UPDATE 1-Repsol says to invest $3 bln in Humala's Peru
* Repsol says to invest up to $3 bln in Peru in five yrs
* State-run Petroperu pursuing partnership with Repsol (Adds quotes, background)
LIMA Oct 13 (Reuters) - Spanish oil firm Repsol-YPF (REP.MC: Cotización) expects to invest up to $3 billion in Peru in the next five years, company President Antonio Brufau said on Thursday.
Brufau met with Peruvian President Ollanta Humala, who is three months into a five-year term, to discuss a potential partnership with state-run Petroperu to market and expand the use of natural gas in the country. [ID:nN1E79A20H]
He said the firm has already invested around $3 billion in Peru and plans to spend between $2.5 billion and $3 billion during the term of Humala, a leftist who has lured in new investment by recasting himself as a moderate.
"We have expressed to the president and prime minister our willingness to keep investing in the development of Peru as we have been doing," Brufau told reporters after the meeting.
He said the company planned to spend about $1 billion in its Pampilla refinery and the rest of the planned investments would go to exploration and development of blocks that are already producing natural gas.
"It all depends in the success we have, but the geological conditions in Peru are temporary, we have to take advantage now," Brufua said.
Repsol-YPF is an important partner in the consortium led by Argentina's Pluspetrol that operates the natural gas fields in Camisea, in southeastern Peru. A pipeline through the Andes mountains transports the fuel to the Peruvian coast.
Humala's government is negotiating a new royalties scheme with the consortium. It seeks to correct market distortions through the negotiations so that royalties paid on exported fuel are always higher than those paid on fuel used domestically. (Reporting by Omar Mariluz; Editing by Bob Burgdorfer)
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