MercoPress. South Atlantic News Agency

Peru en route to become regional natural gas power

Exploratory well Kinteroni X1

Spain's Repsol announced the discovery of a new gas deposit at block 57 in Peru's Cuzco department that holds 56.6 billion cubic meters. The discovery was made at exploratory well Kinteroni X1 where initial production tests have reached 1Mm3/d of gas and 198m3 of associated liquid hydrocarbons.

Repsol discovery structure is more than 22km long and has some 115 meters of liquid gas and condensate reservoirs, Brazil's federal energy company Petrobras, which holds a stake in the project, said in a separate statement. The discovery will guarantee domestic use of this fuel for 30-40 years without any fear of a shortage, Peru's state news agency Andina quoted Peruvian President Alan García. Repsol YPF controls 41% of the consortium exploring in the block. Petrobras and Burlington Resources control 35.15% and 23.85% respectively. Repsol and Petrobras are in the process of acquiring Burlington's stake in the consortium, which is pending approval from Peruvian authorities, the statement said. Kinteroni X1's discovery falls under one of Repsol principal strategic lines that envisions growing its upstream and LNG businesses, the statement underlined. The new discovery is next to the Camisea field a gigantic gas source discovered in 1984 and containing 13.4 trillion cubic feet. "The well is evidence that we have a full structure of gas and this should stimulate greater investments to search for gas deposits in the area", said president Garcia. He emphasized that the resources will ensure "a quick change of the energy model of Peru from oil to natural gas", which has become crucial for a country that is a net importer of crude and is on track to a "war economy" given the constant rise in international fuel prices. Jose Manuel Gallego Repsol General Manager in Peru said the finding confirms "the existente of a gas basin in Cuzco, next to Camisea". The new well is 60 kilometers north of Camisea and this is a great boost for investment in developing energy in Peru, added Gallego. Repsol has been involved in Peru for over half a century in oil and gas exploration as well as production, distribution and trading of hydrocarbon products.