Perupetro Expects to Sign 17 E&P Deals This Year

LIMA Oct 04, 2005 (Dow Jones Commodities News Select via Comtex)

The chief of Perupetro, the state agency charged with promoting energy investment, Monday said the government expects to sign a record 17 oil and gas exploration and production contracts this year, according to government news agency Andina.

Each contract will involve an investment of about $20 million over the first five years, Antonio Cueto was quoted as saying.

He said the government will be signing a contract shortly with U.S.-based Hunt Oil Co. for block 76 and with a China National Petroleum Corp. subsidiary Sapet for block 111, both located in the southeastern Madre de Dios Region.

According to Cueto, the government also will sign a contract with Pluspetrol Peru Corp. for block 108, which lies near the Camisea gas fields in southeastern Peru.

Peru's hydrocarbon production has increased as a result of the start of production at the Camisea natural gas fields in August 2004 and increased crude oil output in other areas.

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