CNPC owns the risk exploration Block 111/113 and production blocks 1-AB/8 and 6/7 in Peru's Talara Oilfield.

Block 6/7

Talara Oilfield is located in northwestern Peru. Block 6/7 in Talara Oilfield was the first overseas oilfield development project CNPC operated. The blocks were taken over by CNPC in January 1994 and October 1995 respectively. Since then, thousands of wells have been drilled, resulting in a peak production of over 7,000 barrels crude per day, bringing new life to an oilfield that has been exploited for over a century. In 2008, steady production was maintained at Block 6/7.

In 2009, through comprehensive study, stimulation of mature wells, and optimization of new wells, production of Block 6/7 gradually increased. By the end of 2009, the daily output had reached more than 5,000 barrels, the highest level in the past decade.

Block 1-AB/8

On July 11, 2003, CNPC signed a cooperation agreement with PLUSPETROL on Block 1-AB/8. CNPC has a 45% stake. In Block 1-AB/8, where the total water cut is up to 96%, we intensified our efforts to study how the remaining oil was distributed. This substantially relieved the production decline. Deliberately designed new well locations have resulted in excellent development and production performance. Two horizontal wells allocated in Yanayacu Oilfield of Block 8 have been put into operation, controlling the rapid production decline of the high-water-cut, mature oilfield and ensuring stable output.

Block 111/113

Block 111 is located in the south of the MDD basin, covering an area of 15,000 square kilometers, while neighboring Block 113 covers an area of 12,300 square kilometers. On December 7, 2005, CNPC signed risk exploration contracts with Peru's Ministry of Energy & Mining covering Block 111 and Block 113 in the MDD basin. The preliminary preparation for the exploration in Block 111/113 has been rolled out. In 2006, the environmental evaluation progressed smoothly. In 2007, seismic data acquisition for the block was launched.