Peru plans to sign a memorandum of understanding with Saudi Arabia in November to attract investment in copper, lithium, and other key minerals, Energy and Mines Minister Jorge Luis Montero told Reuters.
He said state-owned Petroperú and Petroecuador will also sign an agreement on October 24 to connect their crude oil fields in the Amazon and supply the Talara refinery, recently modernized in northern Peru.
Montero explained that Saudi Arabia views Peru as “a reliable strategic partner” for mining, oil, and gas projects. He will travel to Riyadh next month with Foreign Minister Elmer Schialer to sign trade and economic cooperation deals with Gulf Cooperation Council countries.
“The goal is both investment and trade,” Montero said. “They want to participate in mining, energy projects, and even desalination plants for the mining sector.”
Expanding mining and energy cooperation
Peru is the world’s third-largest copper producer. The country hopes to revive foreign investment in its resource industries after years of political instability and frequent social unrest. Its mining project pipeline totals about 64 billion dollars, mostly in copper. The only lithium project under development belongs to Canada’s American Lithium Corp.
The upcoming deal with Ecuador will be “a commercial and infrastructure partnership,” Montero said. It will allow both countries to refine oil jointly at the Talara facility and export crude from southern Ecuador through Peru’s 1,100-kilometer pipeline.
That pipeline, owned by Petroperú, has faced repeated attacks and now remains idle for lack of pumping contracts. Montero said the new agreement could help the state firm recover financially. “You’ll have Bayóvar’s reservoirs full of oil and Talara operating 24 hours a day,” he said.
Chevron’s exploration and Peru’s oil outlook
Montero confirmed that U.S. oil major Chevron will begin drilling early next year in three offshore block, Z61, Z62, and Z63, off the coasts of La Libertad and Lambayeque.
He said production could reach 250,000 to 300,000 barrels per day or more. Chevron and Anadarko each hold 35 percent of the venture, while Texas-based Westlawn owns the rest.
With that output and nearby projects operated by TotalEnergies, Montero expects Peru to meet domestic fuel demand within three years. The shift could end oil imports and save the country around 5 billion dollars a year.