The oil exploration and exploitation license contract for block 192 has just been signed at the Government Palace, between the Peruvian state represented by Perupetro and Petroperu. Great government media display, leaving the message that a virtuous cycle for the production of crude oil in our country is beginning, which at the end of 2022 has reported meager figures-44 thousand barrels per day (MBD)-. If we talk in terms of propaganda, it would qualify as misleading advertising.
The block in question has been going through a difficult situation since at least mid-2015, when the contract with the operator Pluspetrol Norte SA ended. The attempt to grant it via competition to another company failed and it was awarded in a service contract-hiring only to exploit it-to a company that was mutating as a legal entity: Pacific Rubiales SA, then Pacific Stratus SA, to culminate with Frontera Energy SA, in February 2021, the date on which the contractual relationship ended.
The operation is complex, for every barrel of oil extracted, there are 31 barrels of water with salts and traces of hydrocarbons that are treated, which increases operating costs. The crude is classified as heavy (18.9° API), with a high salt content, it is valued at US$11.6/barrel less than that of the Gulf of Mexico coast, to which must be added that one must pay US$10/ barrel for transportation
In order to commercialize the extracted crude, it is necessary to have the North Peruvian Pipeline (ONP) operational, to take it to the Bayóvar terminal in the Piura region for export, since it is not part of the supply required by the Peruvian refineries. Its owner and manager, Petroperu, cannot guarantee continuity of operation due to frequent interruptions, either due to failures or actions of third parties.
The other problem that is faced is social conflict, which has as its main origin the numerous existing environmental impacts, since 2017 it has been reported that there are 92 impacted locations, where remediation tasks carried out by the State are done late, badly or never.
To restart operations, investments are required, which in May 2021 were valued by Bank of America at 82.3 million dollars (MMUS$), this figure does not include the replacement of the surface infrastructure that was looted when the lot was abandoned since February 2021, due to the withdrawal of Frontera Energy SA. The commitments with the communities that Perupetro acquired in the prior consultation process are also not accounted for. It would be important to show the quantification of the necessary investment.
Finally, we have the case of the partner that the state oil company will need, which is an issue that borders on legality. In November 2015, through Law 30357, it was established that Petroperu could summon strategic partners once the contract was signed with Perupetro, which occurred on February 28, however, in August 2021, the outgoing administration of the Sagasti era, signed a contract with the company Altamesa Energy. It will be the responsibility of the Comptroller General of the Republic to determine the validity of the signing of this document.
In government propaganda, reference has been made that there are 127 million barrels (MMB) of technically recoverable reserves in the lot. What is used as official statistics is the Hydrocarbon Reserves Book, whose last update to date dates from December 2019, there it is indicated that the proven developed and undeveloped reserves amount to 80.5 MMB, and if the probable and possible reaches 87.2 MMB. One more for the clarification of the propagandists.
In short, media triumphalism but no contribution to the country.
