Getting the lie of the land in Peru

Getting the lie of the land in Peru

Background/overview of services

  • The block is located in the north of Peru, on the eastern side of the Andes, approximately 600km from the coast. No development drilling has yet taken place with appraisal work to date based on seismic data only.
    Our techno-economic evaluations considered low, medium and high reservoir outcomes, taking account of the large uncertainty in reservoir performance.
    Gas and liquid monetization opportunities were identified based on the specific features and infrastructure of the northern Peru region. Only those options for which a minimum future market certainty could be established or where the technology is sufficiently mature were developed to assess the business performance.

Challenges

  • Only seismic data available, no well tests, hence significant uncertainty in production rates and total recoverables.
  • Limited existing product export infrastructure in region; block location also geographically remote from major population centers.
  • The client was under time pressure with license obligations which required them to either drill an exploration well, or surrender the block.

Results

  • INTECSEA identified options for the successful commercial development of this block which were in line with the client's business objectives and supported a “drill or drop” decision.
  • INTECSEA’s broad experience provided expertise in the following areas; OPEX analysis, capital cost estimating, energy market analysis, technical evaluations, structured decision making framework.
  • Based on the outcome of this and other recent projects, INTECSEA has been re-awarded a frame-agreement with the client for facilities and HSE work.
  • INTECSEA’s specialists provided technical and non-technical expertise, allowing all aspects of the development to be considered.