Congress seeks to perpetuate oil field operators

What could not materialize in right-wing governments could materialize in a left-wing government. And it is that the Energy and Mines Commission of the Congress is one step away from granting almost in perpetuity the concession of the oil lots in the country.

Yesterday, this commission debated the prediction of Bill 804/2021-CR, with which it is intended to modify some articles of the Organic Hydrocarbons Law (Law 26221) in order to extend the exploitation contracts from 30 to 40 years. In addition, It is proposed that exploitation contracts may be extended for successive terms of 20 years each time, up to the economic limit of the contract area.

If the initiative prospers, the immediately benefited operations would be 6 that are located in the Talara basin and whose contracts expire from October 2023 to May 2028 (see infographic).

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One of the most fervent defenders of the proposal was the congressman for Loreto Jorge Morante Figari (Popular Force), who showed greater inclination to standardize oil and natural gas contracts at 40 years.

However, the parliamentarian Ruth Luque (Free Peru) considered it harmful and imprecise to harmonize the oil regime with the gas regime, since there is no clear support that guarantees energy security and environmental protection with its eventual expansion. Due to the exchange of ideas, and charged to fine-tune technical details, the vote would take place in the following sessions.

Petroperú must enter

For Humberto Campodonico, former president of Petroperú, what the commission intends to approve “is a real scandal”, because when the state oil company is on the eve of putting its new refinery into operation (in April) it will be forced to buy oil at international prices -US $80 a barrel-, instead of giving you the possibility of acquiring it at production cost, which is estimated at US$ 20 a barrel.

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The Talara lots have synergy with the refinery in that city (hence the reason for their construction), therefore, these lots must have the participation of Petroperú in a percentage of association with other contractors that will be determined in negotiations, argued the specialist.

“Now that the term of the privatization of these lots expires, the law foresees that they revert to the State; however, on several occasions the concessionaires of these lots want to extend them without even agreeing to a tender, but finger extensions, despite the fact that the production of these lots did not grow. Congressmen from Piura should be the first to oppose this weakening of Petroperú”, stated Campodónico.

It is important to remember that a few weeks ago the State awarded Petroperú directly Lot I of Talara, whose contract expired in December 2021. This in order to strengthen the state company that has the Pedro Castillo government as its slogan.

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They give Petroperú a minimal presence

Jorge Manco, UNMSM researcher, warned that, according to the prediction in question, in the exploitation contracts that have an upcoming expiration date, “Petroperú would be invited as a participating partner with a piece of candy and would in no way be a majority shareholder. Their participation could be 5%, 10%, 25%, but by no means 51%”, warned the expert.

According to the prediction, section 4.3 contains Perupetro’s opinion; however, sources from the state agency revealed to La República that it is not their opinion on this project, but rather directed at another legislative initiative.

The word

Humberto Campodónico, former president of Petroperú

“Petroperú is finishing a refinery that has to be fed fundamentally with that oil. To that extent, Petroperú must be the owner or partner of these lots.”