Altamesa expected to gradually increase oil production in one of Peru's largest blocks

Altamesa Energy Perú SAC will become the majority partner and operator of Lot 192 (formerly Lot 1-AB) in Andoas, Loreto, in the Peruvian jungle after officials approved the modification of the license contract.

With the approval, state-owned Petroperú will transfer 61% of its contract participation in the concession to the Canadian-based company as an investment partner. Lot 192 holds total technically recoverable reserves of 127 million bbl. 

Perupetro has been authorized to modify the contract, which specifies inclusion of 21 additional development wells in exploitation phase one. On Feb. 28, 2023, Petroperú and Perupetro signed the license contract for a period of 30 years for Lot 192. 

The block is one of the largest onshore concessions in Peru and comprises 17 fields of light, medium, and heavy crude. Production is obtained from 12 fields representing around 17% of Peru's total crude. 

At end-December 2023, during a meeting with analysts from Standard & Poor's Global Ratings, Oscar Vera, Minister of Energy and Mines, highlighted the approval of Altamesa as a strategic partner of Petroperú in the project, noting “rehabilitation of this block, which produces around 10,000 b/d, is being incorporated into the production of other blocks to supply the Norperuano pipeline, which is already in optimal conditions.” 

Gradual production

Petroperú estimates that the block will gradually begin producing 500-800 b/d in November if Altamesa begins operations in February or March of this year as expected.

“Production will be very gradual. Altamesa will enter through the fields least affected by vandalism…with the drilling of 41 wells by Altamesa, we project up to 16,000 b/d,” said Tomás Díaz del Águila, corporate manager of exploration, production, and pipeline at Petroperú. 

Operations at the field have experienced vandalism and damage and have been shut in since 2020. Production could reach 10,000 b/d during first-half 2025. Between 2015 and 2020, supervised production of 8.3 million bbl of oil was recorded, generating state revenue from oil sales of more than US$98 million.