Executive Summary Southern Terminals

November 2018

Information prepared for Petróleos del Perú - PETROPERU S.A. Disclaimer

This document has been prepared to provide general information about the selection process of the new operator for the South Terminals of Petróleos del Perú (hereinafter, "Petroperú" or the "Company"). Neither the shareholders, nor the executives of the Company, nor Summa Asesores Financieros SA (hereinafter, "SUMMA" or the "Financial Advisor"), guarantee the accuracy, reliability, validity, sufficiency or integrity of the information, maps and territorial delimitations. (boundaries) contained in this document, or that which is available in connection with this, either orally or in writing. In any case, part or all of the content of the document may be considered, understood or interpreted as a promise, assertion or representation, whether past, present or future, of the legal, accounting, economic, financial and / or commercial situation of the Company or the South Terminals. The directors and / or executives of the Company and its Financial Adviser are expressly released, they do not assume and will not be subject to any present or future liability of any kind or nature, nor will they assume any legal liability arising from this document, or from information related to this, either because they had or should have been aware of the errors or omissions presented in this document, or have participated in their incorporation or omission to incorporate them in this document.

Whoever wants to evaluate the investment opportunity presented in this document should base it on their personal evaluation of it, as well as on their own interpretation of the available information. Each interested party must make an independent evaluation of the characteristics of the transaction. This document is not and cannot be interpreted or considered in any case or circumstance as an investment request, nor an offer to provide services, nor a proposal or invitation to receive an offer.

2 Confidential Process of Southern Terminals

Background Petroperú terminals and storage capacity (October 2018)

• Petroperú is a company owned by the Peruvian state under private law, dedicated to the transportation, refining, distribution and sale of fuel and other products derived from oil. • Petroperú owns ten terminals operated by third parties

through long-term Open Access contracts: 4 in the ETEN North, 1 in the Center and 5 in the South. 379 MBLS • The South Terminals, made up of Pisco, Mollendo, Ilo, and Juliaca, have a total storage capacity 1 of SALAVERRY 1,627 Mbbl, currently utilized at 96%. These terminals 267 MBLS dispatched 19,924 Mbbl in 2017. • Currently the South Terminals are operated by Consorcio Terminales (GMP S.A.C. and Oil Tanking 295 MBLS CUSCO ) under an operating contract that expires in August 55 MBLS 2019. SUPE 184 MBLS JULIACA • Petroperú is calling for Public Bids for the selection of a 43 MBLS new operator for the Southern Terminals. 1,598 MBLS • Summa Asesores Financieros S.A is advising Petroperú PISCO in the execution of the process for the selection of the 309 MBLS new operator. MOLLENDO 1,057 MBLS

ILO 162 MBLS

1 Storage capacity: total sum of capacity of all operational tanks except those containing Water and North and Center Terminals South Terminals Slop to October 2018. Confidential 3 Source: Petroperú Process of Southern Terminals

Transaction Description

Through Public Bids Petroperú seeks to select an operator for the Southern Terminals for a term of 20 years. The new Operator will be in charge of operating, maintaining, developing and implementing the investment program of the five Southern. • The selection of the operator will be carried out in a competitive process Terminal Pisco choosing the Bidder that offers the highest consideration to Petroperú for the usufruct of the terminals. The consideration will be set as a percentage of the total gross income received by the Operator. • The Operator will invoice the revenues generated by the Terminals for the current and new services and assume the cost and expenses of the Terminal Mollendo services. The maximum tariffs that will be charged will be set in US dollars in the Operating Contract and will be adjusted annually for inflation. • The Operator will be responsible for the operation and investment in the Pisco, Mollendo and Juliaca terminals. The Contract will set an initial investment amount for the first four years, as well as indicators of service quality and infrastructure that the Operator must keep during the term of Terminal Ilo the Contract. • The Operator also receives the New Terminal of Ilo that replaces the current Terminal of Ilo, which will be deactivated by Petroperu. • The Operator will also be responsible for design, investing and operating the new Cusco Terminal at a new land site to be provided by Petroperú. Terminal Cusco

Terminal Juliaca 4 Confidential Process of Southern Terminals

Selection Process Description

To participate as a Bidder in the selection process of the Table 1 new operator, interested parties must: Impediments • Buy the Terms of Reference (Price US$ 5,000). • Companies that are proprietary, whether they are the main • Submit a declaration of not being prevented from Shareholder, or related to the main shareholder of companies that: 1) own or operate oil refineries in Peruvian territory participating. (see Table 1). 2) Commercialize hydrocarbons or their derivatives in Peruvian • Submit an Affidavit of Stakeholder Composition. territory. • Companies or People convicted, in the country or abroad for any • Submit a Non-Disclosure Agreement and register a crime of corruption, money laundering or financing of terrorism. legal representative. • Companies or People that are on the list of non-eligible from the IDB The Bidders will have access to the Data Room of the Group or the World Bank. • Those who are prevented from being bidders and / or contractors of Terminals and may coordinate visits and inspections to Petroperú them. During the review process, they will receive the first version of the Operation Contract, which includes as Annex Note: Main Shareholder = Owner of 10% or more of equity. the Reception, Storage and Dispatch Contract (RAD Contract) that the new operator will sign with the users of the terminals. The Bidders will have the opportunity to make queries and Table 2 suggestions to the Bidding Terms of the process, the Technical and Economic Requirements Economic Requirements Operation Contract and the RAD Contract that will be signed with clients. • Total Annual Income in 2017 greater than US $ 50MM • Net Worth not less than US $ 100MM The Bidder must prove compliance with the Technical and Technical Requirments- Operator Economic requirements established in the Bidding Terms. These requirements are summarized in Table 2. • 5 years of operating experience in one (01) supply plant of fuels, chemicals or gas with a storage capacity of not less than 1500 The Bid Terms of the process will be on sale as of Mbbl, during the last 10 years. November of 2018, and the competitive bids are expected to occur during the 1st quarter of 2019. Confidential 5 Source: Bidding Terms Process of Southern Terminals Overview of the Peru Hydrocarbons Market

• Hydrocarbon consumption in Peru is around 254 Fuel Demand by Region MBOPD, with an average annual growth of 4.9%. The most consumed fuel is Diesel (46% of total demand), MBOPD CAGR Nacional 4.9% (2013-2017) followed by LPG (23%) and Gasohols (19%). 300 CAGR Sur 8.3% (2013-2017) • The southern region of Peru is formed by Apurímac, 250 , , Cuzco, Huancavelica, Ica, Madre 200 de Dios, Moquegua, and . This region 150 consumes approximately 65 MBOPD, or 26% of the total 100 national consumption. 50 • Demand growth is higher than the country average, 0 reaching 8.3% annually. The most consumed fuel is 2013 2014 2015 2016 2017 Diesel (66% of the total demand), followed by Gasohols South North Center Jungle

(19%), and LPG (14%). Source: SCOP - Osinergmin • The demand for fuels in the south will continue to Southern Terminals Dispatch overtime increase due to economic development of the region and new projects in mining, infrastructure and energy Mbbl sectors. 25,000 CAGR 2.57% (2013-2017) • In the Southern Terminals, the demand trend for storage 20,000 and dispatch capacity has grown 8.3% in recent years. The usage of existing capacity is at 98%, and the 15,000 dispatch for the year 2017 was 19,923 Mbbl. 10,000

• Currently there are no hydrocarbon terminals that 5,000 compete with the Southern Terminals, however, there 0 are two projects, one of which could become operational 2013 2014 2015 2016 2017 in the medium term. Pisco Mollendo Ilo Cusco Juliaca

Source: Petroperú 6 Confidential Process of Southern Terminals Description of the Terminals

The following is a general description of the South Terminals:

Terminal Pisco Mollendo Cusco Juliaca Ilo New Ilo (1)

Latitude: Latitude: 17° Latitude: Latitude: Latitude: Latitude: 13°44’50.36”S 1'51.95"S 13°33'5.10"S 15°31'24.72"S 17°38'5.72"S 17°42‘46.00"S Coordinates Longitude: Longitude: 72° Longitude: Longitude: 70° Longitude: Longitude: 76°13’38.71”W 0'20.75“W 71°53'31.33“W 7'5.93“W 71°20'19.52“W 71°15‘57.04“W Began End of 2020 1949 1944 1952 1952 1951 Operations (tentative date)

Land Area 86,400 m2 351,600 m2 36,995 m2 44,030 m2 62,385 m2 164,128 m2

296,000 bbl in the Installed first stage and may Capacity 356,457 Bls. 1,140,502 Bls. 64,689 Bls. 50,415 Bls. 189,767 Bls. be extended to 1 instalada2 million bbl.

By Vessel By Vessel By Tank Trucks By Tank Trucks By Vessel By Vessel Reception

systems By Tank Trucks By Tank Trucks By Railcars By Railcars By Tank Trucks By Tank Trucks

Dispatch 5 Shipment Isles 7 Shipment Isles 3 Shipment Isles 2 Shipment Isles 3 Shipment Isles 10 Shipment Isles System 1 Dispatch pipe 1 Dispatch Bridge 1 Dispatch Bridge 1 Dispatch Bridge 1 Dispatch Bridge

Images

Note 1: The new Ilo Terminal is currently under construction and will replace the current Ilo terminal Note 2 : Installed capacity = storage capacity of products + water + slop

Source: Memoria Descriptiva y Registro Fotográfico 7 Confidential Process of Southern Terminals Investment Oportunity

Average Exchange Rate ( Y/Y%) The Perú:operation país of conthe SouthmayorPerú Terminals crecimiento is a relevant en investment opportunity due to: 50% LATAM 30% • Peru is one of the highest growth emerging markets of the world, thanks to its favorable regulatory 10%

framework and free flow of capital, as well as an -10%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 important history of economic stability. -30% 2007 Perú LATAM • Fuel consumption in the Southern Region has -50% grown at 8.3% annual compound between 2013 Source: World Economic Outlook (WEO), IMF (April 2018). and 2017, driven by large mining and infrastructure Growth GDP Perú vs. Latam investment. 4.9 4.0 3.6 3.2 3.4 3.4 • The Southern Terminals are unique assets, 2.7 3.0 2.8 2.5 strategically located and without current 2.0 2.3 2.3 1.5 competition. The sector has entry barriers mainly due to regulatory and financial requirements.

• The location and development areas of the

Perú

Chile

Brazil Latam

Southern Terminals will allow you to capture the Mexico Ecuador future demand with investment in the terminals. Colombia 2007-2017 2018E Source: World Bank • There is a growing demand for storage in the Credit Risk southern region, which is expected to continue increasing thanks to the development of mining, LATAM 2017 S&P Fitch Moody's energy and infrastructure projects in the region. Chile A+ A Aa3 Perú BBB+ BBB+ A3 Colombia BBB- BBB Baa2 Brasil BB- BB- Ba2 México BBB+ BBB+ A3

Source: MEF 8 Confidential Process of Southern Terminals How to Participate and Contact SUMMA Asesores Financieros S.A. (hereinafter "SUMMA") is in leading the promotion process for the awarding of the Southern Terminals operation. Table 3 Those interested in buying the Bidding Terms of the contest must: Information for Deposit

• Make the deposit of US $ 5 thousand in the Bank Account of Petroperú Information Account Petroperú indicated in Table 3. • Beneficiary PETROPERU S.A. • Send proof of the deposit in the aforementioned account to the email [email protected], together with the contact person's • RUC/DNI 20100128218 information, company name and address. • Account N° 000-0407628 Av. Canaval y Moreyra After receiving the Bidding Terms, you must comply with the procedure • Address 150, San Isidro indicated in section 5 of the Bidding Terms. • City and Country Lima, Perú Any questions regarding the process can be communicated with SUMMA to the contacts below.

Bank Information Name Position Email • Name Scotiabank

Carlos A. García Managing Director [email protected] Av. Dionisio Derteano 102, • Address Cercado de Lima 15047 Guido Vingerhoets Vicepresident [email protected] • City and Country Lima,Perú Daniela Polar Vicepresident [email protected] • SWIFT Code BSUDPEPL Fernando Saavedra Analyst [email protected]

T (511) 446 5252 Av. Benavides 1238, of. 902 Miraflores, Lima 18 www.summa.com.pe 9 Confidential Process of Southern Terminals Glossary

Abbreviation Definition

m2 Squared Meters

M Thousands

MM Millions

bbl Barrels

Mbbl Thousands of Barrels

MBOPD Thousands of Barrels per day

BID Interamerican Development Bank

RAD Reception, Storage and Dispatch

CAGR Compound Anual Growth Rate

Diesel Type of fuel

Gasohol Mixture of gasoline and alcohol

LPG Liquid petroleum gas

10 Confidential SUMMA Asesores Financieros S.A. Av. Alfredo Benavides 1238 Of 902 Miraflores, Lima 18

T (511) 446 5252 www.summa.com.pe