Andina

Peru: Private investment in hydrocarbons exceeded US$19 billion

Hidrocarburos Gas Selva Operadores Sur

Hidrocarburos Gas Selva Operadores Sur

11:10 | Lima, Feb. 16.

The private sector invested a total of US$19.019 billion in Peru's hydrocarbon industry between 1993 and 2022, former Deputy Energy Minister Arturo Vasquez has reported.

The current Gerens Graduate School research director said the contribution by the hydrocarbon sector to Peru's GDP over the past 17 years is close to 2% annually on average.

This was stated during the presentation of the study entitled "Analysis of the hydrocarbon sector's impact on Peru's economy" at an event organized by the 
National Society of Mining, Oil, and Energy (SNMPE).

During this session, the positive impact of private investment on the development of the hydrocarbon sector's productive activities for the benefit of our country was also highlighted, such as the contribution worth S/62.763 billion (about US$16.243 billion) in royalties from 2002 to 2022, as well as the payment of S/54.775 billion (about US$14.176 billion) for Income Tax and other internal taxes from 2005 to 2022.

Vasquez explained that the Peruvian regions where hydrocarbon companies operate have also benefited from the transfer of S/45.373 billion (about US$11.742 billion) for canon and overcanon in the period from 2004 to 2023.

Investments
 
On the other hand, the Gerens research director said an example of investments by private companies in the aforementioned sector are those made on the northwest coast and the continental shelf, where they allocated US$4.444 billion for exploration and exploitation between 1993 and 2022.

The director underscored that in said period northern Piura region received S/8.110 billion (about US$2.099 billion) for canon and overcanon, while Tumbes received S/2.397 billion (US$620 million).

In that sense, Vasquez explained that thanks to the royalties and remunerations generated by the hydrocarbon sector on the northwest coast and continental shelf over the past 22 years (S/30.580 billion = US$7.914 billion) different public works could have been financed, such as 402 High Performance Schools (COAR), as well as 4,943 community medical posts for primary care.

He added to this list: 185 high complexity regional hospitals; 57,338 kilometers of penetration roads; a 236 km "Daniel Alcides Carrion" highway; or 5,365 kilometers of paved roads.

(END) NDP/MDV/MVB

Published: 2/16/2024