Third development well slated for Camisea project

By an OGJ correspondent

LIMA, Dec. 5 -- Argentine independent Pluspetrol SA, upstream operator in the Camisea natural gas project, expects to begin drilling its third development well in Block 88 within the next month.

Eliseo Bouza, manager of Pluspetrol Camisea, told a news conference Tuesday the company marked a milestone this month with the arrival at the Malvinas camp of up to 80% of the 100,000 tonnes of equipment—including compressors and cryogenic plants—targeted for shipment during the current weather window.

Barging is limited primary to November through March when rains increase the level of rivers enough to move heavy shipments.

On Oct. 26, Houston-based Parker Drilling Co. began drilling the project's second well, San Martin 3. The project's first stage calls for drilling four development wells and a reinjection well, with Camisea slated to begin producing by August 2004. The first two wells are the San Martin 1 and San Martin 3, to be followed by two development wells in Cashiriari natural gas field.

Ricardo Markous, manager of Transportadora de Gas del Peru (TGP) with Argentine's Tecgas as operator, said the company spent $300 million on downstream infrastructure. TGP has prepared 350 km of the total 720 km route for natural gas and liquids pipelines, buried almost 200 km of pipe, and rebuilt 20 bridges.

Markous said the transport investment adds up to $740 million, and financing costs would raise the total to $800 million.

Gas Natural de Lima y Callao, a Tractebel unit for distribution of Camisea gas and liquids in the capital city, Tuesday laid its first pipeline segment for entry into the city, after obtaining approval of its environmental impact assessment. The company said it has outlined half the pipeline route and expects to receive the last shipment of pipes within the next week.

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