Peru approves tax stability for Camisea project

Peru has granted tax stability to the Camisea natural gas project. The Peruvian authorities have exempted the Pluspetrol and Tecgas-led consortia from recent legislation which required companies to accept an additional 2 percentage points on the tax rate in order to obtain stability for their contracts.


LIMA�Peru has granted tax stability to the Camisea natural gas project. The Peruvian authorities have exempted the Pluspetrol and Tecgas-led consortia from recent legislation which required companies to accept an additional 2 percentage points on the tax rate in order to obtain stability for their contracts.

The Pluspetrol consortium will develop the Camisea fields, and the Tecgas consortium will transport and distribute the Camisea gas and gas liquids by pipeline. The consortia will sign contracts Nov. 28.

The executive decree published in El Peruano, the official gazette, also rules that companies in the Camisea project can transfer their concession with the same rights and obligations�including tax stability�to other companies, after obtaining authorization from the state. Conite, the national investment and technology commission must first authorize the transfer. The companies must report the transfer to Sunat, the tax authority, within 15 working days.

This is also an exemption to a law, the Sept. 7 tax law that said hydrocarbon companies that transfer their rights to another operator must renegotiate the terms of the contract.

The Camisea concession contract requires the consortium to divide into two companies 5 years after signing the contract. One company will handle the transport and distribution of gas liquids, and another company must operate the gas distribution. The executive decree guarantees that none of the companies will lose tax stability.

The Pluspetrol consortium includes Pluspetrol Resources Corp., Hunt Oil Co. of Peru, and South Korea's SK Corp.

Partners in the transportation consortium include Tecgas NV, a subsidiary of Techint SA; Pluspetrol Resources Corp.; Hunt Oil Co.; SK Corp. of South Korea; Enterprise Oil PLC; Sonatrach; and Gra�a y Montero SA of Peru.

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