President Energy made Paraguay’s first major oil discovery in the Chaco Basin.
The discovery of light oil in the Lapacho well is expected to have commercial potential, with first output slated for next year, the London-based company said in a statement. The well may hold about 200 MMboe, it said.
“President has demonstrated beyond doubt that movable conventional oil does exist in the Paraguayan Chaco,” Chairman Peter Levine said in the statement. “This discovery represents a significant milestone.”
The company has been targeting as many as 1 Bbbl of oil and gas in Paraguay, a landlocked nation between Brazil, Argentina and Bolivia. The flat landscape, stable politics and favorable tax regime make it attractive, Levine said in January.
Production from the Lapacho find will supply the domestic market, reducing reliance on imports of oil and gas, Levine said by phone. Corporation tax is 10% with royalties set at 10% to 14%, depending on volumes, he said.
The explorer also plans to deepen its suspended Jacaranda well following testing of Lapacho, it said in the statement.
Recommended Reading
Valaris Updates Fleet Status
2024-02-19 - The backlog of these contracts and extensions is valued at $1.2 billion.
After 4Q Struggles, Transocean’s Upcycle Prediction Looks to Pay Off
2024-02-21 - As Transocean executives predicted during third-quarter earnings, the company is in the middle of an upcycle, with day rates and revenues reaching new heights.
E&P Highlights: Jan. 8, 2024
2024-01-08 - Here’s a roundup of the latest E&P headlines including the second biggest deepwater gas find of 2023 and new contract awards.
TotalEnergies Fénix Platform Installed Offshore Argentina
2024-02-13 - First gas from the TotalEnergies-operated project is expected in fourth-quarter 2024.
Seadrill Awarded $97.5 Million in Drillship Contracts
2024-01-30 - Seadrill will also resume management services for its West Auriga drillship earlier than anticipated.