• 35 mins Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 18 hours Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 19 hours Oil Gains Spur Growth In Canada’s Oil Cities
  • 20 hours China To Take 5% Of Rosneft’s Output In New Deal
  • 20 hours UAE Oil Giant Seeks Partnership For Possible IPO
  • 21 hours Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 22 hours VW Fails To Secure Critical Commodity For EVs
  • 23 hours Enbridge Pipeline Expansion Finally Approved
  • 24 hours Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 1 day OPEC Oil Deal Compliance Falls To 86%
  • 2 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 2 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 2 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 2 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 2 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 2 days Aramco Says No Plans To Shelve IPO
  • 5 days Trump Passes Iran Nuclear Deal Back to Congress
  • 5 days Texas Shutters More Coal-Fired Plants
  • 5 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 5 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 5 days Chevron Quits Australian Deepwater Oil Exploration
  • 5 days Europe Braces For End Of Iran Nuclear Deal
  • 6 days Renewable Energy Startup Powering Native American Protest Camp
  • 6 days Husky Energy Set To Restart Pipeline
  • 6 days Russia, Morocco Sign String Of Energy And Military Deals
  • 6 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 6 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 6 days India Needs Help To Boost Oil Production
  • 6 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 6 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 6 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 6 days District Judge Rules Dakota Access Can Continue Operating
  • 7 days Surprise Oil Inventory Build Shocks Markets
  • 7 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 7 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 7 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 7 days Oil M&A Deals Set To Rise
  • 7 days South Sudan Tightens Oil Industry Security
  • 8 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 8 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
Goldman Sachs: Inventory Drawdowns Will Not Continue

Goldman Sachs: Inventory Drawdowns Will Not Continue

Goldman Sachs has reported that…

Why U.S. Crude Exports Are Booming

Why U.S. Crude Exports Are Booming

U.S. crude oil exports are…

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

Offshore

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

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News