Peru upstream: Turning the corner?

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Friday, January 5, 2018

"This year leaves a positive perspective for the hydrocarbons sector. There have been important achievements but advancement with reform is still required. We have the support of the government to implement measures in that regard, with which in the coming years the country should benefit substantially with new investments, more employment, more royalties and canon."

Felipe Cantuarias, president of Peru's hydrocarbons association SPH, made the comment at the close of 2017, a year that saw renewed impetus on the part of the government to boost investor interest in exploration and production.

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Read Year in Review Snapshot: Andean E&P

In a recent presentation, hydrocarbons licensing authority Perúpetro highlighted the signing of three license contracts with Anadarko and the approval of seven technical evaluation agreements (TEA) with Spain's Repsol and eight TEAs with Canada's Global Petroleum.

This month, the government agency launched bidding to update its E&P databank and evaluate wells in five basins, in a bid to further define the characteristics of potential areas to be offered to operators.

A look at well numbers also reveals an uptick in drilling, albeit much of the work is limited to development wells as companies continue to focus on existing operations to maintain or expand production.

[GRAFICO:FIGURA:ID_920_1515169143498]

Notable reports over the past days and weeks include first gas from the Sagari field at Repsol block 57 and plans by China National Petroleum Corporation to ramp up output at block X and advance to the production phase of block 58, as well as to widen the scope of an exploration campaign in the latter area.

In one of the latest developments, BNamericas has learned that Olympic has budgeted US$339mn to expand a drilling and production program at onshore block XIII-A, which covers 263,357ha in the northwest of the country (see map below).

The project entails 200 development wells, four production facilities, and crude and gas collection systems, according to a company document filed with Peru's environmental certification service for sustainable investments, Senace.

Olympic points out that the work aims to continue operations on the acreage as 177 of 218 wells from the original program have been spudded.

Perúpetro information shows that block XIII produced 2,280b/d and 5.44Mf3/d (154,044m3/d) in November or 1.7% and 0.4%, respectively, of Peru's total oil and gas output in the month.

SOURCE: Perupetro