Peru has made remarkable strides toward reforming its oil industry in the past year but now appears to be retreating from total divestiture of federal oil assets. Daniel Hokama, minister of energy and mines, recently disclosed the government will keep a share of the stock of Petroperu, the national oil company. Last December, Peru put a new hydrocarbons law into effect. It was designed to encourage exploration and production by foreign and domestic private companies and it has. A number of international oil companies have taken another look at Peruvian prospects, and deals continue to be signed (OGJ, May 9, p. 27). The...

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