Oil production fell to a third in private hands

The announcement of the award of oil lots I, VI and Z-69, once their contracts conclude between September and November of this year, by Perupetro to Petroperú, has been the target of serious questions from the private sector.

Thus, for example, Confiep, the National Society of Mining, Petroleum and Energy (SNMPE), Comex and the Peruvian Hydrocarbons Society, warn of an illegal action in this direct negotiation and that “private investment will be scared away.” They also anticipate a decline in oil production if Petroperú returns to these lots.

However, the Petroperú unions recalled that it is rather in the hands of the private sector that production contracted by a third, as they brought production from 127,000 barrels per day to 40,000 barrels at the end of 2022, according to official figures.

Likewise, they warned that this resounding drop in oil production has caused great damage to the national economy by having to import more than 200,000 barrels per day to meet domestic demand and thus have an economic impact on fuel prices.

They additionally noted that under the current contract model, Petroperú is obliged to pay at an international price – to fulfill its subsidiary role and go where the private sector does not go – for the little crude oil extracted in the country, as if it were a foreign product. Today a barrel of crude oil is priced at US$90.

“Consequently, the Talara company also questions the drop in the oil fee since a few years ago it exceeded 18% of more than 100,000 barrels per day, now receiving a fee of over 37 MBD,” they questioned in a statement.

Focused interest

Carlos Vives Suárez, former president of Petroperú, recalls that in lot X – the most important in the northwest – only one well has been explored in the last 20 years, which obtained negative results.

“The unions are worried because these lots that will go to Petroperú are their associates. Petroperú is going to carry out exploration in Talara according to the technical parameters of the contract and when it has the cash from the production flow. That is the crux of the matter: they (the private parties) want the easy money from the lots, but no one is taking absolutely anything from them. His contract ends and it is the Government’s decision to transfer it to the company (Petroperú),” commented Vives.

Likewise, the engineer questioned that businessmen do not see the Marañón basin or the offshore lots with the same interest, “where there are many prospective and free areas to explore” but they want what is “easy.”

Perupetro emphasizes: there is no risk

Days ago, Isabel Tafur, president of the board of directors of Perupetro, told La República that Petroperú has the net worth to cover what is required to enter Talara.

Last night, in dialogue with RPP, he emphasized that the state company will be able to develop its activities in the lots because there is an immediate cash flow as there is an income from daily exploitation, and it is not that “it will need to see where to invest to make profits.”

Likewise, he ruled out any type of illegal action since the law empowers the state agency to award lots through direct negotiation or by bidding. He stressed that Petroperú has been qualified under the current qualification regulations.

Minister of Energy in the sights of Congress

Yesterday, enough signatures were completed in Congress to present a motion of censure against the Minister of Energy and Mines, Óscar Vera, who has supported the return of Petroperú to the Talareño lots.

Among the legislators who subscribe to the request are former members of Acción Popular, as well as the Fujimoristas and Avanza País.

It is worth adding that the unions are asking the Government for three or four years to call a new tender.