Peru makes available more offshore blocks

Perupetro has outlined the terms and schedule for Peru’s international bid round, covering nine blocks in five offshore basins.

Offshore staff

LIMA, Peru --Perupetro has outlined the terms and schedule for Peru’s international bid round, covering nine blocks in five offshore basins.

The blocks offered are Z-56 and Z-57 (Salaverry - Trujillo basins); Z-50 (Lima basin); Z-53 (Lima - Pisco basins); Z-54 and Z-55 (Pisco basin); and Z-58, Z-59 and Z-60 (Mollendo basin).

These basins are the country’s least explored geological areas. All the blocks are 7 mi (11.2 mi) from the coast, away from the fishing zone.

Perupetro anticipates a minimum investment of around $450 million from the successful bidders. Luis Ortigas Cúneo, Perupetro chairman, said over 20 oil companies from the US, Canada, UK, South Korea, Russia, and Latin America had shown interest.

Under Peru’s Model of the Hydrocarbons Exploration and Exploitation License Contract, Petroperú will not participate in the exploration phase, but has the right to back into 25% of any license in the event of a commercial discovery.

“Perupetro shall repay the investment in exploration and development, with revenues from the block’s exploitation, according to its participation", Cúneo added.

To date Peru has issued 14 licenses for offshore E&P, with production on two – Z-2B, operated bySavia Perú, and Z-1 by BPZ Energy.

Investments in the Peruvian offshore in recent years have been close to $2 billion, and the new activity could double that figure.

More details on terms for the new licensing round at thePerupetro Website

6/3/2013

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