Campos Ishpingo A and B will produce by the end of the year

Ecuadornews:

The plans depend on the Ministry of Environment delivering Petroamazonas licenses in March and April. Block 43-ITT will extract 125,000 barrels of crude a day. The extraction of oil in Block 43-ITT (Ishpingo, Tambococha and Tiputini) will reach an average of 125,000 barrels per day throughout 2019.

The target estimated by the public company Petroamazonas, responsible for oil production, includes 30,000 barrels per day (bpd) from the platforms Ishpingo A and Ishpingo B, located near the buffer zone of the Yasuní National Park.

Since November of last year the state oil company expects the Ministry of Environment (MAE) to approve the licenses, to give way to operations in those areas. The last offer of the State Portfolio is to deliver the permits in March and April of the current year. If this is true, the production in Ishpingo A would start in October with an estimated 15,000 barrels per day. Ishpingo B would operate in December and provide a similar amount.

The license includes the construction of the platforms, facilities and the entire environmental management plan. Álex Galárraga, general manager of Petroamazonas, told EL TELÉGRAFO that in the first semester of the year the average daily pumping, across the ITT, will reach 72,000 barrels and for the second semester will be 100,000.

The jump in production will also be possible because it will increase the processing capacity of the Tiputini Temporary Processing Center (CPT). Currently the CPT is capable of processing 400,000 barrels of crude oil per day, but from June it will rise to 700,000 barrels.

The facility has four three-phase tanks that are responsible for separating water and gas from the extracted oil.

Intervention in the buffer zone

Initially, the Government planned to intervene other five platforms located within the buffer zone, which aroused the rejection of environmental groups and other sectors of society. The intervention was suspended until incorporating stricter environmental protection measures, at the suggestion of the Environment Portfolio.

Galárraga clarified, however, that although in 2019 there will be no activity, and this is not ruled out by 2020. “We continue to present all the answers to the contingency plans that are going to be given in that area (of buffer),” he explained.

The Block 43

Development Plan contemplates the drilling of 651 wells on 26 platforms. The Ishpingo area encompasses 10 platforms with 293 wells. The rest is shared between Tambococha, Tiputini and Tiputini Norte.

Since the start of the exploitation in the ITT, in September 2016, up to now the investment amounts to $ 918 million; $ 500 million were transferred in 2018. That year generated an oil income of $ 605 million.

Until 2021 the block is expected to achieve an approximate production between 200,000 and 250,000 barrels. 2018 goal, unfulfilled Petroamazonas aimed to close the year with an average volume of 80,000 bpd -even there was talk of the possibility of reaching 90,000-, but the truth is that the goal was not achieved.

Tiputini and Tambococha produced an average of 58,110 barrels per day. The reason? Galárraga attributed the results to the Ministry of Environment did not deliver the license for water injection in time. It was expected to be available in September 2017, but was delivered one year later (in November 2018).

Due to this delay, when the fields reached their maximum production in August, with 77,346 bpd, Petroamazonas decided to restrict operations. Oil extraction declined the following months, but it recovered in December, after obtaining the permit from the MAE.

By February 2019 Block 43 yields an average of 72,500 barrels per day at an operating cost of $ 3.92 per barrel.

Galárraga said that the company’s strategies aim to reduce the operating cost to $ 2.40.

The reduction will be possible because items related to diesel consumption will be eliminated, as there will be more supply for electricity generation. (I)

Source: https://www.eltelegrafo.com.ec/noticias/economia/4/campos-ishpingo-a-y-b-produciran-finales-ano