Exploration and Exploitation of Hydrocarbons in lot 64

Description

The objective of the Project is to extract the crude oil reserves discovered in the Situche Central deposit in Lot 64.

The design of the Project provides a modular execution scheme that facilitates the production of the discovery wells (early production) and allows the development of the deposit, according to the confirmation of its productive potential:

  • Phase A: Start of production of Well SC-3X
  • Phase B: Start of production of Well SC-2X
  • Phase C: Integral development of the Situche Central Deposit

Additionally, the project includes the drilling of an exploratory well to increase hydrocarbon reserves in the lot.

The project is carried out in accordance with the terms and conditions of the Joint Investment Contract signed by PETROPERU S.A. and Geopark Peru S.A.C. which includes an initial participation of 25% and 75% respectively, being Geopark Peru S.A.C. the Operator of the License Contract.

Pre-operative expenses

Includes the support activities for the fulfillment of the commitments derived from the License Contract. It includes the operation of the Sargento Puño camp, logistics platform for operations and administrative, environmental and relationship management with the native communities in the area of influence of the project.

Phase A

Its objective is the production of the SC-3X well. For this purpose, the prior approval of the Environmental Impact Study of the project and the assembly of the production, storage and transport facilities is required. The main investment items are:

  • Preparation of Environmental Impact Studies (EIAs) for development and exploratory projects.
  • Conceptual Engineering and FEED Studies of Phases A and B.
  • Extension of the Sargento Puño Camp.
  • Installation of the flexible pipeline EPF- Sargento Puño Camp
  • Port storage and conditioning facilities in the Sargento Puño Camp
  • Installations for early production (EPF) in SC-3X.
  • Drilling of a well for the production water formation.
  • Conditioning of the location, reconditioning and start-up of the SC-3X well.

Phase B

Its objective is the production of the SC-2X well. It comprises the following:

  • The conditioning of the location.
  • The reconditioning of the underground facilities in the SC-2X well.
  • Test and start of production.

Phase C

Covers the integral development of the Situche Central deposit. It includes:

  • Drilling of development wells.
  • Wells for drilling detritus disposal.
  • Facilities and production infrastructure (CPF)
  • Facilities for the reception of crude oil and transfer to the Morona Station of the Nor Peruano Pipeline.
  • EPC Export Pipeline - Morona Station

Exploration Schedule

Includes the drilling of 1 exploratory well.

Physical and financial progress

  1. Participation of Petroperu in the investment in accordance with the terms and conditions of the Joint Investment Contract PETROPERÚ-GEOPARK

Current situation as of 06.30.2021

  • The License Agreement and the exploratory project (drilling a well) are in a Force Majeure situation until the approval of the Environmental Impact Study (EIS) of the development project and until the sanitary emergency ends, respectively.
  • As of the second half of June 2020, operational activities at Camp Morona are suspended due to the health emergency.
  • Due to GEOPARK's decision to withdraw the License Agreement, PERUPETRO granted PETROPERÚ the Certificate of Qualification as an Oil Company (EP) for 100% participation in the contract. The transfer of the lot and its assets is coordinated.