Oil regulation—Peru—Q&A guide

The following Energy practice note provides comprehensive and up to date legal information covering:

  • Oil regulation—Peru—Q&A guide
  • 1. Describe, in general terms, the key commercial aspects of the oil sector in your country.
  • 2. What percentage of your country’s energy needs is covered, directly or indirectly, by oil or gas as opposed to nuclear or non-conventional sources? What percentage of the petroleum product needs of your country is supplied with domestic production?
  • 3. Does your country have an overarching policy regarding oil-related activities or a general energy policy?
  • 4. Is there an official, publicly available register for licences and licensees? Is there a register setting out oilfield ownership or operatorship, etc?
  • 5. Describe the general legal system in your country.
  • 6. Describe the key laws and regulations that make up the principal legal framework regulating oil and gas activities.
  • 7. Are there any legislative provisions that allow for expropriation of a licensee’s interest and, if so, under what conditions?
  • 8. May the government revoke or amend a licensee’s interest?
  • 9. Identify and describe the government regulatory and oversight bodies principally responsible for regulating oil exploration and production activities in your country. What sanctions for breach may be imposed by the regulatory and oversight bodies?
  • More...

Oil regulation—Peru—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to oil regulation in Peru published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2021).

Authors: CMS Peru—Augusto Astorga; Carlos Hamann

1. Describe, in general terms, the key commercial aspects of the oil sector in your country.

According to the information released by the Ministry of Energy and Mines, Peru has 344.501Mmstb of proven petroleum reserves. Proven natural gas reserves amount to 10,604 trillion cubic feet, while liquid natural gas (LNG) proven reserves are estimated at 514.389Mmstb.

The main players in the upstream are Pluspetrol, Repsol, Hunt Oil, Petrotal and CNPC. A vast extension of the country's 18 sedimentary basins remains unexplored. Over the past 20 years, Peru has invested much of its natural gas fields located in the southern part of the country with two pipeline systems that bring the gas to Lima and to an LNG plant.

The price slump that started in 2014 affected exploration activities in particular. The contracting agency, Perupetro SA, changed its policy in 2017 and again opened the exploration acreage to direct negotiations starting with royalties at 5 per cent. Companies that operate in the country were pushing for measures to make exploration and production competitive when they were caught by a new price crisis and a negative perception of their activities induced by

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