Petroperú would start to operate more than 52% of the national crude oil

To the delivery of the New Talara Refinery (NRT), the Ministry of Energy and Mines (Minem) has added the commitment of up to 100% of the Talara lots (52% of national production) to repower Petroperú and strengthen the energy independence of the country.

There are six batches whose contracts are close to expiring, between 2023 and 2028, with a joint yield of 21,294 barrels per day (bpd) to feed the NRT, each day closer to fully operating and balancing the competition against its main competitor, Repsol. . To the aforementioned lots, Lot I would be added, already in the hands of the state company.

For the specialist in energy issues Aurelio Ochoa Alencastre, the reversal of the lots in favor of Petroperú will strengthen its economic situation, in an area where no major investments are needed to start extracting crude oil, due to its shallow depth. Something that, clearly, “was convenient for private parties.”

How does it work? When one has a presence in the entire manufacturing chain of a product —fuels—, not only does it receive better profitability for its sale, but it also has greater room for maneuver on prices. In this case, Ochoa explains that the state company should act as a downward price regulator in the market, without actually operating at a loss. But today he is only dedicated to reselling what others already bring him at international prices.

“The state oil company has a crucial precedent: after receiving Block I for two years in December 2021, it has increased by 30% the daily production of barrels that it had with the previous operator. With more income, he will be able to settle his commitments and will stop receiving contributions from the State, ”he points out.

The Minem estimates that in Talara, with peaks of up to 27,000 bpd, profit margins of more than US$ 1,000 million are being generated each year in the current international context. This is due to the fact that getting crude oil out of the ground does not exceed US$10 per barrel (about US$20, adding royalties), but it is sold for US$85 to Peruvians.

The reservations are According to the latest 2019 Hydrocarbon Resources Book, there is a potential of 106 million 311,700 barrels of proven reserves in Talara, not counting probable and possible, a statistic in which Ochoa warns that “not much progress has been made since privatization.”

The addition of 192

Although Minem asks for 100% of the northwest basin for Petroperú, UNI professor Alexei Huerta recommends going with partners, at least in the big ones (Z2B, VII/VI and X) that total 20,000 bpd between the three, and in a movement where he considers the endorsement of the Ministry of Economy, also a shareholder of the oil company, essential.

Huerta explains that the light oil from Talara will serve to value the heavy oil from the jungle, where Petroperú is about to sign Block 192. Precisely, the NRT will be able to receive and mix both. The 13 fields of this well could yield up to 18,000 bpd with higher investments, according to the expert.

However, he refers that the first step is to successfully receive, this year, the almost 9,000 bpd today extracted by Savia and Sapet, also by virtue of a rearrangement of the oil company’s business model.

“Without being very optimistic, we could go to 60,000 bpd in a few years, thanks to the commitment to Petroperú,” says the expert.

Petroperú and a long refining horizon

Peru consumes 250,000 bpd. With the reversal of Talara, Petroperú will begin to operate half of the 40,000 bpd produced locally (to this would be added the 12,000 bpd of Block 192). Therefore, we will continue to be an importing country and exploration will be key.

Lot X is the largest in Talara. Operated by China’s CNPC until May 2024, it delivered an average of 11,369 bpd in 2022.

Perupetro is the entity responsible for negotiating and managing the hydrocarbon lots on behalf of the Peruvian State. Recently, their general manager, Daniel Hokama, was removed.

The word

Aurelio Ochoa Alencastre, former president of Perupetro

“Talara represents a lower cost of raw material for the NRT. Petroperú will be able to capitalize on these wells originally explored by the company itself, and offer better prices to the market”.