Calgary, Alberta-based NG Energy International Corp. has entered into a non-binding memorandum of understanding (MoU) with its infrastructure partner INFRAES for its development in Colombia.
The MoU is for the completion of up to an additional 76 million cubic feet per day (MMcfpd) of pipeline capacity from Sinu-9 to be constructed in two stages, over the course of 15 months, following the execution of a definitive agreement, NG Energy said in a news release.
Sinu-9 is a development gas field located in the Lower Magdalena Basin adjacent to Colombia’s largest independent gas producer. The block is fully permitted with environmental approval granted by the National Authority of Environmental Licences (ANLA) to drill 22 wells from 11 locations, according to NG Energy’s website.
NG Energy is the operator of the joint operating agreement (JOA) signed with its partners Clean Energy Resources, Desarrolladora Oleum, and First Global.
In accordance with the MoU, the next stage of the Sinu-9 infrastructure development is expected to be contracted under a build, own, operate and maintain (BOOM) agreement, where INFRAES plans to build two pipelines each with up to 38 MMcfpd of capacity and cover 100 percent of the project cost.
The first pipeline will have a construction timetable of nine months following the signed definitive agreement, expected to be signed in the fourth quarter, according to the release. The second pipeline will be a twin pipeline and have a six-month timetable following the completion of the first stage and the necessary development drilling at Sinu-9, expected to occur throughout 2025.
INFRAES has received permits and easements for 60 percent of the 10.5 mile (16.9 kilometer) pipeline route to the receiving station at Recolectora Norte. Over the coming months, NG Energy, its JOA Partners, and INFRAES will evaluate the most optimal location for its second Central Processing Facility (CPF) and finalize plans for the logistics of the pipeline infrastructure.
Further, as part of the next phase of development of Sinu-9, NG Energy said it plans to drill the Hechicero-1 well in the first quarter of 2025 at the latest. The company believes that eight additional exploration and development targets in the area north of Magico-1 need to be drilled “in order to fill the infrastructure capacity”. The drilling program is anticipated to take up to 24 months to complete.
The company also expects to complete 71.4 square miles (185 square kilometers) of 3D seismic to enhance and de-risk its development of the southeast portion of the block and its exploration drilling up to Hechizo. The private consultation of 3D seismic is expected to begin in the fourth quarter and should take roughly 12 months to complete, according to the release.
NG Energy President and Director Don Sewell said, “As we commence natural gas sales imminently and complete the first stage of infrastructure projects at Sinu-9, we are taking proactive steps to expedite the exploration and development of the block at this pressing time in Colombia as the natural gas shortage in the country is upon us. We are grateful for the swiftness of our JOA Partners in getting this first step done and are thrilled to again work with INFRAES through the planning and execution of the next phase of infrastructure projects at Sinu-9, which, once complete, will enable a production capacity of up to 116 MMcfpd, bringing total gross production capacity for the company to 136 MMcfpd or roughly 14 percent of the country’s current daily demand, making NG Energy one of the top independent natural gas producers in Colombia”.
To contact the author, email rocky.teodoro@rigzone.com
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