U.S. companies join gas/power project in Peru

Units of three U.S. companies have agreed to join a unit of Maple Gas Corp., Dallas, in an integrated gas and electrical power project near Aguaytia, Peru. It's the latest development in Maple's 2 year effort to become the first private company to produce and sell nonassociated gas, refined products, and electrical power in Peru (OGJ, May 9, 1994, p. 27). Maple Gas Corp. del Peru Ltd. in a letter of understanding said it will operate the gas portion of the $200 million project with

Aug. 21, 1995

3 min read

Units of three U.S. companies have agreed to join a unit of Maple Gas Corp., Dallas, in an integrated gas and electrical power project near Aguaytia, Peru.

It's the latest development in Maple's 2 year effort to become the first private company to produce and sell nonassociated gas, refined products, and electrical power in Peru (OGJ, May 9, 1994, p. 27).

Maple Gas Corp. del Peru Ltd. in a letter of understanding said it will operate the gas portion of the $200 million project with technical assistance from Panhandle International Development Corp., Houston.

Entergy Power Development Corp., New Orleans, will operate power project components. El Paso Energy Development Co., El Paso, Tex., also agreed to the letter's terms.

As operator of Aguaytia gas facilities, Maple del Peru will own production from Aguaytia field, a 223 bcf gas reservoir north of Rio Aguaytia in the Ucayali region of Central Peru. Maple in the letter of understanding agreed to drill five gas wells in the field and construct and operate project gas processing facilities, about 140 miles of gas pipeline, and 65 miles of natural gas liquids line.

On the power side of the project, Entergy will operate a 145,000 kw gas fired, thermoelectric power plant near the towns of Tingo Maria and Aguaytia, related electric substations, and about 265 miles of transmission facilities.

Terms of the four company letter of understanding are subject to definitive agreements and other unspecified conditions.

Project background

Maple is developing the integrated Aguaytia gas/power project under one of three long term license contracts that were the first signed under Peru's 1993 hydrocarbon law.

Activities covered by the agreements, essentially concessions, are organized into three phases.

In the first phase, Maple agreed to work over nine wells each in Peru's Maquia and Agua Caliente oil fields and drill two development wells in Maquia and one in Agua Caliente. The goal is to boost combined production of the fields to more than 2,000 b/d.

Maple early this year said it had begun working over wells in late September 1994 and was on target to achieve the expected production increase (OGJ, Jan. 16, p. 14). Maple expected to complete the workover and drilling programs in 6-12 months.

Gas and power components listed in the letter of understanding, as well as upgrades of the refinery at Pucallpa, are included in the project's second and third phases. In announcing the integrated project last year, Maple said all components will be ready for service by yearend 1995.

The Aguaytia project is part of a petroleum industry privatization push in full swing in Peru.