Peru: Camisea consortium in royalty dispute

The state agency PeruPetro has given the consortium that operates Peru’s massive natural gas field at Camisea has until March 30 to negotiate a deal on export royalties, with talks deadlocked. The controversy comes as presidential candidate Alejandro Toledo has made a key platform plank of his demands that extractive industries contribute more of their revenue to support social development programs. (Reuters, Jan. 28; Bloomberg, Jan. 27)

Camisea consortium partners are planning a major new thrust of exploitation in the Amazon region. In December, Carlos del Solar, Peruvian general manager of Texas-based Hunt Oil, told El Comercio newspaper he expects natural gas exploration at Lot 76 (Madre de Dios region) to yield “another Camisea.” PeruPetro has estimated Lot 76 at holding 11 trillion cubic feet of natural gas. (Dow Jones, Dec. 27)

See our last posts on Peru and the struggle for the Amazon.

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