Exploration in Peru mounting

Apr. 6, 1998 Perupetro is aiming for private companies, at the end of the year, to be exploring 50 blocks in Peru.
On April 3, it signed an exploration contract for Block 12 in the virgin Lancones Basin with Argentina's Pluspetrol -- taking the number of blocks now under contract to 43.
On April 1, it signed a similar deal with Arco for the 2.5 million-acre Block 86.
Arco was also one of the bidders for blocks 34 and 35 in the Talara Basin, for which offers were opened on April 3.
Perupetro is hoping to announce as well soon the successful outcome of discussions with U.S.-based PanEnergy for blocks 40 and 41 in the Ucayali Basin. And soon after that, it hopes to announce a successful conclusion to talks with Spain's Repsol for an offshore block in water depths of 660-6,600 feet.
Perupetro also has hired consultants to evaluate the possibility of holding an offshore licensing round for the outer continental shelf. If that gets the go-ahead, it could occur next year.
For the first 2 years of its seven-year Block 12 contract, Pluspetrol will shoot seismic. If the company decides to proceed, it will drill one well a year for the remaining five years. A Pluspetrol official said the company expects to spend about $ 80 mm over the entire seven years.

Despite the lack of recent exploration success by other foreign companies, the official said he's optimistic about Block 12 because it is near Perez Companc's Block 10, which has been producing for almost 90 years.
Pluspetrol already is the second-largest private producer in Peru thanks to its 60 % stake in Block 8, which produces about 30,000 bpd. It shares the block with 3 South Korean firms -- Pedco with 20 %, Yukong with about 11.5 % and Daewoo with 8.5 %.
Occidental Petroleum Corp. (Oxy) is the biggest producer, pumping nearly half of the country's 110,000 bpd output from Block 1AB.
Pluspetrol said it chose not to bid on blocks 34 and 35 because "we have enough exploration properties" in Peru.
Aside from Block 8, it has three other areas. These are: Block 8X, which surrounds Block 8 and is worked by the same consortium, and the adjacent Block 54, which it shares 35 % - 65 % with Oxy. It is also working in Aguaytia's Block 79, where it hopes to announce a discovery soon. Pluspetrol has a two-thirds stake in the block, with Pedco and Yukong sharing the other third.
Given Peru's decade-long dry spell, Perupetro would certainly be pleased if a find were made.
While Block 12 may be Pluspetrol's last Peruvian exploration acquisition for a while, it said it is very interested in buying producing properties, electricity and gas distribution systems, and refineries. While interest is greatest in the 62,000 bpd Talara refinery, Pluspetrol may also look at the 8,000 bpd Iquitos refinery that it provides with crude.