Paraguay’s state oil company Petropar has budgeted 5.04bn guaranies (US$700mn) for 2021, part of which will seek to add new impetus to upstream development.
The NOC’s head Denis Lichi Ayala provided the information during a presentation before congress’ budget committee.
The plan includes hiring specialized consultancy and advisory services to evaluate the potential of acreage granted to Petropar, design exploration programs and draft an action plan for the involvement of the private sector.
In June, the executive branch granted the state operator two blocks in the west of the country that took the number of blocks held by Petropar to six.
A seventh block is in the process of being granted, according to the presentation, which adds that “for the first time in the history of E&P in Paraguay,” Petropar is taking charge of exploration as outlined in the company’s law.
BNamericas has highlighted that the country’s efforts to tap its hydrocarbon resources have not moved beyond exploration, which would be due in part to the frontier, high-risk nature of the country’s plays, and well-established, neighboring upstream markets, further complicated by the current operating environment.
A map featuring Paraguay’s hydrocarbons upstream areas, including acreage holders, as of this month is available here.
Petropar information shows that the country spends around US$240mn/year on the import of crude and derivatives.
Petropar’s 2021 plans include increasing the number of service stations and expanding LPG distribution, the latter as part of the company’s Ñande Gas initiative.
Other scheduled actions are the modernization of the Villa Elisa plant, which produces fuel oil, gasoil, kerosene, virgin naphtha, and LPG, with an automatic system for inline mixing and new storage tanks, among other works.
In addition, the NOC looks to automate the Mauricio José Troche ethanol plant, install an aviation fuel distribution plant and overhaul storage tanks for this fuel, and implement a management informatics system.
Also Read Modernization projects will allow Petropar to control the plants remotely and New data center provides greater security and speed in the handling of Petropar data
Although not mentioned in the budget presentation, Petropar has expressed interest in participating in a pilot hydrogen project.