Perenco Development Plan for Peru Oil Block Awaits Approval

LIMA (Dow Jones Newswires), Sep. 29, 2010

Perenco is awaiting government approvals for its plan to spend $211 million building eight platforms and drilling 16 wells at its Peruvian oil concession.

Perenco submitted its combined environmental impact study and development plan for Lot 67, in the northern Peruvian jungle near the border with Ecuador, in August. On Wednesday Peru's Mining and Energy Ministry said the company's study, also known as an EIA, had yet to be approved. Mining and hydrocarbon projects in Peru cannot proceed without ministry approvals of their EIAs.

According to the timeline given in Perenco's EIA it plans to begin building the platforms and drilling the wells in the third quarter of 2011. The work is expected to be completed by the end of 2014.

Perenco's website says its three Lot 67 oil fields--Paiche, Dorado and Pirana--have the potential to eventually produce up to 100,000 barrels of oil a day.

The site says Perenco plans to build a total of 10 platforms and drill 170 wells in Lot 67. It will also build pipelines to transport the crude oil from the jungle to the Bayovar export terminal on Peru's Pacific coast, about a thousand kilometers away. Perenco is also awaiting ministry approvals for its pipeline project.

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