(Adds details on block, GeoPark's plans)
LIMA May 23 State-owned China National
Petroleum Corporation (CNPC) plans to invest $2 billion in an
oil and natural gas block in southern Peru in coming years,
Rafael Zoeger, the head of Peru's state energy agency Perupetro
said at a news conference on Tuesday.
CNPC's block 58 has some 3.9 trillion cubic feet of natural
gas reserves, according to government data, enough to increase
Peru's total gas reserves by 27.7 percent.
Zoeger said CNPC had presented its development plan and
would carry out the investments between 2017 and 2023. It plans
to start drilling 60 wells this year, he said.
Block 58 is located in the Cusco region near Peru's largest
gas block of Camisea, from which gas is exported to Mexico.
Zoeger said Chilean oil and gas producer GeoPark Ltd
would also likely present a plan to develop block 64 in
northern Peru in coming weeks.
He said to encourage more investment in exploration,
Perupetro would present the finance and energy ministries with a
new royalty scheme for contracts based on productivity of wells
and oil prices.
(Reporting by Teresa Cespedes, writing by Caroline Stauffer;
Editing by Marguerita Choy)