BPZ Energy Finalizes the Acquisition of Block Z-1 in Peru
BPZ Energy
BPZ Energy reports that the Government of Peru issued
a Supreme Decree, authorizing Perupetro to sign a license contract with BPZ
Energy. With this contract, BPZ acquired 100% interest in the hydrocarbon
license on Block Z-1, offshore Northwest Peru, and became an approved offshore
operator. The Z-1 Block is a mainly shallow-water block that covers nearly
3/4 million acres extending out from the shoreline to the international
boundary with Ecuador.
BPZ has already completed contract requirements for the first exploration period, including an environmental impact assessment (EIA) study and a detailed inspection of the four existing offshore platforms. In addition, a substantial amount of seismic data was reprocessed, leading to a series of seismic depth-structure maps on significant horizons. Those maps, together with reprocessed well logs from selected offshore wells, form the basis of an integrated study of the subsurface potential. On the Corvina and Piedra Redonda structures, where platforms are located, BPZ confirmed the presence of natural gas reserves that have been certified by the international consulting firm Gaffney Cline & Associates as totaling 4.02 Tcf (trillion cubic feet, including proved, probable, and possible reserves).
Manolo Zuniga, President of BPZ Energy, stated, "As operator, BPZ will now be able to immediately begin the development of these natural gas reserves and carry out further exploration for both oil and gas in the block. Our plans for the short term include upgrading the two platforms to ensure that they are in good working condition. At the Corvina platform the existing well will be re-entered and recompleted to put it on production. A short pipeline (10 miles) to shore will then be laid to deliver gas to a power plant to be erected on the coast near the village of Caleta Cruz. At this site there is already a small power plant owned by ElectroPeru that is operating next to a large sub-station capable of transmitting over 300 MW (megawatts) of electric power into Peru's national grid. BPZ's new plant will have an initial generating capacity of 140 MW. Additionally, once we consolidate our gas markets, we plan to bring Piedra Redonda online."
Mr. Zuniga added, "The substantial volume of gas reserves will allow BPZ to become a major player in the region's energy business, and the prospect of increasing revenues will facilitate BPZ's access to additional capital for expanded field development, increased power generation capacity, and enlarged transmission facilities."
BPZ has already completed contract requirements for the first exploration period, including an environmental impact assessment (EIA) study and a detailed inspection of the four existing offshore platforms. In addition, a substantial amount of seismic data was reprocessed, leading to a series of seismic depth-structure maps on significant horizons. Those maps, together with reprocessed well logs from selected offshore wells, form the basis of an integrated study of the subsurface potential. On the Corvina and Piedra Redonda structures, where platforms are located, BPZ confirmed the presence of natural gas reserves that have been certified by the international consulting firm Gaffney Cline & Associates as totaling 4.02 Tcf (trillion cubic feet, including proved, probable, and possible reserves).
Manolo Zuniga, President of BPZ Energy, stated, "As operator, BPZ will now be able to immediately begin the development of these natural gas reserves and carry out further exploration for both oil and gas in the block. Our plans for the short term include upgrading the two platforms to ensure that they are in good working condition. At the Corvina platform the existing well will be re-entered and recompleted to put it on production. A short pipeline (10 miles) to shore will then be laid to deliver gas to a power plant to be erected on the coast near the village of Caleta Cruz. At this site there is already a small power plant owned by ElectroPeru that is operating next to a large sub-station capable of transmitting over 300 MW (megawatts) of electric power into Peru's national grid. BPZ's new plant will have an initial generating capacity of 140 MW. Additionally, once we consolidate our gas markets, we plan to bring Piedra Redonda online."
Mr. Zuniga added, "The substantial volume of gas reserves will allow BPZ to become a major player in the region's energy business, and the prospect of increasing revenues will facilitate BPZ's access to additional capital for expanded field development, increased power generation capacity, and enlarged transmission facilities."
RELATED COMPANIES
Most Popular Articles
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- McDermott Settles Reficar Dispute
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension