Having completed exploration of Block 58, contractor China National Petroleum Corporation (CNPC) on Wednesday began the hydrocarbon exploitation phase, State-run Perupetro announced.
The Chinese hydrocarbon giant officially submitted Block 58's declaration of commercial discovery of hydrocarbons on November 21, 2016.
The document confirmed the finding of 3.9 trillion cubic feet (tcf) of natural gas reserves in Urubamba, Picha, Taini and Paratori fields.
CNPC has a 180-day term, counted from the date of the aforementioned declaration, to submit its Initial Development Plan for the said reserves. Investment is estimated at over US$500 million.
The plan must include information on well drilling, pipeline construction and gas collection. Specific information on other natural gas production facilities must also be included.
Block 58 is located in Megantoni district, La Convencion province, Peru's Southern Cusco region.
As is known, Perupetro is the State-run company responsible for promoting, negotiating, underwriting and monitoring contracts for exploration and exploitation of hydrocarbons in Peru.
CNPC is China's largest oil and gas producer and supplier, as well as one of the world's major oilfield service providers and a globally reputed contractor in engineering construction.
CNPC has been present in Peru since 1993 and owns two production blocks in the country's Talara Oilfield, while also providing oilfield services.