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State-owned China National Petroleum Corporation (CNPC), operator of Petrobras's assets in Peru, is expected to grow oil production this year in the country as part of the new well drilling program in Block X.

Petrobras has recently completed the sale of 100% of the shares of its unit Petrobras Energia Peru to CNPC for US$2.6 billion.

This week, CNPC representatives launched the new drilling program in Block X, a mature field that has been in operation since 1912 and produced 16,000 barrels of oil equivalent per day in 2012.

The event was part of the company’s development project that undertakes these works in spite of the current drop in oil prices.

According to Wang Zhengwen, executive director of operations at CNPC Peru, the drilling campaign sets a new milestone in the development of such an oil block.

“This drilling is aimed at expanding the production and benefiting not only the company, but its employees and communities living in Block X area of influence,” he said.

It should be noted CNPC has entered into a Memorandum of cooperation in oil and gas with Peru's Ministry of Energy and Mineshas.

This occurred on November 12 during the APEC summit in Beijing, in the presence of Chinese President Xi Jinping and Peru's President Ollanta Humala.

According to the MOU, the two sides will expand cooperation in oil and gas exploration and development, natural gas processing and chemicals.