PetroTal to acquire Peruvian upstream business from Cepsa

May 15, 2024
PetroTal has agreed to acquire a 100% working interest in Peru's Block 131, including the producing Los Angeles oil field, representing the entire Peruvian business unit of Cepsa.

PetroTal has agreed to acquire a 100% working interest in Peru's Block 131, including the producing Los Angeles oil field, representing the entire Peruvian business unit of Compañía Española de Petróleos (Cepsa).

Completion of the deal, which is subject to competent authority approval, would add about 900 b/d to PetroTal’s 18,500 b/d produced from Bretana oil field.

Manuel Pablo Zuniga-Pflucker, president and chief executive officer of PetroTal, said the company has already set up an operational team to “evaluate the potential of the deeper zones of the Los Angeles field, where some work has been done but without continuity.”

Block 131 has four wells drilled into the Cushabatay sands of the Cretaceous period. They produce with a low base decline profile, a high recovery factor, and oil quality of 40-45º API. As of Mar. 31, 2024, the assets have produced a total of about 7.6 million bbl.

The assets are held under a concession agreement expiring in 2037. All crude oil produced is sold to state-owned Petroperu and transported by barge along the Ucayali River, to the refinery in Iquitos.

Cepsa said the sale is part of its strategy to steer its businesses towards sustainable energies such as green hydrogen, 2G biofuels, and ultra-fast electric recharging networks.