Condor Energy has completed a pivotal feasibility study for its Piedra Redonda gas discovery offshore Peru, confirming a conventional development approach and underpinning ongoing commercial and financing efforts.
- Feasibility study confirms conventional offshore development
- Piedra Redonda holds 1 Tcf contingent gas resources
- Two development concepts evaluated for flexible project design
- Study supports gas sales, strategic partnerships, and financing
- Progression towards Front End Engineering Design and licence application
Feasibility Study Validates Technical and Commercial Viability
Condor Energy Limited (ASX:CND) has reached a significant milestone with the completion of an independent Development Concept and Feasibility Study for its flagship Piedra Redonda gas discovery offshore Peru. The study, conducted by engineering consultancy Agile Energy, confirms that Piedra Redonda can be developed using straightforward, conventional shallow-water offshore infrastructure, primarily a wellhead platform tied back to shore via pipeline.
This technical validation lays a robust foundation for Condor’s ongoing commercial negotiations, strategic partnerships, and financing discussions, as well as advancing the project towards Front End Engineering Design (FEED) and the finalisation of a Licence Contract. Managing Director Serge Hayon emphasised the study’s role in demonstrating a technically and economically sound development solution adaptable to various gas sales scenarios.
Project Scale and Development Flexibility
Piedra Redonda contains independently certified 2C Contingent Resources of approximately 1 trillion cubic feet (Tcf) of natural gas, positioning it as one of Peru’s largest undeveloped offshore gas discoveries. Located in shallow waters off northern Peru, the field’s proximity to shore and conventional development approach make it well-suited to meet growing domestic and regional gas demand.
The feasibility study evaluated two primary development concepts: a smaller-scale single wellhead platform with export capacity ranging from 30 to 80 million standard cubic feet per day (MMscfd), and a larger two-platform configuration capable of 100 to 150 MMscfd. Both concepts include pipelines tied back to an onshore gas reception facility, with the flexibility to incorporate tiebacks from nearby underutilised fields such as Corvina, enabling future capacity expansion as market demand evolves.
Supporting Commercial and Regulatory Progress
The study’s comprehensive engineering assessment included preliminary facilities design, flow assurance, and Class 4 cost estimation, providing Condor with a detailed technical framework to support multiple parallel initiatives. These include ongoing gas sales negotiations, strategic partnering discussions, project financing, and the Licence Contract application process with Perupetro.
While detailed cost and engineering data remain commercially sensitive, the study’s findings underpin Condor’s ability to tailor the final development configuration based on customer demand, delivery specifications, and financing requirements. This flexibility is critical as the project moves toward FEED and a potential Final Investment Decision.
Broader Asset Portfolio and Exploration Upside
Piedra Redonda sits within the larger TEA LXXXVI area, covering nearly 4,900 square kilometres of the Tumbes Basin offshore Peru, where Condor holds 100% ownership after acquiring its partner’s stake. The basin hosts multiple prospects with combined best estimate unrisked prospective resources exceeding 3.3 billion barrels of oil, complementing the gas potential at Piedra Redonda.
This broader portfolio, supported by recent independent resource assessments, enhances Condor’s strategic position in Peru’s emerging offshore energy sector and provides multiple avenues for future exploration and development beyond the current gas project.
Bottom Line?
Condor’s feasibility study for Piedra Redonda confirms a viable, flexible offshore gas development, setting the stage for critical commercial and financing milestones ahead.
Questions in the middle?
- How will ongoing gas sales negotiations influence the final development scale and configuration?
- What strategic partners might Condor secure to support project financing and execution?
- When will Condor initiate Front End Engineering Design and progress towards a Final Investment Decision?