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.

New Line: Peru in focus

1) IMF reasserts trust in Peru's growth despite global financial crisis

Lima, Nov. 05 (ANDINA).- First Deputy Director of the International Monetary Fund, John Lipsky, attending the XV APEC Finance Ministers’ Meeting met with the Peruvian Minister of Economy, Luis Miguel Valdivieso and with officials of the Central Bank of Reserves to discuss about the global financial crisis and its impact in Peru.

“As representative of the IMF I trust that Peru is ready to face the global financial crisis and it will continue with its sustainable growth within this context. Both, Peru and Chile, have good conditions to face these swings of the international economy”, stated the official who, at the same time, congratulated president-elect Barack Obama of the United States of America.

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Click here to access the full article from Andina.com

2) Peru and Chile to become world economy locomotive machines according to Andina.com

Trujillo, Nov. 05 (ANDINA).- Peru and Chile will become world economy locomotives due to their economic dynamism and solid basis, and before the lower growth rate to be registered by United States and Europe as a result of the international financial crisis, Chile’s Finance minister, Andrés Velasco, said Wednesday.

“Emerging countries of Asia, Latin America, and Africa will continue growing next year, and in some way, they will become the locomotives of the world economy. Therefore, our voice is more important than ever, which is based on our own experiences and achievements", he said.

He pointed out that the international situation is difficult; however, Latin American countries like Peru and Chile have taken preventive measures and can face the financial crisis with their fiscal discipline and strong fundamentals, as well as with their high levels of investment, external balance, resources and liquidity.

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Click here to access the full article from Andina.com

3) Peru's natural gas production rose 30.1% in January-October

Lima, Nov. 05 (ANDINA).- Peru's natural gas production reached 98,906.68 million cubic feet from January to October 2008, registering a growth of 30.01 percent compared to the same period last year, state oil agency PeruPetro reported Wednesday.

PeruPetro pointed out that the production increase was mainly because of greater consumption in electric power stations.

The average daily production of natural gas in October was 353.74 million cubic feet, which represents a reduction of 5.03 percent compared to last September.

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Click here to access the full story from Andina.com

South American Energy in focus

Venezuela's PdVSA Reports Successful Oil Drilling Ecuador

A slew of energy developments in a handful of countries in South America has made headlines in the past day or so. For starters Venezuela and Ecuador made headlines this morning once again... this time for successful drilling and exploration in the Amazonian region. The newly established supply of crude will eventually be sent to the new refinery being build on the pacific coast.

Click here to access the full story from Rigzone.



Petrobras' Production Soars 3.3% More in June

Petrobras’ average oil and natural gas production abroad was 218,117 barrels of oil equivalent per day (boed) in June, 8.1%.

Added to the volume lifted from the domestic fields, Petrobras’ total production in June set a monthly record, topping out at 2,421,155 barrels of oil equivalent, 3.3% more than a year ago and 2.3% higher than May 2008.

Click here to access the full story from Rigzone.



Arduous Process of getting the Camisea facilities in Peru up and running
- Wood Snag 3-Year Maintenance Contract for Camisea Facilities

The Camisea Project comprises the exploitation The San Martin and Cashiriari fields natural gas fields, the construction and operation of two pipelines, one for natural gas (NG) and one for natural gas liquids (NGL) and the distribution network for natural gas in Lima and Callao. The pipelines wiII make NG and NGL available for domestic consumption and for export.

Natural gas wiII be transported to the main consumption center in Lima, where it will be used for residential and industrial purposes and to generate electricity, that will then be distributed nationwide through Peru’s existing transmission infrastructure (click here to read more about the Camisea Project)

Wood Group Production Facilities has been awarded a three-year, performance-based contract by Pluspetrol Peru Corporation to provide integrated maintenance services for the Camisea facilities in Peru. The Camisea project includes the largest natural gas field in the region.

Click here to access the full story from Rigzone



Shell to invest $300m in search for oil and natural gas in Peru

Royal Dutch Shell is ready to invest as much as $300 million in exploring for oil and natural gas in Peruvian waters as part of a agreement with BPZ Energy, executives from the two companies said Thursday.

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In March, U.S.- and Peruvian-owned BPZ found an estimated 60 million barrels' worth of crude oil and 40 million cubic feet of natural gas in the same region off Peru's northern Pacific coast.

The accord announced Thursday calls for Shell to spend up to $300 million on exploration and - if reserves are found - exploitation of natural gas, while BPZ will put the same amount into searching for crude oil along with an additional $150 million to build an electric plant in the area.

Under the deal, BPZ will get 51.75 percent of any oil or gas produced and Shell will claim the rest.

Click here to access the full story from Rigzone



Geopark Grabs up Additional Petroleum Block in Chile

GeoPark Holdings Limited announced that the Ministry of Mining in Chile has awarded the Otway Block in southern Chile to a consortium consisting of GEOPARK (42%), Methanex Corporation of Canada (16%) and Wintershall Energia SA, a division of BASF Ag of Germany (42%).

The Otway Block is a large new attractive exploration area (5,992 square kilometers) located in the Magallanes region near GEOPARK's Fell Block operation in Chile. GEOPARK is the first and only private-sector oil and gas producer in Chile and the addition of the new Otway Block will further enhance GEOPARK's position as the premier private-sector oil and gas operator in Chile.

Click here to access a previous post in regard to GEOPARK's natural gas discoveries in the Magallanes Region -- published on South-South Cooperation on June 17th, 2008.

Click here to access the full article from Rigzone



Colombia to create oil price stabilization fund

Colombia's government is creating an oil price stabilization fund (FEPC) that will be used to cushion domestic oil prices from unexpected rises on international markets, government news agency SNE reported.

Congress has approved the fund, which is included in the national development plan and must go to the president for final authorization. The finance ministry would administer the fund, which would receive financing from the existing oil stabilization fund (FAEP) owned by state oil company Ecopetrol.

Click here to access the full story from Rigzone