CNPC makes large commitment in Peru

China National Petroleum Corporation (CNPC) has committed to spending USD 2 billion in Block 58 through 2023, the president of Peruvian oil and gas concessionaire Perupetro said at a news conference on Tuesday.

Rafael Zoeger told reporters that the company had submitted its development plan for the Peru block, under which it plans to drill 60 wells before the end of this year. CNPC is targeting first gas by 2023.

Zoeger also said that the government would be working closely with CNPC to streamline permitting processes in an attempt to allow for production from Block 58 two years ahead of schedule, in 2021.

Gas from the block could be used to develop the Southern Energy Node project, which entails establishing a power generation and petrochemicals hub in Peru’s southern regions. Alternatively, gas from the block could also be exported.

Zoeger went on to say that if the halted Southern Peruvian Gas Pipeline does not materialise, then CNPC may have an opportunity to use the Transportadora de Gas del Perú pipeline system to bring gas to coastal processing facilities.

The 3,401-square-kilometre Block 58 is located in the Cusco department, adjacent to the super-giant Camisea gasfield. The block is estimated to hold about 110 bcm (3.9 tcf) in gas reserves.