SPECIAL ADVERTISING SECTION
PERUPETRO : LEADING LATIN AMERICA'S ENERGY FRONTIER
Investment is pouring into a sector in which new exploration continues to show unexpected discoveries
ike its neighbors in Latin America, Peru is emet'ging as an ener­
L gy producing nation. After years of lackluster exploration results,
the t rend is reversing as the government continues to sign oi I explo­
ration contracts, and strategic investors discover new fields and bring
them onl ine.
On the back of robust real GDP gro\ivth of 9% in 2007, Minister
of Energy Juan Valdivia is encouraging new ene rgy investment pro­
jects. By 2011, investments of $1.5 billion wi ll be channeled into
dri ll ing, oil deve lopment and pipel ine const ruction. Natural gas is Juan Valdivia
helping to diversi fy Peru's energy mix and boost its energy export Romero
potential. Drawing from gas reserves of 8.7 trill ion cubi c feet, Peru Minister of Energy
wi ll begin exporting liquefied natural gas (LNG) to hungry markets and Mines
in No rth Ame rica in the coming decade. The Energy Ministry also
targets rap id development in the petrochem icals industry.
Although Peru possesses 1. 1 bill ion barrel s of oil reserves, the country imports one­
t hi rd of its crude demand. " Peru's hydrocarbons were underexplo red throughout the entire
1990s and part of th is current decade, and t he leve l of explo ration in Peru was among
the lowest in the region," states Dan iel Saba de Andrea, Chairman of Peru Petro. Established
i111993, his agency promotes hydrocarbon investmentand exploration to reverse th is trend.
"As investments begin to roll in, we are now making up for lost time. As finan cin g
arrives, some projects wi ll naturally beg in to yield results," says Dr. Saba de Andrea. "O il
and gas deposits are appearing along with certain hydrocarbons that no one thought exist­
ed in Peru. " Wi th infl uxes of fore ign capital, Peru is poised to become a net ene rgy exportet·
by 2011, according to the PeruPetro chi ef.
Searching for exte rnal investo rs, Peru Petro has attracted the attention of internation-
This supplement has been produced and sponsor ed by Summit Communications . It did not involve the reporting or editing staff of The New York Time s.
al energy firms. Last year Peru Petro signed 24 exploration con­
tracts, a reco rd number of deals that are expected to generate
upwards of $900 million in new investments overthe course of eight
years. At present, the agency aims to award concessions for a fur­
ther 22 bloc ks up for auction.
Industry giants such as Brazil's Petrobras and Spain's Repsol
are currently drilling for untapped Peruvian reso urces. Dal las-based
Hunt Oil Company leads the Pe ru LNG internat ional consortium,
Daniel Saba wh ich plans a $3.8 bi ll ion LNG plant to deliver a f resh surge of
deAlldrea commercial hydrocarbon liquids fOl'e xport. After Co ngress ratified
Presi dent of the landmark U.S.-Peru Free Trade Agreement last autumn,
Peru Petro PeruPetro lo oks forward t o more investmentfrom U.S.-based ener­
gy compan ies in addition to investmentfrom other parts of the world,
says Ronald Egusqu iza, Peru Petro 's general manager.
In Ap ri l, Fitch raised Peru's rating to investment grade, a move highl ighting the progress
of President Alan Garcia's investment-friendly pol icies. Mi nister Va ldivia shares t his pro­
busi ness outlook, stating, " The re is a better perception ofthe investor liJith respectto Peru,
both in its geological potential as well as the prospects it offers to the w orld. In fact, we
are moving forward. "
For f urther information con tact: SU MMIT COM M UNICATIONS
1040 First Avenue, Suite 39 5, New York, NY 10022-290 2, Tel: 1 (2 12) 286-0 034 ,
Fax : 1 (2 12) 286-8376, E· mail : info@summi t reports.com
Proje ct Management: Cristina Salgado, Jua n Salaberry and Geraldine Tay lor
An on line version is availab le at WVI\ •• summilreports.com