Well count hits recent annual high in Peru

The number of hydrocarbon wells drilled in Peru last year totaled 193, the third consecutive annual increase but below highs recorded in 2010-12 (see graph below).

The majority of wells spud in 2019 were development (187) and the number of confirmation and exploration wells totaled three each, according to information from hydrocarbons licensing authority Perupetro.

CNPC carried out the bulk of confirmation wells at 118, all of which were drilled at onshore block X in the northwest Talara basin. Depths ranged between 2,684-9,218ft.

The acreage was the top crude producer last year at 14,322b/d, representing 27% of total output, and its undeveloped proven reserves and probable reserves at the end of 2018 reached 16.6Mb and 4.22Mb respectively.

The block continues to lead oil production into 2020, averaging 14,895b/d through February 4.

Behind CNPC in the 2019 well count were GMP (33), Sapet (22), Olympic (10), Petromont (5), PetroTal (1) and Pluspetrol (1).

EXPLORATION

On the exploration front, activity continues to plumb historical lows amid heightened socio-environmental scrutiny, security concerns, the pending passage of a new sector framework and a still uncertain political landscape, along with international headwinds.

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Last year’s three exploration wells mirrored similar counts in 2018 and 2017 when five and four wells were drilled, respectively.

In terms of seismic, 2D seismic has not been able to gain traction and 3D seismic has been a no-show, albeit stepped up government efforts to boost such work may bear fruit in the short term.

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For its part, PetroTal recently announced that its 2020 capital program includes an environmental seismic permit for the Envidia prospect at block 95.

COMMUNITY OUTREACH

In a related note, local mining, petroleum and energy industry group SNMPE said that hydrocarbons sector companies which operate in the northern jungle will support the government’s program to close social gaps in Loreto region.

“It is extremely positive for the development of Loreto and the well-being of the entire population of that region, that the government has decided to execute a comprehensive plan to close gaps with an investment of more than 4,000 million soles, which will be used in such matters priorities such as health, education, social programs, housing, water and sanitation, food security and productive chains,” SNMPE head Pablo de la Flor said in a statement.

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