Congress raises the bar for senior positions in the Perupetro board

In the plenary session last Thursday, the Congress of the Republic approved, by majority, Bill 297/2021, which modifies Article 6 of Law 26221 – Organic Law that regulates hydrocarbon activities in the national territory, as well as several articles of Law 26225 – Law of organization and functions of Perupetro.

Among the main novelties, the autograph emphasizes that Perupetro’s board of directors is a “collegiate body”, whose president performs functions full-time, exclusively and paid. In addition, the three representatives of the Ministry of Energy and Mines (Minem) must prove their experience in functions related to hydrocarbon exploration and exploitation activities.

Carlos Gonzales, managing director of the energy consulting company Enerconsult, maintains that the approval of the legislative opinion, consummated with 88 votes in favor, 21 against and 6 abstentions, also restores competitiveness to the salaries of the company’s officials with respect to to the remuneration of the national oil industry. According to the specialist, salaries in the state company “were totally lagging behind with respect to other public entities for a long time.”

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Along these lines, the bill, originally promoted by the Popular Action bench, proposes that the Perupetro Operating Budget is capped at 0.5% of the Value of Hydrocarbon Production and no longer the previous 1.5% of the value of royalties. In this way, the “perverse relationship” ends, says Gonzales, which caused the company to be reluctant to reduce royalties, because this reduced its budget ceiling.

Perupetro’s contributions

The rule eliminates the contributions for the Ministry of Energy and Mines (Minem) and Osinergmin. In the first case, because Minem is part of the Public Budget; and in the second, because the agency charges a “regulatory contribution” that it did not receive when the Organic Hydrocarbons Law (LOH) was enacted.

Lastly, it emphasizes that the functions performed by other State entities in relation to hydrocarbon exploration and exploitation activities must not interfere with the functions of Perupetro, and that the legal provisions that regulate the functions of other entities related to Hydrocarbons must comply with article 4 of the LOH.

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“I hope that the Executive does not observe it. We must insist that changes are required, at the legislative level, in laws and regulations,” Gonzales noted.

Data

Relays. During the session, the congresswoman Ruth Luque proposed that the appointment and removal of the general manager of Perupetro be approved by the general meeting of shareholders.

contributions. To prepare the bill 297/2021, Comments were received from Osinergmin, SNMPE, the Peruvian Hydrocarbons Society (SPH) and Perupetro itself.