Candidate surfaces for temporary operation of Peru upstream Amazon acreage

PetroTal is the most suitable company for the temporary operation of Peru hydrocarbons block 8 in the northern Amazon region of Loreto.

That is according to information from hydrocarbons licensing authority Perupetro following the conclusion of a direct negotiation process for the acreage.

“Direct negotiation with an oil company is exceptionally appropriate, at the proposal of Perupetro when, at the discretion of the administration, there is a need to enter into a contract for a block and it is not feasible to carry out the contracting process by a call,” the authority said.

PetroTal, which operates the country’s principal crude producer (block 95 in Loreto), was selected after offering 20 additional well workovers to the reference work program.

Upland Oil & Gas and Cheiron Americas offered 19 and 18 additional well workovers, respectively. Cepsa and Perenco were also invited but did not submit proposals.

Information was not immediately available from Perupetro regarding when a final decision is expected. It recently completed citizen participation events as part of public engagement for block 8.

SECTOR GROWTH

Meanwhile, latest projections from Peru’s central bank reveal no variation in its GDP forecast for the country’s hydrocarbons industry.

In its June inflation report, the monetary authority said sector GDP this year and next is expected to grow 4.7% and 4.9%, respectively, flat from previous guidance.

The growth rates are associated with what the bank says is an expected return to “normal” operations of Amazon blocks.