Oil and gas company Geopark estimates a US$150 million investment over the next four years to develop block 64 (a.k.a. Morona block) in Loreto region, State-run Perupetro announced today.
According to the hydrocarbon licensing authority, Geopark expects to begin the early production stage in the second half of 2019, producing 6,000 barrels oil per day (bopd).
Peak production is projected at 55,000 bopd over the next seven years, allowing the country to reduce crude oil imports by 50%.
Perupetro recently signed the assignment of contractual position on the License Contract for Hydrocarbons Exploration and Exploitation in block 64, by which Petroleos del Peru (Petroperu) gives 75% control of Morona block to Geopark Peru.
In this respect, the Energy and Mines Ministry issued Supreme Decree N° 031-2016-MEM on Dec. 1, awarding the final approval for acquisition of the said block.
Economic impact
The future development of the said acreage is expected to contribute to Loreto region’s economy through higher canon and sobrecanon (additional royalty specific to certain regions).
Light oil to be extracted from Morona block will also serve as supply source for Talara and Iquitos refineries. Likewise, synergies are likely to develop with heavy oil projects, such as blocks 192, 67 and 39.
Location
Located to the northwest of the Marañon River basin, the block contains estimated oil reserves of 200 million barrels.
The Morona block includes the Situche Central 3X oil field, the deepest drilling in Peruvian oil history (19,322 feet), and boasts 35-37° API (good quality) oil, revealed by tests carried out in 2009.
The block was transferred to Petroperu in April 2013.
Petroperu is a State-owned company dedicated to the transport, refining, distribution and commercialization of fuels and other oil derivatives.
GeoPark is a leading independent Latin oil and gas explorer, operator and consolidator with oil and gas assets and growth platforms in Chile, Colombia, Brazil, Peru and Argentina.
(END) SDD/JJN/DHT/RMB
Published: 12/3/2016