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Peru to Invest 1.5 Billion Dollars in Natural Gas Exploration

Posted on: Tuesday, 5 July 2005, 09:01 CDT

Peru to invest 1.5 billion dollars in natural gas exploration

LIMA, July 4 (Xinhua) -- Peru will invest 1.5 billion US dollars over the next five years for natural gas exploration, President Alejandro Toledo announced here Monday.

The investment will boost the national energy sector and promote the modernization of state-run refining plant La Pampilla, said Toledo after meeting with Antonio Brufau, chief executive officer of Argentine-Spanish consortium Repsol YPF.

"We live in an adequate environment for investment, the sector is in optimal conditions and it will be the next government that will harvest the achievements," said Toledo, in reference to the general elections due next year.

According to reports, Repsol YPF and Peru's Hunt Oil firm would form a strategic joint venture in the Peru LNG project to construct and operate a liquefaction plant.

Hunt Oil is exploring the Camisea deposit in the southern Andean region.

"We're completing the negotiations with the firm Hunt Oil and we would start the project in 30 days," Brufau told Toledo.

The joint plant would be operational in 2009 with an annual production of 4 million tons of liquefied natural gas, to be exported to California, the United States and Mexico.

The Camisea deposit is the third most important in South America after those in Venezuela and Bolivia.

Source: Xinhua News Agency - CEIS

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