Peru Selects 18 New Oil/Gas Blocks for Roadshow

LIMA Jan 09, 2007 (Dow Jones Newswires)

Government agency Perupetro SA has selected the 18 new oil and gas blocks it plans to promote in the U.S., Canada and London over the next few months.

Company representatives will meet with oil companies in Houston on Feb. 3, travel to London during the third week of March and to Calgary, Canada, in early May, Perupetro Promotion and Planning Manager Ronaldo Egusquiza was quoted Tuesday as saying by government newspaper El Peruano.

The government's aim is to carry out the bidding in mid-2007 for the different blocks. The blocks will be awarded to the companies that offer the government the highest royalties and present the best work plan, said Egusquiza.

One block is located in northern Peru near Piura and there are several offshore blocks in the area north of the capital city of Lima. Another group of blocks lies in northeastern Peru and there are two blocks in southern Peru.

The government has made a concerted effort to drum up interest in Peru's flagging oil sector in recent years and has managed to attract significant investment after making contracts more flexible and attractive.

In 2006, for example, the government signed a record 16 new exploration and production contracts.

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