Petroperu, Petrobras sign oil exploration deal

Peru's state-run oil company Petroperu and Brazil's Petrobras on Thursday signed six agreements to evaluate the feasibility of drilling oil and gas in the Maranon Basin, which covers 5.7 million hectares of Peru's Amazon rainforest.

During a period of two years, the areas "will be analyzed to evaluate their potential for exploration," Petroperu President Cesar Gutierrez told media after the signing ceremony.

The deal is expected to bring about results that may ease the energy deficit in localities such as Caballococha, Pebas, Iquitos and Nauta.

"The convention enjoys government backing, the backing of the two companies' management, and the synergy of the teams and investment," Gutierrez said.

The exploration would take into consideration not only financial profitability, but also respect for civil society and long-term social and environmental commitments, he added.

Petrobras will pay for the exploration phase, while any extraction will come through a joint venture with the two companies investing equally, according to Gutierrez.

Source: Xinhua