Peru: Pacific Rubiales to operate Maranon Block 116

By OGJ editors

Pacific Rubiales Energy Corp., Toronto, has acquired a 50% working interest in the Block 116 exploration contract in the Santiago subbasin of the Maranon basin in northeastern Peru.

Under a letter of intent with Les Etablissements Maurel & Prom SA, Pacific Rubiales would become operator of the 6,600 sq km block. The block is in the Peruvian Andean foothills, a structurally complex and minimally explored area that has important hydrocarbon potential in Paleozoic, Cretaceous, and Tertiary rocks, Pacific Rubiales said.

The most recent oil discovery in Peru, the Situche Central-1X well by Talisman Energy Inc., is 100 km northeast of Block 116, and the Oleducto Norperuano oil pipeline crosses the central part of the block. Pacific Rubiales acquired a 49.999% interest in M&P Colombia earlier this year.

Pacific Rubiales will assume a full carry obligation of up to $75 million, which is initially intended to cover the first and second wells, subject to its right to receive a reimbursement through cash flows derived from future hydrocarbon production from the block. M&P will have the right to recover its sunk costs, estimated at $7.8 million, from future cash flows.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...