The gas would fuel a 180-megawatt gas-fired thermoelectric power plant that SEP plans to develop near the town of Arenillas, Ecuador. At peak capacity, the facility is expected to require 45 million standard cubic feet per day of natural gas. SEP is controlled by SUEZ, a major international industrial group that engages in the development, design, implementation, and operation of energy and environment systems and networks.

The scope of the MOU also includes the joint evaluation of a proposed natural gas export pipeline, which will transport BPZ's natural gas 35 miles from the its mainland reception point of the offshore Corvina field production to a central delivery point near Arenillas. The natural gas export project would entail marketing natural gas to industrial users and other power BPZ and SEP expect to establish the basis under which they will jointly develop the pipeline.

The signing of the MOU further enhances BPZ's gas-export strategy as an important complement to its Corvina field gas-to-power project. As previously announced, the company has advanced discussions with potential gas off-takers in Ecuador.

"The possibility of entering into a joint venture with SUEZ's Peruvian affiliate is exciting given SUEZ's experience and expertise in natural gas transportation, gas-to-power projects, and natural gas distribution in many countries, including Peru," said Manolo Zuniga, BPZ's president and CEO. "Additionally, a potential extension of the proposed natural gas pipeline to the city of Guayaquil, Ecuador's industrial engine, is being considered. Guayaquil represents a sizeable industrial market for the company's natural gas.