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2014-03-27 08:10:00

PERU HEADWAY

PERU HEADWAY

BNA. Peru is carrying out an unprecedented prior consultation on 26 Amazon blocks it plans to auction by end-2014.

Prior consultation gives investors greater confidence as it ensures that local indigenous populations have approved of the projects, said hydrocarbons agency Perupetro president Luis Ortigas at regional oil and gas conference LatinVE&P in Lima.

"The pilot prior consultation on the first block [169] has been completed successfully, now we are carrying out the process with another four blocks," Ortigas told BNamericas on the sidelines of the conference. "We will apply what we learned in the first one with the remaining 21 blocks."

Social license to operate is a key issue highlighted in a recent Perupetro report, which revealed that force majeure was in effect for 32 E&P contracts at end-December due to social and environmental issues.

"Peru has implemented prior consult, created an environment ministry, and empowered several regional governments through its fiscal decentralization policy. These new changes, however, do not work in harmony," said Peru's new energy minister Eleodoro Mayorga at LatinVE&P.

"The challenge ahead of us has to do with the harmonization of these new measures and institutions in order to continue advancing in terms of investment," he added.

Tags: PERU

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