Block offshore Peru has potential to yield close to 900m barrels

Block offshore Peru has potential to yield close to 900m barrels

UK-based and South America-focused Baron Oil has announced that a block it is a partner in offshore Peru potentially contains almost 900 million barrels of oil.

The London-listed independent oil and gas E&P company said the Block Z-34 in the Talara Basin off northwest Peru has three prospects containing likely reserves of 885m barrels.

Those prospects break down as follows: the Cuy prospect, probably the first to be drilled, is estimated to have 413m recoverable barrels of oil; Cuy Sure could be 200m barrels; and Daphne 272m.

Baron is in partnership on the block with Uruguayan firm Union Oil & Gas Group (UOGG).

Baron’s principal areas of interest are Peru and Colombia. It cites Peru’s appeal as being the relatively low costs of drilling there thanks to business-friendly tax policies, its political stability, the vastness of its potential resources and its closeness to the US market.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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