The San Martin and Cashiriari fields, jointly known as Block-88, Camisea, are
home to one of the most important non-associated natural gas reserves in Latin America. The proven volume of gas “in situ” (OGIP: original gas in place) in Block 88 is 8.7 trillions of cubic feet (TCF), with an estimated ultimate recovery of 6.8 TCF of natural gas (recovery factor: 78 %) and 411 million barrels of associated natural gas liquids (propane, butane and condensate).
The upside potential of Block 88 is estimated in 11 TCF of natural gas (the proven + probable volume of gas “in situ”). The estimated ultimate recovery considering the proven + probable volumes is 8.24 TCF of gas and 482 million barrels of natural gas liquids. The Camisea reserves are ten times greater than all other existing natural gas reserves in Peru.

The Camisea Project comprises the exploitation of these reserves, the construction and operation of two pipelines, one for natural gas (NG) and one for natural gas liquids (NGL) and the distribution network for natural gas in Lima and Callao. The pipelines wiII make NG and NGL available for domestic consumption and for export. Natural gas wiII be transported to the main consumption center in Lima, where it will be used for residential and industrial purposes and to generate electricity, that will then be distributed nationwide through Peru’s existing transmission infrastructure. NGL wiII supply the domestic LPG market and wiII also be a significant source of foreign currency earnings.

The development of Camisea reserves is a project that began years ago. It was between 1983 and 1987 that Camisea Gas Fields were discovered. In 1988, a Terms Agreement for the exploitation of Camisea was signed between Petroperu and a private company. However, the contract negotiation concluded without their reaching an agreement. In 1994 an Agreement for the Evaluation and Development of Camisea fields was entered into between Perupetro and the same private company. After submittal of the Feasibility Study (May 1995), a Contract for the Exploitation of the Camisea Fields was entered into between a private Consortium and Perupetro (May 1996). In 1998 the consortium decided the non-continuance of the second period of the contract.

Thus, in May 1999, the Special Committee for the Camisea Project (CECAM) called for an international public bidding to award the license agreement for the Camisea exploitation, as well as the concession for liquids and gas transportation to the coast and gas fuel distribution in Lima and CalIao. Eleven companies were pre-qualified to bid for the exploitation segment, and twelve for the transportation and distribution.

In February 2000, pursuant to an international public bidding process, the Peruvian Government awarded the license for the exploitation of the Camisea Fields (the Upstream Project) to a consortium led by Pluspetrol Perú Corporation S.A., with the participation of Hunt Oil Company of Peru L.L.C., SK Corporation and Tecpetrol del Perú S.A.C. (fully owned by Techint Group). The license was awarded based on the highest royalty rate offered. The Upstream Project consists of a 40-year license for the extraction of natural gas and liquid hydrocarbon.

In October 2000, a consortium led by Tecgas N.V. (fully owned by Techint Group) with the participation of Pluspetrol Resources Corporation, Hunt Oil Company, SK Corporation, Sonatrach Petroleum Corporation B.V.I and Graña y Montero S.A. was awarded the concessions for liquid and gas transportation to the coast and gas distribution in Lima and Callao (Downstream Project).

The Downstream Project includes three different 33-year contracts: a contract for the transportation of gas from Camisea to Lima, a second one for the transportation of natural gas liquids from Camisea to the coast and a third one for the distribution of gas in Lima and Callao. They were awarded on the basis of the lowest service cost offered, which determined the natural gas transport and distribution tariffs. Transportadora de Gas del Perú S.A (TGP) is the company formed by the consortium specifically created for the development and operation of the Downstream Project.

On December 9, 2000, the License Contract for the Upstream exploitation and the three Concession Contracts for gas and liquids transportation and gas distribution were signed in Lima (link to Perupetro).

Early in May, 2002, TGP selected Tractebel as operator of the Gas Distribution Company. GNLC (Natural Gas of Lima and Callao) is a Tractebel own Company, created to develop the natural gas distribution service in Lima and Callao. Besides, Tractebel will become a partner in TGP, which will maintain responsibilities for the gas and liquid transportation segment only.

More Information about Camisea Project Ombudsman