President Alan García announced Monday that the Spanish-owned Repsol YPF oil company has found more than 2 trillion cubic feet, TCF, of natural gas in Peru’s southern Cusco department. Repsol YPF reportedly discovered the reserve in the Kinteroni well, one of four in Block 57, located north of the Camisea nastural gas reserves in Block 88 and Block 56.
García said the discovery promises to stimulate further investment and oil exploration in the region, which holds some of the largest undeveloped gas reserves in South America, Radio Programas radio reported.
“This finding is very important, this discovery is very important, more than 2 trillion cubic feet,” said García. “They believe there could be as much as 2.5 trillion cubic feet, which is worth billions of dollars.”
Most of the natural gas will likely be exported. In September 2007, Repsol YPF won a 15-year contract to export Camiseas natural gas to Mexico’s pacific coast. According to Repsol YPF, the contract is worth $15 billion.
Peru’s natural gas reserves are thought to be about 20 TCF. Block 88 is the country’s largest reserve, accounting for 10.4 TCF, while Block 56 is believed to hold three TCF of natural gas.
