Repsol discovers a new large field of gas in Peru

abarrelfullabarrelfull wrote on 07 Sep 2012 06:02

Repsol has made a new gas discovery in Peru in the exploratory well Kinteroni X1 of block 57, situated in the Cuzco area. The initial production tests, currently in process, have registered gas flows of 1 million cubic metres per day (0.365 bcm/year), and 198 cubic metres of associated liquid hydrocarbons per day (72,270 cubic meters/year).

The structure of the Kinteroni field has a length exceeding 22 kilometres, and approximately 115 metres of net gas and condensates reserves.

Although the available data doesn’t allow the exact definition of the field resources, the structure’s size easily allows allocation of close to 2TCF (56 bcm) of volume.

Repsol is the operator of the joint venture that will operate the Kinteroni X1 field with a 41% stake, where Petrobras has a 35.15% and Burlington Resources Perú a 23.85%.

Repsol and Petrobras are currently in the process of acquiring Burlington’s total participation, which is pending the Peruvian authority’s formal approval.

The new field is situated to the north of block’s 88 and 56, participated by Repsol and are the Camisea project’s production source.

The discovery of Kinteroni X1 forms part of the company’s, Chaired by Antonio Brufau, principal strategic lines, which contemplate growth in the exploration and production (upstream) business and a larger presence in the integrated liquefied natural gas (LNG) business.

Peru’s Kinteroni X1 is added to the exploratory discoveries made by Repsol during the last few months, highlighting Huacaya X-1 in Bolivia, with registered production tests flows of close to 800,000 cubic metres of gas per day (0.3 bcm/year) and a new deep water oil field in the Santos Basin (Brazil).

The new field of Brazil, named Carioca and situated in Block BM-S-9, contains very significant oil resources and confirms this area as one of the group’s principal global growth areas. The well registered a production test of 2,900 barrels of crude and 57,000 cubic metres of gas per day (0.01 bcm/year).

Repsol also recently disclosed the online production of the Shenzi mega field in the US Gulf of Mexico, one of the world’s most promising deep water exploration areas.

Camisea Project

At the end of July 2005, Repsol signed a final agreement with Hunt Oil to develop Camisea’s (Pampa Melchorita) gas fields and LNG plant. Under this agreement, Repsol will exclusively market the4 million tons per year production of LNG. The agreement reached with Hunt Oil contemplates the acquisition by Repsol of 20% of Peru LNG Company LLC, owner of the noted liquefaction plant and a 10% stake in the 56 and 88 blocks of the Camisea field.

Camisea’s production will supply LNG to diverse markets on the American Pacific coast and Asian countries.

In September 2007, Repsol won the international public bid to supply liquified natural gas from Camisea field to the gas natural plant, situated in the port of Manzanillo on the Pacific coast of Mexico. The 15 year contract with an estimated value of 15 billion USD, provides for the supply of 67.5 billion cubic metres (bcm), equivalent to more than double of the annual consumption in Spain. The Manzanillo terminal will supply CFE’s power plants of the central-western area of Mexico.

Repsol in Peru

For more than 50 years, Repsol develops in Peru business activities of oil and gas exploration, manufacturing, distribution and marketing of oil products, and it is considered as one of the first companies by turnover and one of the most important taxpayers in the country.

In 1995 the company began its exploration activities and currently owns stock in eight blocks, being operator in four of them (two in the Marañon river basins and the other two in the Ucayali river basins). In august 1996 Repsol acquired LaPampilla refinery, the most important refinery in Peru, which has been a constant target of capital investment for its modernization.

In regards to product commercialization, Repsol is one of the sector’s principal operators with a network of more than 230 service stations situated thought almost all the country. Additionally, it realizes direct, industrial and aviation fuel sales and is the leader in the Peruvian LPG market.

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