Operations have begun on a 184-well drilling campaign at Block X in Peru, the country’s second-largest crude producing block, marking a significant step up in activity for a basin that has attracted growing attention from international operators as South America cements its position as one of the world’s most important alternative supply regions.
Block X is Peru’s second-highest crude producer after Block 95, and the launch of the 184-well campaign represents one of the most substantial drilling programmes to be initiated at any single block in the country’s upstream history.
The scale of the campaign reflects the broader push across Peru to maximise production from its established onshore basins at a time when global oil prices have supported upstream investment and the country is positioning itself as a reliable supplier to regional and international markets. Peru’s upstream sector has historically faced challenges around permitting timelines and community relations, making the launch of a programme of this size a notable signal of operator confidence in the operating environment.
The activity at Block X sits alongside a wave of parallel investment across Peru’s oil and gas sector. At Block VI in the Talara region of northwest Peru, a work programme covering 120 well workovers and 323 development wells over the first ten years of the licence contract is also advancing, with new investments targeting both increased production and the discovery of new reserves.
At Block 95 in the Loreto region, Halliburton has been awarded an eight-well drilling and cementing contract by PetroTal for a campaign in the remote Amazonian location. The programme presents significant logistics challenges given its river-dependent supply chain, with equipment deployment carefully managed around seasonal water-level fluctuations on the waterways connecting the site to the wider logistics network.
PetroTal is separately restarting drilling at Block 95 in October 2026 following a three-year permit delay, aiming to lift output back above 20,000 barrels per day during 2027, up from approximately 15,000 barrels per day at present. The company lifted its 2026 earnings guidance to between $110 million and $120 million, with first-quarter core earnings jumping approximately 90% from the previous quarter on the back of stronger oil prices.
The combination of these programmes across multiple Peruvian blocks reflects a country accelerating its upstream activity as international investors recognise the potential of a basin with proven reserves, established infrastructure and improving commercial terms. Peru has introduced new contract frameworks offering 30-year licences, tax benefits for companies restoring production at temporarily abandoned wells, and enhanced investment incentives across its exploration and development portfolio.
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