China’s State Oil Giant Plans to Invest $2 Billion in Peru by 2030

China National Petroleum Company (CNPC), the country’s top state oil firm, could invest in $2 billion in Peru in the next decade and eyes further opportunities to boost its stake in the country’s energy market, according to a senior company executive.

After buying out Brazil’s state-owned Petrobras’ shares in Peru for $2.6 billion in 2013, CNPC will move next to bid for the South Andean Gas Pipeline for $4 billion, Gong Bencai, vicepresident of the firm’s Americas division, said Tuesday.

“We are looking for more opportunities in Peru to buy or take part in the bidding for oil fields,” said Mr Bencai in an interview with the Reuters news agency.

The pipeline is the next target for the company whose country has stepped up its investment in Latin America, amid growing demand for the continent’s mineral resources such as gold, copper and oil.

2 Percent GDP Boost

CNPC is “very interested” and will operate through the China Petroleum Pipeline subsidiary to win the concession that will transport natural gas from the Camisea gas field in the Cusco region to the south coast of Peru.

The pipeline will benefit 1.7 million Peruvians, some of whom live in the little accessible Andes highlands that rise above 4,800m above sea level, and is CNPC’s next step in South America’s sixth largest economy, where it has operated since 1990 through the entity, Sapet.

The project will create at least 40,000 jobs and could result in more than a 2 percent increase in gross domestic product, said Peru’s president Ollanta Humala in April 2012.

CNPC could bid for two sites in the north of the country that were returned to the state after the contract of Norwegian firm, Interoil, expired, Mr Bencai added.

The Peruvian government recently approved the exploration worth $1 billion of a site of which CNPC owns a minority stake, after buying in full Petrobras’ shares last year.

Bidders must present their tenders for the pipeline in June, with the winner being revealed at the end of the month.

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