PetroTal Corp. has completed the acquisition of a 100% interest in Block 131, located in Peru, by acquiring all of the shares of CEPSA Peruana, a subsidiary of Compañía Española de Petróleos SA (CEPSA). This transaction marks a major strategic step forward for PetroTal, consolidating its activities in the region.
Block 131 is distinguished by the presence of the Los Angeles oil field, discovered in 2013. This field produced an average of 817 barrels of light oil per day (bopd) between January and September 2024, with oil displaying a density of 45° API. Existing infrastructure at the site can process up to 5,500 bopd, paving the way for a significant increase in production and reduction in unit costs.
PetroTal's objectives for Block 131
PetroTal plans to apply modern drilling techniques, similar to those used at its Bretaña field, to maximize the productivity of Block 131. The company is currently evaluating a development plan aimed at exploiting the untapped capacities of the Los Angeles field and explore deeper areas as yet unproduced.
With proven reserves estimated at 2.0 million barrels and more likely proven reserves reaching 4.2 million barrels, Block 131 represents a significant opportunity to increase production capacity in the near term. In addition, the possibility of blending light oil from this block with heavy crude from Bretaña could improve sales conditions to the local refiner, PetroPeru.
Context and Implications
Current production from Block 131 is sold to PetroPeru and transported by barge via the Ucayali River to the Iquitos refinery, a process that benefits from logistical synergy thanks to the proximity of the Bretaña field. The exploration and production agreement for Block 131 is valid until 2038, with a 23.48% royalty applied for production below 5,000 bopd.
PetroTal also highlighted that this acquisition is in line with its long-term growth strategy. By diversifying its assets, the company is positioning itself to strengthen its competitiveness in the Peruvian market and optimize the exploitation of local resources.
This key step in PetroTal's expansion reflects a balanced approach between increasing production capacities and effective management of existing infrastructure. The company is expected to release additional details on its development plans for Block 131 shortly.
