• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 hours How Far Have We Really Gotten With Alternative Energy
  • 10 hours If hydrogen is the answer, you're asking the wrong question
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 23 hours Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 5 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)

China’s CNPC Ready To Splash $2B On Peru Oil Field

China’s biggest oil and gas state company, CNPC, is willing to spend US$2 billion on the development of Block 58 in southern Peru. The news was reported by Perupetro’s head, Rafael Zoeger, at a news conference.

The Chinese major will start development of the field this year, planning to drill 60 wells to tap into an estimated 3.9 trillion cu ft of natural gas. This represents 27.7 percent of Peru’s current gas reserves. Block 58 is located near Peru’s biggest gas deposit, Camisea. Production from Block 58 is slated to begin in 2023.

The Chinese company also has a 46.2-percent interest in another adjacent field, Block 57, operated by Spain’s Repsol, whose gas reserves are estimated at 2 trillion cu ft..

According to Zoeger, the gas produced by CNPC in Block 58 will be transported to the Peruvian coast and used for power generation, and, possibly as feedstock for a petrochemical plant that is yet to be built. If the plant is not built, the gas will be exported.

Peru is a modest oil producer, with daily output at 38,290 bpd as of end-2016 but it has the third-largest gas reserves in South America, at 426.1 billion cu m as of 2014. Oil reserves are estimated at 170 million tons.

Related: Saudi Arabia Signs $50 Billion Worth Of Oil Deals With The U.S.

The country has the only gas liquefaction terminal on the continent, in Pampa Melchorita. Earlier this year, the operator of the facility, Peru LNG, loaded the  first cargo bound for Europe since 2010. The cargo was the first of 401 to be received by the UK.

For CNPC, the investment in the Peruian oil and gas block is the latest move in a large-scale international expansion with a special focus on South America, as China grapples with depleting fields at home and much higher production costs than the government is comfortable with.

By Irina Slav for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News