Total made final decision to develop Incahuasi gas field
The French major company, Total and its partners, Gazprom from Russia and Tecpetrol de Bolivia (Tecpetrol), made the final investment decision (FID) to develop the gas and condensate discoveries from Incahuasi in Bolivia.
In a country where the production of natural gas is historically dominated by Petrobras from Brazil and Repsol from Spain, Total started the exploration in Bolivia in 1996 in the Aquio and Ipati blocks.
With only two clients , Brazil and Argentina, Bolivia is the largest exporter of natural gas in South continent of Americas.
In both cases the development of their domestic resources will take time while the local consumption will continue to grow and will require to increase import from neighboring countries such as Bolivia.
In Bolivia the natural gas fields are trapped in the deep underground of the Andes Mountain Range.
After the successful drilling of the ICS-2 exploration well in the deep underground, Total and its partners Gazprom and Tecpetrol made the final investment decision to develop the Incahuasi discovery.
The Incahuasi gas field is located in the Ipati Block approximately 250 kilometers southwest of Santa Cruz.
Because of the 6,000 meters depth from the Andean foothills, the Incahuasi reservoir is submitted to high pressure and high temperatures calling for special drilling and production techniques.
Total tendered Incahuasi project on competitive FEED
Within Incahuasi project, Total and its partners share the working interests such as:
– Total 60% is the operator
– Gazprom 20%
– Tecpetrol 20%
Based on this expertise Total is planning to develop Incahuasi with:
– One production well in the Aquio Block
– Two production wells in the Itapi Block
– Export pipelines system for the natural gas and the condensate to Peru and Argentina.
In addition Total is considering additional exploration and appraisal wells in the Aquio and Itapi Blocks for further expansion.
In the first phase, Total and its partners are planning to invest $500 million capital expenditure and the full field development is estimated to require a total of $1 billion investment over the next five years.
In the same time as they made the final investment decision, Total and its partners, Gazprom and Tecpetrol de Bolivia awarded the engineering, procurement and construction (EPC) contract to the winner of the competitive FEED in expecting the first commercial operations by 2016.