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Twenty-two blocks in five basins are being selected currently for Peru’s next leasing round, which should open by the end of 2012.
The latest bidding round for onshore blocks in Peru is set to be launched in 4Q 2012, according to PeruPetro.
“We are fulfilling the regulations for consulting with local communities about the infrastructure in each block,” said Oscar Miro Quesada Rivera, promotion, PeruPetro.
On April 4, the PeruPetro board of directors approved the delimitation of 22 blocks for hydrocarbon exploration and exploitation for a bidding round that will begin in the fourth quarter.
The bidding round is being conducted under a new scheme of prior consultation. The Peruvian government issued the Regulation for the Law of Prior Consultation on April 3. According to the regulation, PeruPetro must consult with the communities located in the area of the 22 blocks before launching the bidding round. The new regulation is designed for communities involved in the development of energy and mining projects to have a say in the process.
The consultation is scheduled to be completed by the end of September at which time the blocks being offered will be announced.
The 22 blocks are located in five hydrocarbon basins: Marañon, Ucayali, Madre de Dios, Trujillo, and Santiago. The Maranon Basin is oil prone, while the other four basins are gas prone, explained Miro Quesada. The Trujillo basin is offshore.
Block 88 in the Ucayali basin contains the Camisea gas field, which means that pipeline infrastructure is available in that basin, he said.
There are several prospects within the basin, including Portillo, Cohengo, and Chipani. The ENE has Permian source rock and is oil prone. The Ambo, a Mississippian formation, is the likely gas source for the Camisea field.
In the Maranon basin, blocks 39 and 67 both have heavy oil deposits. These blocks indicate a trend that extends from fields in Ecuador that have good production. There is also pipeline infrastructure in the region.
A well drilled in 2005 on Block 64 in the Maranon basin encountered 39° API gravity oil from the Situche structure, which indicates a trend for light oil on the block, he added.
All companies working in Peru must sign contracts with Perupetro, which operates on behalf of the federal government.
Under the license contract, the holder acquires ownership of the produced hydrocarbons and pays a royalty to the state. The licensee assumes the exploration risk and provides all technical, economic, and financial resources to fulfill the contract.
There are two phases to each contract -- exploration and exploitation. For oil, the term of the contract is 30 years, while for gas and condensate, the term is 40 years.
The exploration phase is for a period of seven years and is eligible for extensions depending on the results of the drilling and the availability of infrastructure to move oil and gas. The work program is flexible and is established during contract negotiations.
Technical information for these basins covers geophysical surveys, technical evaluations, and geological field studies.
As PeruPetro stated in its executive summary, “This is an unrivaled opportunity to access the exploration potential of promising areas in Peru.”
Contact the author, Scott Weeden, at firstname.lastname@example.org.