By OGJ editors
HOUSTON, Feb. 22 -- BPZ Energy Inc., Houston, signed a third agreement to sell gas produced from fields off Peru to electricity generating concerns in Ecuador and Peru.
BPZ looks at starting gas and electricity sales in Peru in the first half of 2006. It operates idle Corvina and Piedra Redonda fields on Block Z-1, in which it holds 100% interest.
Under the most recent preliminary gas sales agreement, BPZ would sell a peak 27 MMcfd of gas to Electroguayas SA to feed a 96-Mw turbine being built at Arenillas, Ecuador, 8 miles east of the border with Peru and 40 miles northeast of Corvina field.
BPZ previously signed similar agreements with Intervisa and Termopichincha, both entities planning to develop gas-fired electric power generation in Arenillas.
The combined total peak sales from the three agreements will be 74 MMcfd. BPZ is working to convert the preliminary agreements to finalized take-or-pay contracts.
First phase gas sales from the block in 2006 are to support BPZ's integrated electric power project at Caleta Cruz, Peru, 10 miles from Corvina field (see map, OGJ, Jan. 24, 2005, p. 38).
Gas sales to Arenillas make up the second phase. The third phase would bring gas 140 miles north of Corvina field to Guayaquil, Ecuador, where most of the local industry and 600 Mw of power generation capacity are located. BPZ has signed one 50 MMcfd preliminary gas sales agreement to Guayaquil.
BPZ holds exploration and development rights on Block 2 in southwestern Ecuador and 2.7 million acres on blocks Z-1, XIX, VI, and XVI in northwestern Peru. It also owns a nonoperating interest in a producing property in Southwest Ecuador.
