BPZ Resources signs $1.3 billion crude oil sales contract with PetroPeru

Oil and gas exploration and production company BPZ Resources Inc. has signed a seven-year, $1.3 billion crude oil sales contract with PetroPeru. BPZ shares tumbled $1.38, or 16.5 percent, to $6.99 in morning trading.

The PetroPeru deal covers the sale of 17 million barrels of oil at an average price of about $65 each.

BPZ noted that commodity price fluctuations and production levels will determine the actual number of barrels sold and the corresponding term of the PetroPeru contract.

Under this agreement, oil will be delivered from the company's Corvina field in northwest Peru to the State-owned Talara refinery.

"This long-term contract gives us a secure market for the sale of oil from our Corvina field," Zuniga said Friday. "This long-term contract is another important piece on our ongoing growth and development, as well as providing support to our pending financing with Natixis."

Publication: Andina - English Newswire
Provider: Andina
January 9, 2009

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