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Peru Petro announces Block 67 starts heavy oil production in Maranon basin

13th March 2014

PeruPetro has announced that Block 67, located in the Napo and Tigre district, Maynas province, Loreto, has started heavy oil production

PeruPetro has announced that Block 67, located in the Napo and Tigre district, Maynas province, Loreto, has started heavy oil production. This project has required an investment of 712m USD to date, under the operation of the French Vietnamese PVEP Perenco Company.

Block 67 starts the development of reserves of the Marañon Basin Eastern area, having a strategic location for crude transportation to be produced in the region.

The development phase of Block 67 will encourage the generation of 10,000 direct and indirect work positions as well as the dynamism of related services, which will cause an important economic impact in the Loreto Region.

Crude production in Block 67 will start with 1,000 barrels of oil per day (BPD), going to 6,000 BPD during 2014 and 12,000 BPD during 2015, climbing to 35,000 BPD in 2017 and subsequently reaching its production peak to 60,000 BPD.

Production will regularly increase with the drilling of development wells, first in the Piraña field, then in the Dorado and Paiche fields. Proven reserves of heavy oil in Block 67 are estimated to be 100 million barrels of heavy oil.

Total investment for block 67 oil production and transport project exceeds 1,800 million dollars.

Heavy oil extracted from Block 67 is 16° API, so it will require to be blended with a diluent (light hydrocarbon) to reach 18° API to be transported through the North Peruvian Pipeline.

The blending with lighter hydrocarbons is considered the most suitable option to reach the required viscosity enabling transportation through the pipeline. In order to improve the crude, it is required to install a challenging logistics, allowing, at the same time, the diluent transportation to Block 67.

At the beginning, the crude oil will be transported by river from Curaray Terminal to Station 1; then, transportation will take place through a pipeline of 200 km, which will connect Block 67 with Andoas Station.

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