The partners - Argentina's Pluspetrol (26%) and Tecpetrol (10%), US company Hunt Oil (36%), Algeria's Sonatrach (10%) and South Korea's SK Corporation (18%) - signed contracts August 26 with Peru's state-owned hydrocarbons investment company Perupetro for a 40-year concession on the block.
Just as the partners called block 88 Camisea, they called block 56 Pagoreni, and with its 3 trillion cubic feet of reserves it has become known as Camisea 2.
The source confirmed previous reports of overall investment in the block being some US$500mn. Work in the first two years will cost US$20mn.
By November the consortium expects to have handed in the environmental impact study (EIS), which should be approved by May 2005. Whereas work on block 88 was able to start before approval of its EIS due to special licenses, there are no special licenses for block 56 and work would only start in June 2005, the source said.
Seismic would be shot, and drilling rigs are on hand at the nearby block 88. Eventual production - expected at levels of 600 million cubic feet of gas a day (mcf/d) - would be directed to the Malvinas gas processing plant, and from there through the existing pipelines to a liquefied natural gas (LNG) liquefaction plant for export to North America.
About Business News Americas: Business News Americas is a multilingual news and business information service that covers the most important original stories in 11 different business sectors throughout Latin America everyday. Visit BNamericas to access our real-time news reports, 7-year archive, Fact File company database, and latest research reports.
Click here for a Free two week trial to our Latin America Oil & Gas information service.
Most Popular Articles