BPZ Resources announced the 2011 capital expenditures plan, approximating $50 million, for continued development of the Company's assets in northwest Peru. The majority of the capital budget is expected to be spent on offshore Block Z-1, primarily for the design and construction of an additional production platform for the Corvina oil field; as well as, for injection equipment to be installed on the platform in the Albacora oil field by year-end 2011. The new platform in Corvina, along with the injection equipment for Albacora, is budgeted at approximately $40 million this year. The new platform for Corvina will be installed with the production and injection equipment in 2012. The Company has also budgeted approximately $10 million for two automatic crude oil custody transfer units, improvements to the supply dock at Caleta Cruz and other capital projects.
In addition to capital expenditures, the Company plans to spend and expense approximately $18 million on seismic acquisition in Block Z-1 and $4 million to complete the seismic acquisitions in Blocks XXII and XXIII. At the CX-11 platform in Corvina, the Company plans two or three work-overs of existing wells to optimize oil production. Work-overs are expected to commence in the second quarter, and are budgeted at $3 million each. The Company may work over two or three of the existing oil wells at the Albacora platform in the fourth quarter of 2011 and are also budgeted at $3 million each. Work-overs are recorded as operating expense.
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