The 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.