Petroperu plans to take over former Talisman concession in Peru


Petroperu plans to take over former Talisman concession in Peru

PERU -- Petroperu plans to take over operations at a concession that was previously held by Talisman Energy, a spokesman from the state firm confirmed.

Petroperu's move toward gaining the concession for Block 64 would be an important step for the company to return to upstream operations, which has been a priority for President Ollanta Humala's administration since taking office in 2011.

In September last year, Talisman announced that it was stopping exploration in Peru and withdrawing its business activities from the South American nation. In addition to Block 64, Talisman also operated Block 103 and had interests in blocks 123 and 129. At the time, Petroperu officials said they were not considering taking over Talisman's concessions.

Petroperu President Hector Reyes Cruz was reported saying that Petroperu signed in January an agreement with Talisman to transfer the concession for Block 64 by state news agency Andina. The government is expected to issue a resolution by the end of April to transfer the concession to Petroperu, Mr. Reyes Cruz said.

"In the short term, we will formally have control over Block 64," Andina reported Mr. Reyes Cruz as saying. A spokesman from Petroperu confirmed the comments, but declined to provide further details.

Mr. Reyes Cruz said that Block 64 has proven oil reserves of 42 MMbbl and could produce 7,600 bopd. Peru produces in total about 64,000 bopd.

Petroperu got out of oil production some 15 years ago and today it runs refineries, a pipeline and gas stations.

The company's plan to return to upstream activities also includes taking a minority stake in 36 oil blocks that are expected to be auctioned by the government later this year.

Dow Jones Newswires

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