Law change ‘to boost Petroperu’

04 September 2015, News Wires – Lawmakers in Peru have opened the door for state-run refiner Petroperu to participate in upstream activities by removing a legal obstacle that barred it from taking control of the country’s biggest oil block, according to a report.

Peru flagThe Congress has voted in favour of a legislative measure that would allow Petroperu to take over block 192 in a populist move amid protests over the government’s recent decision to grant Pacific Exploration & Production a two-year service contract to keep oil flowing from the licence, Reuters reported.

The award by the administration of President Ollanta Humala follows the failure to attract any bids at a recent auction of a 30-year concession for the tract as industry interest has waned due to falling oil prices and disputes with indigenous communities.

Peru was left scrambling to broker a last-minute deal with a new operator before the expiration of the previous contract on Saturday.

The bill that passed 71-10 in Peru’s single-chamber Congress late on Thursday does not in itself alter Pacific’s contract.

Instead, it modifies a law passed in 2013 that Humala had interpreted as barring Petroperu from investing in upstream activities to make an exception for block 192.


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