Peru revives offshore bid rounds

Perupetro, the Peruvian state oil agency, said it will begin to hold bid rounds in early 2001 for offshore blocks left pending since last year. Instead of auctioning 16 blocks together, however, it will divide the blocks into separate areas.

Nov 13th, 2000


Perupetro, the Peruvian state oil agency, said it will hold bid rounds in early 2001 for offshore blocks left pending since last year.

The first round will offer Blocks Z-4, Z-5, Z-6, and Z-7 off Peru�s north coast. It will also include a neighboring block with acreage released by Petrotech International Corp. of the US, in accordance with the company�s production contract which has completed 7 of its 30 years. Petrotech will retain around half the block, where it produces 12,000 b/d of oil.

The blocks are off Peru�s north coast, east of Block Z-1, where Perez Companc of Argentina is exploring, and Z-3, where US company Occidental Peruana Inc. is exploring.

A second round offering blocks in the Salaverry basin will be held in April or May, and a third later in the year for blocks off the south coast.

Perupetro Pres. Rafael Samaniego said that following a reassessment of the previous geological model for a �floor fan complex� companies will be looking for giant fields in deeper waters off Peru�s coast.

The government in late August reduced the minimum royalty percentage allowed in offshore operations to 10% instead of 15% in 200-400 m of water, and to 5% in waters more than 400 m.

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