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    Australia's Global bags right to oil, gas block off Peru

Summary

The block is located in the Gulf of Guayaquil, covering the Tumbes-Progreso and Talara basins.

by: Shardul Sharma

Posted in:

Natural Gas & LNG News, Americas, Security of Supply, Corporate, News By Country, Australia, Peru

Australia's Global bags right to oil, gas block off Peru

Global Oil & Gas Limited, an Australia-listed company, has been offered a Technical Evaluation Agreement (TEA) for an oil and gas exploration block offshore Peru, spanning 4,858 km2, it said on June 7.

The TEA grants the exclusive right to negotiate a license contract with PeruPetro, the Peruvian national oil regulator, over the area. During the two-year TEA period, Global Oil & Gas is expected to spend approximately $250,000 on studies, data compilation, identifying prospects, consulting fees, and potential farm-out processes.

The company will hold an 80% stake in the TEA, with US-based Jaguar Exploration holding the remaining 20%. The block is located in the Gulf of Guayaquil, covering the Tumbes-Progreso and Talara basins. These basins have historically productive oil and gas fields, including the Talara basin, which is known as one of Peru's most productive hydrocarbon plays. The block is in close proximity to the Talara crude oil refinery.

Previous transactions in the TEA area include Pacific Rubiales Energy's 2012 agreement for a 49% farm-in and the acquisition of a license south of the TEA by KNOC and Ecopetrol in 2009.