Canadian producer Pacific Exploration has been awarded a two-year contract to operate Peru’s largest oil producing block on behalf of the Peruvian government.
Block 192 is located in the prolific Northern Marañon basin onshore Peru, adjacent to the border with Ecuador. The agreement was signed by presidential decree and the company commenced operations on August 30.
The block has been in production for 40 years, with a cumulative production of 725 MMbbl at the end of 2013, and a peak production of 117,000 bbl/d in 1979.
It has 17 light, medium and heavy oil fields, 12 of which are producing and deliver 17% of Peru’s total oil production.
Pacific’s remuneration under the agreement will be based on an R-factor calculation, which gives the company a larger percentage of initial production and declines as the investment is recovered.
The initial work program contemplates the reactivation/workover of wells identified by the company with further activities subject to well and field performance.
Chief executive Ronald Pantin, said: “Pacific firmly believes that the reserves and the resource upside on this block have the potential for increased production levels.
“The application of Pacific’s strong and proven expertise in heavy oil production and water handling operations should result in production upside through optimization of current operations, re-activating wells and fields currently shut-in and future development drilling.”
Pantin said Pacific will ensure that Block 192 operations continue to be conducted with the utmost respect for the environment and well-being of local communities.
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