LICENSE CONTRACT
FOR THE EXPLOITATION OF CAMISEA FIELDS
To execute the Exploitation
Initial Project, the Contractor (Consortium headed by PLUSPETROL)
established two different geographical areas for the works
execution. The Upstream Area comprising all the works to
be performed in the Camisea Area and the Downstream Area
comprising all the works to be performed in the Pisco Area.
The main works to be performed
in the Upstream Area are:
- Well Drilling
- Natural Gas Gathering and Reinjection
System (Flow Lines)
- Natural Gas Liquids Separation Plant
- Gas Compression Plant for Reinjection
and Transportation
Main works in the Downstream
Area are:
- Natural Gas Liquids Fractionation
Plant
- Condensates Topping Plant
- Products Storage and Loading System
Within the Upstream Area,
the Contractor has included a seismic acquisition project
to improve the understanding of the gas fields, which is
not a contractual obligation for the Contractor.
The EIA for Camisea works
was approved on December 17 2001, as consequence execution
of works began since that date.
In relation to the EIA
for Pisco works, on April 4, 2003 the DGAA (General Directorate
of Environmental Affairs) approved it, subject to the fulfillment
of some obligations and commitments. This approval allowed
to start works of onshore components of Fractionation Plant.
On July 11, 2003 the DGAA gave definitive approval to the
EIA of NGL Fractionation Plant Project, Loading Facilities
and Alternative Submarine Piping in Loberia Beach, Pisco,
thus allowing to start works of the offshore components
of the Project.
Work Execution
Plan
Contractor is developing
a “segmented-hiring and focused-supervision”
Work Execution Plan. This method is due to the need of accelerating
the execution of the project works in order to comply with
the terms committed, optimizing the project progress with
the specific and coordinated handle of studies, approvals
and critical acquisitions, adapting them to the climate
conditions, logistic facilities and financial availability.
Contractor, with the support
of a supervisory enterprise (Paragon Engineering Services)
performed the organization, administration and supervision
of the project works execution.
For the specific works
execution, these were segmented in different contracts:
Contracts for studies, design, main equipment manufacturing,
critical equipment acquisition, civil construction, installation
and mounting, etc.
EXPLOITATION
PROJECT ACTIVITIES AND PROGRESS
Well Drilling
Parker Drilling Co. was
in charge of the initial project wells drilling. From July
2002 to June 2003 wells San Martin 1001, San Martin 1004,
San Martin 1002 and san Martin 1003 were successfully drilled
in San Martin 1 platform. At the same time production tests
for San Martin 1001, 1004 and 1002 were executed. During
August 2003, workover of San Martin 1X finished.
During September 2003
to February 2004, drilling of San Martin 1005, San Martin
1006 and San Martin 3X-ST1in San Martin 3 platform, was
executed.
On April 5, 2004 the project
started up with the opening of SM 1002 well and the increase
of pressure in San Martín 1 cluster.
Flow Lines Building
These works were executed
by SADE and JJC General Contractors. Starting in March 2002
in the Malvinas to San martin 1 section and ending in December
2002.
Erosion remediation and
control works in the Flowlines route were performed within
October 2002 ans April 2004.
Construction of the
Separation Plant and Facilities in Malvinas
In March 2002 works of
Contract C-2 in charge of Graña y Montero were completed
including the building of fuel storage tanks, water tank,
two river docks, warehouses, deposits and roads.
In
April 2003, Graña y Montero finished works corresponding
to C-1 Contract, consisting of civil works and foundations
for installing separation and compression plants, as well
as the building of a landing strip, mechanical workshops
and main camp.
On November 2002, works
corresponding to Contract C3 consisting in the building
of control room for Separation Plant and Workshop and Warehouse
buildings. During June 2003 finished works of Contract C3.
On the other side, abroad,
different engineering and supply companies are executing
manufacturing works of installation and critical equipment
corresponding to the Separation Plant, Compressors and Facilities
which were finished in November 2002. In December 2002,
BBC Pacific and Challenger vessels arrived to Iquitos harbor
transporting Compressors and Separation Plant equipment
. In February 2003 reception of equipments and the components
of Separation and Compression Plant was completed.
Plant
mounting and balance works were charged to the consortium
integrated by Sade, JJC and Latintecna S.A. Assembling of
Separation and Compression Plant began at the end of January
2003, and finished during the first week of April 2004.
On April 9, 2004 was the
start up of the Separation Plant of Malvinas, when Gas from
San Martin 1 Platform, reached the Separation Plant.
On June 2, 2004 started
the filling of the Camisea Pipeline to Lima, considering
such date as the beginning of Commercial Extraction of Exploitation
Contract of Camisea Fields – Block 88.
Building of Fractionation
Plant and Facilities in Pisco
In April 2003, Consortium
TECHINT/ Graña y Montero began land movement and
conditioning corresponding to 
Contract
EPC-2: Civil works and mounting of Fractionation Plant in
a plot of land near Loberia beach, Pisco.
Main works and contracts
for building of Onshore component of the Fractionation Plant
are the following:
- EP-F Construction of Fractionation
and Topping Plant charged to HOWE BAKER.
- EPC-D construction of Refrigerated
and Atmospheric Tanks charge to CBI.
- PEC-2 contract of civil works and mounting
of Fractionation Plant charge to TECHINT/Graña
Montero Consortium.
Up
to May 2004 continue works for building Fractionation Plant
of Loberia Beach – Pisco, reaching a progress of 90%.
Main Works corresponding
to Offshore Component of Fractionation Plant are the following:
- Construction of submarine lines
for shipment of propane, butane, natural gasoline and
diesel.
- Construction of Loading Platform for
shipment of products.
These works are being executed by consortium
BELFI – COSAPI and began in October 2003, starting
with the piles anchorage for the Loading Platform building
Up to the end of May 2004 a progress of
75% have been reached in the building of Offshore component.
CONCESSION CONTRACTS FOR THE TRANSPORT
AND DISTRIBUTION OF THE CAMISEA GAS AND LIQUIDS
The Transportation and
Distribution Project includes the construction of a Natural
Gas and Natural Gas Liquids Pipeline Transportation System
from the Camisea fields (South Jungle – Cuzco) up
to the Central Coast of the country, having two main components:
One Natural Gas pipeline
of approximately 710 km length, going from the Malvinas
Gas Plant (Camisea) to the City Gate in Lurin – Lima.
One Natural Gas Liquids
pipeline of approximately 540 km length, going from the
Malvinas Gas Separation Plant (Camisea) to the Fractionation
Plant and Terminal in Pisco.
The licensee (TGP Consortium
– Transportadora de Gas del Perú) has developed
a pipeline construction strategy according to geographical
impediments, access availability and materials supply, dividing
pipeline construction in three big working areas: Jungle
Section, Mountain Section and Coast Section.
Transportation
Project Activities and Progress
Up
to March 2002, approval of the Environmental Impact Assessment
of the Natural Gas and Natural Gas Liquids Transportation
Systems has been obtained, as consequence the Licensee began
with the project works.
During March 2002 construction
works for camps in the jungle and mountain area, as well
as plants clearing and roads opening in Malvinas, Kepashiato
and Rumichaca.
Main activities of pre-building
were also performed during 2002, including permits, topographic
surveys and definition of pipeline route.
Up to April 2004, the process
to obtain rights of way finished.
Concerning
logistics for the project development, Contractor is performing
transportation of tubing, equipment and necessary material
for pipeline construction. These activities are being executed
by river and by land, treating that the load be stored in
the previously selected gathering points.
Progress reached in pipelines
construction are the following:
-
During December 2003, finished jungle
works of both ducts: execution of a total of 180 km
of rights of way opening, trenching, pipe stringing,
welding and back-filling of NGL Pipeline (14”
pipe), and Gas Pipeline (32” pipe).
-
- During January
2004, finished mountain works of both ducts: execution
of a total of: 340 km of rights of way opening, trenching,
pipe stringing, welding and back-filling of NGL Pipeline
(14” pipe) and gas pipeline (24” pipe).
During March
2004, finished works in the Coast: executing a total
of 210 km of rights of way opening, 210 km of pipe stringing
and welding of the gas pipeline (18” pipe).
- In February 2004, works for NLG
pipe stringing in the Coast finished , completing welding
and back filling of 40 km. of 18” pipe.
- Building works of the Pipeline
from Camisea to the Coast finished in March 2004.
- In April 2004 finished works for
hydraulic tests of gas and liquid pipelines.
- Continue building works of Pumping
Stations and Pressure Control with a progress of 99%.
- At the same time erosion remediation
and control works continue along the Pipelines route.
Activities and
Progress of the Gas Distribution Project in Lima and Callao
Transport
and Distribution Project also includes the construction
of the Natural Gas Distribution System in Lima and Callao,
which is being executed by GNLC, enterprise of TRACTEBEL
Group, selected by TGP Consortium as licensee of the Distribution
System.
The mentioned Distribution
System includes a tubing network for gas transportation
from the city gate in Lurin up to the Terminal Station in
Ventanilla. The system main duct will run through the city
of Lima and will have an approximated length of 62 km and
secondary ducts will have an initial length of 23 km. In
order to build the main duct it has been divided in three
sections: South, Center and North.
Up to April 2004, the main
progress of this project is the following:
In July 2002 the Environmental
Impact Assessment of Natural Gas Distribution by Pipeline
Network in Lima and Callao was approved.
In December 2002 the last
pipe load of 20” arrived, completing the pipes to
be used in the main duct and the secondary branches.
In October, construction
works of the South Section of the Main Duct began.
Up
to April 30, 2004, the total progress of the main duct installation
of Distribution systems is of 96%, with the following detail:
- Topographic Survey 84.20 km
- Pipe Stringing 82.60 km
- Trenching 82.30 0 km
- Welding 82.40 km
- Lowering-in and back filling 82.29
km
- Restoration 82.13 km
During April 2004 continued
works in the following fronts of the Main Pipeline: City
Gate (Lurin), Terminal Station (Ventanilla) and Vinsa branch
line. Also, Citygate works continued with a 99% progress.
In April 2004 finished
works for hydraulic tests of fourth and last section of
the trunk line. Also, works for hydraulic tests of branch
lines and entrance spool for initial clients continued.
Up to April 30, 2003 ,
total progress of the project, including Engineering and
Supplies is of 98.20 %.
