GeoPark To Release Block 64 Back To PetroPeru

(Energy Analytics Institute, 13.Aug.2020) — PetroPerú S.A. agreed to accept the transfer of GeoPark Peru S.A.C.’s 75% interest in the license agreement for Block 64; thus, obtaining 100% of the rights and obligations as a contractor for the exploration and exploitation of hydrocarbons from the deposit.

GeoPark Peru had already announced in July 2020 its plan to abandon Block 64 owing to resistance from the Achuar and Wampís communities located in the Loreto Amazon, reported online media El Comercio on 13 August 2020.

PetroPerú and Geopark Peru must obtain the supreme decree to proceed with modification of the license agreement, which is in accordance with Article 12 of the Organic Law of Hydrocarbons.

Geopark and PetroPerú had partnered in 2014 to explore and exploit the lot in the Marañón basin. The project was estimated to achieve average production of 10,000 barrels per day (b/d) of oil in its first stage.

According to Reuters, the lot had probable and possible reserves of 160 million barrels of oil.

In 2013, the then operator Canadian Talisman returned the lot to the state citing issues with communities in the area.

The lot, also called “Project Morona,” is considered one of the best in terms potential to increase Peru’s oil production and would require an investment of $130 million in its first stage, according to the company.

Peru, located in South America, currently produces an average of 50,000 b/d.

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By Ian Silverman. © Energy Analytics Institute (EAI). All Rights Reserved.