Blocks I, VI and Z-69 are located in northwestern Peru between the provinces of Talara, Paita and Sechura in the Piura Region. Currently, these blocks are in the producing stage and together reach an average production of 7,500BPD of 34-38 °API, light oil from reservoirs mainly dominated by a gas-in-solution type drive mechanism.
Blocks I and VI are onshore operations whose development started more than 100 years ago, while block Z-69 is located offshore Peru and its exploitation began in 1959 by Belco Petroleum Co.
These blocks represent an excellent investment opportunity in the energy sector thanks to their producing fields, accessibility, infrastructure, and proximity to the modern Talara refinery, which guarantees continuous and highly profitable operations. PERUPETRO and the Peruvian State provide all the necessary support to ensure the success of the investments.
Following our 2023 bidding process, we are pleased to announce that we are close to launching an international bidding process to award these three blocks. This new process will focus on a competitive bidding process based on the amount of investments for each block, emphasizing the number of exploratory and development wells to be executed in the short and medium term. Additionally, tax benefits will be granted for companies that reestablish production in temporarily abandoned wells and invest in EOR and deep horizon drilling projects.
The contract model for these projects is a 30-year license for which the Contractor is granted the right to the hydrocarbons extracted in exchange for a royalty payment. Work programs are established to achieve maximum recovery efficiency in the fields, and also include new clauses such as Abandonment Fund and Social Development Fund which are contractor contributions for activities such as abandonment of wells and projects for the benefit of the population near the contract area, to guarantee a harmonious relationship with the environment and the population.
To participate in these processes, interested parties must go through an admission process to verify that the participating companies and consortiums have the desired experience in upstream operations and also have economic support that allows them to comply with the obligations assumed, mainly to have a residual net worth greater than the investment established for each block.
Interested companies that do not have all the capabilities may associate with each other to pass the filter together and participate in the process. Also, investors that have only economic capacity, may associate with companies that provide integral oil services, capable to assume the block operations (ESIP). These specifications can be verified in more detail in the Bylaws for the Qualification of Interested Parties to carry out Hydrocarbon Exploration and Exploitation activities and the Guidelines for the Qualification of Interested Parties approved by PERUPETRO, which can be found in the Investor Site of PERUPETRO (www.upstreamopportunities.pe)
The process will be developed in two acts, the first act corresponds to the submission of Packages 1 and 2. Package 1, contains affidavits of the participating companies, bid validity guarantee and the documents that support its qualification after granting of the Award. Package 2, contains the bid form, which will be opened in the second act and contains the proposal for the development, exploratory, and workover wells, in addition to those of the base program established for each block.
Learn about our contract model and how you can benefit from these unique opportunities in the Peruvian northwest by visiting our website: www.perupetro.com.pe. Also, it is important to mention that technical information on these blocks is available in our Data Bank free of cost: http://bancodedatos.perupetro.com.pe/
17 new areas with exploration potential
Since our last promotion activities in 2023, we have signed 6 technical evaluation agreements, mainly in the offshore areas. This year we decided to add 17 areas for the exploration activities in other basins such as Lima and Pisco in the offshore and Huallaga in the onshore.
As a consequence, this year we are promoting 47 areas that have been included in our promotion plan for 2024. These areas also have extensive technical information that will be available on the web, prior to registration, and free of charge for interested companies.
These areas are suggested for establishing a Technical Evaluation Agreement and/or License Agreement, configuration can also be changed upon request of the interested company.
In general numbers, we quantify more than 17,000 MMSTB in the different onshore and offshore basins and 9.5 TCF in the sub-Andean basins. There is still hydrocarbon potential that needs to be developed in Peru.
Selection of Promotional Areas
The selection of the promotional areas has been based on rigorous technical criteria, including the availability of technical information, geological prospectivity, the existence of plays, leads, and prospects, proximity to proven hydrocarbon deposits, and available logistic facilities. The selected areas are located in the Marañon, Huallaga, Ucayali, Madre de Dios, Salaverry, Trujillo, Lima, and Pisco basins.
Prospective Resources Analysis
The analysis of the promotional areas has revealed significant hydrocarbon resource potential. In total, the selected areas present prospective resources (2U) (Unrisked) amounting to 16,556 MMSTB of oil, 11.65 TCF of gas, and 156 MMSTB of natural gas liquids. These figures evidence the high prospectivity of the areas and underline the importance of promoting their exploration and exploitation.
Marañon Basin
The Marañón basin, located in the northern jungle of Peru, has been one of the main areas of interest, 23 selected promotional areas with an estimated volume of 5,994 MMSTB of oil and 1.62 TCF of prospective resources (2U).
Oil exploration in the Marañon Basin began in 1955 and since then has gone through several periods of significant activity. In the 1970s, Petroperu identified five oil fields during its initial exploration phase in Block 8, including the commercial discovery of the Corrientes field. In the following decades, international companies such as Occidental Petroleum, Repsol and Pluspetrol have carried out successful explorations, increasing interest and investment in the region. To date, 128 exploratory wells have been drilled in the basin, with results that support the continued interest in exploration in this region.
Huallaga Basin
One promotional area (HU-XP-005), with significant hydrocarbon potential in the Huallaga basin, located in the west of the northern jungle of Peru, has been selected. This area has 2D seismic information that allows the identification of prospective structures. In the selected promotional area of the Huallaga basin, 323 MMSTB of oil are estimated as prospective resources (2U).
Since 1948, several geological and lithostratigraphic studies have identified the hydrocarbon potential of the basin. These studies, carried out by companies such as Occidental Petrolera del Perú and supported by institutions such as the Instituto Geológico Minero Metalúrgico (INGEMMET), have highlighted the presence of salt domes and sedimentary systems favorable for hydrocarbon generation and storage. Recent research, focused on sequence stratigraphy methodology, has allowed a better understanding of the depositional systems present in the Cretaceous Cushabatay, Raya, Agua Caliente, and Chonta units. These systems vary from fluvial and estuarine to carbonate platforms, providing diverse environments favorable for hydrocarbon accumulation.
Ucayali Basin
In the Ucayali basin, located in the central jungle of Peru, 11 promotional areas have been selected with an estimated volume of 9,234 MMSTB of oil and 1.37 TCF of gas in prospective resources (2U). This basin has proven to be highly productive since the discovery of the Agua Caliente field in 1939. The areas have proven petroleum systems comprising Carboniferous and Devonian formations, as well as the Cushabatay formation.
Exploration in the Ucayali Basin began in the 1920s with surface reconnaissance and mapping. The first significant well was the Blue Goose #1 drilled in 1938, discovering the Agua Caliente field with an initial flow of 2000 BOPD of 43° API oil. To date there are numerous large undrilled structures and the presence of light oil shows in many wells underscores the untapped potential of the region the Ucayali basin represents a significant opportunity for investors in the hydrocarbon sector, with its vast expanse, complex geology, and proven hydrocarbon richness.
Madre de Dios Basin
In the Madre de Dios basin, located in the southern jungle of Peru, 3 promotional areas have been selected (MD-XP-001, MD-XP-002 and MD-XP-012), noted for its high exploration potential and an estimated volume of 8.66 TCF of gas and 156 MMSTB of natural gas liquids in prospective resources (2U).
Exploration in the basin dates back to 1911, companies such as PERU CITIES SERVICE, ANDES PETROLEUM, SHELL, and MOBIL have contributed significantly to the geological knowledge of the basin by acquiring seismic data and drilling exploratory wells. In 1999, the Candamo-78-53-1X/ST well confirmed the presence of gas and condensates, thus discovering the Candamo reservoir with 2.1 TCF of gas as contingent resources (2C). The prospectivity of these areas focuses on the potential of the geological formations identified in the Camisea area.
Salaverry Basin
In the Salaverry basin, located in the Grau Sea off the coast of the departments of La Libertad, Ancash, and Lima, 5 promotional areas (SL-XP-001, SL-XP-002, SL-XP-003, SL-XP-004, and SL-XP-005) with significant hydrocarbon potential have been identified. These areas have 2D and 3D seismic information that allows a detailed evaluation of prospective resources (2U) estimated at 547 MMSTB of oil.
Historically, several exploratory activities have been carried out in the Salaverry basin, including seismic surveys and drilling of exploratory wells, (Occidental del Peru in 1971), which provided valuable data on the basin geology. Additionally, seismic campaigns conducted in the 1990s by companies such as Repsol have contributed to a better understanding of the structural geology of the basin. The Salaverry basin offers several opportunities for investment in hydrocarbon exploration. Studies indicate the presence of multiple prospective structures that present structural and stratigraphic traps that could be evaluated through new seismic campaigns and exploratory drilling.
Trujillo and Lima Basin
In the Trujillo and Lima basin, located in the Grau Sea off the coast of the departments of Lambayeque, La Libertad, Ancash and Lima, 3 promotional areas have been identified (LI-XP-001, LI-XP-004 and TR-XP-001) with significant hydrocarbon potential. These areas have 2D and 3D seismic information that allows correct identification of prospective structures. In the Trujillo and Lima basin, specifically within the selected promotional areas, prospective structures have been identified with prospective resources (2U) estimated in 9.40 MMSTB of oil.
The Trujillo and Lima Basins are located in a tectonically active region, influenced by the subduction of the Nazca plate under the South American plate. This interaction has resulted in a succession of tectonic events that have shaped its current structure, characterized by complex faults and folds that can act as hydrocarbon traps. Geological and geochemical studies indicate the presence of active petroleum systems in the Trujillo and Lima Basin. The sedimentary formations, which date from the Paleozoic to the Cenozoic, contain sequences of source rocks, reservoirs and seals that are favorable for hydrocarbon generation and accumulation. Seismic and drilling data suggest the existence of several structural and stratigraphic leads and prospects with significant potential to contain commercial oil and gas accumulations.
Pisco Basin
In the Pisco basin, located in the Grau Sea off the coast of the departments of Lima and Ica, 1 promotional area has been selected (PI-XP-001) with significant hydrocarbon potential. These areas have 2D and 3D seismic information that allows the identification of prospective structures. The Pisco basin shows remarkable potential, with prospective resources (2U) estimated at 449 MMSTB of oil.
The Pisco Basin, with its rich stratigraphy and structural potential, represents an attractive opportunity for investment in hydrocarbon exploration. Advances in seismic interpretation and 3D modeling provide a solid foundation for future exploration and development activities, positioning the basin as a priority target for investors.
In this world of energy transition, Peru still has oil and gas resources in the subsoil that can sustainably contribute to the country's development and poverty reduction with the support of private investment.
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