Community engagement advances in Peru for Hunt Oil acreage

Peru’s hydrocarbons licensing authority Perupetro has sent citizen participation reports to authorities for Hunt Oil’s proposed operation of central Amazon blocks 202 and 203.

The submissions to the Ucayali regional government and officials in the districts of Raimondi, Sepahua and Tahuanía, and the province of Atalaya, follow recent outreach events with communities in the blocks’ influence zones.

Among its recommendations, Perupetro said that “based on the different problems and claims presented by the population and its representative entities, which not only correspond to hydrocarbon exploration and exploitation issues, but especially to other economic activities or sectors [such as health, education, and transport], the participation of said competent sectors must be achieved.”

Alleged non-fulfillment of social development pledges by authorities and companies has led to protests and occupations by communities, often resulting in disruptions to operations.

Perupetro adds that residents are demanding more engagement and greater information regarding supervisory activities on the part of environmental watchdog OEFA and energy and mining investment regulator Osinergmin.

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BNamericas previously reported on the planned outreach events after Perupetro had qualified Hunt for the two areas under a direct contracting procedure.

Citizen participation precedes the negotiation of a contract, a proposed draft of which is then sent to Perupetro’s board for approval and then on to the ministries of energy and mines, and economy and finance for approval.

Hunt already has a footprint in Peru as part of the Camisea consortium and holds stakes in related producing blocks 56 and 88 - south of blocks 202 and 203 - and Peru LNG.

On Monday, Moody's Investors Service upgraded Hunt Oil Company of Peru's (HOCP) corporate family rating and its senior unsecured rating to 'Ba1' from 'Ba2' "given its robust cash generation and declining debt as well as the improved credit profile of its parent company, Hunt Oil." The outlook is stable.

Fitch recently affirmed HOCP's long-term foreign and local currency issuer default ratings and US$600mn senior unsecured notes due 2028 at 'BBB’ and removed the ratings from negative watch and assigned a stable outlook.

“The ratings were removed from negative watch, as there is now less risk of nationalizing the asset or modifying Camisea's licensing agreement,” Fitch said.