SK Energy wins Trujillo basin Block Z-46 off Peru

South Korea's SK Energy said it has won a bid to develop Block Z-46 in the Trujillo basin off Peru, which company officials called "very promising."

Eric Watkins
Senior Correspondent

LOS ANGELES, July 23 -- South Korea's SK Energy said it has won a bid to develop Block Z-46 in the Trujillo basin off Peru, which company officials called "very promising."

"Considering its proximity to major oil production sites in Peru, and a number of discoveries in the region, Block Z-46 looks very promising," said SK Energy CEO and Pres. Shin Heon-cheol.

About 37 companies had expressed interest in bidding for the rights to 19 oil and gas fields, said Peru's state-run Perupetrol, which sponsored the bidding. The auction opened in January and closed July 12.

The new development brings SK Energy's interests in Peru to four blocks altogether. In addition to Z-46, it has the Camisea block, Block 8, and Block 56.

On July 13 Heon-cheol said SK Energy's proved reserves worldwide would reach 700 million bbl by 2010, up 190 million bbl from the current 510 million bbl. He said daily production would rise to 70,000 b/d from 24,000 b/d due to "anticipated additional supply" from exploration blocks.

"The amount of oil and gas we expect to obtain will surpass South Korea's annual oil consumption [of 600 million b/d]," Heon-cheol said, adding that the firm has exploration and production activities in 25 blocks in 14 countries.

Contact Eric Watkins at hippalus@yahoo.com.

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