The Perupetro state oil company announced Friday that it has come up with a new strategy to invest in hydrocarbons exploration to boost its national natural gas reserves.
Natural gas exploration activities declined in recent years, and reserves decreased without new discoveries. The trend would lead Peru to start importing natural gas in 2037-2040, thereby raising the cost of electricity generation and damaging the competitiveness of the most significant activities like industry, transport, and domestic consumers.
Perupetro President Pedro Chira said national natural gas output is currently at 1,300 MMcf/d but warned that a lack of active exploration contracts does not substitute reserves. He called the necessity to add new reserves in the short term an effort not to be in a position to face an energy dependence situation by 2037.
Despite the issues, there is also scope for proven resource development. The Ministry of Energy and Mines (MINEM) and Perupetro are trying to reactivate natural gas exploration in southern-central Peru and the northwest. Chira further remarked that there are skills with strict socio-environmental standards needed in sensitive areas like Madre de Dios and off-shore.
Also, he said exploration of the Candamo field, which is located in a national park, is being put on hold for government permits even though early estimates placed large natural gas reserves there.
The one decent bit of recent news is that Chevron moved into Peru following the issuance of the amendments to the license contract, putting the company on a par with Anadarko. Chira was optimistic to see additional major players to be brought in to cover jungle and offshore exploration within a few months.