The PetroVietnam Exploration and Production Corporation (PVEP) began producing oil commercially from Block 67 off the coast of Peru on April 1. — Photo PVEP

HA NOI (Biz Hub) — The PetroVietnam Exploration and Production Corporation (PVEP) began producing oil commercially from Block 67 off the coast of Peru on April 1, according to the Vietnam National Oil and Gas Group (PVN).

Block 67 is PVN's second project in Peru after nearby Block 39 and is PVEP's first overseas property.

Previously PVEP negotiated with oil exploration and production group Perenco to buy 52.6 percent of Perenco Peru Limited's shares. The holding permits PVEP to earn 50 percent of profits from Block 67.

Initial oil output from Block 67 is 6,000 barrels a day, which will be sold at a station 600km away.

At an April 1 ceremony in Peru's capital Lima , PVN General Director Do Van Hau said the commercial exploitation of oil from Block 67 demonstrated the group's increased penetration into key areas such as Russia, Southeast Asia, Northern Africa, the Middle East and Latin America.

Luis Ortigas Cuneo, chairman of Peru's national oil and gas group PeruPetro, said this was the first time in 40 years a foreign joint venture had exploited oil fields in Peru despite the geographical and geological difficulties. — VNS