Oil and Gas Opportunities in Peru

An Expert's View about Energy in Peru

Posted on: 22 Sep 2010

Peru’s oil and gas sector is relatively small but growing fast and there are clear business opportunities for UK suppliers.

Sector briefing Oil and Gas Opportunities in Peru Why Peru? Peru?s oil and gas sector is relatively small but growing fast and there are clear business opportunities for UK suppliers. Private sector investment has been greatly encouraged in the last decade and there are currently nineteen producers and sixty eight exploration companies present in Peru with foreign companies dominating. The largest players in 2009 were Pluspetrol (Argentina) having 49% of the total oil production, Pluspetrol Norte 21%, Petrobras (Brazil) 9% and Savia Peru (Ecopetrol-Colombia and SK Energy-Korea) 8%. In natural gas, Pluspetrol ? Peruvian economy among top produces 80% of the total, Aguatia 10% and performers in Latin America with Petrotech 3.5%. average 6% GDP growth 2001 - 2009. ? UK is second largest investor in Peru Drives to encourage further foreign investment with a stock of US$3.8 bn in 2009 have continued with 24 contracts for the contributing 20% of total FDI stock. exploration ? Peruvian government encourages and and exploitation of hydrocarbons being granted by the Peruvian Government protects foreign investment. during 2007 and 13 in 2008. Twenty three Find general information on the Peruvian market more permits to explore will be auctioned in conditions on UKTI?s website. The Doing Business mid 2010 and more offshore lots in 2011. Guide for Peru gives an overview of Peru?s economy, business culture, potential opportunities and an The Peruvian Government expects the country introduction to other relevant issues. to become an exporter of crude in 2014 by quadrupling oil output between 2010 and 2014. UK Trade & Investment Sector briefing: Infrastructure opportunities in Peru operating block 57 and in 2009 Brazilian Opportunities Petrobras operating the neighbouring block also announced the discovery of 1,5 trillion In May 2010, the US$ 3.3 billion LNG plant at cubic feet (TCF) reserves of natural gas in Pampa Melchorita started operating. With 408 block 58 right next to the Camisea blocks 56 Km of pipelines taking gas over the Andes to and 88. Petrobras will invest in Peru a total of the Pacific, the project includes a liquefaction US$1,000 million in the period 2009-2013, plant, maritime facilities and two pipelines. The destined to the activities of exploration and gas will be supplied by the Camisea fields exploitation. located in Cusco. This is the second natural gas liquefaction plant in South America (and the The government-owned Talara refinery is only one on the Pacific coastline) and has a currently undergoing a modernisation process capacity to process 620 million of cubic feet of to enable Peru to produce better quality and gas per day and 4.4 million MT per year. lower sulphur products in much greater quantities, with an investment of US $1 bn. SNMPE, the private sector body representing the oil and gas industry in Peru, estimates that President Alan Garcia also announced that in companies in the sector will invest US$8,300 2011 Peru will start the construction of a million between 2010 and 2015. This petrochemical plant that will enable the investment will come in areas such as country to go one step forward in its global exploration, pipe lines, processing plants, and development. new industries such as petrochemicals. Australian Karoon Gas have revealed the The following projects and future concessions identification of two offshore prospects that are an example of business opportunities for would have 100 and 200 million of petrol suppliers in this sector: barrels or multiple trillion of p³ of gas resources. Perenco announced in March 2010, the construction of a 207 km pipeline with an British companies supplying equipment and investment of US$359 million. The pipeline is services to Peru include; Consolidated Supply aimed to transport heavy oil. Work will start in Management; the Wood Group, Drilltech, 2011 and be operative by 2013. The whole Bousted International Heaters, Rotork, ERM project will require an investment of amongst others. approximately US$ 359 million. If you have any questions on the opportunities Calidda Gas Natural del Peru will invest US$ 60 above, contact the UKTI contacts named in this million in the upgrade of the main distribution report. Business opportunities aimed the natural gas pipe network for Lima and specifically at UK companies are added daily to Callao (Peru?s main port, just outside of Lima). UKTI?s website. These leads are sourced by our Calidda has a programmed investment plan of staff overseas in British Embassies, High four years with a total amount of US$ 260 Commissions and Consulates, across all sectors million. and in over 100 markets. The Gasoducto Andino (Andean Gas Pipeline) You can be alerted to business opportunities on project will require an investment of US$ 1,200 a regular basis by registering on the UKTI million from the company Kuntur website. Find out more on UKTI?s business Transportadora de Gas del Peru whose majority opportunities service on the UKTI website. share is owned by Brazil?s Odebrecht. This project will provide 160 million cubic feet of gas to the regions of Cusco, Arequipa, Puno, Moquegua and Tacna. Savia Consortium who operate offshore block Z-2B are looking to drill 30 wells and construct eight platforms in the next few years to increase their current production. Repsol announced in 2008 the discovery of two trillion cubic feet of natural gas in their UK Trade & Investment Sector briefing: Infrastructure opportunities in Peru Major events and activities UKTI contacts INGEPET Michelle de Rivero http://www.ingepet.com/Home_Ingles.a Business Development Associate sp British Embassy Lima Contact: N/A Tel: (00511) 617 3034 Email: N/A Email: michelle.derivero@fco.gov.uk Time: October 2011 www.ukti.gov.uk Find full details of all events in this Andrew Morris country and sector on the UKTI website. Trade & Investment Director New export events are added daily to the site British Embassy Lima and you can register to be alerted to them on a Tel: (00511) 617 3031 daily, weekly or monthly basis. Email: andrew.morris2@fco.gov.uk www.ukti.gov.uk UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events. UK Trade & Investment Sector briefing: Infrastructure opportunities in Peru Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Peruvian market are advised to you to meet contacts and promote your undertake as much market research and company in the Peruvian market planning as possible in the UK. UKTI?s team in Peru, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in the Peruvian market. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Peruvian market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Infrastructure opportunities in Peru
Posted: 22 September 2010

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