In September, Petroamazonas, Petroperú and Perupetro are expected to sign a memorandum of understanding that includes strategies to cover the gas deficit in Ecuador and the sale of hydraulic power to Peruvian wells.
Ecuador and Peru are on track to sign a memorandum of understanding that will launch a geoeconomic project that contemplates the exploitation of oil blocks in the Ecuadorian southeast, natural gas and energy aspects for Peruvian fields.
The firm is expected by the end of September and involves Petroamazonas, Petroperú and Perupetro. On August 23, authorities from both countries and the top representatives of state-owned companies met in Lima.
The first part of the project consists of exploiting and monetizing the reserves and resources of blocks 86 and 87 that are outside the intangible zone of the Yasuní National Park.
Block 86 has greater potential, has heavy crude oil of 14 API grade and has five wells drilled between 1972 and 1983 (Balsaura, Amazonas, Conambo, Huito and Marañón).
In 1987, two exploratory prospects are defined for the M1 sandstone reservoir. The plan is to pump the crude oil through the Norperuano pipeline that is currently being upgraded by Petroperú.
Once the memorandum is signed between 2018 and 2021, the development plan, environmental studies and the social plan will be executed. In 2021 the intervention of the Norperuano pipeline will be completed and production of block 86 will be completed.
In that same year and until 2022, the wells of block 87 will be drilled and its production will start in 2023.
Álex Galárraga, manager of Petroamazonas, explained that the two blocks have a potential of 60,000 barrels of crude per day. “They are economically very good.” The second part of the project seeks to solve the natural gas deficit facing Ecuador.
By the end of the year, gas demand will be 90 million cubic feet (mmscfd), but installed capacity will barely exceed 50 million when Petroamazonas places a new well in the Amistad field in October.
Termogas Machala requires 65 mmscfd, Petroecuador 14 and Gas Vesubio 14. This would reach 93 million cubic feet. The strategy is to import gas through an agreement with Frontera Energy; request Perupetro to assign Petroamazonas areas for gas exploration; and buy international natural gas. “The idea is to set up a plant and instead of bringing LPG to move natural gas (…) Now $ 400 million in LPG is subsidized; that is to say that in two or three years it could be going down to about $ 100 million that natural gas costs, “said Galárraga.
Lastly, and without giving further details, the official indicated that in the geoeconomic plan there is the possibility that Ecuador will sell hydroelectric power for operations in oil fields located in the northern part of Peru. It is a proposal raised by private companies. (I)