Perupetro SA, Peru's petroleum regulatory agency, is inviting major and independent oil companies to sign 2-year technical evaluation agreements (TEAs) for six areas: on the coast, in the jungle, and in the southern Andes.
The TEAs give companies up to 2 years to make oil field studies of areas as large as 1.5 million hectares without putting up guarantees, after negotiating a work program with Perupetro. They can subsequently select a block of 1 million hectares within the area explored for a standard Peru oil and gas exploration and development contract.
The TEA areas include:
- Blocks A and B, which are among the areas Perupetro included in its recently postponed 16-block license round (OGJ, Aug. 23, 1999, Newsletter). Block A is near Bayovar on the north coast south of Olympic's Block XIII and was explored several decades ago by Exxon Corp. unit International Petroleum Co. Block B, near Pisco in the south, is unexplored.
- The Titicaca basin, explored without commercial results by Russia's Yuganskneftegas.
- The unexplored virgin jungle bordering Colombia's Putumayo region.
- The area around Bagua, where the 200,000 b/d capacity North Peruvian Pipeline begins its climb over the Andes to the north coast.
- The area bordering Brazil in former Block 63, north of Anadarko Petroleum Corp.'s Block 84.
The offers expire Sept. 17.
Mobil Exploration & Producing Peru explored a large area of the Madre de Dios region under such an evaluation agreement before signing exploration and development contracts for Blocks 77 and 78 in March 1996.
Program extensions
The government also in late August began approving requests made by eight companies at the beginning of the year to be allowed to extend exploration programs for economic as well as for technical and geological reasons.
The requests were made when oil was selling for around $10/bbl, and although it has since risen to $20, industry representatives said the "economic" clause is still needed. Companies whose requests had been approved by Aug. 24 included: Repsol SA, on jungle Block 35; Perez Companc SA, for north coast Block XVI; and Mobil, in association with Elf Petroleum Peru BV and Esso Exploration & Production Peru Ltd., for jungle Block 78.
Mobil's current deadline to either drill an exploration well or record another 300 line-km of 2D seismic on the block expires Sept. 26. Extensions are usually granted for up to 6 months.
New license
Meanwhile, Perupetro has confirmed that it will sign a new license agreement on Sept. 9 with Barrett Resources Corp., Denver, for exploration and development on the Marañon basin's Block 39.
The contract will be Perupetro's first license agreement signed this year.
It is, however, also negotiating a new agreement with Advantage Resources Inc., Denver, to explore Block 72 in the Huallaga basin.
