Peru reveals upstream investment requirements

Peruvian energy authorities envision an important increase in hydrocarbons production in the coming decades driven by the country's potential of 10Bboe.

In a base scenario, hydrocarbons licensing authority Perupetro forecasts that output could reach 700,000boe/d in 2036 from 350,000boe/d last year, according to a presentation from the government agency.

Perupetro highlights that US$1bn in annual investment would be required starting in 2025 to ramp up production.

Information from the authority shows that exploration and production investment in the first 11 months of 2017 totaled US$15.6mn and US$401mn, respectively.

In the near term, Perupetro - citing figures from the energy and mines ministry - projects that upstream investment across Peru's basins will reach close to US$4bn in 2018-21.

The bulk of this spending would be for the northern Talara basin where 832 wells and 642 workovers are planned.

The presentation points out that 98% of exploratory wells are concentrated in four basins: Talara, Marañón, Ucayali and Sechura.

Investment levels, however, will depend on the pricing environment as well as sector reforms underway in Peru, among other factors.

Read Lobby intensifies over Peru hydrocarbons reform and Peru upstream: Turning the corner?

In a related note, the ministry's energy environmental affairs office has scheduled public hearings next week in northern Tumbes region to review Upland Oil & Gas' environmental impact study to drill 23 exploratory and 92 confirmation wells at block XXIII, which lies in the Talara basin.

Also from Peru's hydrocarbons sector, energy and mining investment regulator Osinergmin reported that there is enough natural gas stock to guarantee normal supply following a rupture of Transportadora de Gas del Perú's pipe that transports Camisea gas liquids.