Petroperu to restart oil production in Peru for first time since 1990s

October 21, 2021 (Last Updated October 21st, 2021 10:34)

The state-owned oil company intends to start oil production at the Lot I field in Piura region by 27 December 2021.

Petroperu to restart oil production in Peru for first time since 1990s
Petroperu plans to start oil operations on 27 December 2021. Credit: wasi1370 / Pixabay.

Peru’s state-owned Petroperu is reportedly planning to restart oil production activities in the Andean nation by the end of this year.

The move will mark the return of Petroperu to oil production for the first since the 1990s when it was partially privatised resulting in the oil field assets sale.

Since then, the firm has been focusing only on oil refining, transportation, storage and sales.

Petroperu plans to produce oil at Lot I, located in the northern Piura region, according to Reuters.

The move would ‘represent an important milestone’ for the firm despite limited oil resources in the field.

Crude will be subsequently supplied to the nearby Talara refinery for processing, the news agency reported citing government sources.

The state energy company plans to start oil operations on 27 December 2021.

Moreover, the Peruvian Government is expected to authorise the signing of a contract to Petroperu for joint production at Lot 192 field located in the Amazon rainforest.

Lot 192 is considered to be the most important oil field in the country.

Earlier this month, about 200 local Peruvians took over Station 5 of the Petroperu-operated North Peruvian Oil Pipeline (ONP).

The protest forms part of a regional strike launched by the Peoples Affected by Oil Activity (PAAP) and the Awajun Native Federation of the Apaga River (FENARA), demanding better social and economic support in the area.

The North Peruvian Pipeline runs from Station 1, in San Jose de Saramuro (Loreto), on the margins of the Marañon River. It continues about 200km south-east of Iquitos westward, along the Marañon River, towards Station 5.