One of the goals that almost all economies in the world probably have is domestic energy production to reduce dependence on foreign countries and help maintain a balanced current account. Russia’s invasion of Ukraine further reinforced this goal in Europe. Spain, although it has notable energy production thanks to renewable energies, barely produces hydrocarbons. There is, however, a concession which goes somewhat unnoticed on Spanish soil and which is being developed with thedrilling of a new well in La Rioja. This is the only drilling activity for the extraction of conventional natural gas (without hydraulic fracturing) which is underway in Spain. Although this project will not be a game changer (it will not end foreign dependence on gas), it can help to slightly reduce import needs through the production of local natural gas with a carbon footprint much lower than this. imported from the United States or Russia.
Spain has the deposit Viura conventional natural gas, which It is located 12 kilometers from Logroño, in Rioja, more precisely in the town of Sotés. This small town of 260 inhabitants is surrounded by a landscape typical of a wine region which shelters a treasure beneath its soil. Located at the foot of Moncalvillo Mountainswhich offers a natural environment characterized by gentle hills and vast vineyards, has favored a geographical environment which has allowed viticulture to become one of the main economic activities of the municipality, with cellars and vineyards which have been cultivated for generations. The fields of cultivation, mixed with areas of Mediterranean forest, create a varied and harmonious landscape in which the Viura concession is located, a new activity which will contribute to diversifying the economic activity of the region.
From wine to gas
The Viura gas field was discovered in 2010 and is today controlled by the North American company HEYCO ENERGY IBERIA, majority operator of the Viura natural gas concession (Sotés, La Rioja). This company is drilling the VIURA-1B deviated well, operations which began last June from the field’s surface facilities. Although it is still early to draw conclusions, Heyco confirms to elEconomista.es that expectations are good and that operations could be expanded, which could lead to the drilling of new wells in 2025.
Currently, The VIURA-1B well is drilled with the Bentec Cantilever 2000 HP Rig#315which belongs to the Polish company EXALO, with which the objective is to drill the 3,730 meters in which it is planned to carry out the well, in addition to benefiting from the participation of other international service companies as renowned as Schlumberger, Baker Huges and Halliburton. Preparations and civil works are also underway for the drilling of two new wells next year in the VIURA-3 well area. But above all, depending on the results of this work, two additional wells, VIURA-3A and 3B, could be drilled in 2025.
A unique activity in Spain
Jorge Navarro, vice-president of AGGEP (Association of Spanish Petroleum Geologists and Geophysicists) and professor at the Master of Engineering of Oil and Gas of the UPM, explains in statements to elEconomista.es that “it is about the only hydrocarbon drilling activity carried out in Spain and probably the last. The works carried out in the gas sector are perhaps among the most important carried out on land in Spain in recent years”, comments this expert.
The project is somewhat unique due to what was mentioned above and because it is an inclined shaft. David Alameda, Business Development Director of HEYCO ENERGY IBERIA, comments in statements to elEconomista.es that “when we talk about a deviated well, we mean that it has a certain inclination or angle from the vertical. When we drill, we do it with a direction control system that allows us to know at all moment where we are and to direct the drilling where we want to go The vertical depth of the well is 3,730 meters” says this expert.
Alameda also confirms that it is the only hydrocarbon concession in Spain where there is drilling activity, “as it is currently in the concession development phase. The El Romeral concession, in the south of Spain, is also in force in Spain”, specifies HEYCO commercial development. director.
Two other wells are in preparation
Although it is far from being an energy independent country, Spain, where hydrocarbons are little produced, has managed to overcome this crisis better than other European partners thanks to the regasification capacities it has in many national ports. Although the Viura project will not significantly change this situation, it can help reduce gas imports. Furthermore, the success of this new well could lead to the expansion of the project, which would allow greater gas extraction in the national territory.
“We are preparing work for the drilling of two additional wells in 2025 and we hope to start drilling work in March/April. With the drilling of these two new wells in 2025, we will be able to bring the production plant to its greatest potential,” comments Alameda.
With the successful drilling of all these new wells, gas production of approximately 600,000 to 900,000 cubic meters per day (m3/d) could be achieved, which would be almost 1% of national gas consumption. Alameda highlights that with total production expected by 2026, “we could cover the consumption of around 500,000 householdswith local natural gas and with a carbon footprint 85% lower than that of liquefied natural gas coming from Russia or the United States and 60% lower than that of natural gas coming by tube from Algeria. Viura natural gas is a local gas.”
Alameda believes that Viura’s future is very bright. HEYCO engineers and team “know that there is more natural gas in the field and that is why we entered the Viura project in July 2022, acquiring the participation of Unión Fenosa Gas”. This expert explains that all the wells were authorized by the Ministry of Ecological Transition and Demographic Challenge and the Ministry of the Environment.
“Today we estimated reserves at 3 billion cubic meters (3,000,000,000 m3 of gas), of which 0.5 billion cubic meters were produced and 2.5 billion cubic meters (2,500,000,000 m3 gas) remain to be produced. Gas demand in Spain in 2023 was 325.5 TWh (which is equivalent to a consumption of around 90 million m3 of gas per day) and the idea is that Viura produces 1% of the gas demand in Spain, only with Viura”, explains Alameda.
The case of Spanish oil
The truth is that these deposits and operations on Spanish soil are isolated cases. Spain has decided, for ideological reasons, to abandon the research and exploitation of the fossil fuels it has in its subsoil. Spain would by no means be a power in the production of hydrocarbons, but it does have some deposits of oil and shale gas (‘shale gas‘) which could help reduce dependence on the outside world. However, according to a study by the Superior Council of Colleges of Mining Engineers, Spain has potential resources within its borders equivalent to almost 40 years of gas consumption.
However, most of these deposits are unconventional gas, their exploitation would therefore require the use of gas technology. hydraulic fracturing or even hydraulic fracturing, whose impact on the environment is doubtful to say the least. (this sentence is better here) However, the approval of the law on climate change and energy transition in May 2021, which does not allow the granting of new permits for research, exploration and exploitation concessions of hydrocarbons throughout the national territory, prevents the investigation and exploitation of new hydrocarbon deposits that could be discovered under Spanish soil.
In the case of oil, the Ayoluengo oil field, which was in production until 2017, is on the verge of being decommissioned and abandoned. According to the Official State Gazette, “the procedure for the subsidiary execution of the plan for the definitive abandonment of the concession for the exploitation of liquid and gaseous hydrocarbons called “Lora” will begin.” At its peak of production in 1969, up to 5,000 barrels of crude oil were pumped per day. On the other hand, in June 2021, Repsol and its partners definitively closed production from the Casablanca field and that of all its satellite fields in the Mediterranean, the only oil operations still active, which means that we have since started to import into Spain 100% of the crude oil we consume.
