Peru Government Launches Auction for Offshore Oil Concessions
LIMA, Peru - Peru's government launched on Friday a public auction for nine offshore oil concessions, attracting the interest of international oil firms like Exxon Mobil Corp. and Chevron, the agency responsible for the auction said.
Government agency Perupetro said the auction is expected to attract investments worth at least $450 million.
"The minimum investment (in each concession) will be $50 million, but the companies can invest much more," the head of Perupetro, Luis Ortigas, said in a press conference.
Perupetro said that at least 20 companies from countries like the U.S., Canada, France and Russia are interested in participating in the auction. Two of these companies are Exxon Mobil and Chevron, Mr. Ortigas said.
Perupetro expects to award the concession contracts on Oct. 17.
Mr. Ortigas said state-owned oil company Petroperu will have the option to participate with up to a 25% stake in each concession, but it won't invest in exploration.
"If there is a discovery, then in this case Petroperu will take up to 25%," Mr. Ortigas said.
Perupetro said investments in offshore oil concessions have totaled about $2 billion in the last few years. It expects investments in offshore concessions to double in the next five years.
Perupetro had originally planned to launch an auction with more than 30 concessions, which would have also included blocks located in Peru's Amazon region.
The agency postponed the auction for the concessions in Peru's jungle region due to delays with the implementation of new legislation that requires the government to consult with indigenous communities prior to the development of natural resource projects.
Mr. Ortigas said Perupetro plans to launch an auction before the end of this year for 26 oil concessions in the Amazon.
Mr. Ortigas said the indigenous consultation law could cause initial delays to oil activities in the jungle, but in the long run the legislation will be "favorable."
"We won't have discrepancies with the communities later on," he said.
The last time Peru held an international auction for oil concessions was in 2010 when it auctioned off 24 blocks.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- UK Oil Regulator Publishes New Emissions Reduction Plan
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- PetroChina Posts Higher Annual Profit on Higher Production
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- McDermott Settles Reficar Dispute
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea