Natural gas reserves would be insufficient in 12 years if exploration of new areas is not promoted

This press release was published in English using an automatic translation system

Perupetro

Peru's natural gas reserves, which currently cover domestic demand, would be insufficient within an estimated 12 years if the necessary conditions are not created to boost exploration of new areas with hydrocarbon potential. This situation represents a serious risk to the country's economic and social development.

In recent years, exploration activity has slowed. As a result, natural gas reserves are being consumed without replenishment. If this trend continues, Peru will likely have to begin importing natural gas between 2037 and 2040, which would significantly impact electricity generation costs.

An increase in these costs would affect the country's competitiveness, with negative repercussions for key sectors such as industry, transportation, and households.

PERUPETRO Chairman of the Board, Pedro Chira, reported that domestic natural gas production currently amounts to 1.3 billion cubic feet per day. However, he warned that reserves are not being replenished, as there are currently no active gas exploration contracts.

"If we don't incorporate new reserves in the short term, we will face declining production that will put us in a critical situation of energy dependence by 2037," he warned.

Despite this, he noted that there is still a window of opportunity to leverage the resources already identified.

Given this scenario, PERUPETRO and the Ministry of Energy and Mines (MINEM) are promoting concrete actions to reactivate natural gas exploration, not only in the south-central region of the country but also in the northwest zone.

Regarding the most sensitive areas, such as Madre de Dios and offshore, the president of PERUPETRO emphasized the importance of having companies with technical experience and high socio-environmental standards.

"We're going to call on top-tier companies, since these projects, due to their volume, would involve large-scale developments," he stated.

In the case of the Candamo deposit, located within a national park, he stated that PERUPETRO cannot conduct exploration activities or evaluation studies until the State makes a decision on entering the area. Previous explorations identified estimated resources of between 3 and 5 TCF (trillion cubic feet) of natural gas there.

CHEVRON ENTRY INTO PERU

The president of PERUPETRO highlighted the entry of the oil company Chevron into the country, following the recent promulgation of the Supreme Decrees approving the modification of the license agreements for lots Z-61, Z-62, and Z-63, allowing its incorporation as a partner of Anadarko.

"We hope to announce in the coming months the entry of other large companies to operate offshore and in the country's jungle," he added.