CAPITAL: Lima

MONETARY UNIT: New Sol

REFINING CAPACITY: 182,250 b/d

OIL PRODUCTION: 103,100 b/d

OIL RESERVES: 355 million bbl

GAS RESERVES: 9 tcf

Nowhere were the business effects of dismal oil price levels of late 1998 and early 1999 more evident than in Peru.

They led to postponement of an offshore licensing round and multiple delays in soliciting new operators for the Camisea gas-condensate project.

Perupetro in the third quarter invited companies to sign 2-year technical evaluation agreementsinsix onshoreareas under negotiated workprograms butwithout putting up guarantees. The areas are the northern coast, Titicaca and Putumayo basins, and areas around Bagua over the Andesfrom Talara and north of Block 84 bordering Brazil.

Thegovernmentbegan approving extension requests on existingexploration blocks.

Perupetro signed the year`s first new license agreement, with Barrett Resources, on Sept. 9. It covers Maranon basin Block 39, which Barrett said could hold 90-300 million bbl of 12-21° gravity oil. The regulatory agency was negotiating with Advantage Resources for Huallaga basin Block 87, formerly Block 72.

A committee was to act in early 2000 on bids, if any, to develop the Camisea fields.

Mobil, which sponsored Camisea with Shell before they withdrew, found indications of more gas on the related blocks and said it would continue exploring there. Candamo-1X on Madre de Dios basin Block 78 had gas shows and fluorescence at undisclosed levels.

Shell and Mobil were also exploring Block 75, site of their 1998 Pagoreni 3 tcf gas find on trend with the Camisea fields.

Overall Peruvian drilling activity was spotty with Baker Hughes reporting no rigs running at various times and as many as four at others.