PetroVietnam acquires ConocoPhillips' interest in Peru's Block 39
PetroVietnam has announced the acquisition of ConocoPhillips' 35% stake in Block 39, Peru. The block contains sizable heavy oil reserves in three undeveloped fields, plus considerable exploration upside. However, Block 39 lies in an environmentally sensitive area in north-east Peru; with no existing infrastructure, the development will be challenging. Wood Mackenzie's base case valuation of the 35% stake in Block 39 is US$603 million (NPV10, discounted to January 2011). However, ...