Pacific E&P to operate Peru’s block 192

Peru

TORONTO, September 1, 2015 – Canadian operator Pacific Exploration and Production announced via press release on Tuesday it had been awarded operatorship of block 192, Peru’s highest-producing block. Peru state operator Perupetro will contract Pacific Exploration and Production for two years.

The block is found in the Northern Marañon Basin near the border with Ecuador. Its 17 oilfields make up for 17 percent of the country’s total oil output. Current output at block 192 is about 12,000 barrels of oil per day, though it had run as high as 117,000 barrels of oil per day in 1979.

The award of the contract follows a number of company shake-ups, including a name change from Pacific Rubiales in mid-August and additions to its board of directors announced on Monday. Pacific Exploration and Production hopes to drive its production higher in compensation for a high quarterly loss of $226 million, partially affected by low crude prices.

“Pacific firmly believes that the reserves and the resource upside on this block have the potential for increased production levels,” CEO Ronald Pantin said in the press release. “The application of Pacific’s strong and proven expertise in heavy oil production and water handling operations should result in production upside through optimisation of current operations, re-activating wells and fields currently shut-in and future development drilling.”

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