Petro Rio S.A. HRTPF

Gas Production Facilities

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I have tried to get the posts to format successfully in the past with no luck.
Gas facilities are much more complicated and expensive toput in place than oil facilities.
Dry Sweet Gas: Dry gas facilities will require a centralbattery to process the gas. This will consist of the following: Flow lines fromthe wellheads to the central processing facility. Second, a dehydration unit totake the water (moisture in this case) out of the gas. Third, a compressorstation to inject the gas into the pipeline to market and fourth, a pipeline tomarket.

Gas with condensate will require similar facilities, butwill require additional separation vessels and processes to effectively stripthe condensate (through refrigeration). Storage and transportation facilitiesfor the condensate similar to that of oil will be required. If the gas is soldto the market, it will require the above facilities too.
Gas with condensate, no sales gas. If the gas discovered hasa relatively high amount of condensate, there is a good possibility that thegas can be produced and the condensate stripped out and sold. This will requirethe facilities to separate the condensate from the gas and then reinject thegas back into the reservoir through injection wells. This will take a lot ofmoney and will require the construction of a fairly major gas plant with all ofthe associated hardware.
The real question that needs to be answered is how and when willa discovery produce significant quantities of oil and gas? Will Petrobras allowthe use of their facilities (assuming there is space in the pipeline). If it isa gas discovery, what will the market be? Putting in gas facilities is a majorundertaking and a market is required. There is the possibility of building agas to power facility. This will require some major planning. The fullconstruction of a gas turbine generating station and the electricaltransmission lines to the market. Will there be enough of a market to justifythis? Will the locals be able to afford the amount per kwh to justify puttingin the facilities? They currently use diesel which is very expensive, but thenthe locals probably don’t use a lot of electricity.
The possibility exists to put a gas to liquids facility inif the discoveries are large enough. This is also a major undertaking that willtake years and will also require the transportation to market.
Operating and monetizing discoveries in the middle of thejungle is not easy. The discovery could prove to be the easy part. Over time adiscovery will be monetized. In the case of the Solimoes, an oil discovery isby far the best outcome.