Peru's state-run oil company Petroperu is in negotiations with five companies, including Canada's PetroTal and US-based Upland Oil and Gas, to find a partner for reactivating the Lot 192 oil block in the Amazon.

Petroperu's exploration and exploitation manager Tomas Diaz told Reuters that the company is aiming to secure an agreement by mid-to-late July.

The reactivation of Lot 192, which is located near the border with Ecuador, is of significant importance to Petroperu, especially in light of the company's financial challenges and substantial debt incurred from the $6.5bn overhaul of the Talara refinery.

Diaz emphasised the urgency of the partnership, stating: "We are in a direct negotiation process."

Owning a 39% interest in Lot 192, Petroperu has been on the lookout for a new partner since April. The search started after Altamesa Energy Canada, the holder of the remaining 61% stake, withdrew from the project due to debts owed to suppliers and local communities.

Diaz highlighted the necessity for any new operator to honour existing service agreements with community-owned companies in the region, acknowledging the frequent conflicts with indigenous communities who demand local employment opportunities and increased social investment.

The anticipated production from Lot 192 is up to 12,000 barrels per day (bpd) within six months of its restart, with potential to increase to around 21,000bpd after the new operator initiates a drilling programme.

In parallel, Diaz confirmed separate discussions with PetroTal to renew a contract for transporting crude through the Northern Peruvian Pipeline, a 1,100km pipeline currently without active contracts. PetroTal, which operates the adjacent Lot 95, had previously ceased using the pipeline due to repeated attacks on the infrastructure.

Diaz expressed optimism about the future contract, stating: "A new crude transport contract will be positive and make Petroperu's pipeline profitable."