BPZ Energy working to restart oil production off Peru

Feb. 19, 2008
BPZ Energy expects to restart production of its 21XD and 14D wells in Corvina field off Peru within 3 weeks. The wells were shut in following an accident involving a BPZ-chartered tanker.

By OGJ editors
HOUSTON, Feb. 19 -- BPZ Energy Inc. expects to restart production of its 21XD and 14D wells within 3 weeks. The wells in Corvina field off northwestern Peru were shut in following an accident involving a BPZ-chartered tanker.

A Peruvian Navy tanker, the Supe, caught fire and sank on Jan 30, resulting in the death of one sailor and serious injuries to four other sailors (OGJ, Feb. 11, 2008, Newsletter).

The tanker, being used for oil storage, was moored near BPZ's CX-11 platform in Block Z-1. Consequently, platform operations were halted. The 21XD and 14D wells produced 4,200 b/d of oil when they were shut in. The platform and wells had no fire damage.

BPZ hired Clean Caribbean and Americas (CCA) to conduct an environmental damage assessment. CCA concluded most of the 1,300 bbl of oil in the tanker was burned.

Divers inspected the sunken tanker, resting in 200 ft of water. No crude oil or fuel was detected in any tanks. Tests to seawater indicated no contamination to water and marine life.

BPZ of Houston is an exploration and production company having exclusive license contracts for 2.4 million acres in four properties in northwest Peru. It also owns a minority working interest in a producing property in southwest Ecuador.