Peru hydrocarbon reserves dip on exploration slump

Reduced exploration activity helps explain lower hydrocarbon reserves in Peru, according to a government report.

In its just released 2014 hydrocarbon reserves document, the energy and mines ministry highlights that proven, probable and possible reserves at end-December were 3.847Bboe (4.125Bboe at end-2013), 1.726Bboe (1.798Bboe) and 1.439Bboe (1.600Bboe), respectively.

Proven, probable and possible oil reserves at end-2014 were 683Mb (741Mb at end-2013), 362Mb (363Mb) and 386Mb (441Mb).

Proven, probable and possible NGL reserves at end-2014 were 727Mb (876Mb at end-2013), 289Mb (351Mb) and 249Mb (266Mb).

Proven, probable and possible natural gas reserves at end-2014 were 14.630Tf3 or 414Bm3 (15Tf3 at end-2013), 6.44Tf3 (6.5Tf3) and 4.83Tf3 (5.4Tf3), respectively.

Information from hydrocarbons licensing authority Perupetro reveals a sharp drop in exploration investment as well as a fall in production investment.

Other factors behind the reserves dip include contract terminations, lack of project development execution due to socio-environmental permitting delays, production, and reserve estimate revisions and recategorization, adds the ministry report.

The need to prove up new reserves is paramount as authorities and stakeholders look to expand natural gas use through projects such as pipeline concession Gasoducto Sur Peruano, and make the country a net hydrocarbons exporter.

Latest metrics, however, show a year-on-year drop in April of hydrocarbon liquids and natural gas output.