A Royal Dutch/Shell Group unit has agreed to evaluate the commercial potential of Peru's Camisea gas fields, paving the way for a possible development project that has been stymied for 6 years.
State owned Perupetro SA has validated the agreement with Shell Internationale Petroleum Mij. BV. It probably will be signed this week, once approval is published in the official gazette El Peruano, said Shell's Lima office.
Under the agreement, Shell will present a report to Perupetro by May 31, 1995, on the commercial feasibility of a project to develop the fields following market studies of Camisea natural gas and condensate utilization and a technical evaluation of development options. The two companies then will have until Dec. 31, 1995, to negotiate a contract.
CAMISEA BACKGROUND
Shell found the Camisea area fields in the Ucuyali basin of Peru's southern central jungle with a $200 million exploration campaign during 1981 87.
The area to be studied is in the southeast quadrant of Block 42 holding Cashiriari, San Martin, and Miapaya fields (see map, OGJ, May 7, 1990, p. 43).
Shell, following its initial Camisea discovery well, drilled two wells each in Cashiriari and San Martin and one in Miapaya (OGJ, Sept. 14, 1987, p. 32). At the time, Shell estimated potential reserves at 11 tcf of gas and 500 million bbl of condensate.
On Mar. 10, 1988, Shell signed a heads of agreement with Perupetro predecessor Petroperu on a $1.3 billion project to develop the fields. Talks were halted by the administration of President Garcia following political controversy over the proposal.
A Shell team last year told the government the company was interested in marketing fuels in Peru, developing Camisea fields, and exploring new areas.
Shell will cover the study's cost, except for Perupetro personnel. Perupetro agreed to not offer Camisea area acreage while the study is under way.
Shell's market study will focus on options to develop gas and condensate and sell production in Peru and abroad.
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