Peru is hosting several exploration programs in early 1999, while the start-up of Aguaytia field buoyed the country's production in 1998.
In offshore action, Perupetro expects Repsol SA to begin drilling two exploration wells by mid-1999 on Block Z-29 in the Trujillo and Sechura-Salaverry basins (see map, OGJ, Dec. 7, 1998, p. 87). Repsol and partners Braspetro, Ranger Oil, and YPF of Argentina have requested an expansion of the block Z-29.
A group led by Pangaea Energy, Calgary, is considering whether to drill a second wildcat on Ucayali basin Block 71. It plugged its first wildcat, on the Shahuinto structure, in November.
Pangaea is the operator in association with Murphy Oil Corp. and Black Sea Energy Ltd. Drilling of a second well at the San Gregorio structure in the southwestern part of the block, unconnected with Shahuinto, depends partly on obtaining new partners. The companies' contract with Perupetro SA gives them until end-1999 to decide whether to drill.
Phillips Petroleum Co. is drilling its first wildcat on Ucayali Block 82, south of Pangaea.
Mobil Oil Corp. by early January had drilled to 10,000 ft on Madre de Dios basin Block 78. Mobil operates in partnership with Elf Aquitaine and Exxon, with each company holding one-third of the contract.
The Shell-Mobil consortium operating Block 75 neighboring the Camisea natural gas fields must decide by Mar. 18 whether to drill a second well on the block following a major gas find on the same trend as the Camisea fields. Shell and Mobil must relinquish the block unless they drill a second well.
The companies are removing equipment from the former Camisea project and have notified local communities that they will be ending their projects with them at the end of March.
In the northern jungle Barrett Resources Corp. temporarily abandoned the three wells in which it found heavy oil on Maranon basin Block 67 and where it is also seeking a partner to continue the project (OGJ, Jan. 11, 1999, p. 66). Barrett has presented an environmental impact study to undertake 2D and 3D seismic work on the block.
Oil production climbsPeru's oil production through 1998 averaged 115,593 b/d, down 2.2% from 1997. Most of the fall was on the north coast, where heavy rains and floods caused damage in oil fields.
Production continued to fall towards yearend with sharp oil price declines. Output averaged 112,780 b/d in December compared with 113,970 b/d in December 1997.
The 1998 output would have been 2,121 b/d lower had it not been for start-up of production of natural gas liquids and condensate from the Aguaytia gas field near Pucallpa in the Ucayali basin half way through the year (OGJ, May 25, 1998, p. 23).
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