According to BPZ resources, oil supplied under the contract will be delivered from the company’s Corvina field to the state-owned Talara refinery.
The contract has an approximate term of seven years. Corvina is located in the company’s offshore Block Z-1 in northwest Peru approximately 100 miles north of the Talara refinery, said the company.
For budgetary purposes, PetroPeru assigned the contract a referential value of approximately $1.3 billion, including the applicable value added tax of 19%, based on an estimated forward average price of approximately $65 per barrel. Corvina’s actual oil sales price will be equivalent to a basket of crude oils based on a 15-day average of Forties, Oman, and Suez blend crude oil prices, as quoted in the Spot Crude Prices Assessment published in Platt’s Crude Oilgram Price Report, minus $1 per barrel.
Manolo Zuniga, president and CEO of BPZ Energy, said: “This contract gives us a good market for the sale of oil from our Corvina field. The oil production we are achieving through the testing program has also allowed us to continue appraising the field and for the refinery to assess the refined oil products derived from our Corvina crude oil.”
Houston based BPZ Energy is an oil and gas exploration and production company which claims to have license contracts for oil and gas exploration and production covering approximately 2.4 million acres in northwest Peru. It also owns a minority working interest in a producing property in southwest Ecuador.
