Production - Foreign - Oil Development in Peru in 1930

Activity in the oil industry in Peru during 1930 was confined almost entirely to the three old producing fields in the northern coastal area. In the eastern part of Peru, in the valleys of the Maranon, Ueayali and Huallaga rivers, additional geologic work was carried on, but no drilling was undertaken. The Peruvian Government granted a concession on June 27, 1930, to W. R. Davis and associates for the building of a railroad from the west coast at Bayovar to Yurimaguas on the Huallaga River. This concession contemplates the construction of 800 to 900 km. of railroad across the Andes and carries with it a grant to the concessionaire of 12,500,000 acres of land with oil and mineral rights. A similar concession was granted in 1926 but after several extensions was rescinded in July, 1929, on the grounds that the concessionaire had failed to begin work on the railroad within the time limits of the contract and its extensions. The production in barrels from the three coastal fields of Peru has been as follows: 1929 1930 International Petroleum Co.......................... 10,821,117 9,766,922 Lobitos Oilfields, Ltd................................ 2,508,091 2,613,511 Zorritos........................................... 75,000a 78,000a 13,404,208 12,459,060 a Estimated. No definite figures available. Although not large, the Peruvian production has been steady during the past years. The reduction of approximately 8 per cent. in 1930 as compared with 1929 is the result of the world's overproduction and the attempt on the part of the International to restrict the output to conform with the available market. International Petroleum Company International Petroleum Co. owns the oldest producing property in Peru. The first well was drilled there in 1872. The cumulative production from the property from 1900 to 1930 inclusive has been over 92,000,-000 bbl. from an area of 15,000 acres. The recovery per acre has varied