asuncion 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