Perupetro, the state administrative agency for hydrocarbon contracts, will tender eighteen blocks in seven different basins in the first half of 2007, according to reports from the company in early December 2006. Final plans for the eighteen blocks regarding the bidding schedule but will be released when Perupetro formally presents the new plan to the industry. Road shows to launch the event are planned in Lima on 23 January and in Houston on 2 February 2007. Companies interested in participating are asked to submit a letter of intent to Perupetro and provide some information about their companies as requested by Perupetro. Then after they have qualified, they must sign a confidentiality agreement to participate. For each block, companies will receive a geologic report, coordinates and a minimum acceptable work program. Companies will then bid on three factors.

Additional offered work program will count for 10% of the bid evaluation, financial capacity of the company will also count for 10%, while additional offered royalties above those currently in place will count for 80% of bid evaluations. To sign up for the free road shows send an email to promotion@www.perupetro.com.pe or register by phone at 517-617-1816.

A revision of royalties and terms for operating in Peru introduced in May of 2003 has been very successful in attracting new companies to Peru and greatly increased the amount of exploration acreage under contract in the country. This has led Perupetro to change policy for awarding contracts.

Most licenses were previously awarded on the basis of direct negotiations with Perupetro and the negotiating company selected its own block. Now increased competition amongst companies for a dwindling supply of prospective acreage has led Perupetro to switch to the competitive bidding model for the award of much of the remaining prospective acreage in the country. Options to select your own block and negotiate with Perupetro directly still exist, along with the ability to to sign Technical Evaluation (TEA) contracts. However, these options are now primarily applicable only to the most frontier acreage in the country.

View a map of the 18 Blocks available.

PEPS Rating and Ranking

Blocks Available

Data and Reports Available from IHS

Technical Studies

• Peru Oil & Gas Industry, 1996: An extensive review of previous and current upstream activity and opportunities, with many field examples and analogies.

• Provides basin descriptions and analysis of hydrocarbon potential.
• Describes the exploration and development history of the area.

• Maranon Basin, 1992: The study evaluates the Maranon Basin of Peru under the headings, geological background, petroleum habitat, selected oil and gas fields, future exploration potential and fiscal and economic terms.

Basin Monitors

• Talara
• Trujillo
• Maranon
• Ucayali
• Huallaga

• Peru General
• Maranon & Ucayali Basins

GEPS Reports: The flagship IHS E&P reporting package, GEPS is established as the market leader in the provision of definitive, up-to-date, accurate and detailed information

PEPS Reports: PEPS is a powerful, searchable online service providing constantly updated upstream economic, fiscal and commercial data and analysis.

Introducing the Latin America Area Coordinator: Scott Stewart

Mr. Scott Stewart has been covering Peru as an Area Coordinator since 2002 for IHS Energy. He is responsible for the IHS database on Peru and how it relates to many other software products that use the data as well as writing the monthly GEPS (Global Exploration and Production Services) report for Peru. This report provides detailed news and scouting information focused on the oil and gas industry to IHS subscribing clients. Mr. Stewart has been employed with IHS for ten years and also handles the countries of Argentina, Chile, Uruguay and the Falkland Islands. Prior to his present position, Mr. Stewart worked for two years in the IHS Latin America International Group as an analyst specializing in well data primarily for Mexico, Brazil, Peru and Ecuador. He began his career with Gulf Oil in Houston in 1982, survived the merger as a Chevron employee and left the company in 1996. He graduated with honors from the University of Tennessee in Knoxville, Tennessee with a BS degree in Geology in 1981. Based in our Houston office Scott can be contacted at: scott.stewart@ihs.com.