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Peru's central bank has lowered its hydrocarbons sector growth projection for this year and next to 6.8% and 6.4%, respectively, from 7.1% and 6.6% in December.
The monetary authority's latest inflation report reiterates, however, that crude production is expected to increase should the Nor Peruano oil pipeline (ONP) be fully repaired by year-end.
Last year, sector GDP fell 5.1% due to lower output resulting from halted operations at blocks 192 and 67 following ONP ruptures and a stoppage at block 8 in September-December due to community protests, the report adds.
Higher natural gas production at Camisea acreage and block 57 offset the lower oil output, said the bank, which highlights that expected private investment in the sector in 2017-18 reaches US$2.03bn.
In a related note, the energy and mines ministry's energy environmental affairs office approved Petrolera Monterrico's semi-detailed EIS to drill additional development wells at block XX in northern Tumbes department.
The US$8.6mn campaign envisions a total of 22 wells that will target the Carpitas, Zorritos and Copé formations. Each well will take an estimated 28-30 days to drill.
Meanwhile, Latin American development bank CAF and UK Export Finance (UKEF) will work together to identify investment projects for at least US$200mn in Peru and elsewhere in the region, in particular in the areas of energy, infrastructure and sanitation.
CAF also announced that UKEF will provide at least US$1.2bn to finance the export of UK products and services.