Petroperu Takes Action to Improve Hydrocarbons Production

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Researched by Industrial Info Resources (Sugar Land, Texas)--Peru is actively working to boost its hydrocarbon production in an effort to reduce dependence on imports. Perupetro, the national authority responsible for exploration and production (E&P) concessions, reports that the average annual production in 2023 was 38,000 barrels per day (BBL/d), significantly below the national demand of 270,000 BBL/d. In response to this challenge, state-owned Petroperu SA (Lima, Peru) is expected to take a prominent role in the country's upstream market, positioning itself as the leading operator and producer.

Petroperu's planned strategic investments include the revitalization of Block VI, reactivation of Block 192, and the development of Block 64. Since October 2023, Petroperu has assumed operations in Block VI, located in Talara (Piura), previously operated by China National Petroleum Corporation (CNPC) (Beijing, China). Perupetro granted Petroperu a two-year operating license, with the possibility of a 10-year extension. During this period, the new operator estimates investing approximately US$15 million in drilling and workovers to meet established goals.

Block 192, the country's most productive area, formerly operated by Pluspetrol (Netherlands), has been inactive since 2020. In February 2023, after negotiations regarding the primary investor and field operator, Perupetro assigned a 30-year concession contract to Petroperu. The contract establishes that the state-owned company must collaborate with a private investor company to jointly operate Block 192. Currently, the Petroperu is conducting inspections in the block, and is evaluating activities such as plant rehabilitation, workover programs and drilling activity for 2024 and 2025.

The first oil in Block 64, scheduled for late 2024, will contribute new reserves for the country, with an initial production of 10,000 BBL/d. After completing ongoing environmental impact studies and negotiating required social commitments, Petroperu plans to install an early production facility (EPF) and two separation batteries in the area, which are part of the first phase of the field development.

Industrial Info is tracking 53 Petroperu projects, worth US$1.2 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for a list of detailed project reports.

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