Perupetro Signs 6 E&P Contracts, Brings Total to 14 in 2005

Perupetro signed contracts for blocks 112 and 110 in the Marañon and Ucayali basins respectively with Brazilian federal energy company Petrobras (NYSE: PBR) and for blocks 108 and 115 in the Ucayali and Marañon basins with Argentine oil company Pluspetrol, Perupetro said in a statement.

It also signed a contract for block 105 with the Siberian Oil Company subsidiary Siboil and for block 102 with a consortium of Nabors Drilling subsidiary Ramshorn International, Shona and Andean, the statement said.

The inking of these new contracts follows the signing of two E&P contracts on December 7 for blocks 111 and 113 in the Madre de Dios basin with China's Sapet Development Peru, a subsidiary of Chinese oil company National Oil & Gas Exploration & Development Corp (CNODC).

Sapet is required to invest US$40mn in each block during the exploration phase, while the commercial production stage will likely carry a total investment tag of US$1bn, the statement said.

The 1.52 million hectare block 111 and the 1.23 million ha block 113 are located in the Tahaumanú, Tambopata, and Madre de Dios provinces, while the latter also extends into Manu province.

Sapet currently operates blocks 6 and 7 in Peru, which produce 3,500 barrels of oil and 4 million cubic feet of natural gas a day.

The eight contracts signed during the last week bring the total number signed by Perupetro this year up to 14 from six in 2004.

With the contracts signed this year, Perupetro expects total investment in E&P of US$2.35bn through 2010, the statement said.

Perupetro had planned to sign 17 contracts this year, its CEO José Chávez told BNamericas in November.

There are two more contracts pending approval by President Alejandro Toledo, but they will probably not be finalized this year, the spokesperson said.

The contracts to be signed are for block 76 with US company Hunt and for block 109 with Spanish oil firm Repsol YPF (NYSE: REP).

Although there is not yet a goal for the number of contracts to be signed in 2006, the spokesperson said it would be similar to this year's total if not more.

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