Oxy clinches partnerships for Block 64 in Peru

May 17, 2004

Occidental Petroleum Corp. clinched partnerships with Calgary-based Talisman Energy Inc. and Amerada Hess Corp. to explore Block 64 in Peru's Marañon basin, which lies near the border with Ecuador, according to Peru's Energy and Mines Minister Jaime Quijandria.

By an OGJ correspondent

LIMA, May 17 -- Occidental Petroleum Corp. clinched partnerships with Calgary-based Talisman Energy Inc. and Amerada Hess Corp. to explore Block 64 in Peru's Marañon basin, which lies near the border with Ecuador, according to Peru's Energy and Mines Minister Jaime Quijandria.

Oxy, the operator, is keeping half of the contract and the other two companies will hold 25% each.

Oxy is currently constructing its base camp and platform and plans to drill a first well late this year. A second well is planned for sometime during 2005. Further wells depend on results after the first exploration stage.

Peru state oil firm Perupetro lifted a force majeure in effect for the past 6 years after Oxy reached agreements with local indigenous communities to work in the contract are