Peru hydrocarbons force majeure count dips

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Thursday, October 9, 2014

Force majeure was in effect for 25 Peru hydrocarbon E&P contracts in August, compared with 27 this July and 30 in the year-ago month.

The principal reason behind the suspensions was social issues, which had a negative impact on nine contracts, according to state hydrocarbons E&P agency Perupetro's latest report.

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Other reasons were environmental study approval (five contracts), impossibility of carrying out activities required to draft environmental studies (four), drafting environmental studies (three) and other motives (four).

Companies with contracts in force majeure in August were Savia (blocks Z-6, Z-45, Z-51, Z-52, XXVI), Pluspetrol (102), Petroperú (64), BPZ (XXII, XXIII), Petrolifera (133), Pan Andean Resources (161), Cepsa (114, 130), Tecpetrol (174), Gold Oil (XXI), Pacific Stratus Energy (137), Grupo Petrolero Suramericano (156), Siboil (105), KEI (144, Z-38), Gran Tierra Energy (123, 129), Olympic (XIII), Talisman (103) and Compañía Consultora de Petroleo (100).

Three companies this year have terminated contracts over force majeure, and the country has seen a drop in seismic activity.

At a recent congressional energy workgroup meeting, local upstream hydrocarbons association SPH said the regulatory framework is very complex.

The association's legal committee president Manuel Galup highlighted multiple authorizations, licenses and permits, and excessive discrepancy and inconsistencies when issuing technical opinions and subsequent permits.

BNamericas will host its 11th Southern Cone Energy Summit in Lima, Peru, on November 12-13. Click here to download the agenda.