The Peruvian Hydrocarbons Society (SPH) asked the government to include in the presidential message for the National Holidays a package of measures that will allow the reactivation of investments in the energy sector and promote the widespread use of natural gas in the regions.
“We have proposed to the Executive to launch a confidence-building measure to encourage national and foreign investment to return to the Peruvian hydrocarbon sector, through a package of reactivating measures that can be implemented in the short term,” said Felipe Cantuarias, president of the SPH.
The first measure consists of Provide predictability and legal certainty to investmentsby reducing the time required to obtain exploration licenses, which in Peru can take four years, while in other countries in the region it takes between four and eight months.
Another urgent measure is the Approval of a level tariff that would allow natural gas to be brought to the regions at the same price as in Limawhich will also increase demand and, therefore, the construction of infrastructure in the interior of the country (pipelines).
On the side of the reactivation of exploration projects, the SPH raised the need for promote the bidding of lots on the north coast, which represent 38% of total oil productionA new royalty system has also been proposed that does not discourage investment.
SPH: ensuring exploration and replenishing reserves
According to figures from Perupetro, from January to May 2024, investments in the hydrocarbon sector amounted to US$142 million, of which only US$1 million corresponds to exploration, meaning that gas and oil reserves are not being replenished, putting the country’s energy security at risk.
In this regard, the head of the SPH described the need to continue with natural gas explorations to replenish reserves and ensure a secure supply horizon for this important resource.
“Replenishing reserves is also essential for the execution of petrochemical projects, since investors must have at least 25 years of supply,” he said.
Former Bolivian Minister of Hydrocarbons, Álvaro Ríos, said that if Peru does not make political decisions in time, all progress will be ruined.
“Peru could suffer the same fate as Bolivia, which ran out of natural gas because it did not explore in time,” Cantuarias concluded.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
