Camisea contract signing delayed

The long-awaited signing of contracts for development of the Camisea natural gas project has been put on hold in order to evaluate details, said Carlos Herrera, Peru's new energy and mining minister. The signing was recently postponed from Nov. 28 to a tentative Dec. 5. According to press reports, the government is considering postponing the signing for a further 30 days.

Nov 29th, 2000


LIMA�The long-awaited signing of contracts for development of the Camisea natural gas project has been put on hold in order to evaluate details, said Carlos Herrera, Peru's new energy and mining minister.

According to press reports, the government is considering postponing the signing another 30 days partly to seek a major gas distributor to replace Spain's Gas Natural Group, which has withdrawn from the Argentinean Tecgas-led consortium that is to transport and distribute Camisea gas.

The contract signing was recently postponed from Nov. 28 to a tentative Dec. 5 (OGJ Online, Nov. 28, 2000). That action followed ex-President Fujimori's unexpected departure from the presidency and the Nov. 22 inauguration of President Valentin Paniagua, who appointed a new cabinet.

Herrera said the contracts will be signed within a reasonable time, although a date has yet to be set.

Gas Natural was to have taken up 6.34% of the transportation and distribution contract to become distributor of gas in Lima and Callao. Remaining members of that consortium include Tecgas, a unit of Argentina's Techint SA; US company Hunt Oil Co.; Korea's SK Corp.; the Algerian company Sonatrach; and Peru's Gra�a y Montero SA.

The consortium was the sole bidder for the concession with an offer of $1.45 billion including the companies' fees for the duration of the contract.

The consortium that won the tender for the exploitation of the Camisea gas fields is composed of Techint, Hunt Oil, and SK Corp.

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