Executive Summary ......6

SWOT Analysis ......8

Chile Political SWOT 8

Chile Economic SWOT .... 9

Chile Business Environment SWOT . 10

Chile Energy Market Overview 11

Global Oil Market Overview ......13

Table: Global Oil Consumption (000b/d) . 14

Table: Global Oil Production (000b/d) ..... 15

Oil Price Outlook ......16

Waiting For A Correction ... 16

Table: Crude Price Assumptions 2007/08 . 17

Revised Forecasts ...... 17

Table: Oil Price Forecasts ...... 18

Regional Energy Market Overview ..19

Oil Supply And Demand ...... 19

Table: Latin America Oil Consumption (000b/d) . 20

Table: Latin America Oil Production (000b/d) .. 21

Oil: Downstream 22

Table: Latin America Oil Refining Capacity (000b/d) 22

Gas Supply And Demand .... 23

Table: Latin America Gas Consumption (bcm) .. 23

Table: Latin America Gas Production (bcm) ..... 23

Liquefied Natural Gas 24

Table: Latin America LNG Exports/(Imports) (bcm) .. 24

Business Environment Ranking ..25

Latin America Region 25

Composite Scores .. 25

Regional Upstream Business Environment Rating ...... 26

Regional Downstream Business Environment Rating . 27

Upstream Scores ... 27

Downstream Scores 27

Chile Upstream Rating – Overview . 28

Chile Upstream Rating – Potential Returns 28

Chile Upstream Rating – Risks to Potential Returns ... 28

Chile Downstream Rating – Overview ...... 28

Chile Downstream Rating – Potential Returns .. 29

Chile Downstream Rating – Risks to Potential Returns 29

Business Environment .30

Legal Framework 30

Infrastructure . 32

Labour Force.. 33

Foreign Investment Policy .. 33

Tax Regime . 34

Industry Forecast Scenario ...36

Oil And Gas Reserves 36

Oil Supply And Demand ...... 36
Gas Supply And Demand .... 36
Liquefied Natural Gas 37
Refining and Oil Products Trade . 38
Revenues/Import Costs . 38
Table: Chile Oil & Gas – Historic Data & Forecasts . 39
Other Energy .. 40
Table: Chile Other Energy – Historic Data & Forecasts..... 41
Key Risks to BMI’s Forecast Scenario .. 42
Long-term Oil & Gas Outlook ..... 42
Macroeconomic Outlook ....43
Table: Chile Economic Activity 44
Regional Case Study 45
Gazprom In the Americas ... 45
Competitive Landscape 50
Executive Summary 50
Table: Key Players . 51
Overview/State Role ... 52
Table: Key Upstream Players . 52
Table: Key Downstream Players ..... 52
Company Monitor ..53
ENAP – Empresa Nacional del Petróleo . 53
Copec – Compañía de Petróleos de Chile ...... 56
Shell Chile 58
ExxonMobil Cono Sur 60
Petróleos Transandinos RepsolYPF ...... 62
Total – Summary ... 64
Pan American Energy – Summary ... 64
Others – Summary 64
Glossary of Terms .65
Oil & Gas Ratings: Revised Methodology 66
Introduction 66
Ratings Overview 66
Table: BMI Oil & Gas Business Environment Ratings: Structure 67
Indicators . 68
Table: BMI Oil & Gas Business Environment Upstream Ratings: Methodology 68
Table: BMI Oil & Gas Business Environment Downstream Ratings: Methodology .. 69
Oil & Gas Outlook: Long-term forecasts ......71
Global Oil Demand 71
Global Oil Demand (000b/d) .. 71
Global Oil Production (000b/d) 72
Global Oil Supply ...... 72
Global Gas Demand .. 73
Global Gas Demand (bcm) ..... 73
Global Gas Supply ..... 73
Global Gas Production (bcm) . 74
Regional Oil Demand 75
Latin America Oil Consumption (000b/d) . 75
Regional Oil Supply ... 75
Latin America Oil Production (000b/d) .... 76
Regional Refining Capacity 76 Oil: Downstream 77 Latin America Oil Refining Capacity (000b/d) .. 77 Regional Gas Demand . 77 Gas Supply And Demand .... 78 Latin America Gas Consumption (bcm) .... 78 Regional Gas Supply .. 78 Latin America Gas Production (bcm) 79 Chile Country Overview ..... 79 Chile Energy Outlook 80 Chile Oil & Gas – Long-term Forecasts ... 80 Chile Other Energy – Long-term Forecasts 81 Methodology & Risks To Forecasts ...... 81 BMI Forecast Modelling 82 How We Generate Our Industry Forecasts .... 82 Energy Industry 82 Cross checks ... 83 Sources .... 83