Perupetro SA, Peru's oil regulatory company, was to start selling bid documents Dec. 9, 1996-Feb. 28, 1997, to tender 30 year exploration and development licensing contracts in northern coast offshore Blocks Z-1 and Z-3.
In the case of gas, the contract will be for 40 years. Perupetro called the tender in Lima on Dec. 1 with publications in the local press.
The bid documents cost $10,000 per contract. In order to qualify, companies must show $500 million in assets and proved reserves of 50 million bbl of oil or equivalent as of December 1995. They must also prove an average production of 25,000 b/d of oil equivalent in 1993-95.
Partners forming joint ventures can pool their individual results to meet the requirements.
Block Z-1 covers 273,853 hectares off the far north coast bordering Ecuador's Guayaquil Bay. Block Z-3 includes 347,569 hectares immediately south of Petrotech Peruana's Block Z-2B.
Block Z-1 was explored in the early 1970s by a consortium formed by Tenneco, Union, and Champlin and later by Belco Petroleum Corp. until the Garcia administration unilaterally canceled oil contracts in 1985. The companies drilled about 15 wells, some of which produced small volumes of oil and gas.
In 1992, American International Petroleum Co, Denver, in association with Energy Development Corp., Houston, and Hallwood Petroleum Inc., Denver, all signed a 30-year E&P contract with Petroperu which at that time supervised oil contracts. The companies withdrew 2 years later after completing preliminary exploration.
Perupetro has seismic studies for Block Z-3, completed some years ago during an offshore survey along the entire Peruvian coast.
Perupetro is offering exploration and production licensing contracts that give companies ownership of production. The contract includes a 7 year exploration stage divided into six periods with a minimum work program. The contractor can withdraw at the end of any of these periods. Bidders must offer royalty percentages for each of the R factor ranges independently for developing oil, natural gas and condensates.
Copyright 1996 Oil & Gas Journal. All Rights Reserved.
