The company Upland Oil and Gas LLC, a subsidiary of the Energy Group, received approval from the Peruvian agency Perupetro to exploit Lot 8 of Loreto.
Upland passed the 2023 selection process after coming in second place after Petrotal, a company that was ruled out as a qualified subject for not proving the net worth required by the Organic Law of Hydrocarbons (LOH).
Sector sources informed La República that the positive qualification in the Direct Negotiation Process for Lot 8 culminated, with the approval of the draft contract, shortly before the end of last December.
The president of Perupetro, Isabel Tafur, had announced to La República, in September of that year, that the new process for Lot 8 of Loreto “would be ready before the end of 2023.”
Now, the draft contract is in the hands of the Ministry of Energy and Mines (Minem) and the Ministry of Economy and Finance (MEF) for its endorsement in a Supreme Decree and subsequent promulgation with the signature of the Presidency. Meanwhile, Perupetro is successfully advancing with the Prior Consultation process.
This is a 4-year Temporary Contract. Upland Oil and Gas LLC proposed 19 workover jobs, in addition to the 4 proposed by Perupetro. In addition, it must reactivate 55 wells that are closed, according to the contract.
Upland, which previously also acquired Lot XXII in Piura, is currently exploring Lot XXIII, in Tumbes. In 2017, it maintained an investment arbitration claim against the Peruvian State in a controversy related to letters of guarantee. The case is closed.
On April 18, 2020, Lot 8 stopped operating due to the COVID-19 pandemic and, subsequently, because the operator of the Lot (Pluspetrol Norte) declared itself in the process of corporate liquidation. During that period, the Lot suffered various acts of vandalism (theft of cables, pumps and other goods necessary for production).
Lot 8 has a production capacity of 6,000 barrels of oil per day (bpd), although it is estimated that, in its initial stage, it would produce around 1,000 bpd. Originally, Perupetro planned to reactivate it in the second half of 2023.
Source: Larepublica
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