Tullow agreed to acquire a 35% interest in Block Z-38 through a farm-down from Karoon Gas Australia, which is subject to Government approval.
The new oil prone acreage will complement the Group’s South America position and contains a number of attractive prospects and leads. Block Z-38 is already covered by high quality 3D seismic and includes the Marina prospect which is a potential candidate for drilling in 2019.
In January 2018, Tullow agreed terms to add five new licences covering 28,000 sq km, offshore Peru, to its portfolio. The Group concluded negotiations with Perupetro and agreed to acquire a 100% stake in Blocks Z-64, Z-65, Z-66, Z-67 & Z-68. In May 2018, the five licences were revoked by the new Government of Peru. Tullow is very disappointed with this outcome, as the Group complied with the process and procedures required under Peruvian law to agree new exploration licenses, as confirmed by an audit by the Peruvian Audit and Control Agency, which would have resulted in potentially significant investment over the licence period. Tullow has operated throughout under the strict guidance of PeruPetro, the state regulator and is now considering its next steps.