Canada's Pacific Rubiales to start producing oil in Peru

BOGOTA -- Canada-based Pacific Rubiales Energy Corp., the top private oil producer in Colombia, on Friday announced a $335 million deal with BPZ Resources that will allow it to start producing for the first time in neighboring Peru.
In a statement, Rubiales said it will acquire a 49% stake in Houston-based BPZ's offshore Z-1 Block in Peru. The block has two producing fields that averaged 3,800 barrels of oil per day last quarter, and has total proved oil reserves of about 34.7 million barrels.
BPZ has been seeking a partner for its Z-1 Block.
Rubiales said it will pay $150 million in cash and a commitment to pay $185 million for BPZ's share of capital and exploratory expenditures in Block Z-1.
"The acquisition complements our existing exploration acreage in Peru, and it provides us with first production in the country," said Rubiales Chief Executive Ronald Pantin.