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Peru's energy and mines ministry will present a legislative package to the cabinet this month with proposed modifications to the hydrocarbons law and some supreme decrees to improve the regulatory framework for E&P investment.
That's according to minister Gonzalo Tamayo who announced that one change looks to extend northwest contracts to maintain production, state news agency Andina reported.
"If those contracts end on the date we know (less than seven years), probably the level of production could be affected," he said.
Of 11 northwest blocks in production, contracts for the following areas are scheduled to end in the coming years: GMP blocks I (2021) and V (2023); Sapet acreage VII/VI (2023); CNPC area X (2024); and Petrolera Monterrico block II (2026), according to information from hydrocarbons licensing authority Perupetro.
A review of May output metrics from Perupetro reveals that these five blocks accounted for 39% of the 41,600b/d crude produced in the month, and 2.2% of the 32.9Mm3/d gas produced in the month.
Tamayo added that the package will include a proposal to create a hydrocarbons department within the ministry.
Local hydrocarbons industry group SPH has been calling for the creation of such a department which it argues would lead to greater specialization.
"It would guarantee leadership that could articulate hydrocarbons policy, on equal terms, with other energy policies," SPH president Felipe Cantuarias said previously.
Pictured: Northwest acreage map (CREDIT: Perupetro)