Peru's Energy and Mines Minister Francisco Ismodes on Monday announced the new hydrocarbon bill provides that oil concession contracts —signed between the State and private companies— will run for 40 years, rather than 30, as it is currently stipulated.
"For instance, this bill seeks to make
hydrocarbon contracts —set to run for 30 years— valid for up to 40 years," the official told RPP radio and TV news station.
"We are working on the approval of the newly proposed hydrocarbon law, which was presented to Parliament and passed by the Energy and Mines Commission," he added.
The minister explained some oil concessions will be completed within the following two years and that they still have resources to exploit.
"Major investments need to be made to take advantage of these resources. This is not happening since investments may not be recouped in two or three years," he explained.
"If we manage to extend the term of such contracts, investors —with an investment commitment— will be able to access these new resources in a way that we could have more
hydrocarbons to supply Talara Refinery in a very short time," he added.
Ismodes affirmed that royalty terms in the oil contracts remain unchanged under the new
hydrocarbon law.
Talara Refinery
The Cabinet member informed the Talara Refinery modernization project has reached 80% completion, thus laying the groundwork to operate to high international standards.
(END) CNA/RMB/MVB
Published: 8/6/2018