PXP Energy unit to start drilling oil well in Peru

An affiliate of the MVP group’s PXP Energy Corp. is ready to drill an oil well at the Marina prospect in Peru, even as its petroleum exploration prospects in the Philippines continue to languish amid territorial disputes with China.

Citing information from partner project operator Karoon Gas Australia Ltd., PXP Energy said in a regulatory filing that a drillship contracted for the project had arrived and only needed to refuel and a change or crew.

From the port in Lima, the vessel dubbed “Stena Forth” will proceed to Block Z-38 in Peru’s offshore Tumbes Basin to drill an exploration well named Marina-1x.

“Karoon expects the vessel to clear customs and final permits to be received over the coming weeks,” PXP Energy said. “The well is expected to spud during the last week of January 2020.”

The consortium believes that the Marina prospect contains an estimated 256 million barrels of crude oil.

Pitkin Petroleum Ltd., which is 53.43-percent-owned by PXP Energy, holds a 25-percent participating interest in Block Z-38.This development provides contrast to the continued moratorium on exploration activities at the Recto Bank, which is subject to a territorial dispute with China.

Like Service Contract No. 72 at Recto Bank, Block Z-38 in Peru was placed under force majeure in 2013—albeit upon the request of Karoon itself—because the company was unable to secure a suitable drilling unit within the required time frame.