Peru issues 1st upstream call in 4 years

Peru’s government has launched bidding for the previously announced call to operate block 201 which covers 430,974ha in the Amazon region of Ucayali.

The process is the country’s first upstream call since the failed attempt in 2015 to secure an operator for onshore block 192 amid the low-price commodity environment at the time that led to the awarding of a temporary services contract.

Although the pricing situation has improved, interest in the new acreage on offer may be tempered by heightened socio-environmental scrutiny, such as that faced by CNPC; the pending passage of a new hydrocarbons framework to boost upstream operations; and security concerns related to the Norperuano oil pipeline (ONP), among other factors.

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Hydrocarbons licensing authority Perupetro began citizen participation earlier this year for block 201 that continues with public engagement prior to the submission of the awarded contract to the energy and mines ministry, and following the contract’s signing.

The contract includes a seven-year exploration phase, which could be extended to 10 years, and the minimum work program’s estimated investment reaches nearly US$90mn.

Perupetro will accept letters of interest through November 11, with proposals due and awarding scheduled for later that month, according to selection documents, available here.

NORPERUANO

In a related note, Carlos Paredes Lanatta, president of state oil company Petroperú, announced the launch of a new early alert system and vegetation clearing plan for the ONP that includes the hiring of local residents.

The initiative began in 2017 along ONP’s stretch I, and according to the NOC, no pipeline cuts have been reported along this section for the past 17 months.