Concession of Block 192 has been awarded to Pacific Stratus Energy, subsidiary company of Canadian Pacific Exploration & Production Corporation, with which the Peruvian State will sign a two-year temporary service contract to exploit hydrocarbons, Perupetro President Rafael Zoeger announced on Friday.
At a press conference, the official explained that the decision was made following a direct negotiation process with companies interested in such block.
This way, continuity of operations in Block 192 is guaranteed, as is the income derived from it, which is earmarked for regional and local governments through royalties and overriding royalties.
The fund to be established with 0.75% of the value of Block 192 certified output is also guaranteed, which will benefit local communities within the area of influence with at least S/.4 million (about US$ 1.22 million).
Zoeger reiterated that Perupetro will ensure that operations in Block 192 are undertaken respecting the environment and welfare of communities.
He also announced the organization will initiate the relevant proceedings at the Ministry of Energy and Mines (MEM) and the Ministry of Economy and Finance (MEF) seeking approval of the supreme decree authorizing the signing of such contract.
Zoeger explained a new 30-year tender process will be launched after two years, in which Block 192 operator will be able to participate.
Pacific Exploration & Production Corporation is a Canadian company and an explorer and producer of natural gas and crude oil, which is present in Colombia, Brazil, Guyana, Peru, Papua New Guinea, Guatemala and Belize.
Block 192 produces the majority of oil in Peru and accounts for 17% of the country’s total output.
Pluspetrol has operated Block 192 for 15 years now, but its contract expires on August 29.