BPZ Resources, through its oil and gas subsidiary BPZ Exploracion & Produccion, has entered into an initial oil sales contract with PetroPeru to deliver up to 400,000 barrels from its Albacora field located offshore in Block Z-1 in northwest Peru.

Further, the company has delivered its first shipment of approximately 28,500 barrels under the contract to PetroPeru’s refinery located in Talara, approximately 100 miles south of the Albacora field.

The company reported in March that it had accumulated approximately 90,000 barrels of oil from Albacora, which it plans to deliver to the refinery in similar size batches over approximately the next six months.

The effective price per barrel the company expects to realize is equivalent to the Northwest Peru basket of crudes (consisting of Forties, Oman and Suez) minus three dollars per barrel and other customary purchase price adjustments, if any.

The company said it is currently beginning negotiations with PetroPeru and potentially other buyers for a long terms sales contract for its Albacora oil.