Saturday, January 10, 2009

Peru in focus -- 2008 growth forecast, natural gas and a new contract for PetroPeru

Andina, a Peruvian news agency had some nice pieces on Peru to offer for those interested.

1. Peru sees solid economic growth amid global crisis -- Andina

It seems the central bank of Peru thinks the country will grow 9.1% in 2008, up from 8.9% in 2007. This will make Peru the fastest-growing economy in Latin America for 2008.

The bank predicts 2009 growth will be around 6.0% and attributes the slide mostly to decreasing revenue from Peru's metal exports.

Peru reported a trade surplus in 2008 of $3.1 billion, down from $8.36 billion in 2007, once again attributed in large due to shrinking revenue from exports and also from surging domestic demand for imports.

I'm not sure what happen Friday evening, but according to this other story on Andina, the Economy Minister revised GDP growth to 10% for 2008. I'll be sure to make a post later on in the weekend or early next week with growth estimates from other sources. Check out both stories and decide for youself =).

2. Peru natural gas output rose 27% in 2008 -- Andina

Good news for the natural gas sector in Peru. Total output during 2008 clocked in at 119.95 billion cubit feet, up 27% from the previous year reported Perupetro on Friday.

Increase in gas production was driven not by speculation from abroad but rather increasing gas consumption in electric power plants in the country. Although the article does mention how in December natural gas production declined by 4.7% compared to November/ December of 2007. Perhaps indicating the global slow down, and subsequent decrease in natural gas demand is hitting home in Peru as well.

Camisea natural gas plant

3. BPZ Resources signs $1.3 billion crude oil sales contract with PetroPeru

BPZ Resources says that the actual number of barrels sold will depend on commodity prices and the actual production of PetroPeru's Covina field in northwest Peru.

The deal covers the sale of roughly 17 million barrels of oil at an average price of $65/ barrel.