Perupetro signs a license agreement for block 192 with Petroperú that establishes a social fund for communities

This Perupetro release was published using machine translation.

PERUPETRO SA signed today the License Agreement for the Hydrocarbon Exploitation of Block 192 (Loreto) with PETROPERÚ SA, for a term of 30 years, which establishes new social conditions to guarantee investments with sustainable development in the Amazon.

The new contract seeks, in a first stage, to reactivate the oil production of Block 192 at 10,000 barrels of oil per day (BPD), considering that production operations have been paralyzed since February 2021.

In the second stage, a minimum investment of the order of 630 million dollars is expected, for the drilling of 20 development (production) wells and one exploratory well, in order to increase oil production and generate new direct and indirect jobs for the population.

The reactivation of operations in Block 192 will increase national oil production by 25 percent, generating higher income from royalties and canon transfers for the Loreto region. In addition, the production of hydrocarbons from Block 192 will be destined to supply the New Talara Refinery, to obtain better quality fuels and derivatives for national consumption.

SOCIAL FUND

The contract establishes a Social Fund for the development of the native communities in the area, equivalent to 1.5 percent of the valuation of the audited production in Block 192. Said contribution will allow the communities to have their own resources to manage their own prioritized projects and consequently improve their quality of life.

The contract also establishes improvements in environmental matters to guarantee safe and harmonious operations with the environment and in respect of the population located in the area of influence of Block 192.

In the Lot there are 25 native communities identified as Quechua, Achuar and Kichwa peoples between the Corrientes, Pastaza and Tigre river basins, with which the State, through the Ministry of Energy and Mines, has carried out the Prior Consultation Process, between the years 2018 to 2021.

The new contract guarantees the hiring of labor, preferably of Peruvian nationality, for the operations of the Block, in addition, the contractor company and its subcontractors will provide all opportunities for hiring personnel from the native communities located in the contract area, and must Promote training in the performance of technically specialized jobs.

Block 192 has historically been the one with the highest production in the Marañón Basin, having accumulated production of 737 million barrels, and one of the highest production blocks in the Peruvian jungle. Only between 2015 and 2020, a controlled production of 8.3 million barrels of oil has been registered and it has generated income for the State of more than 98 million dollars.