Peru gives Tullow Oil another shot at exploration
Petroleumworld 05 07 2019
Peru reapproved a contract for UK-listed Tullow Oil to explore shallow-water block Z-64.
This is Tullow's second chance with the block, nearly a year after its original contract was cancelled.
The 54,000-hectare block lies off the northern coastal department of Tumbes, where Canadian independent Frontera Energy operates the nearby 1,200 b/d block Z-1.
Z-64 is one of five blocks that Tullow was awarded in March 2018, with the contracts controversially published only a day after former president Pedro Pablo Kuczynski resigned. Congress pressured the new government to annul the contracts based on an energy ministry recommendation to reformat the citizen participation process. In May 2018 the contracts were revoked . The ministry approved new participation rules in January 2019.
Tullow is still waiting for the state to decide on the other four northern coast blocks.
The company could still run into problems with environmental groups and coastal communities pushing to establish the country's first maritime protected area, the Grau Tropical Sea National Reserve.
The ombudsman´s office, a state agency that defends citizen rights, on 30 April demanded that Peruvian president Martin Vizcarra fulfill a pledge to create the protected area.
The office compares Peru to neighboring Chile, claiming that 25pc of Chile's sea is protected, while in Peru only 0.5pc of the marine area is protected.
The Peruvian Hydrocarbons Society says the proposed protected area would alienate investors, affecting exploration blocks already awarded and others up for grabs.
Australia's Karoon, which is partnered with Tullow in deepwater exploration block Z-38, has argued that the new reserve would keep it from moving ahead with an estimated $2.5bn investment on the block. Besides block Z-1, Peru has one other offshore production block, 7,550 b/d Z-2B, operated by Savia, a Colombian-South Korean group. Savia also operates Z-6, but it is not yet producing. There are three other offshore exploration blocks, Z-61, Z-62 and Z-63, operated by US independent Anadarko, which is the target of a takeover battle between Chevron and Occidental.
We invite you to join us as a sponsor.
Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.
Story from Argus Media.
argusmedia.com 05 01 2019
Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.
We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.
Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.
Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!
We invite all our readers to share with us
their views and comments about this article.
Write to email@example.com
By using this link, you agree to allow PW
to publish your comments on our letters page.
Any question or suggestions,
please write to: firstname.lastname@example.org
Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels