Gran Tierra defers Colombian pipeline project

Christopher E. Smith
Pipeline Editor

HOUSTON, Dec. 17 -- Gran Tierra Energy Inc., Calgary, has deferred a 100-km pipeline project in Colombia connecting Costayaco field to the Orito gathering facilities. Recent pressure-testing of the existing pipeline system and testing of friction reducers injected into the oil stream show the existing pipeline system can move about 15,000 b/d from Costayaco with new pumps.

Gran Tierra will move an additional 10,000 b/d by truck, allowing it to meet estimated second-half 2009 production of 25,000 b/d. The company reduced expected peak plateau production from 35,000 b/d, but extended the peak's duration to 3 years.

Gran Tierra estimates a $140 million savings for 2009 from deferring the pipeline project. The company said a WTI price of $61/bbl was needed to keep pipeline construction economical.

Gran Tierra, which discovered Costayaco field in 2007, holds five exploration licenses and a working interest in two technical evaluation areas in Putumayo basin. It has 100% interest in and is operator of the Chaza block and the field. It plans to spud Costayaco-7 this month, having encountered oil deeper in the primary reservoir zone than had previously been found with Costayaco-6, and drill development wells continuously in 2009.

Production in Costayaco and Juanambu oil fields is suspended while the existing pipeline remains shut-in. Output from other Putumayo assets, the Llanos basin, and the Lower Magdalena basin continues (OGJ Online, Dec. 4, 2008).

Contact Christopher E. Smith at chriss@ogjonline.com.

Related Articles

ETP unit gets FERC approval for gas exports to Mexico

03/21/2014 Energy Transfer Partners LP unit Houston Pipe Line Co. LP (HLPC) has received approval from the US Federal Energy Regulatory Commission to build a ...

Millennium Pipeline appoints president

03/20/2014 Millennium Pipeline Co. LLC has selected Joseph Shields as its president. He succeeds Rocco D’Alessandro, who held the position beginning in May 20...

Shah Deniz II, South Caucasus Pipeline contracts awarded

03/20/2014 The Shah Deniz and South Caucasus Pipeline consortia awarded project management and construction contracts for the development of Shah Deniz Stage ...

MARKET WATCH: NYMEX crude prices rise on Seaway pipeline expansion news

03/19/2014 Crude oil futures prices rose on the New York market Mar. 18 after Enterprise Products Partners LP told analysts and investors that an expanded Sea...

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