Repsol has started up the first producing well at the giant Perla field, the largest gas discovery in the company's history and the largest offshore gas field in Latin America, holding 17 trillion cubic feet (Tcf) of gas in place.
Perla is located in the Cardón IV block, in shallow waters in the Gulf of Venezuela, 50 kilometers offshore. The company expects to start producing 150 million cubic feet (Mcf) of gas a day, rising to 450 Mcf/day by the end of 2015. This gas will be used for local consumption in Venezuela.
In the two following phases, output will rise to 1.2 Bcf/day in 2020, a volume that would be maintained until the end of the contract in 2036.
Repsol and Italian company Eni discovered the Cardón IV block in 2009, where the consortium has drilled seven of the 26 wells planned as part of the development plan, which will feed four producing platforms that use underwater connections to transport the gas onshore for processing. The Cardón IV license is held by the Cardón IV S.A. joint venture between Repsol (50%) and Eni (50%).
The startup of this field is an important milestone in Repsol's development strategy, as it is the eighth key growth project to be launched as part of Repsol's 2012-2016 strategic plan. The other projects that are now operational are: Sapinhoá (Brazil), Mid-continent (US), AROG (Russia), Margarita-Huacaya (Bolivia), Lubina and Montanazo (Spain), Carabobo (Venezuela), and Kinteroni (Peru).
Repsol has been operating in the oil and gas sector in Venezuela since 1993, with a net production of 36,800 barrels of oil equivalent a day in 2014. The company is committed to supporting the country’s growth by actively participating in its development, creating jobs as well as taking part in and launching social development programs.
Repsol holds mining rights in eight producing blocks totaling a net surface area of 853 km2: Cardón IV, Carabobo, Quiriquire, Quiriquire (gas), Yucal Placer Norte, Yucal Placer Sur, Mene Grande and Barúa Motatán.
This document does not constitute an offer or invitation to purchase or subscribe shares, pursuant to the provisions of the Spanish Securities market Law (Law 24/1988 of the 28th of July, as amended and restated) and its implementing regulations. In addition, this document does not constitute an offer to purchase, sell, or exchange, neither a request for an offer of purchase, sale or exchange of securities in any other jurisdiction.
This document mentions resources which do not constitute proved reserves and will be recognized as such when they comply with the formal conditions required by the U.S. Securities and Exchange Commission (SEC).
This document contains statements that Repsol believes constitute forward-looking statements which may include statements regarding the intent, belief, or current expectations of Repsol and its management, including statements with respect to trends affecting Repsol’s financial condition, financial ratios, results of operations, business, strategy, geographic concentration, production volume and reserves, capital expenditures, costs savings, investments and dividend payout policies. These forward-looking statements may also include assumptions regarding future economic and other conditions, such as future crude oil and other prices, refining and marketing margins and exchange rates and are generally identified by the words “expects”, “anticipates”, “forecasts”, “believes”, estimates”, “notices” and similar expressions. These statements are not guarantees of future performance, prices, margins, exchange rates or other events and are subject to material risks, uncertainties, changes and other factors which may be beyond Repsol’s control or may be difficult to predict. Within those risks are those factors described in the filings made by Repsol and its affiliates with the Comisión Nacional del Mercado de Valores in Spain, the Comisión Nacional de Valores in Argentina, the SEC and with any other supervisory authority of those markets where the securities issued by Repsol and/or its affiliates are listed.
Repsol does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance, conditions or events expressed or implied therein will not be realized.
The information contained in the document has not been verified or revised by the External Auditors of Repsol.