OREANDA-NEWS.  November 21, 2014. Chinese and Peruvian government agencies entered a Memorandum of Understanding (MOU) yesterday, to collaborate on hydrocarbon extraction and development.

The China National Petroleum Corporation (CNPC) and Peru’s Ministry of Energy and Mines have agreed to cooperate on current projects being executed by the CNPC branch, Sapet. The MOU promotes the granting of exploration in hydrocarbon projects as well as building partnerships with other companies in the field.

Essentially, MOU calls for the countries to collaborate on the processing of natural gas, the controversial process of fracking, liquefaction, and finally an enhanced petrochemical industry in Peru.

The CNPC projects to invest nearly USD2 billion in the next 10 years in developments in the South American country.

In May, Gong Bencai, the head of CNPC’s Latin America division said, “We are looking for more opportunities in Peru, to acquire companies or to participate in the bidding of oil fields.”

The MOU was a collective effort amoung the Chinese and Peruvian heads of state and was signed by the CNPC Vice President Wang Dongjin and Peruvian Foreign Minister Gonzalo Gutierrez during the 22nd APEC Summit in China’s capital, Beijing.