UPDATE 1-Peru minister touts Saudi mining interest, Chevron offshore potential

(Adds details throughout) By Marco Aquino LIMA, Oct 7 (Reuters) – Peru is pursuing major investments from Saudi Arabia and U.S. oil giant Chevron to develop its mining and energy resources, part of a broad strategy to revitalize the sector, a top minister said on Tuesday. The push comes as Peru, the world's third-largest copper producer, seeks to jumpstart investment, which has slowed in recent years amid political uncertainty and persistent social conflicts. In an interview with Reuters, Energy and Mines Minister Jorge Luis Montero said he expected to sign a memorandum of understanding with Saudi Arabia in November to develop projects for lithium and other strategic minerals. He described the Middle Eastern kingdom as seeking a "reliable strategic partner" in Peru. Montero said he would travel to Saudi Arabia next month with Peru's foreign minister to also sign broader economic agreements with Gulf countries. He added the Saudi interest extended to "investing in mining and energy activities… even in seawater desalination plants for the mining sector in the future." A parallel effort is underway to overhaul Peru's energy sector. A key component involves Chevron, which is set to begin drilling early next year in three offshore blocks. "The expectation is for production that could reach 250,000-300,000 barrels per day or more," Montero said, assuming the potential reserves in those blocks are confirmed. He projected such a volume could allow Peru, currently a net oil importer, to cease imports within three years, saving the country around $5 billion annually. To further bolster its energy strategy, Peru is finalizing a commercial and infrastructure agreement with neighboring Ecuador. State-owned oil companies Petroperu and Petroecuador are scheduled to sign the deal on October 24. The agreement will link oil fields in southern Ecuador with Peru's underutilized Norperuano pipeline, allowing Ecuadorean crude to be transported to and processed at Petroperu's recently modernized Talara refinery. Montero said the deal would be a lifeline for financially troubled Petroperu, ensuring a steady supply to keep reservoirs full and the Talara refinery "working 24 hours a day." (Reporting by Marco Aquino; Editing by Sarah Morland and Jamie Freed)

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