Peru signs 13 new exploration contracts with IOCs

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Apr. 20 -- Peru's state-owned Perupetro, recovering from earlier scandals connected with the awarding of exploration licenses, has signed 13 new contracts valued at $650 million with international oil companies.

"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 the country, said Peru's President Alan Garcia during the signing ceremony at Government Palace in Lima.

Recently appointed Energy and Mines Minister Pedro Sanchez expressed optimism over the awards, saying they would help transform the country's oil and gas industry. "For many years, Peru has been a net importer," he said. "We [now] will become net exporters."

The awards went to Faulkner Suits Exploration Inc, Block 27; Cepsa, Block 130; Golden Oil Corp., Block 132 A/132B; Petrolifera Petroleum Ltd., Block 133; KEI Pty., Block 144; Olympic Peru Inc., Block 145; and Emerald Energy PLC, Block 163.

Other awards went to Grupo Petrolero Suramericano SAC, Block 156; PVEP Peru, Block 162; Talisman Energy Inc. and Colombian Ecopetrol SA, Block 158; Compania Consultora de Petroleo SA and South Korea's Kedcom Co Ltd., Block 160; and Pan Andean Resources PLC, Block 161.

A four-company consortium comprised of Pluspetrol, Peru's state oil company Petroperu, India's Reliance Exploration & Production DMCC, and Chinese-owned Sapet Development Peru Inc. (Sapet Peru) was awarded Block 155.

Under terms of the new contracts, the companies will drill 35 oil wells during the exploration phase. If commercial volumes of hydrocarbons are discovered, the average royalty rate to be paid to the government will be more than 30%.

Meanwhile, Peruvian officials said an auction for an additional 12 lots for oil and gas will be held in July.

"I'd like to take this opportunity ... to announce the start of the 2009 selection process, which will officially begin in July and include 12 or 13 lots that may contain petroleum," said Perupetro Pres. Daniel Saba.

The auction will be Peru's first since last year, when several top government officials were fired or forced to resign after being accused of steering concessions to favored bidders.

At the time, Peru's former mines and energy minister, Juan Valdivia resigned, while Perupetro board member Alberto Quimper and Perupetro Pres. Cesar Gutierrez were fired.

The scandal was exposed when an audio tape surfaced on an investigative television news show that included a conversation between Quimper and Romulo Leon, a prominent member of President Garcia's APRA party, in which they apparently agreed to favor Discover Petroleum of Norway in a round of energy auctions.

The Norwegian company, which partnered with Petroperu, was later awarded five blocks: four of them off the country's central Pacific coast and the fifth onshore near Peru's borders with Brazil and Bolivia.

Peru's justice ministry said it would investigate the banking records of the Peruvian executives and suspend the contracts awarded to Discover.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

BOEM publishes second final SEIS for 2008 Chukchi Sea lease sale

02/13/2015 The US Bureau of Ocean Energy Management published a fresh supplemental environmental impact statement for a Chukchi Sea federal oil and gas sale o...

Horn Petroleum to reduce Puntland exploration program

02/13/2015 Horn Petroleum Corp., Vancouver, BC, will reduce its presence in Bosaso, Puntland (Somalia), and will “refrain from any operational activity and as...

Groups object to White River National Forest draft leasing decision

02/12/2015 The Western Energy Alliance, West Slope Colorado Oil & Gas Association, and Public Lands Advocacy jointly filed a formal objection to the US Fo...

InterOil wins arbitration over rights dispute with Oil Search

02/11/2015 The International Chamber of Commerce arbitration panel in London has found in favor of InterOil Corp. in its battle with Oil Search Ltd. over pree...

Beach, Drillsearch make wet gas discovery in Cooper basin

02/11/2015 A joint venture of Beach Energy Ltd. and Drillsearch Energy Ltd. has made a wet gas discovery with its Ralgnal-1 wildcat well in retention lease 13...

MEO, Eni to exchange sections of Timor Sea permit

02/10/2015 MEO Australia Ltd., Melbourne, and Eni SPA—MEO’s joint-venture partner in the NT/P68 permit in the Timor Sea—have decided to split the permit betwe...

CNOOC signs two South China Sea PSCs with SK Innovation

02/10/2015 China National Offshore Oil Corp. Ltd. signed two production-sharing contracts with SK Innovation Co. Ltd., Seoul, for two blocks in the Pearl Rive...

Recent audit shows Trinidad and Tobago with 500 million bbl of 3P reserves

02/10/2015 An audit of Trinidad and Tobago’s oil and condensate reserves shows that the Caribbean twin-island nation has 508.4 million bbl of proved, probable...

Association presidents want more access in next 5-year OCS plan

02/09/2015 The presidents of three major US oil and gas trade associations urged the US Bureau of Ocean Energy Management to keep more of the US Outer Contine...
White Papers

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by
Available Webcasts


Prevention, Detection and Mitigation of pipeline leaks in the modern world

When Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST



On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected