October 11, 2017 / 3:34 PM / a year ago

Frontera fails to win new contract for Peru oil block: Petroperu

LIMA (Reuters) - Canadian oil firm Frontera Energy Corp (FEC.TO) did not secure a new contract for operating Peru’s biggest oil block because of a lack of “adequate conditions,” state-owned energy company Petroperu (PET.LM) announced on Wednesday.

In a statement, Petroperu did not specify how conditions were inadequate but said it would summon other private companies to discuss a potential partnership for Block 192 when the time was right.

Frontera has operated Block 192 in the Amazonian region of Loreto for the past two years but control of the oilfield will revert to Petroperu once its contract ends in 2019.

Petroperu, which mainly transports and commercializes oil products, can develop productive oil blocks only with a private partner.

Frontera’s operations in Block 192 have been plagued by repeated ruptures in Petroperu’s pipeline and indigenous protesters who have seized oil wells to demand the government commit to environmental cleanups and social development plans.

Frontera has not produced any oil from Block 192 since the start of the latest round of protests in mid-September. The oilfield once produced about 12,000 barrels of oil per day.

Petroperu and Frontera did not immediately respond to requests for comment.

Reporting by Mitra Taj; Editing by Matthew Lewis

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