OPERATORS SHIFTING EXPLORATION FOCUS IN PERU

U.S. oil companies continue to shift their exploration focus in Peru.

Mobil Oil Corp. was expected to sign a new agreement with state owned Petroleos del Peru SA to expand exploration outside its existing blocks in Peru's central jungle.

Occidental Petroleum Corp. has asked Petroperu to redesign a block in the south central Peruvian jungle to allow exploration of an area where Oxy earlier shifted its exploratory focus.

Meantime, the Peruvian unit of Edward Callan Interests, Houston, put in a bid for a previously explored block in the northern jungle.

MOBIL'S SHIFT

Mobil is about to exercise its option to explore Block 53, adjoining Blocks 28, 29, and 30, in the central jungle (see map, OGJ, May 7, p. 43).

The company wanted to sign the exploration contract before Peru's new government under Alberto Fujimori took over July 28.

Its initial contract with Petroperu included Block 53, bringing the total contract area to 9 million acres. The contract's initial work program was to cover the entire area.

However, Mobil was required to complete an aeromagnetic survey and begin seismic surveys on other blocks before beginning exploration in Block 53.

Mobil had shot 141 line km of seismic surveys by July 18 and was expected to sign a contract with the Peruvian air force for helicopter backup service.

Mobil contractor Geophysical Service Inc., a Halliburton Co. unit, earlier ran into government delays trying to hire helicopters for the work, threatening Mobil's commitment to complete 1,600 line km of seismic surveys by Mar. 12, 1992 (OGJ, June 25, p. 17).

OXY REQUEST

Oxy wants Petroperu to redesign Block 43 to enable it to explore the northern portion of the block outside Manu National Park.

This portion of the block would be tacked onto Block 40 immediately north of the area.

Oxy dropped an earlier bid for Block 43 because of environmental concerns. Most of the block is in a national wildlife preserve.

Oxy had asked Petroperu for authorization to switch its exploration campaign to Block 43 from Block 36 in the central jungle. Block 43 adjoins undeveloped Camisea gas field.

Meantime, Oxy is seeking a partner for a wildcat in central jungle Block 36, where it has to either drill a third well by March or switch to another block.

CALLAN UNIT BID

Edward Callan subsidiary Petromineros del Peru put up a $2.2 million guarantee for the first stage of its exploration program under a contract signed with Petroperu last month.

Petromineros seeks to explore Block 10 south of Petroperu's Block 8, where there are several producing oil fields.

The area was explored by a unit of Amoco Corp. in the early 1970s. Amoco drilled three dry holes and had one noncommercial hydrocarbon find.

The latest contract calls for Callan to complete a 6,000 km aeromagnetic survey, reprocess seismic data, and shoot 150 line km of seismic surveys the next 21 months.

The second, 27 month stage calls for an $8 million work guarantee. That would entail 300 line km of seismic and drilling one wildcat the first 3 months.

A third stage carries a $17 million guarantee and would be complete within 2 years of an agreement covering the third stage. It would require 200 line km of seismic and three wildcats.

If Petromineros wants to extend the exploration agreement for 1 year options, it would be required to put up $5 million and drill at least one wildcat.