Offshore staff
(Peru)- Peruvian oil company Petro-Tech Peruana has signed an E&P contract with state hydrocarbon investment promotion agency Perupetro for a 1.5 million hectare block called Z-35. The block, located off the coast of the Lambayeque, La Libertad and Ancash departments, represents a $40 million investment for Petro-Tech over the first five years of the contract.
Petro-Tech has made several long-term investments recently off the coast of Peru. The Z-35 contract covers a 30-year period for upstream oil activities and a 40-year period for gas. It joins the list of offshore blocks that already includes the Z-6, Z-2B and Z-33 blocks. The company also holds two technical evaluation agreements, one offshore and the other onshore.
This contract is the latest in a string of offshore upstream projects awarded to private companies. Glodomiro Sánchez Mejía, energy and mines minister for Peru commented that, "the signing of this contract simply reaffirms the trust that private investors have in Peru." He went on to say that hydrocarbon exploration investment for 2005 is around $80 million, and production investment is around $150 million.
Perupetro has awarded six upstream contracts so far this year but that number is expected to double by year-end.
9/26/05
