The concession of Block 192 granted to Canadian Pacific Stratus Energy reflects international investors’ interest in Peru’s oil sector, the President of the National Society of Mining, Petroleum, and Energy (SNMPE), Carlos Galvez, pointed out.
"This is a successful process as it has succeeded in making a company invest when oil prices are lower, and that's important; this is a success that was achieved thanks to oil exploration promotion," he said.
Galvez believes the concession process of Block 192 has been difficult because of the context in which it occurred, which involves the current oil price, transportation costs and levels of production.
The businessman emphasized that the concession impact will be positive, because it will sustain the production of the well –located in the Marañon basin in Loreto region– which is the most important one currently in operation.
"Such well used to produce 120,000 barrels of oil per day, but now it produces less than 10,000. Interrupting its operation would have been a problem," he added.
He said an oil well cannot be opened and closed like pipes.
"When production stops, the well collapses, and reopening it has a significant cost; which is why it was essential not to let the well get paralyzed,” he continued.
(END) LBH/JJN/RMB
Published: 8/22/2015