By an OGJ Online Correspondent
LIMA, Jan. 14 -- A Peruvian law that would forgive the 18% sales tax on goods and services for unsuccessful oil exploration campaigns is on hold until Feb. 8 while the government clarifies the text.
The regulation, signed into law Jan. 7, is intended to promote increased hydrocarbon exploration.
Companies drilled only three exploration wells last year. Jaime Quijandria, the energy minister, said 10 are scheduled for this year.
The tax exoneration applies to companies signing exploration contracts or technical evaluation agreements after the law was approved.
Companies that were already exploring must wait until they begin a new stage in their contracts to benefit from the law. Exploration contracts are divided into stages of 18-24 months each for up to 7 years.
Peru's oil production fell to an average 97,097 b/d last year compared to an average 180,000 b/d in the early 1980s.