Antilles Oil and Gas NL is pleased to announce progress in the development of gas infrastructure in onshore southern Peru, specifically at Block 105 where Antilles holds 100% equity.
Peru and Bolivia two nation meeting
The Presidential meeting on 23 June 2015 between Peru and Bolivia discussed the prospect of Bolivia linking into the South Peru Gas (SPG) pipeline project. The presidents of Peru and Bolivia agreed to study a project that would grant Bolivia access to the Pacific coast of Peru by connecting into the existing pipeline from the Camisea Project (SPG).
The South Peru Gas pipeline is important to Antilles, as it provides a pipeline into our 100% owned Block 105 and provides an economic means for the potential export of any gas discovered on the block. The pipeline is scheduled to finish construction by March 2019 and will transport gas over the Andes to the coast from the Camisea jungle area.
The project is considered key to the economic development of southern Peru and has been designated as in the national interest by the Peruvian government. Demand for natural gas from the pipeline is estimated as an initial demand of 500 MMcfg/d and could be expanded 800 MMcfg/d. The 34-year pipeline concession plans to send gas from the Camisea jungle region across the Andes to the south coast terminating in Ilo.
The project plans to increase natural gas production for the domestic market, provide an energy source to large mining projects, provide cheap power for the economic development of southern Peru and develop a petrochemical industry for the region. The plan calls for a 1,000 km pipeline 32 inch pipeline with construction in three sections. At the meeting, Bolivian hydrocarbons and energy minister, Luis Sanchez and Peruvian energy and mines minister Rosa Mar?a Ortiz Rios signed an agreement for the planned export of Bolivian gas.
David Ormerod, Managing Director, commented:
'Antilles is pleased to provide this investor update which illustrates the means of export for gas if found in our upcoming exploration program. The planned well is projected to drill into the equivalent section to that which has the Camisea gas project reservoirs and the company is undertaking seismic reprocessing to better define targets at those reservoirs. Results of the seismic work are expected in the current quarter.'
