PetroTal seeking LatAm expansion as communities take center stage

Toronto-listed oil and gas firm PetroTal is pursuing inorganic growth opportunities as it seeks to expand its South America footprint, exploration VP Max Torres told BNamericas. 

The company has stakes in three Peruvian blocks and is the country's largest crude oil producer, having reported average output of 18,400b/d in the first half of 2024.

"We have very aggressive M&A growth plans," Torres said in a telephone interview. "Our aim is to continue growing and our main target is Peru, especially northern Peru. It’s a country that is open for business and I think that most of the companies with a presence there are currently underinvesting."

PetroTal is also open to the possibility of acquiring assets in neighboring Ecuador and Colombia, Torres added. 

He explained how the company has been able to maintain a harmonious relationship with local communities in Peru, where operators often struggle with social conflicts. 

One of the key initiatives has been the creation of a social fund, which dedicates 2.5% of production profits to projects that benefit communities.

"The Amazon is a very sensitive area, socially and environmentally, so this is one of our main priorities," Torres said. 

"The fund is managed by a special board which includes members of the community. These resources go directly toward projects that are proposed by the community. They have included initiatives related to internet coverage, solar panels, fisheries, schools and other projects."

The full interview with Torres will be published in the coming days.