The Peruvian government reported that the six-member Consorcio Camisea has begun production of natural gas at Pagoreni field on Block 56 in the Cuzco region and part of the Camisea gas-condensate project.
The consortium, comprised of Pluspetrol Peru Corp., Hunt Oil, SK Energy, Tecpetrol, Sonatrach, and Repsol YPF SA, said it will initially produce gas at six wells on the block.
The consortium said Pagoreni means an increase in the production of liquids of as much as 45,000 b/d and an increase in gas production from 500 MMcfd to 1.26 bcfd.
Gas is piped to the 450-MMcfd Malvinas gas processing plant near the Camisea fields and is then transported to Pisco, where naphtha, propane, butane, and diesel are extracted.
The consortium said the launch of production from Block 56 marks the exploitation of a new reserve of 3.4 tcf of gas and 227 million bbl of NGL, increasing the Camisea reserves to 14.8 tcf.
Development of Block 56, in which the consortium has invested some $850 million, is also being referred to as the second phase of the Camisea project as it is adjacent to Block 88, which went into production in mid-2004.
Welcomed production
The Block 56 production will be welcome in Peru, which is seeing demand growth for gas. In fact, demand has grown so quickly that the pipeline transporting gas from Camisea to the capital region has reached capacity.
The pipeline is operated by a consortium known as Transportadora de Gas del Peru SA, or TGP. According to the energy and mines ministry, TGP has a contract to increase capacity in the westbound pipeline to 450 MMcfd from the current 290 MMcfd.
Earlier this month, the Peruvian government awarded Conduit Capital Partners LLC subsidiary Kuntur Transportadora de Gas, SAC (Kuntur), a 30-year concession contract to build a southbound 700-km pipeline to carry gas from Camisea to the port of Ilo in southern Peru.
Development and construction cost for the pipeline, known as the Gasoducto Andino del Sur (GAS), is estimated to be $1.4 billion. Construction is due to begin in 2010, with operations expected to begin by yearend 2012.
Conduit said the pipeline will deliver “attractively priced gas that is expected to help spur economic growth in Peru’s southern region, which will begin facing power shortages as soon as 2011.”
EgyptGulf of Suez Petroleum Co., the joint venture of BP PLC and Egyptian General Petroleum Corp., is drilling an appraisal well at the early 2008 Burtocal oil discovery on the North Shadwan block in the southern Gulf of Suez.
The concession has three undeveloped discoveries, said Beach Petroleum Ltd., Adelaide, which is acquiring a 20% interest from Tri-Ocean Energy, private Cairo operator, subject to final ministerial approval.
Two shallow nearshore discoveries each found 8 million bbl proved and probable recoverable, while Burtocal identified 24 million bbl in the Cretaceous Nubia sandstone.
Beach pointed out that the Nubia came on line May 15, 2008, at Gupco’s Saqqara field, 7 km west of Morgan field, with four wells producing at the rate of more than 30,000 b/d through a 13-km pipeline to the Ras Shukeir onshore separation and gas processing plant.
NewfoundlandA group led by Chevron Canada Ltd. and Shell Canada Energy is seeking partners to carry part of the costs of an exploratory well in the Orphan basin 350 km east of St. John’s, Newf.
The well, to be drilled in 2009, would be only the second well in the basin (see map, OGJ, Aug. 8, 2005, p. 32). The first well, Great Barasway F-66, was drilled in 2006-07 at a cost of $200 million. Results are confidential.
A farmee would assume part of Chevron and Shell’s costs to earn up to a 25% interest in the prospect and an option to earn an interest in the balance of two licenses that total 4.2 million acres.
The licenses are in 1,500-3,500 m of water, and the prospect is supported by 3D and 2D seismic. ExxonMobil and Imperial Oil Ltd. each hold 15% interests in the licenses.
MissouriMegaWest Energy Corp., Calgary, reported production of 50 b/d of heavy oil from shallow Pennsylvanian sands at its Marmaton River steam drive project in Vernon County, Mo.
It is operating 40 producing wells, 13 steam injectors, a water supply well, and a water disposal well in 10 acres. Steam injection is to start in November on an adjacent 10 acres with 24 producing and 10 injection wells.
Steam preheat at the Grassy Creek project with 46 producers and 15 injectors on 19 acres was to begin Oct. 15.
