Pan American Energy Seeks RIGI Status for $1.2 Billion Polymer Flood Project at Cerro Dragon
Pan American Energy (PAE) has filed for RIGI status at its Cerro Dragon field, seeking to implement tertiary recovery techniques using polymer injection. The project involves installing 22 polymer plants and drilling 100 new wells, with an estimated investment of $1.2 billion.
The plan aims to add 46 million barrels of oil to the field's production, which has seen a decline of 9.1% in output over the past year. PAE estimates that tertiary recovery will increase the recovery factor by up to five percentage points, resulting in an incremental production of 30 billion cubic feet of natural gas.
The project has been scaled up from an earlier version announced in May, which had a lower investment estimate of $680 million and smaller output targets. The increased investment is largely due to the addition of new drilling activities and the inclusion of gas production in the plan.