Latest news with #Petroperu
Yahoo
30-06-2025
- Business
- Yahoo
Petroperu seeks partner for Amazon oil block reactivation
Peru's state-run oil company Petroperu is in negotiations with five companies, including Canada's PetroTal and US-based Upland Oil and Gas, to find a partner for reactivating the Lot 192 oil block in the Amazon. Petroperu's exploration and exploitation manager Tomas Diaz told Reuters that the company is aiming to secure an agreement by mid-to-late July. The reactivation of Lot 192, which is located near the border with Ecuador, is of significant importance to Petroperu, especially in light of the company's financial challenges and substantial debt incurred from the $6.5bn overhaul of the Talara refinery. Diaz emphasised the urgency of the partnership, stating: "We are in a direct negotiation process." Owning a 39% interest in Lot 192, Petroperu has been on the lookout for a new partner since April. The search started after Altamesa Energy Canada, the holder of the remaining 61% stake, withdrew from the project due to debts owed to suppliers and local communities. Diaz highlighted the necessity for any new operator to honour existing service agreements with community-owned companies in the region, acknowledging the frequent conflicts with indigenous communities who demand local employment opportunities and increased social investment. The anticipated production from Lot 192 is up to 12,000 barrels per day (bpd) within six months of its restart, with potential to increase to around 21,000bpd after the new operator initiates a drilling programme. In parallel, Diaz confirmed separate discussions with PetroTal to renew a contract for transporting crude through the Northern Peruvian Pipeline, a 1,100km pipeline currently without active contracts. PetroTal, which operates the adjacent Lot 95, had previously ceased using the pipeline due to repeated attacks on the infrastructure. Diaz expressed optimism about the future contract, stating: "A new crude transport contract will be positive and make Petroperu's pipeline profitable." "Petroperu seeks partner for Amazon oil block reactivation" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Reuters
27-06-2025
- Business
- Reuters
Petroperu accelerates talks for Amazon oil block partner
LIMA, June 27 (Reuters) - Peru's state-run oil company Petroperu is in talks with five firms, including Canada's PetroTal ( opens new tab and U.S.-based Upland Oil and Gas, as it seeks a partner to reactivate a key Amazon oil block, a company executive said late Thursday. Tomas Diaz, manager of Petroperu's exploration and exploitation unit, told Reuters the company expects to reach an agreement for Lot 192 by mid-to-late July. The reactivation of Lot 192, located near the border with Ecuador, is crucial for supplying Petroperu's newly modernized Talara refinery. The company is grappling with a financial crisis and significant debt following a $6.5 billion overhaul of the plant. "We are in a direct negotiation process," Diaz said, adding that a meeting with PetroTal is scheduled for next week. "We expect to select our operating partner in about two weeks; it will then be presented to Petroperu's board for approval." PetroTal and Upland Oil and Gas did not immediately respond to requests for comment. Petroperu, which holds a 39% stake in Lot 192, has been searching for a new partner since April after Altamesa Energy Canada, which held the remaining 61%, withdrew from the project amid debts to suppliers and local communities. Diaz stated that any new operator must honor existing service agreements with community-owned companies in the area. Oil firms in the Peruvian Amazon often face conflicts with indigenous communities demanding local jobs and greater social investment. Petroperu expects the block to produce up to 12,000 barrels per day (bpd) within six months of restarting. That output could rise to around 21,000 bpd after the new operator completes a drilling program. Diaz also confirmed that Petroperu is in separate talks with PetroTal to renew a contract for crude transport through the Northern Peruvian Pipeline. The 1,100-kilometer (684-mile) pipeline is currently operational but sits idle without any active contracts. PetroTal, which operates the nearby Lot 95, previously stopped using the pipeline due to repeated shutdowns caused by attacks on the infrastructure, opting instead to ship its crude by barge to Brazil. "A new crude transport contract will be positive and make Petroperu's pipeline profitable," Diaz said. Petroperu posted a first-quarter loss of $111 million, improving on a $183 million loss from the same period a year earlier.
Yahoo
27-06-2025
- Business
- Yahoo
Petroperu accelerates talks for Amazon oil block partner
By Marco Aquino LIMA (Reuters) -Peru's state-run oil company Petroperu is in talks with five firms, including Canada's PetroTal and U.S.-based Upland Oil and Gas, as it seeks a partner to reactivate a key Amazon oil block, a company executive said late Thursday. Tomas Diaz, manager of Petroperu's exploration and exploitation unit, told Reuters the company expects to reach an agreement for Lot 192 by mid-to-late July. The reactivation of Lot 192, located near the border with Ecuador, is crucial for supplying Petroperu's newly modernized Talara refinery. The company is grappling with a financial crisis and significant debt following a $6.5 billion overhaul of the plant. "We are in a direct negotiation process," Diaz said, adding that a meeting with PetroTal is scheduled for next week. "We expect to select our operating partner in about two weeks; it will then be presented to Petroperu's board for approval." PetroTal and Upland Oil and Gas did not immediately respond to requests for comment. Petroperu, which holds a 39% stake in Lot 192, has been searching for a new partner since April after Altamesa Energy Canada, which held the remaining 61%, withdrew from the project amid debts to suppliers and local communities. Diaz stated that any new operator must honor existing service agreements with community-owned companies in the area. Oil firms in the Peruvian Amazon often face conflicts with indigenous communities demanding local jobs and greater social investment. Petroperu expects the block to produce up to 12,000 barrels per day (bpd) within six months of restarting. That output could rise to around 21,000 bpd after the new operator completes a drilling program. PIPELINE TALKS Diaz also confirmed that Petroperu is in separate talks with PetroTal to renew a contract for crude transport through the Northern Peruvian Pipeline. The 1,100-kilometer (684-mile) pipeline is currently operational but sits idle without any active contracts. PetroTal, which operates the nearby Lot 95, previously stopped using the pipeline due to repeated shutdowns caused by attacks on the infrastructure, opting instead to ship its crude by barge to Brazil. "A new crude transport contract will be positive and make Petroperu's pipeline profitable," Diaz said. Petroperu posted a first-quarter loss of $111 million, improving on a $183 million loss from the same period a year earlier. Sign in to access your portfolio
16-05-2025
- Business
Amazonian communities in Peru rejoice as plan for oil drilling on ancestral land stalls
Peru 's state-run oil company failed to attract any bids to develop an oil field that overlaps ancestral territories of several Indigenous groups, prompting celebration by the communities and environmentalists on Friday. The land parcel known as Block 64, which overlaps the ancestral territories of the Achuar, Wampis, and Chapra nations, has long been the focus of Indigenous resistance. Thursday's failed tender by Petroperu marked a major blow to its plans to expand oil production in the region. 'It's great news amid so much hardship we've been experiencing — a relief, but we remain on alert,' Olivia Bisa Tirko, president of the Chapra Nation's autonomous territorial government in Loreto, Peru, told The Associated Press by phone. Petroperu told AP in a written statement that several companies were interested in Block 64 but withdrew at the last minute due to internal strategic shifts, not external pressure. The company denied that Indigenous opposition played a role, asserting that local communities support oil development and are urging operations to begin. It also said that the block has the required community approval — known as a social license — which is seen as crucial for multinational oil and gas projects to proceed without conflict. Since 1995, Indigenous groups have strongly opposed oil development in the area, blocking multiple companies due to environmental and rights concerns. In 2022, Petroperu took control of Block 64, which known as an oil concession where the government has granted rights to explore and extract oil within a specific territory. ¨It's been a fight ever since the Peruvian state granted the concession without consultation or consent (from Indigenous communities),¨ Bisa Tirko said. ¨For more than 25 years, we have been fighting and resisting to defend our right to live in a healthy and balanced environment.¨ The outcome underscores the mounting legal, environmental and reputational risks deterring investors from Amazon oil development. Andrew Miller, advocacy director at Amazon Watch, an organization that works to protect the rainforest, says strong local opposition has deterred several multinational oil companies from developing Block 64 since 1995. He said that pollution from other oil blocks has harmed other communities in the Amazon. "The history of their sister Indigenous communities in neighboring oil blocks is poisoned water sources, social division and impoverishment," Miller said. 'Each day the oil doesn't flow is a day they can still use the rivers for their sustenance, as they always have.' Miller says despite multinational companies having invested tens of millions of dollars in past attempts to develop Block 64, none have seen a return, suggesting the industry now sees it as a costly financial dead end. Despite this, he believes the Peruvian government will keep searching for a way to encourage development of Block 64. 'Local communities and their allies will remain alert to this zombie project which has been killed multiple times but always attempts to return from the dead,' he said. —— The Associated Press' climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
Yahoo
16-05-2025
- Business
- Yahoo
Amazonian communities in Peru rejoice as plan for oil drilling on ancestral land stalls
Peru 's state-run oil company failed to attract any bids to develop an oil field that overlaps ancestral territories of several Indigenous groups, prompting celebration by the communities and environmentalists on Friday. The land parcel known as Block 64, which overlaps the ancestral territories of the Achuar, Wampis, and Chapra nations, has long been the focus of Indigenous resistance. Thursday's failed tender by Petroperu marked a major blow to its plans to expand oil production in the region. 'It's great news amid so much hardship we've been experiencing — a relief, but we remain on alert,' Olivia Bisa Tirko, president of the Chapra Nation's autonomous territorial government in Loreto, Peru, told The Associated Press by phone. Petroperu told AP in a written statement that several companies were interested in Block 64 but withdrew at the last minute due to internal strategic shifts, not external pressure. The company denied that Indigenous opposition played a role, asserting that local communities support oil development and are urging operations to begin. It also said that the block has the required community approval — known as a social license — which is seen as crucial for multinational oil and gas projects to proceed without conflict. Since 1995, Indigenous groups have strongly opposed oil development in the area, blocking multiple companies due to environmental and rights concerns. In 2022, Petroperu took control of Block 64, which known as an oil concession where the government has granted rights to explore and extract oil within a specific territory. ¨It's been a fight ever since the Peruvian state granted the concession without consultation or consent (from Indigenous communities),¨ Bisa Tirko said. ¨For more than 25 years, we have been fighting and resisting to defend our right to live in a healthy and balanced environment.¨ The outcome underscores the mounting legal, environmental and reputational risks deterring investors from Amazon oil development. Andrew Miller, advocacy director at Amazon Watch, an organization that works to protect the rainforest, says strong local opposition has deterred several multinational oil companies from developing Block 64 since 1995. He said that pollution from other oil blocks has harmed other communities in the Amazon. "The history of their sister Indigenous communities in neighboring oil blocks is poisoned water sources, social division and impoverishment," Miller said. 'Each day the oil doesn't flow is a day they can still use the rivers for their sustenance, as they always have.' Miller says despite multinational companies having invested tens of millions of dollars in past attempts to develop Block 64, none have seen a return, suggesting the industry now sees it as a costly financial dead end. Despite this, he believes the Peruvian government will keep searching for a way to encourage development of Block 64. 'Local communities and their allies will remain alert to this zombie project which has been killed multiple times but always attempts to return from the dead,' he said. —— The Associated Press' climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
