Petroleos del Peru to loop Norperuano pipeline

Eric Watkins
Senior Correspondent

LOS ANGELES, July 24 -- Peru's state-owned Petroleos del Peru plans to invest some $50 million for an extension to the 852-km Norperuano crude oil pipeline that runs to the Pacific coast from fields in the northeastern jungle region.

Work on the pipeline extension, scheduled for June-December 2009, will include the installation of pipeline loops allowing the transport of heavy oil to the port of Bayovar from Block 67, now operated by Perenco Peru, Ltd.

The pipeline currently transports crude to Bayovar from the areas of San Jose de Saramuro and Andoas in Loreto.

Petroperu also is said to be negotiating to buy Perenco Peru's heavy crude oil for use in its Talara refinery, now scheduled for a revamp. Perenco Peru reportedly expects to produce 30,000 b/d in the block by the end of 2010. It will be transported via the pipeline.

Earlier this year, Perenco, Paris, completed the acquisition of Barrett Resources (Peru) LLC, which owned three heavy oil fields set for development on Block 67 of the Maranon basin (OGJ, Jan. 21, 2008, Newsletter).

A development plan approved in July 2007 called for oil production to start in January 2011, and—according to Perenco—the three fields on Block 67 will be able to produce up to 100,000 b/d from more than 300 million bbl of proved and probable reserves.

Refinery upgrade
The announcement about the Norperuano pipeline development coincided with reports that Petroperu will accept offers from prequalifiers on Aug. 1 for the management consultancy services tender for the $1 billion revamp of the Talara refinery.

The prequalifiers are ABSG Consulting, Consorcio Inelectra-Idom Ingeneria y Consultoria-Nippon Koei, Germanischer Lloyd-Lloyd Germanico de Mexico, and Venezolana de Proyectos Integrados-Vepica.

The Talara revamp aims to increase refinery capacity to 90,000 b/d from 62,000 b/d, optimize fuel quality at existing units, and construct new ones.

Bidding also is underway for the project's front-end engineering and design and engineering, procurement, and construction contract, with offers due on Aug. 22. Eleven groups have prequalified for the contract, including Dragados Industrial, Intecsa Ingenieria Industrial, Technip, Tipiel, SK Engineering & Construction, Snamprogetti, Constructora Norberto Odebrecht, GS Engineering & Construction Corp, Fluor, Foster Wheeler, and Tecnicas Reunidas.

The pipeline and refinery developments coincide with reports that Peru, already South America's fifth-largest gas producer, will become a net oil exporter by 2010.

According to energy minister Juan Valdiva, new fields under development by Repsol-YPF SA and Perenco could add 800 million bbl in crude reserves at their northern jungle oil fields.

The energy ministry said Peru is counting on $6 billion in investment in its oil and gas industry, including the $1 billion upgrade of the Talara oil refinery, to spur economic growth of 7%/year over the next 4 years.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

Mangalore refinery reports steady operations following expansion

02/13/2015 Operations are proceeding smoothly at Mangalore Refinery & Petrochemicals Ltd.’s (MRPL) refinery in Mangalore, India, following the recent comp...

Omsk refinery hits target for Euro 5 diesel output

02/12/2015 JSC Gazprom Neft has switched to the exclusive production of Euro 5-standard diesel fuels at its 21.4 million-tonne/year Omsk refinery in Western S...

Vietnam advances Dung Quat refinery expansion plans

01/26/2015 Binh Son Refining & Petrochemical Co. Ltd. (BSR), a subsidiary of state-owned Vietnam National Oil & Gas Group (PetroVietnam), has unveiled...

BORL plans capacity expansion at Bina refinery

01/15/2015 Bharat Oman Refineries Ltd. (BORL), a joint venture of Bharat Petroleum Corp. Ltd. and Oman Oil Company SAOC, is planning a two-phased project to e...

Georgia invites bids for country’s first refinery

01/09/2015

The government of Georgia is seeking investors to develop on a build, operate, and transfer basis what would be the country’s first refinery.

Essar commissions unit at Vadinar refinery

01/02/2015 Essar Oil Ltd., a subsidiary of Essar Energy PLC, has commissioned a second hydrogen manufacturing unit (MHU) at its 405,000-b/d Vadinar refinery i...

Vietnam, Japan sign MOU for grassroots Vietnamese refinery

12/23/2014 State-run Vietnam National Petroleum Corp. (Petrolimex) and JX Nippon Oil & Energy Corp., a subsidiary of JX Holdings Inc., have signed a memor...

Pertamina plans $25 billion revamp of Indonesian refineries

12/15/2014 PT Pertamina (Persoro) has entered agreements with Saudi Aramco, JX Nippon Oil & Energy Corp., and China Petroleum & Chemical Corp. (Sinope...

Pemex lets contract for delayed coking unit

12/04/2014 Petroleos Mexicanos (Pemex) has let a contract to Fluor Corp. unit ICA Fluor’s industrial engineering-construction joint venture with Empresas ICA ...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected