PETROPERÚ returns to oil production after 25 years

PETROPERÚ began the return to oil and gas production activities, after 25 years, by taking control of the production operations of Lot I, in the historic Talara oil basin, which currently produces around 540 barrels of oil per day (BPD).

In the formal ceremony, held in one of the 190 wells that are part of Lot I, located between the La Brea and Pariñas districts -in Piura-, the President of the Republic, Pedro Castillo Terrones, described this event as historic and said that the hydrocarbon industry in the country takes an important step in Peru with this return, after a quarter of a century.

"Today we change history by taking the big step towards returning to PETROPERÚ with this operation and in the coming months with lot 192, the largest in the country, and lot 64, both in the Loreto region. With the operation of these lots, part of the crude oil that the New Talara Refinery will require for the production of quality fuels is assured," added the Head of State, who announced that in April 2022 the state-owned company plans to start the safe start-up and progressive of this complex, one of the most important in South America.

For the president, these measures will have, in the near future, a significant impact on the sale prices of the fuels that PETROPERÚ will produce to supply the national market, even in the most remote parts of the country where the company plays a very important role.

"PETROPERÚ has always acted responsibly and with full economic autonomy, without receiving funds from the State and today more than ever, despite the privatization actions that sought to disintegrate and paralyze the development of the state company, to the prejudice of the country, it is stronger and more vigorous than ever", said the President of the Republic.

On behalf of PETROPERÚ, its Corporate Operations Manager, Óscar Vera Gargurevich, participated, who highlighted this event as an important milestone, since -he said- “this return of the State-owned company to oil production activities will contribute to the vertical integration of the state company and the strengthening of the national oil industry”.

The official added that Block I will allow the direct supply of crude to the New Talara Refinery, which is preparing to begin its progressive start-up next April, producing clean fuels to supply the country. "Undoubtedly, today marks an important milestone that will contribute to offering the national market quality fuels at much more competitive prices, a commitment of PETROPERÚ to the country".

Likewise, Vera Gargurevich specified that the start-up of the New Talara Refinery is part of the strengthening of the national company to contribute in this way to the development of the country, as PETROPERÚ did until the 90s, when it was vertically integrated, managing to maintain a production of 187 thousand barrels per day, in contrast to the current production of oil lots, which is in the order of 40 thousand barrels per day.

In addition, the Chairman of the Board of PETROPERÚ, Mario Contreras Ibárcena; the President of Perupetro, José Luis Balta Chirinos; the Minister of Energy and Mines, Eduardo González Toro; the Minister of  Defense, Juan Manual Carrasco Miñones; Congressmen of the Republic and other personalities, including the members of the board of the State company.

The officials agreed to highlight that this return to the upstream will allow PETROPERÚ to guarantee the production of quality fuels in the modern Talara Refinery, which to date has a construction progress of close to 97%.

Exploration contract

It should be remembered that this control of operations occurs after the expiration of the oil exploration and production contract for Lot I, operated by the UNNA company (former GMP), after the 30-year term established, for these contracts, by the Organic Law of Hydrocarbons.

In accordance with Supreme Decree No. 030-2021, published in the newspaper El Peruano, the activities that PETROPERÚ will initiate from now on will be carried out through a Temporary License contract for a period of 22 months, focused exclusively on maintaining the production of petroleum and natural gas liquids.

It should be noted that this return to the usptream has been possible after arduous negotiations and a process of citizen participation prior to the assignment of a new operator for Lot I, which was carried out by Perupetro in compliance with the Citizen Participation Regulation for Activities of Hydrocarbons.