Peru’s Energy and Mines Minister, Jorge Luis Montero, expects to sign a memorandum of understanding (MoU) with Saudi Arabia in November to collaborate on lithium and other critical mineral projects.
The minister plans to travel to Saudi Arabia next month alongside Peru’s foreign minister to finalize broader economic agreements with Gulf nations as part of the country’s major energy sector overhaul.
On the same line, Montero said Peru aims to attract investments from the US major Chevron for offshore drilling operations. The company is expected to begin drilling early next year in three offshore blocks. If estimated reserves in these areas are confirmed, production could reach between 250,000 and 300,000 barrels per day (bbl/d) or higher, enabling Peru to stop importing oil within three years and save approximately $5 billion annually.
As part of its broader energy strategy, Peru is also close to finalizing a commercial and infrastructure partnership with neighboring Ecuador. State-run oil companies Petroperu and Petroecuador will sign an agreement on October 24 to connect oil fields in southern Ecuador to Peru’s largely idle Norperuano pipeline. This will allow Ecuadorian crude to be transported to and refined at Peru’s recently upgraded Talara refinery.
The minister noted the deal will provide crucial support for Petroperu, which faces financial difficulties. It will help ensure a consistent crude supply, keeping storage tanks full and allowing the Talara refinery to operate around the clock.
This initiative comes as Peru, the world’s third-largest copper producer, aims to revive investment levels that have declined in recent years due to ongoing political instability and recurring social unrest.
Peru’s energy sector, while rich in resources including oil, natural gas, and critical minerals like lithium, faces challenges as declining oil production has made the country a net oil importer. The country seeks to reverse this trend through infrastructure upgrades and renewed exploration, including offshore drilling.