Wednesday, August 5, 2015

Peru receives no bids for Block 192 oil field

Peruvian state oil company Perupetro’s auction of the rights to operate the country’s main oil field, Block 192, was a total disaster. Though three companies had been pre-qualified to compete for the block – Perenco, Pacific Rubiales, and incumbent Pluspetrol – all decided not to submit a technical proposal for operating the oil field.

Perupetro announced that it would now seek to sign a contract directly with an operator in order to ensure that oil production at Block 192 is maintained. This contract could be short-term, for just two years, or a definitive contract for 30 years. The oil field is the most productive one in Peru, accounting for 17% of the country’s oil production. Argentine oil company Pluspetrol has been operating the block for the list fifteen years, but its contract runs out at the end of this month.


The government blamed the collapse in oil prices for the lack of interest in the auction, but other reports noted that the social conflict between Pluspetrol and the local indigenous communities also likely factored into the oil companies’ decisions.

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