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Home » News » Peru Oil Output Is Expected to Grow 10% This Year

Peru Oil Output Is Expected to Grow 10% This Year

author: Jeawin   time: 2014-09-18 15:43   hits: 1445

La Sociedad Nacional de Minería, Petróleo y Energía (SNMPE), namely Peru National Mining Oil and Energy Association said recently that Peru oil and gas industry investment was in a standstill state. The association which published figures pointed out that the number of Peru operation of oil and gas contract is 71 which is lower than 87 in 2009. 


In recent five years, more than 23 blocks were returned by enterprises and 40% of the existing projects were affected by force majeure. In 2013, only seven wells were dug. A recent exploration contract was signed in 2010. The association said that oil production growth was expected to reach 10% this year for three projects were put into production, but these projects bids were awarded before 12 years or 20 years ago, and it yielded results until today. 


A report of the association said that Peru oil and gas area investment was paralyzed at present as it has not yet introduced laws and regulations to guide business behaviors in this field. At the same time, under the current legal framework, it also did not shorten the time needed for project examination and approval. 
 

So far, the new environmental regulations have not been passed in the past 14 months. The association said that it brought a lot of complicated and uncertain factors, and the delay would seriously affect the foreign investment. SNMPE pointed out that they did not want to request to broaden the environmental protection standard. Instead, they proposed that the government could introduce flexible and modern rules of technical support so as to promote and improve the standard monitoring.


Peru Oil Output Is Expected to Grow 10% This Year