BG Group today announced record test results from
its 100% owned Los Suris field in southern Bolivia, using techniques
never before deployed in that environment.
On January 30, 2002, the Los Suris-5 well flowed at an average
daily rate of 58 million cubic feet of gas and 716.4 barrels of
condensate, thus exceeding all previous tests from any well drilled
in BG Bolivia's 100% owned producing fields. The flow rates were
a direct result of the use of an innovative completion technique,
used for the first time in Bolivia.
The Los Suris-5 development well, which spudded on October 31,
2001 and is the first operated well drilled by BG in Bolivia, is
aimed at supporting the recently completed La Vertiente (LVT) gas
plant expansion project in furthering BG's strategy to monetise
its Bolivian gas reserves in Brazil.
BG Deputy Chief Executive Bill Friedrich today said:
"The outstanding results from Los Suris underline the importance
of applying new technologies to extract maximum shareholder value
in our operated Bolivian fields. With the upgrading of the La Vertiente
gas plant last September, BG completed its plan to link hydrocarbon
production to gas processing, and connect it to Brazil through
the Bolivia to Brazil pipeline. The Los Suris success enhances
BG's ability to make long term gas supply commitments to the growing
Brazilian market."
BG supplies gas from Bolivia to the Sao Paulo distribution company
Comgas, whose demand for BG supply is currently approximately 2.1
million cubic metres a day (74.1 million cubic feet a day).
BG Bolivia General Manager Ed Miller today said:
"A major contributor to the success of the Los Suris-5 well
was the application, in this mature province, of new technology
successfully used by BG elsewhere in the world. At BG Bolivia,
we are also rightly proud of our outstanding Health and Safety
record of no lost time incidents, during what was a highly demanding
operation in a challenging environment."
The flow rate tests from the Los Suris-5 well were conducted through
a 56/64th-inch choke from a Carboniferous aged Chorro Formation
sandstone reservoir. The well reached a total depth of 4096 metres
in December 2001, and was undertaken using an innovative four and
a half inch monobore completion.
Notes to Editors
BG Group holds a 100% interest in the Los Suris field, which was
acquired through the purchase of Tesoro Bolivia Petroleum Company
in December 1999. It also holds a 100% interest in the La Vertiente,
Escondido and Taiguati producing fields, the Palo Marcado, Ibibobo
and Algarobilla undeveloped discoveries and the Block 20 East Exploration
Licence. In addition, BG has a 37.5% share of the Margarita Field
and a 25% share of the Itau field.
The La Vertiente gas plant is located 18 kilometres west of Villa
Montes in the Gran Chaco province of the province of Tarija. In
September 2001, it completed tests to pump additional gas volumes
to the Brazilian market.
BG Bolivia is contracted to deliver 1.4 million cubic metres a
day (50 million cubic feet a day) of gas to Brazil through the "back-to-back" contracts
that Tesoro had with the state oil company Yaciminetos Petroliferous
Fiscales Bolivianos (YPFB).
BG Group works across the spectrum of the gas chain, with an operational
strategy to develop gas markets and construct infrastucture in
tandem with its exploration interests. Active on five continents
in some 20 countries, it operates four business segments - Exploration & Production,
LNG, Transmission and Distribution & Power Generation. BG's
core areas are in the UK, Egypt, Kazakhstan, South America and
Trinidad.
In South America, BG controls the major gas distribution hubs
of MetroGAS in Buenos Aires and Comgas in Sao Paulo. It is also
a participant in the Bolivia-Brazil pipeline and the Gasoducto
Cruz del Sur, which is being constructed to take Argentine gas
to Uruguay. In April 2001, the Brazilian regulator awarded BG firm
capacity in the Bolivia-Brazil pipeline until December 2002, allowing
BG to deliver equity gas to Comgas from its 100% owned properties
in Bolivia, thus completing an integrated gas chain.
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