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Peru One-Quarter Towards Goal of Investing $1 Billion Investment in Oil

March 23, 1995

LIMA, Peru (AP) _ Peru is about one quarter of the way toward its goal of investing $1 billion in oil drilling by the end of the century in order to attain petroleum self-sufficiency, the government said.

Energy Minister Daniel Hokama made that announcement Wednesday at the signing of a $60-million, off-shore oil exploration contract with two European oil companies: Repsol of Spain and Ampolex of Austria.

Hokama said the Repsol-Ampolex contract was the sixth signed under a new hydrocarbons law, for a total of $250 million in commitments for oil exploration.

He said Peru currently produces about 120,000 barrels a day and has known reserves of about 350 billion barrels, sufficient for six or seven years of production. Hokama said that with $1 billion investment in oil exploration, the country could hope to become self-sufficient in petroleum production.

Repsol and Ampolex signed a joint contract with state oil company Petroperu to drill at least five wells in the continental shelf off the northern city of Trujillo, 305 miles northwest of Lima.

Repsol’s general manager, Ramon Hernan Paadin, said the operation was a technical challenge for the companies because of its unconventional location, between 37 to 93 miles off the coast and in water 660 to 1,650 feet deep.

Repsol is the majority partner with 65 percent, while Ampolex makes up the balance.

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