LIMA, PERÚ (By Energy Analytics Institute and Editores LatinPetroleum, contributor Frank Oscanoa Curillo, 16.Oct.2026, Words: 1094) — Peru has oil, natural gas, prospective exploration basins, and international companies with experience developing its resources. It also has something that seems to have become a permanent feature of its energy industry: investment announcements that move much faster than actual production.
In Sep. 2026, the country produced just 39,440 barrels per day (b/d) of crude oil, a 6.9% year-over-year decline, according to Perupetro figures released by the Peruvian Hydrocarbons Society (SPH). While Brazil advances new offshore developments, Guyana brings additional production capacity online, Argentina continues expanding Vaca Muerta, and Venezuela keeps increasing its output, Peru is still trying to recover production from fields discovered decades ago.
Geology, evidently, is not enough.
Few Producers, Too Many Problems
Block 95, operated by Petrotal in Loreto, led Sep. production with 11,612 b/d, followed by Block X in Piura with 9,084 bpd and Block 8, also in Loreto, with 4,334 b/d. Together, the three accounted for approximately 63% of national oil production.
Other assets tell a different story.
Block 67, operated by Perenco, has remained shut in since Oct. 2022, when social conflicts and restrictions on river transportation along the Curaray River disrupted operations. Logistical challenges, security concerns, and socio-environmental disputes have added further complications. In Piura, the former Block XV ceased production after its contract expired in Sep. 2025. The acreage was subsequently incorporated into the new Block 206, whose license contract was approved by the Fujimori administration on 26 Sep. 2026, although the contracting process had begun under the previous administration.
An important administrative step, certainly. But the barrels have yet to follow. Meanwhile, Petroperu and the OIG Consortium announced a drilling program involving 114 new wells in Block X, with US$91 million in planned investment through December and approximately $920mn projected over eight years. Reviving mature fields requires exactly that: capital, drilling activity, and operational continuity.
Chevron: From Enthusiasm to Uncertainty
In 2025, Chevron and Westlawn‘s entry into the Anadarko-led consortium for offshore Blocks Z-61, Z-62, and Z-63 was presented as a sign of Peru’s exploration potential.
Chevron acquired a 35% interest. However, in Jul. 2026, reports emerged that the US oil major had informed Perupetro of its intention to withdraw from all 3 blocks. Energy and mines minister Guillermo Shinno subsequently stated that Chevron had withdrawn only from Z-62. Those statements left questions surrounding Chevron’s definitive contractual position. Meanwhile, Anadarko continues to pursue exploration plans for Z-62, including a well scheduled for 2027.
The episode highlights a reality the industry knows well: attracting an international oil company to a project is only the beginning. Keeping its capital committed requires remaining competitive against opportunities in other jurisdictions. Peruvian oil does not compete only with other sectors of its domestic economy. It competes with oil projects around the world. And competition is already fierce within the region alone.
CNPC: Twelve Years Later, Block 58 Nears Commercial Production
Not every upstream development points toward stagnation. China National Petroleum Corporation (CNPC), which has operated in Peru since 2014 after acquiring Petrobras’ Peruvian assets for $2.6bn, is scheduled to begin commercial production from Block 58 in Cusco on 30 Nov. The project involves approximately $500mn in investment and is designed to produce up to 260 MMcf/d of natural gas.
But its history goes back much further. The Urubamba 1X well was discovered in 2009, when Petrobras was still developing the project. CNPC acquired the asset in 2014 and declared a commercial discovery in 2016. A decade after that declaration, gas is finally approaching the market. The lengthy timeline illustrates the challenges of turning discoveries into commercial developments, particularly when infrastructure, permitting, community agreements, and investment decisions all come into play.
In Sep. 2026, Peru’s natural gas production reached approximately 1,643 MMcf/d, a 10% year-over-year decline. Blocks 88, 56, and 57 accounted for nearly 96% of that volume. The addition of Block 58 could expand domestic supply, although its contribution will depend on actual production levels and commercial development.
While Chevron reconsiders its exploration interests, CNPC is preparing to bring an asset acquired twelve years ago into production. Two different situations that reflect the same reality: in the oil and gas industry, capital follows opportunities but stays for results.
Keiko Fujimori and MINEM’s 120-Day Restructuring
President Keiko Fujimori’s administration, which took office on July 28, has made reviving investment one of its economic priorities.
On 2 Oct., through Supreme Decree No. 018-2026-EM, the government launched a modernization and restructuring process for the Ministry of Energy and Mines (MINEM), Ingemmet, and IPEN, with a timeline of up to 120 days. The initiative seeks to address administrative shortcomings, improve institutional coordination, and streamline investment-related procedures.
Minister Guillermo Shinno has also proposed reviewing the competitiveness of Peru’s hydrocarbons sector, including exploration periods and royalty structures. These reforms could facilitate investment, although they have yet to translate into implemented contractual changes. Their impact will depend on specific measures and coordination with Perupetro and environmental authorities.
Restructuring a ministry may take 120 days. Regaining an investor’s confidence could take considerably longer.
The Economy Is Growing. Oil Production Isn’t.
The contrast is also evident in Peru’s macroeconomic outlook.
In Sep, the Central Reserve Bank of Peru projected GDP growth of 3.2% for 2026 and a 14% expansion in private investment. The economy continues to demonstrate its ability to attract capital, but that momentum is not evenly distributed across sectors. Upstream investment requires specific conditions: geological prospectivity, contractual stability, infrastructure, profitability, and effective management of social and environmental risks.
Weak domestic production also prolongs Peru’s dependence on imports, although developing local resources only makes economic sense when projects are commercially viable. A recovery in oil production, therefore, cannot depend solely on GDP growth or new government announcements.
The Real Test
Mature fields need investment. Idle blocks require solutions to social, contractual, and logistical challenges. Offshore exploration needs competitive conditions. Natural gas development requires infrastructure and continuity. The Fujimori administration has launched an institutional restructuring process and approved an upstream license contract, but it is still too early to measure their impact on production.
ALSO READ: ECUADOR REVEALS NEW ENERGY DEMAND MANAGEMENT SCHEME
CNPC offers a tangible prospect of additional natural gas output. The uncertainty surrounding Chevron, meanwhile, is a reminder that international capital can reassess its priorities. Peru has resources and opportunities. What it still needs to demonstrate is its ability to turn them into sustained commercial production.
____________________
By Frank Oscanoa Curillo reporting from Lima, Peru. © 1999-2026 Energy Analytics Institute (EAI) and its 100% owned Venezuelan affiliate Editores Latin Petroleum CA. All Rights Reserved.
