PetroVietnam Snags Production Rights for Peru's Trujillo Oil Block

HANOI (Dow Jones Newswires), September 12, 2008

Peru's state-run Perupetro S.A. has awarded a contract to PetroVietnam to explore and produce oil and gas at Block 162, the state-run Vietnam News Agency reported Friday.

The block, which covers 4,700 square meters, is located in the Ucayali oil field in eastern Peru, the agency said, citing PetroVietnam.

The contract is the second one that PetroVietnam has been awarded in Peru, with the first received earlier for production rights at Block Z47 in the Trujillo oil field, VNA noted, without indicating when the first contract was signed.

PetroVietnam holds 100% stakes in the two contracts, it said.

PetroVietnam will start work in Block 162 after officially signing the contract soon, it added.

Peru is expecting foreign investors to spend $800 million on oil and gas exploration in the next two years, with the country aiming to become an oil exporter by 2010, Deputy Energy Minister Pedro Gamio was cited by VNA as saying.

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