How Condor Energy Plans to Unlock 1 Tcf Gas Offshore Peru
Condor Energy secures a 12-month extension for its offshore Peru exploration block and validates the Piedra Redonda gas field as a key regional energy asset with multiple commercialisation options.
- 12-month extension granted for Technical Evaluation Agreement offshore Peru
- Independent study confirms 1 Tcf contingent gas resource at Piedra Redonda
- 3 billion barrels prospective oil resources identified across five prospects
- Formal exit from Northern Territory exploration permits completed
- Active engagement with PeruPetro and potential partners underway
Strategic Extension in Peru
Condor Energy Limited has secured a crucial 12-month extension to its Technical Evaluation Agreement (TEA 86) offshore Peru, underscoring strong regulatory support from PeruPetro. This extension provides the company with additional runway to deepen basin evaluation, advance partnership discussions, and prepare for the next licensing and drilling phases.
The TEA covers a substantial 4,858 square kilometre block in the prolific Tumbes Basin, a region surrounded by historic and producing oil and gas fields. Condor holds an 80% interest in the block, with US-based Jaguar Exploration Limited holding the remainder.
Validating Piedra Redonda’s Gas Potential
Central to Condor’s portfolio is the Piedra Redonda gas field, an undeveloped shallow water discovery with an independently confirmed contingent resource of 1 trillion cubic feet (Tcf) of natural gas. An independent commercialisation study by OPC has identified multiple viable pathways to monetise this resource, including near-term gas-to-power projects and compressed natural gas supply to northern Peru and Ecuador.
Longer-term options could see the field tied into regional infrastructure such as the Talara refinery or exported as liquefied natural gas (LNG), highlighting the field’s scalability and strategic location just 4 to 10 kilometres offshore.
Robust Oil Prospect Inventory
Beyond gas, Condor’s technical work has identified over 20 prospects and leads within the TEA, with five major oil prospects; Bonito, Raya, Salmon, Caballa, and Tiburon; estimated to hold a combined gross unrisked prospective resource of 3 billion barrels. These prospects remain at an early stage but represent significant upside potential if exploration and appraisal confirm commercial viability.
Portfolio Streamlining and Focus
In a strategic move to concentrate resources on its Peruvian assets, Condor formally surrendered its Exploration Permit EP127 in Australia’s Northern Territory during the quarter. This exit from legacy Australian acreage allows the company to focus capital and management attention fully on high-impact opportunities in Peru.
Engagement and Forward Outlook
Condor has actively engaged with PeruPetro, industry stakeholders, and potential partners throughout the quarter, presenting its technical findings and commercialisation plans. Feedback has been positive, reinforcing Condor’s position as a leading independent player in the Tumbes Basin.
Managing Director Serge Hayon emphasised the importance of the regulatory extension and the commercial study, noting that these milestones position Condor well for the transition from evaluation to licensing and eventual drilling. The company is also reviewing new ventures aligned with its technical strengths to pursue selective growth opportunities.
Bottom Line?
With regulatory backing and validated resources, Condor is poised to advance Peru offshore development, but key partnership and licensing milestones lie ahead.
Questions in the middle?
- When will Condor convert the TEA into a full production licence and commence drilling?
- Which partners are likely to join Condor in developing the Piedra Redonda gas field?
- How will regional gas market dynamics in northern Peru and Ecuador influence project economics?
