Peru's Oil Production to Rise 20,000 bopd

LIMA (Dow Jones Newswires), September 5, 2008

Peru will increase its production of oil and other hydrocarbon products to an average of 132,000 barrels a day in September from 112,000 barrels a day now, government agency Perupetro said Friday.

The coming into production of Block 56, a natural-gas block in southern Peru that is owned by a consortium, will lead to the increase.

Perupetro said in a statement that the consortium, led by operator Pluspetrol Peru Corp., expects output from Block 56 will be about 20,000 barrels a day of natural-gas liquids in the first months of operation.

Peru's output of liquid petroleum gas, or LPG, will rise by some 10,000 barrels a day, which will allow Peru to stop importing some 6,000 barrels a day, the government said.

The government agency said that production of diesel will increase by about 1,500 barrels a day.

Pluspetrol has said that the increased gas output from Block 56 will allow it to increase output to 75,000 barrels a day of liquids from 37,000 barrels a day.

Development of Block 56, in which Pluspetrol has invested some $850 million, is also being called the second phase of the Camisea project as it is located next door to Camisea's Block 88, which went into production in mid-2004.

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