PERU'S CRUDE PRODUCTION DECLINE CONTINUING

Peru's oil production continues to fall as its oil demand rebounds in the wake of price hikes following Iraq's invasion of Kuwait. The cash strapped country has run into problems maintaining oil production because of state oil company's Petroleos del Peru SA's difficulty in paying service/supply contractors and foreign companies operating oil fields there. The slide in production, coupled with higher oil prices, is worsening Peru's oil import bill as it struggles to

Dec. 3, 1990

2 min read

Peru's oil production continues to fall as its oil demand rebounds in the wake of price hikes following Iraq's invasion of Kuwait.

The cash strapped country has run into problems maintaining oil production because of state oil company's Petroleos del Peru SA's difficulty in paying service/supply contractors and foreign companies operating oil fields there. The slide in production, coupled with higher oil prices, is worsening Peru's oil import bill as it struggles to overhaul its petroleum sector (OGJ, Nov. 26, p. 22).

The value of Peru's oil imports exceeded that of exports by $50.77 million in the first 8 months of 1990. imports of crude oil and products totaled $172.24 million in the period. Exports of products were valued at $102.8 million and crude at $18.67 million in the period.

Peru produced 128,100 b/d of crude oil in September, down from 143,400 b/d in September 1989. Peruvian crude production averaged 130,070 b/d during January-September 1990.

Peruvian oil demand had recovered to 100,000 b/d the first week of November after plunging to as low as 40,000 b/d in August. Oil demand averaged about 80,000 b/d in September. The government implemented sharp price hikes for gasoline and other refined products to prevent Petroperu's cash crunch from growing worse.

Petroperu estimates domestic crude production at about 130,000 b/d for next year and total products demand at about 110,000 b/d. The state company uses about 150,000 b/d of crude in its refineries.