Alvopetro to sell gas in early 2020

05/27/2019

Alvopetro intends to start marketing natural gas from the Caburé field in the Recôncavo Basin in January 2020. The information is from the president of the company in Brazil, Carlos Eduardo Freitas.

“Among the possible alternatives to monetize gas, we opted for the direct sales model with the [Bahiagás] distributor,” the executive told BE Petróleo, noting that his active partner, Imetame, chose to build a thermoelectric plant as a commercial solution.

The gas will be transported by a pipeline of 11 km to the Natural Gas Processing Unit  (NGPU) – which will be able to process 500 thousand m³ / day of gas – and from there, transported by a line of 15 km from Bahiagás to one of the state’s distribution bases.

The purchase and sale agreement between Alvopetro and Bahiagás provides for the construction, by the distributor, of the NGPU  15 km pipeline to its distribution network and a city gate of 1.9 million m³ / d at the oil company’s facilities.

The negotiated volume is 150 thousand to 350 thousand m³ / day, with a take or pay clause. The estimated sale price for gas is US $ 8.67 per million BTU, with annual readjustment.

The midstream of the Caburé operation will be 100% of Alvopetro, who opted to outsource the NGPU service. The unit will be built and operated by Enerflex, and its works are expected to be completed later this year.

One of the unit’s three skid compressors has already been tested in Houston and will be shipped to Brazil in May. The facilities in Bahia already have the pig receiver (valve system) tested and control room, as well as line tubes, for the transfer duct.

Caburé has four producing wells, and another three or four development wells are expected to be drilled by the end of the year. The field contains 2P reserves estimated at 4.6 million boe.

Freitas also said that the company’s onshore production is aligned “with the government’s move to unlock investments in the natural gas segment, which, together with Petrobras’ divestment plan, should attract other companies.”

Although the company does not discard new business opportunities, its focus at the moment is to develop the other assets of its portfolio.

“Within our portfolio we can increase our reserves and the potential for gas production. Whatever appears interesting, we can look and investigate. But the time is to develop our assets, “he concluded.

Alvopetro has participation in the fields of Caburé (49.1%) and Gomo (100%), both in the Recôncavo Basin. In partnership with Suez, it holds 65% of the REC-T-57, REC-T-62, REC-T-71 and REC-T-145 concessions in the same basin.

Source: Brazil Energy

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