Peru reports jump in upstream hydrocarbons investment

Production spend was the principal driver of upstream hydrocarbons investment in Peru in the first quarter.

The latest figures from hydrocarbons licensing authority Perupetro show that production investment in the first three months of 2024 totaled US$105mn versus US$70.3mn in the same period of last year.

The bulk of the funds went to PetroTal block 95, the country’s principal crude producer.

This year, PetroTal plans to invest U$150-160mn, and the company reported that 1Q24 capex totaled US$30.4mn.

Other sizable production spend went to Camisea blocks 88 and 56, Peru’s main natural gas contributors, as well as block 192.

In March, Perupetro, national oil company Petroperú and Altamesa Energy Perú signed a contract whereby the latter became operation of block 192.

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Spending on exploration, however, remained flat at US$990,000 in 1Q24 compared with US$900,000 in January-March 2023. Most of the investment went to PetroTal block 107.

Efforts to add new impetus on the exploration front are expected to receive a boost with plans by Total Energies E&P to evaluate the potential of the Talara and Tumbes basins.

And Anadarko Perú’s seismic campaign across offshore blocks Z-61, Z-62 and Z-63 that is expected to begin in the coming months.

For its part, PetroTal aims to acquire seismic at block 95 in the second half of this year.