Spanish energy firm Repsol and its partners have commenced gas production from the Sagari field, located in block 57 in the Cusco region of Peru.
The Repsol-operated field, which was discovered in 2012, is located in one of the areas with the highest gas production potential in Peru.
The Spanish firm said: “The start of production at Sagari will lead to a 25% increase in the block’s total output. Starting in January 2018, it will produce 5.6 million cubic meters per day: approximately one fourth of Peru’s total gas demand.”
With the production commencement from the Sagari, the block 57 total production capacity is expected to increase by 25% to 5.6 million cubic meters per day from January 2018.
The expansion in the block's production will be equivalent to one fourth of Peru’s natural gas demand, the company said.
Repsol has 53.84% stake in Sagari field while China’s China National Petroleum Corporation (CNPC) owns the remaining 46.16% interest.
According to preliminary estimations, the field holds between 1 and 2 trillion cubic feet of gas resources.
In 2012, Repsol carried out production tests at depths of between 2,691m and 2,813m, producing gas flows of 26 million cubic feet of gas with 1,200 barrels of condensate per day in one formation, and 24 million cubic feet of gas with 800 barrels of condensate per day in the other.
Repsol has been present in the Peruvian market since two decades through its upstream and downstream businesses.
Recently, the company has commenced production from the Reggane Nord gas fields in Algeria, marking the completion of one of its most significant projects in Africa.
Reggane Nord is in the south-west of Algeria, approximately 1,500 km from Algiers, in the Sahara desert.
Image: The Sagari field in Peru is estimated to hold between 1 and 2 trillion cubic feet of gas resources. Photo: courtesy of Repsol.