Peru Grants 13 Oil Exploration Deals With Overseas Companies

Published: 16-Apr-2009

By: Staff Writer Staff Writer Staff Writer

Perupetro S.A (Perupetro) has entered into 13 contracts worth $650 million with foreign firms for the exploration and exploitation of hydrocarbons in Peru. A group made up of the Grupo Pluspetrol, Reliance Industries Limited, China National Petroleum Corporation (CNPC) and Petroperu will work block 155 in southern part of the nation.

The consortium made up of Peru's Consultora de Petroleo S.A. and the South Korean Kedcom Co. was granted the exploration of block 160, whereas Talisman Energy Inc. and Ecopetrol S.A were rewarded block 158, both situated in the central jungle region.

For its part, Compania Espanola de Petroleos, S.A. (Cepsa) got block 130 in the northern jungle, while Grupo Petrolero Suramericano was awarded block 156 in the southern mountains.

The representative of the contracting companies, Cepsa executive Fernando Maravalla, said that the opportunities this country offers in the midst of the world economic crisis and the response of the companies present are a clear acknowledgment of the legal and financial stability that Peru offers the world.

With these 13 contracts we now have in effect a total of 92 oil contracts, a situation that shows the confidence that investors have in Peru, President Alan Garcia said during a ceremony at Government Palace in Lima.

Energy and Mines Minister, Pedro Sanchez has expressed a hope that his country will shortly be an oil exporter.

He also assured the maximum respect for the care of the environment and seeking always a sustainable development in the work of exploration to be done in the country.

Consistent with conditions established in the contracts, the firms will carry out the perforation of 35 oil wells during the exploration phase, Perupetro said.

If the companies strike hydrocarbons, the average royalties they will pay to the Peruvian government is over 30% of the value of the oil and gas taken out.

Tell your friend about this article