Energy Development Corp., a unit of Samedan Oil Co., has released details of its development plan for Amistad gas field in the Gulf of Guayaquil off Ecuador.
EDC signed a 15-year production-sharing contract with state firm Petro- ecuador for development of the field, which has estimated gas in place of 345 bcf and recoverable reserves of 177 bcf. EDC holds 100% interest and is operator of Block 3, on which the field lies.
Amistad production is expected to average 32.25 MMcfd during the 15-year period. The gas, which is 98.6% methane, will fire a 240-Mw thermoelectric power plant, to be built near Machala and integrated into Ecuador's national power grid.
The Amistad development project will cost an estimated $137 million: $45 million for exploration, $77 million for development, and about $14 million in postproduction expenses.
Exploration and development costs will be recovered within a 5-year period. EDC's production share will be 90% of the first 30 MMcfd of output.
Operational costs are estimated to total $6 million during 2001, when gas production will begin; a 3% increase is expected in 2002.
Development plan
A fixed platform is being built for Amistad in Houston. Two exploration wells and two development wells will be drilled from the platform, which will also serve as a production facility. Wells Amistad 5 and Amistad 7 will test seismic anomalies not previously probed, and Amistad 6 and 8 will further delineate the field.
The platform will be installed in 41 m of water; its height from the base to the heliport will be 71 m. The total weight of the platform will be 1,445 tons; it will be anchored on an 806-ton concrete base. The helirig will accommodate Bell 212 helicopters and a 15-ton crane.
A 30-in., 65-km pipeline will be laid from the Amistad platform to a terminal at Machala. The line will be laid at a depth of 1 m beneath the seabed; it will be rated to 60,000 psi and will be coated with epoxy resin and equipped with cathodic protection.
A 35-in., 2.6-km pipeline will transmit gas from Machala to a gas processing plant, from which the gas will move to a planned power generation facility. Although EDC's development plan for Amistad gas field is well advanced, the sponsor of the related power project, Ecuapower-the Ecuadorian subsidiary of Marathon Electric-has left the country as a result of a disagreement with the government over payments for power generated at another plant. EDC is actively seeking another firm to take over the generation project; several companies are reportedly interested.
