Congress approves modification of the Hydrocarbons Law that raises the fence in Perupetro

The Plenary of the Congress of the Republic approved, by majority, the opinion that modifies article 6 of Law 26221, General Hydrocarbons Law, and various articles of Law 26225, Law of Organization and Functions of Perupetro.

With 88 votes in favor, 21 votes against and 6 abstentions, Bill 297/2021, presented by Acción Popular, was exonerated from the second vote and will have the green light in its objective of “strengthening the management capacity of the state company ”, responsible for promoting, negotiating, signing and supervising contracts for the exploration and exploitation of hydrocarbons in Peru.

Among the main changes proposed, the autograph underlines that Perupetro’s Board of Directors is a “collegiate body”, whose president is full-time, exclusive and paid. In addition, the three representatives of the Ministry of Energy and Mines (Minem) must prove experience in functions related to hydrocarbon exploration and exploitation activities.

It also returns competitiveness to the salaries of the company’s officials with respect to the remuneration of the national oil industry. Carlos Gonzales, managing director of Enerconsult, explains that, for a long time, salaries in the state-owned company were totally behind with respect to other public entities.

Along these lines, Perupetro’s Operating Budget will be capped at 0.5% of the value of hydrocarbon production and no longer at 1.5% of the value of royalties.

Finally, it eliminates Perupetro’s contributions to Minem and Osinergmin. In the first case, because the ministry is part of the Public Budget; and in the second, because the agency now charges “contribution by regulation”, something that it did not do when the Organic Hydrocarbons Law (LOH) was passed.

The data

• The legislative project emphasizes that the functions performed by other State entities, in relation to hydrocarbon exploration and exploitation activities, should not interfere with those of Perupetro. In addition, that the legal provisions, which regulate the work of other entities related to hydrocarbons, must comply with article 4 of the LOH.