State-owned Perupetro on Friday announced a new strategy to increase hydrocarbons exploration in order to boost its domestic natural gas reserves.
Image: Perupetro
In recent years, exploratory activities in natural gas have slowed, leading to a depletion of reserves without new discoveries. If this continues, Peru could start importing natural gas between 2037 and 2040, which would drive up electricity generation costs and negatively affect the competitiveness of key sectors including industry, transport, and domestic consumers.
Pedro Chira, president of Perupetro, noted that national natural gas production is currently at 1,300 MMcf/d, but cautioned that the lack of active exploration contracts means reserves are not being replaced. He emphasized the need to incorporate new reserves soon to avoid a situation of energy dependence by 2037.
Despite the challenges, there is still potential to capitalize on existing resources. Perupetro and the Ministry of Energy and Mines (MINEM) are taking steps to reactivate natural gas exploration in both the south-central region and the northwest of Peru. Chira highlighted the need for experienced companies with strong socio-environmental standards in sensitive areas like Madre de Dios and offshore.
Additionally, he mentioned that exploratory activities in the Candamo field, located within a national park, await government approval, despite previous estimates of substantial natural gas reserves there.
A recent positive development includes Chevron’s entry into Peru following the approval of modifications to license contracts, which positions the company alongside Anadarko. Chira expressed optimism about attracting more large companies to engage in offshore and jungle exploration in the coming months.
