Repsol YPF takes up 20% in LNG consortium - Peru
Published: Monday, August 1, 2005 17:05 (GMT -0400)
bnamericas.com
Spanish oil giant Repsol YPF (NYSE: REP) will participate with a 20% stake in the Peru liquefied natural gas (LNG) export project and will be the sole LNG exporter of the gas coming from the Camisea field, the company said in a statement Monday.
Repsol YPF said it has now formally signed an agreement with privately held US oil company Hunt Oil to participate in the Peru LNG project, ratifying a preliminary document signed in June.
As a result, the Spanish company will sell four million tonnes a year of LNG, equivalent to 15% of Repsol's total gas production, making the deal the largest LNG purchase agreement the company has ever signed. The other partners in the Peru LNG consortium are Hunt Oil with 50% and South Korea's SK Corporation with the other 30%.
Peru LNG plans to build a natural gas liquefaction plant at the Pampa Melchorita site to start operations by 2009. The plant will export LNG to the US west coast and Mexico, the statement said.
Peru LNG has signed an agreement with the Camisea upstream consortium to supply 620 million cubic meters a day of gas from blocks 88 and 56 in the Amazon jungle region to the liquefaction plant.
Under the agreement, Repsol also obtains a 10% interest in the blocks from Hunt Oil, the statement said.
Repsol YPF will also acquire a stake in the TGP transport company that currently transports gas from the Camisea fields to capital Lima.
The agreement will be for 18 and a half years from the start of operations of the plant, the statement said.
Repsol began its operations in Peru nine years ago. At the end of 2004, it held rights to three exploration blocks that cover 16,237 sq km. It also operates the 102,000b/d Pampilla refinery and has a network of 146 service stations in the country.
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