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HTL VIDEO |
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TAMARACK |
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PUNGARAYACU |
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CHINA / MONGOLIA |
Tena, a town of approximately 45,000 people, is located
in the middle of Block 20.
in the middle of Block 20.
Pungarayacu
The Pungarayacu Project will be governed by a contract signed by Ivanhoe Energy Ecuador Inc. with Petroecuador and Petroproduccion in October 2008. The contract is a 30-year Specific Services Contract, extendable by mutual consent for up to 10 years. Under this contract, Ivanhoe Energy Ecuador has the exclusive right to explore, develop and produce oil in Block 20, using its unique and patented HTL technology for production from heavier oil reservoirs. In addition, Ivanhoe Energy Ecuador has the right to conduct exploration for light oil in the contract area and to use any light oil that it discovers to blend with the heavy oil for delivery to Petroproduccion.To recover its investments, costs and expenses, and to provide for a profit, Ivanhoe Energy Ecuador will receive from Petroproduccion a payment of US$37.00 per barrel of oil produced and delivered to Petroproduccion. This payment will be indexed (adjusted) quarterly for inflation, starting from the contract date, using the weighted average of a basket of three U.S. Government-published producer price indices relating to steel products, refinery equipment and upstream oil and gas equipment.
In addition, Ivanhoe Energy Ecuador may elect to receive its payment in oil, based on market prices, delivered to Ivanhoe at a Pacific Coast terminal.
Development Schedule
The contract has three phases. The first two phases are for appraisal and evaluation of the field's production capability and the crude-oil characteristics, as well as for theconstruction of the first HTL plant. The third phase is for full field development and will include drilling additional exploration and development wells. Additional HTL capacity will be added as necessary for expected production.
The first phase, the Appraisal Phase, is expected to include the early drilling of a limited number of wells to more fully understand the characteristics of the oil and the reservoir. The necessary environmental permits to carry out this initial drilling program were obtained at the end of May, 2009. The drilling program is expected to be completed in the fourth quarter of 2009, subject to financing.
The first phase, the Appraisal Phase, is expected to include the early drilling of a limited number of wells to more fully understand the characteristics of the oil and the reservoir. The necessary environmental permits to carry out this initial drilling program were obtained at the end of May, 2009. The drilling program is expected to be completed in the fourth quarter of 2009, subject to financing.
In addition to preparing for field operations, Ivanhoe Energy Ecuador also is undertaking an in-depth community relations program with the indigenous and local populations in Block 20.
Environmental impact study and environmental management
plan
Activiidades Desarrolladas En Materia Ambiental
Old dreams come alive in nueva esperanza
Viejos sueños cobran vida en nueva esperanza
Community relations are an important and integral part of the Pungarayacu Project.
Block 20 is located just west of the principal producing oil fields of Ecuador and just north of a field operated by AGIP. The block is well serviced by roads and pipelines.
(Click image to enlarge)
(Click image to enlarge)
This satellite image of Block 20 shows the Andes Mountains on the left and the extensive river systems running through Block 20 towards the deep Amazon on the right.
(Click image to enlarge)
(Click image to enlarge)
