A consortium led by Offshore International Group will exploit oil in northern Peru

This Monday, the state-owned Perupetro signed a 30-year contract for the exploitation of hydrocarbons in the north of the country with a consortium led by Offshore International Group, from the United States

The company Perupetro signed a 30-year contract this Monday with a consortium led by the American group Offshore International Group to begin the exploitation of hydrocarbons in the north of the country.

For the exploitation of hydrocarbons, in Lot X, the consortium estimates to invest USD 800 million in ten years “to increase oil production, by drilling 1,144 development wells during the third and tenth years of the license contract.”

The agreement was established by the American firm Offshore International Group INC, and the Peruvian companies Aguaytía Energy and Termoselva, in addition to the participation of the state-owned Petróleos del Perú (Petroperú S.A), with a 40 % participation in the contract.

According to local sources, the consortium will be responsible for drilling 440 development wells in addition to the 704 established in the public tender rules.

On the other hand, “the winning group must drill two exploratory wells in the first 10 years, according to the Minimum Work Program established in the bases,” according to the state-owned Perupetro, and also the “official entity in charge of the administration of contracts for the exploitation of hydrocarbons in the country.”

Lot X, which is located to the north in the province of Talara, has an average production of 10,000 barrels of oil per day (bop), which represents 30% of total Peruvian production. The exploitation contract with the Chinese company CNPC will expire soon and the new contract with the aforementioned consortium will come into force through a Trust for the Social Development Fund “aimed at the execution of projects for the benefit of the population located in the districts that covers the contract area.”


Source: swissinfo

(Reference image source: Unsplash+, in collaboration with Getty Images)

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