Shell and BPZ to explore Peru blocks

Shell Exploration Company has signed a memorandum of understanding with Houston-based BPZ Resources, to develop oil and gas ventures in Northwest Peru.

Under the deal, the two companies agreed to negotiate terms of a an agreement whereby Shell may buy a stake in three northwestern Peru properties that are believed to hold significant crude oil and natural gas reserves.

The agreement covers BPZ blocks XIX and XXIII and parts of block Z-1. BPZ retains 100% rights for the parts of block Z-1 where there are existing discoveries.

Mr. David Lawrence, Executive Vice President Exploration, Shell International Exploration and Production, said the agreement makes the most of the strengths of the two companies.