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The transfer of property rights over hydrocarbon production as part of E&P license contracts in Peru has led to "profound distortions."
That's according to opposition party Acción Popular, which introduced a bill in congress that looks to improve hydrocarbon contract terms and guarantee domestic hydrocarbon supply, in particular natural gas.
The initiative's authors argue that current terms are impacting the destination of hydrocarbons, financing for the country's development, and the government's take, among other areas.
The legislators call for the implementation of service or production-sharing contracts used in other hydrocarbon-producing nations that have proved to be "more efficient."
"Economic and technical decisions depend more and more on the beneficiaries of our exports of hydrocarbons and the sources of financing, as well as the knowledge and the technology of foreign companies," add the lawmakers.
In August, Acción Popular introduced a bill to "defend the interests of the state and users in the exploitation of hydrocarbons."
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