By an OGJ Online Correspondent
LIMA, Mar. 5 -- Peru state oil company Perupetro said that it would auction concessions to four companies for Blocks 56, 57, and 58, which lie adjacent the Camisea natural gas fields.
The four companies—TotalFinaElf SA, Repsol-YPF SA, Occidental Petroleum Corp., and Hunt Oil Co. —declared their interest in the blocks last year (OGJ Online, Nov. 9, 2001). Hunt Oil represents the Camisea consortium, which is operated by Argentina's Pluspetrol SA.
In other Peruvian exploration news, Petro-Tech, a Peruvian company with US financing, is slated to sign on Mar. 18 a license contract for exploration and production of Block Z-6, off Peru's northern coast, with Perupetro, the state oil agency.
Block Z-6 is south of Z-2B, where Petro-Tech produces an average 12,800 b/d of crude oil and 60 MMcfd of associated gas. The license was approved by President Alejandro Toledo on Feb. 20.
Auction details
Companies can bid for the blocks, to be offered separately in three auctions, in all three auctions. Block 56, which holds an estimated 4 tcf of gas reserves in the Pagoreni and Mipaya fields, will have a production contract. The other two blocks are being offered for exploration and development.
Companies offering the highest royalties and the most attractive work program for each block will be awarded the concession. The offers are to be based on sales into the local market, but new royalties will be negotiated when the gas is exported.
Previous contractors on Block 58 acquired seismic studies and identified natural gas prospects, although they did not drill. Block 57 requires additional seismic studies, according to Perupetro.
The plan is to develop gas on the new blocks for export. Camisea gas fields' estimated reserves of 13 tcf are expected to more than cover the needs of the national market.
Hunt Oil also is leading a technical feasibility study for eventually exporting Camisea gas as LNG to the US and possibly to Mexico and is looking into the use of gas-to-liquids technology to monetize Camisea gas.
