Peru Approves Chevron and Westlawn Entry into Offshore Exploration Contracts

Peru’s government has approved modifications to existing hydrocarbon license contracts, formally allowing Chevron and Westlawn Peru SAC to join Anadarko in the exploration of three offshore oil blocks in the country’s northern waters. The decision underscores the administration’s strategy to attract global investment into its energy sector while strengthening long-term energy security.

The contracts, which cover Blocks Z-61, Z-62, and Z-63, span nearly 1.8 million hectares along the continental shelf off the coasts of La Libertad and Lambayeque. These blocks are considered among the most promising for new hydrocarbon discoveries in Peru, and work has already advanced with seismic studies that map potential oil and gas reserves beneath the seabed.

Under the new framework, Chevron Peru Exploration Limited will hold a 35% interest, Westlawn Peru SAC will take 30%, and Anadarko retains 35% as the operating partner. The decrees authorizing the changes were signed by President Dina Boluarte alongside Peru’s ministers of Energy and Mines and Economy and Finance.

For the government, the participation of Chevron—one of the world’s largest integrated energy companies—represents a major vote of confidence. Officials argue that such partnerships not only bring capital but also advanced technology and expertise essential for the complex challenges of deep-water exploration. Westlawn’s inclusion, meanwhile, adds another layer of investment capacity, helping spread both financial risk and technical responsibility across the consortium.

Peru is positioning this move as a crucial step toward diversifying its energy sources. While the nation has historically relied heavily on natural gas production from the Camisea fields, demand for oil remains high, and imports have steadily risen to fill supply gaps. Successful discoveries offshore could reduce this dependence, increase royalty revenues, and create new jobs across both coastal communities and supply chains.

Yet the opportunities come with significant challenges. Deep-water drilling at depths approaching 1,000 meters is not only costly but also raises environmental concerns. Past controversies over extractive industries in Peru have fueled skepticism among local communities, environmental groups, and even regional governments, who demand stricter oversight. To address this, the revised contracts include reinforced environmental obligations and clearer mechanisms for state monitoring of operations.

The timeline for exploration is equally important. While seismic surveys are completed, exploratory drilling is not expected until late 2026 or 2027. This long lead time means that returns are uncertain, particularly given the volatility of global oil markets and the ongoing energy transition worldwide. If oil prices fall or investor sentiment shifts toward renewables, projects of this nature can quickly lose momentum.

Still, the administration views these contracts as a strategic foundation. By aligning with energy giants like Chevron, Peru hopes to build credibility in the eyes of the global investment community. In the broader context of Latin America, where countries such as Brazil and Guyana are leading an offshore oil boom, Peru does not want to be left behind. The deals signed this week reflect both opportunity and urgency in carving out a competitive role in the region’s hydrocarbon landscape.

The coming years will test how effectively Peru balances its ambitions for energy independence with the need to safeguard environmental standards and maintain social license for such large-scale projects. Success in these offshore blocks could reshape the nation’s energy profile for decades, but the risks remain as substantial as the rewards.