PERU : BLOCK 163 E&P CONTRACT
Working interest : |
100% |
Location : |
Ucayali basin |
Area : |
5,000 sq.km |
Contract period : |
Contract awarded in April 2009 with an exploration period of up to 7 years and exploitation period of up to 30 years |
Operator : |
Emerald Energy |
Block 163 is located in the Ucayali basin, approximately 440 kilometres to the northeast of Peru’s capital, Lima. The block is in an area containing gas and oil fields producing from Cretaceous aged formations and is traversed by pipelines to a refinery in Pucallpa, the capital of the province. Several leads with depths estimated to be between 9,000 and 12,000 feet have been identified from the existing sparse 2D seismic data.
The work commitment during the first phase of the exploration and production contract, lasting 12 months, consists of technical studies. The second phase of 18 months, if entered, has a minimum work commitment of 300 kilometres of 2D seismic acquisition and processing, and the third phase of 18 months, if entered, has a minimum work commitment of one exploration well.
The exploration and production contract is a tax and royalty contract in which the royalty, including additional royalty as part of the bidding process, is 13% up to 5,000 bopd increasing up to 28% for production levels in excess of 100,000 bopd.
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