Persistent uncertainty about the restart of operations in the emblematic Oil Lot 192 in Peru

More than four years have passed since Lot 192, one of Peru's most important oil fields, ceased its crude extraction operations. Despite efforts to reactivate its production, uncertainty persists as a concrete date for the resumption of activities at this emblematic oil asset has not yet been established. In February 2020, Frontera Energy, the operator at that time, returned the lot to Perupetro, terminating its temporary contract. Since then, Lot 192 has remained inactive, even though it used to contribute over 12,000 barrels of crude oil daily and holds significant reserves underground. In February 2023, Perupetro signed a 30-year contract with Petroperú to kickstart production at the lot. While there were speculations that production could begin in October 2023, Petroperú stated that recovery and maintenance work would lead to the restart of activities in the first quarter of 2024. Recently, in March of this year, a contract was signed between Petroperú and Altamesa Energy, where the private company took on a 61% stake in Lot 192, while Petroperú retained 39%. It is expected that the production from this field will supply the Talara refinery and ensure the operation of the Northern Branch of the North Peruvian Pipeline. According to information provided by Perupetro, there is no set date for the start of production at Lot 192 in the new contract, but rather the minimum work program established must be met. The consortium will need to drill 41 development wells and one exploratory well during the initial exploitation phase. The Ministry of Economy and Finance projects a progressive restart of Lot 192 towards the end of the fourth quarter of 2024, considering it is currently in a preoperative stage. An increase in oil production is expected this year, driven by the normalization of crude oil transportation and the drilling of new wells. Altamesa Energy Canada Inc., the parent company of Altamesa Energy Perú S.A.C., stated that the lot is in a preoperative stage, where infrastructure is being evaluated and the recovery of deteriorated facilities is being planned. Although an exact date has not been set, a gradual restoration of production is expected during the current year. Experts such as Erick García Portugal and César Gutiérrez have shared their opinions on the resumption of operations at Lot 192. Portugal believes that the optimistic projections of the MEF may not be met, while Gutiérrez emphasizes the importance of financing to successfully carry out operations, stating that at least US$100 million is needed to operate at full capacity. In summary, despite efforts to reactivate production at Lot 192, the lack of a definitive date for the resumption of operations and financial uncertainties pose significant challenges. Collaboration among all involved parties will be crucial to achieve the reactivation of this key oil asset for the country.