Occidental, Hess Officially Pull Out of Peru Jungle Block 101

LIMA Mar 19, 2007 (Dow Jones Newswires)

Occidental Petroleum Corp. (OXY) and Hess Corp. (HES) have ceded their participation in Peru's block 101 to Talisman Energy Inc. (TLM), according to a decree published in Monday's official gazette.

An official at Talisman declined to provide any details other than to say that the company would now be the sole operator of the block, located in northern Peru.

The new contract will be signed shortly.

In December, Occidental announced it was planning to relinquish three exploration blocks in Peru pending government approval.

At the time, company officials said the move reflected Occidental's growing emphasis on the U.S. and the Middle East.

However, Energy and Mines Minister Juan Valdivia said recently that Occidental was currently negotiating a new contract for a block in northern Peru.

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