- 01Study maps shallow-water options for Piedra Redonda’s 1Tcf gas.
- 02Peru qualifies Condor for Block Z-72 talks; approvals pending.
- 03Customer and partner talks continue.
Condor Energy (ASX: CND) has completed an independent development study for its Piedra Redonda gas field offshore Peru, establishing conventional shallow-water production options as it advances towards commercialisation.
The engineering work assessed alternative platform and pipeline configurations for a field containing independently assessed best-estimate (2C) contingent resources of one trillion cubic feet of natural gas.
The September quarter also brought progress on gas customer discussions and strategic partnering, while regulatory engagement continued over a proposed offshore exploration and exploitation licence.
Following the quarter, Peru’s state hydrocarbons agency PERUPETRO formally qualified Condor to enter direct negotiations over the proposed Block Z-72 licence, although final approvals and consultation remain outstanding.
Shallow-Water Development
Independent engineering consultancy Agile Energy evaluated a single offshore wellhead platform linked by pipeline to an onshore receiving facility, alongside a larger two-platform configuration.
The alternatives would allow development capacity to reflect contracted customer demand and gas delivery requirements rather than committing the entire resource at the outset.
Its work included preliminary facilities engineering, flow assurance assessments, and Class 4 cost estimates, as well as the possibility of reusing existing offshore wellhead infrastructure subject to further evaluation.
Initial scenarios would develop only part of Piedra Redonda’s 2C resource, preserving scope for later expansion if additional gas customers are secured.
The study provides an engineering basis for further project definition and eventual front-end engineering design, rather than a final investment or construction commitment.
Licence Hurdle Cleared
Condor is seeking to move from its existing technical evaluation agreement to a long-term exploration and exploitation contract covering the offshore area identified as Block Z-72.
Managing director Serge Hayon met with PERUPETRO and senior Peruvian government officials during the quarter to progress contract requirements and discuss the offshore portfolio, with the subsequent qualification confirming that Condor satisfies legal, financial, and technical capability criteria, permitting direct discussions on the proposed contract terms.
The qualification does not itself confer a development licence, with execution conditional on community consultation, agreement of those terms and government approvals.
“Completion of the independent Piedra Redonda development study has provided a stronger technical foundation for advancing the project, confirming conventional shallow-water development options with flexibility to accommodate future gas demand,” Mr Hayon said.
"Alongside this work, we continue to progress discussions with prospective gas customers and strategic partners, with a focus on establishing the commercial arrangements needed to support future development.”
Commercial Talks Ongoing
Discussions with prospective gas buyers and strategic participants continued alongside the technical work, with the development configurations giving potential partners a clearer basis for assessment.
Condor also began a drilling feasibility study and rig market survey to evaluate requirements and equipment availability for potential future offshore drilling.
Beyond Piedra Redonda, its offshore Tumbes Basin portfolio includes exploration prospects with estimated prospective oil resources, which remain subject to discovery and development risks.
With licence negotiations, customer arrangements, and partnering still in progress, Condor’s next development decisions depend on converting those parallel workstreams into an executable commercial framework.
"Our priorities remain progressing the licence contract process, advancing gas commercialisation and positioning Piedra Redonda for its next phase of development," Mr Hayon added.
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