Peru's state-owned energy company, Petroperu, has ended negotiations for potential joint exploration of onshore oil and gas Block 192, located in the northern Peruvian Amazon jungle, with Canada’s Frontera Energy, Kallanish Energy learns.
The firm said Tuesday the decision was made after identifying there are no “adequate conditions” to continue negotiating the terms of a partnership in a licensing agreement, without disclosing further details.
Both Frontera and Peruvian oil regulator Perupetro have been informed of Petroperu’s decision, but neither made public comments on the matter. The Peruvian oil company said it will call other potential strategic partners in due course.
Block 192 is currently operated by Frontera under a temporary contract that expires in February 2019, after which control of the field goes back to Petroperu. Frontera has faced major production disruptions due to local protests and is seeking a second force majeure from Peru’s regulator.
Production has been halted since the latest round of protests started in mid-September. The oilfield has produced roughly 12,000 barrels per day of crude.