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Peru

Last Verified on Thursday 10th May 2018

    • Peru

      Oil and gas legislation in Peru is currently going through a period of review and this includes the central piece of legislation, the Organic Hydrocarbons Law – Supreme Decree 042-2005. This federal legislation sets out a framework for the whole hydrocarbons chain from exploration through to the distribution of hydrocarbon products. In December 2017, the Ministry of Energy and Mines presented a proposal for the new piece of legislation and invited feedback from stakeholders. One of the central aims of the proposed legislation is to encourage investment in the sector. Central pieces of legislation covering the oil and gas sector include the following:

      General Regulations 

      • Constitutional provisions relating to Natural Resources and Environment;
      • Sole Consolidated Text of the Law No. 26221, Organic Law of Hydrocarbons, approved by Supreme Decree No. 042-2005-EM;
      • Regulation of article 11º of the Sole Consolidated Text of the Organic Law of Hydrocarbons, approved by Supreme Decree No. 045-2008-EM;
      • Regulation of Qualification of Oil Companies, approved by Supreme Decree No. 030-2004-EM;
      • Procedures and Indicators for Qualification of Oil Companies, approved by Board Agreement No. 048-2010;
      • Regulation of Exploration and Exploitation of Hydrocarbons Activities, approved by Supreme Decree No. 032-2004-EM;
      • Regulations for the Implementation of the Royalty and Compensation in Oil Contracts, approved by Supreme Decree No. 049-93-EM;
      • Law No. 28109, Law for the Promotion of Investment in the Exploitation of Resources and Marginal Reserves of Hydrocarbons at Nationwide;
      • "Glossary, Acronyms and Abbreviations of the Hydrocarbons Subsector", approved by Supreme Decree No. 032-2002-EM

      Environmental

      • Law No. 28611, General Environmental Law;
      • Law No. 28245, Framework Law of the National Environmental Management System;
      • Regulation of Law No. 28245, Framework Law of the National Environmental Management System, approved by Supreme Decree No. 008-2005-PCM;
      • Regulation for Environmental Protection in Hydrocarbons Activities, approved by Supreme Decree No. 015-2006-EM;
      • Regulation of Citizen Participation to carry out Hydrocarbons Activities, approved by Supreme Decree No. 012-2008-EM;
      • Guidelines for Citizen Participation in Hydrocarbons Activities, approved by Ministerial Resolution No. 571-2008-MEM/DM;
      • Law No. 29785, Law of the Right to Prior Consultation to Indigenous or Native Peoples, recognised in the Convention 169 of the International Labour Organization (ILO); 
      • Supreme Decree No. 001-2012-MC, Regulation of Law No. 29785, Law of the Right to Prior Consultation to Indigenous or Native Peoples, recognised in the Convention 169 of the International Labour Organization (ILO.) 

      Natural Gas

      • Law No. 27133, Law of Promoting the Development of the Natural Gas Industry;
      • Regulation of Law of Promoting the Development of the Natural Gas Industry, approved by Supreme Decree No. 040-99-EM;
      • Supreme Decree No. 031-2003-EM, Amend article 2 of the Regulation of the Law of Promoting the Development of the Natural Gas Industry;
      • Law No. 28552, Law that amends the Law Nº 27133, Law of Promoting the Development of the Natural Gas Industry, establishing operative conditions for a greater use of the Natural Gas produced at national level;
      • Supreme Decree No. 048-2009-EM, Issue Regulatory Rules of the Law No. 28552;
      • Supreme Decree No. 079-2009-EM, Supreme Decree that amends the Regulation of the Law No. 27133, Law of Promoting the Development of the Natural Gas Industry, approved by Supreme Decree No. 040-99-EM;
      • Supreme Decree No. 039-2010-EM, Establish minimum value for the natural gas royalty in case of export.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

       Oil and gas activities are carried out by both the state and the private sector. Petroperu, the national oil company, went through a period of privatisation in the 1990s and it is currently solely a downstream player. Petroperu is responsible for the North Peruvian oil pipeline, five refineries, oil product distribution and retail stations that it franchises. The private sector is currently responsible for all upstream activity in Peru and competes with Petroperu in the downstream sector.

      The 2006 Petroperu Strengthening and Modernisation Law No. 28840 permits Petroperu to return to the upstream sector. Petroperu is seeking to re-emerge as a fully integrated E&P company and is currently seeking a partner for block 192.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      Oil and gas activities are highly regulated in Peru. Petroperu and the private sector may only carry out oil and gas activities through a variety of governmental authorisations. Perupetro, the upstream regulator, issues exploration and production contracts after either a public bidding process or direct negotiation. These contracts are approved by a supreme decree issued by the Peruvian Ministry of Economy and Finance and the Peruvian Ministry of Energy and Mines.

      Downstream activities, generally speaking, require permits issued by Osinergmin (Supervisory Agency for Investment in Energy and Mining).

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      Perupetro is the state-owned company that promotes, negotiates, signs and supervises exploration and production contracts, on behalf of the Peruvian State.

      Peruvian Ministry of Energy and Mines

      This is the central and governing body for the Energy, Hydrocarbons and Mining Sector, a part of the Executive Branch. Its purpose is to formulate and assess national policy in matters of sustainable development in mining hydrocarbon-power activities. It is the governing authority in environmental matters in reference to hydrocarbons-mining-energy activities. 

      • The partial or total transfer of a contractor’s interest must be approved by the Ministry of Energy and Mines;
      • The General Hydrocarbons Department (DGH) is responsible for authorising principle pipelines, recollection and injection systems, own-use pipelines;
      • The General Bureau of Energetic Environmental Affairs (GBEEA) of the Ministry of Energy and Mines is in charge of some of the administrative proceedings related to prior consultation with indigenous peoples for natural resource exploitation projects.

      Osinergmin

      This is the regulatory, supervisory body that regulates, enforces and oversees the activities undertaken by internal public-or-private-law legal entities and individuals in the electricity, hydrocarbons and mining sub-sectors. It:

      • supervises and ensures compliance with legal and technical provisions related to the safety and operations of Hydrocarbon activities;
      • provide reference prices for oil products;
      • establishes pipeline tariffs; and
      • establishes distribution tariffs.

      Ministry of Environment

      This is the nation’s environmental authority, the overseeing entity of the National Environmental Management System (SNGA), and a part of the Executive Branch. Its main functions are focused in promoting environmental sustainability by preserving, protecting, recovering and securing the environment, ecosystems and natural resources. 

      Peruvian Ministry of Economy and Finance

      The Ministry of the Economy and Finance is an entity of the Executive Branch responsible for planning, directing and controlling matters related to the budget, treasury, debt, accounting, fiscal policy, public spending, and economic and social policies. It also designs, establishes, performs and supervises national and sector policies under its competence, assuming a guiding role therein. 

      It issues supreme decrees with the Ministry of Energy and Mines formalising upstream concessions.

      The National Institute of the Defence of Competition and Intellectual Property Protection (INDECOPI) is the Peruvian competition authority.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      Article 66 of the Peruvian Constitution establishes that natural resources, renewable and non-renewable, are the patrimony of the Nation and that concessions maybe granted, which grant the holder a property right.

      Under the terms of the service contract, all hydrocarbons produced in the contract area are owned by Perupetro.

      Under the terms of a licence contract, ownership rights on hydrocarbons produced in an area are assigned to the contractor by Perupetro. In return, the contractor must pay a royalty on the value of the hydrocarbons.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      Article 10 of the Organic Hydrocarbons Law permits three contractual forms of conducting hydrocarbon exploration and production:

      • License contract between Perupetro and a contractor whereby the contractor obtains the permission to explore and exploit or exploit hydrocarbons in the contract area.
      • Services contract between Perupetro and a contractor whereby the contractor exercises the right to carry out exploration and production of Hydrocarbons in the contract area, and receives compensation according to the production.
      • Other contracting modalities authorised by the Ministry of Energy and Mines.

      All of the exploration contracts awarded since 1993 have been licence contracts.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      Perupetro holds international bidding rounds for exploration and production contracts. Perupetro can also directly negotiate contracts in the following situations:

      • as a result of a Technical Evaluation Agreement;
      • at the proposal of an Oil Company; and
      • at the proposal of Perupetro.

      Foreign investors are able to sign licenses and service contracts and carry out oil and gas exploration and production activities but they must establish a corporation (subsidiary or affiliate) or a branch in Peru (article 15 Organic Hydrocarbons Law).

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      To hold petroleum rights the applicant must satisfy Perupetro that it is qualified to do so. For the licence rounds 2004 Qualification Regulations issued by Supreme Decree No. 030-2004-EM and modified by Supreme Decree No. 001-2012-EM establish legal, technical and economic requirements based upon E&P activity and the companies’ economic performance in the last three years. 

      For an oil company to request direct negotiation from Perupetro the applicant must comply with at least one of the following conditions:

      • evidence to the satisfaction of Perupetro’s Management, evidence its higher superior technical capacity and financial backing to the satisfaction of Perupetro’s Management; or
      • inclusion as an oil and gas exploration and production company, or integrated oil and gas company, in Energy lntelligence Top 100: Global NOC & IOC Rankings of Energy lntelligence, "The Platts Top 250 Global Energy Company Rankings", or other similar publication approved by Perupetro.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      Foreign investment can be made in Peru under conditions that are equal to domestic investment and is not subject to compliance with any performance requirements. As such, there is no foreign investment restriction on exploration and production activities nor on foreign participation in such rights or concessions, or in companies holding any such rights. Articles 13 and 14 of the Organic Hydrocarbons Law specifically state natural persons or corporations, domestic or foreign, may enter into contracts throughout the national territory.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      For a licence or service contract the licensees or contractors have the exclusive right to operate and exploit the corresponding oil and gas fields.

      Technical evaluation agreements may be entered with Perupetro that allow companies to explore frontier blocks for hydrocarbons potential. Article 7 of the model technical evaluation agreement grants the contractor the first right to negotiate and sign a licence agreement for the exploration and production of hydrocarbons with Perupetro. To take up this option the contractor must first have complied with all of its obligations under the technical evaluation agreement. Upon notifying Perupetro of its decision to execute its right, the contractor enters into a direct negotiation process.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      The licence contract grants the contractor title to produced petroleum while the reserves remain the property of the state.

      The contractor has the right to use the hydrocarbons produced in the contract area in its operations at no cost.

      The contractor has the right to recover liquid hydrocarbons from any natural gas produced in a contract area and extract them at any stage of handling.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      Article 17 of the Organic Hydrocarbons Law permits assignment subject to approval by Supreme Decree countersigned by the Ministers of Economy and Finance and Energy and Mines. Article 14 of the model license contract incorporates the right of transfer, subject to Perupetros approval.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      The contractor is authorised to import, either permanently or temporarily, in accordance with current legislation, any goods necessary for the economic and efficient execution of upstream operations. The title for such items remains with the contractor.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      Licence contracts are the usual form of contracting in Peru and the federal government is compensated via a royalty placed on production and income tax provisions. The 1993 Royalty Regulations, issued by Supreme Decree No. 049-93-EM and amended by Supreme Decree No. 017-2003-EM, provide for the royalty rates to be based on: 

      • R-factor methodology (minimum royalty rates in the range 15 per cent to 35 per cent with final percentages subject to negotiation) applied to a contract;
      • cumulative production per oil field (rather than contract) with Adjustment for Price Methodology;
      • daily production methodology (5 per cent fixed royalty rate rising to a maximum of 20 per cent based on average daily production levels); and
      • economic results methodology (5 per cent fixed royalty rate plus a variable royalty in the range zero per cent to 20 per cent determined by an R-factor).

      The model licence contract incorporates R-factor royalties and applies the minimum percentages established in the Royalty Regulations with an additional amount “X” that is to be negotiated (article 8.3).

      Factor “R”

      Royalty (%)

      From 0.0 to less than 1.0

      (15 + X) %

      From 1.0 to less than 1.5

      (20 + X) %

      From 1.5 to less than 2.0

      (25 + X) %

      2.0 or more

      (35 + X) %

      Royalty is deductible for income tax purposes (article 45 Hydrocarbons Law No. 26221).

      In service contracts the federal government is compensated through the sale of the production of hydrocarbons less a negotiated share of gross production paid to the contractor. The contractor pays income tax on its net income from its contractual share of production.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      Article 84 of the Organic Hydrocarbons Law allows a contractor to request of the Ministry of Energy and Mines the expropriation of private lands. The Ministry of Energy and Mines shall study the request and, should it be declared pertinent and duly supported, such expropriations shall be considered as matters of national and public need and the expropriation procedures over the area involved shall be started as per Law. The expropriation procedure is an administrative procedure.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      Natural gas and oil exploration and production activities are generally subject to the same regulations in Peru. Within the regulations; however, there are specific rules that apply to natural gas, for example:

      • the production phase lasts up to 30 years for oil and 40 years for natural gas (article 3.1 model licence);
      • a discovery declared non-commercial due to lack of transport infrastructure may be retained for five years for oil (article 3.6 model licence) or 10 years for gas (article 3.7 model licence) which extends the contract period (article 3.9 model licence);
      • oil is to be valued on a basket of up to four similar crudes (article 8.4.1 model licence) while gas is valued by its sale price (article 8.4.4 model licence); and
      • the model licence contract has separate articles for natural gas and oil royalties and companies may negotiate different rates.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      Foreign workers who enter into Peru need to submit their work contract for approval to the Labour Authorities, and obtain their work visa. These employees have the right to receive the same labor benefits as Peruvian employees, and are subject to the same taxes and contributions. Employers are required to distribute a share of their profits among their employees. An ambiguity in the law exists whether five or eight percent of profits should be distributed and many oil and gas companies calculate this employee benefit using the five percent rate. This has been a matter of discussion at the judiciary level. 

      As a rule, foreign employees should not exceed 20 per cent of total personnel. Additionally, wages paid to foreign employees should not exceed 30 per cent of total payroll cost. Such limits may be waived for professionals and specialised technicians or management personnel of a new entrepreneurial activity. 

      After five years of commercial production, article 12 of the model licence contract requires the contractor to have replaced all foreign personnel with Peruvian personnel except for foreign personnel in management positions and those necessary for specialist technical work related to the operations.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      While Peruvian legislation provides no specific limitations on vertical integration in the oil and gas industry general competition legislation applies. Chapter IV of Legislative Decree No. 1034, Antitrust Law, specifically prohibits vertical collusive practices, which are defined as agreements, decisions, recommendations or concerted practices carried out by economic agents operating in different levels of the production, distribution or commercialisation chain, aiming to restrict, prevent or distort the free competition.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      The most common types of legal organisations used by foreign investors for doing business in Peru are a corporation (SA) and a limited-liability company (RL). The corporation is a popular form of business organisation used by foreign investors in Peru since shareholder liability is limited to the amount contributed to the corporation. In a limited-liability company or SRL partners are not personally liable for the corporation’s liabilities. Both corporations and limited-liability companies require a minimum of two partners and are subject to similar registration procedures, reporting and accounting requirements. The Peruvian Corporation Act also provides other forms of legal entities including the closely held corporation (sociedad anónima cerrada) and the open stock company (sociedad anónima abierta), these are less common in Peru's oil and gas sector. 

      Foreign companies can also establish a Peruvian branch of their company for carrying out oil and gas exploration and production activities. A branch does not have legal independence or legal personality distinct from its parent company, except for tax purposes. Therefore, a branch is regulated by the parent company’s by-laws. 

      Business activities in the hydrocarbon sector carry a high risk and it is very common for companies to share this risk by jointly working on a project. Peru has three forms of associative agreements that act as vehicles to achieve this: partnership contracts, consortiums and joint ventures. Associative agreements do not create a corporation or legal entity different from its associates and each of the parties keep their legal personality and patrimonial independence. While the parties will assign an operator responsible for conducting the activities, all of the parties are jointly and severally liable for the assumed contractual obligations (article 16, Organic Hydrocarbons Law).

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      Oil and gas reserves belong to the state, thus they cannot be pledged or encumbered to secure the repayment of debt before their extraction. However, in the case of licence contracts, once the oil or gas is produced in accordance with the respective agreement, title is transferred to the contractor and the hydrocarbons may be sold, pledged or encumbered.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      Contracts entered into prior to the enactment of the 1993 Organic Hydrocarbons Law required oil to be sold on the domestic market, at international market prices, until domestic demand was fully satisfied. With the enactment of the Organic Hydrocarbons Law this altered and article 39 grants contractors the right to freely export all hydrocarbons to which it is entitled under the contract. Article 41 further provides that a contractor whose payment is to be made in cash shall have the right, in case the contracting party does not comply with the payments, to sell in the domestic or foreign market a volume of production from the contract area sufficient to cover the amount of the debt.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      Oil and gas prices in Peru are set by the open market. This is established by article 77 of the Organic Hydrocarbon Law, which establishes that the activities and prices related to crude oil and by-products are ruled by supply and demand.

      Royalty legislation contained in article 3 of Supreme Decree No. 049-93-EM establishes that the value of the Hydrocarbons Fiscalised Production will be at international prices based on a hydrocarbons basket agreed by the parties in each contract.

      The model licence contract establishes that oil is to be valued on a basket of up to four similar crudes (article 8.4.1) while gas is valued by its sale price (article 8.4.4).

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      While the General Environmental Law, No. 28611 applies to hydrocarbon activities additional legislation also applies from the Regulation for Environmental Protection in Hydrocarbons Activities, approved by Supreme Decree No. 015-2006-EM. Before initiating any hydrocarbon activity likely to cause environmental impacts, such as seismic exploration, drilling of exploratory and development wells, construction of production facilities, etc, an approved Environmental Impact Study (EIS) is required. Depending on the type of hydrocarbon activity potentially, the EIS may instead need to be a Detailed Environmental Impact Study (DEIS) or a Semi-detailed Environmental Impact Study (SEIS). The EIS evaluates and determines the prevention, minimisation, mitigation and remediation of possible negative environmental impacts. Likewise, it specifies the management of waste and effluent that may arise during the project.

      The Environmental Certification National Service for Sustainable Investment (SENACE) is the public entity in charge of approving the studies and forms part of the Ministry of Environment. For oil and gas activities, the competent authority for protection and environmental conservation is the GBEEA.

      Similar to environmental legislation general legislation on Prior Consultation is complemented by Regulation of Citizen Participation to carry out Hydrocarbons Activities, approved by Supreme Decree No. 012-2008-EM.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      Environmental regulations in Peru are consistent with international standards with American Petroleum Institute (API) norms widely used. The Regulation of the activities of Hydrocarbons Exploration and Exploitation approved by Supreme Decree 032-2004-EM, provides a set rules and standards that have to be applied in the hydrocarbons exploration and exploitation operations in Peru, including the API and the National Fire Protection Association of the United States.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      Safety measures and environmental impact assessment applications for conducting exploitation activities must be carried out in accordance with the Environmental Protection Regulations for Hydrocarbon Activities (Supreme Decree No. 015-2006-EM Environmental Protection Regulations). Furthermore, the Regulation of Exploration and Exploitation of Hydrocarbons Activities, approved by Supreme Decree No. 032-2004-EM, establish health, safety and environment provisions related to upstream operations.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      In addition to the environmental licences mentioned earlier, a company must be qualified as a contractor by Perupetro. This qualification requires a company to show that it is legally, technically, economically and financially qualified to engage in obligations, regulations and investments required for developing the hydrocarbon activity. 

      The Law on Prior Consultation to Indigenous or Native Communities implements Convention 169 of the International Labor Organization, ratified by Peru in 1993. The law establishes that indigenous communities must be consulted before the approval of any law or administrative measure that may affect their collective rights, physical existence, cultural identity, quality of life or development. The law also stipulates that the indigenous communities must be previously consulted on any plan, programme and project of national or regional development that may affect their rights. The state or the relevant state entity, are responsible for the consultation process and for the final approval of the law or administrative measure in consultation. If the communities do not agree with such approval they could challenge it before administrative of judicial instances.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      While oil and gas operations are subject to the standard tax regime applied in Peru a stability provision exists so the tax regime on the date of signature will be applied throughout the contract period. Corporate income tax is currently levied at 31.5 on revenue less operating costs, royalty and depreciation. This is comprised of the general 29.5 per cent corporate income tax (Supreme Decree No. 1261 10 December 2016) plus a further 2 per cent for hydrocarbon contracts benefitting from a stability provision (article 1, Law 27343, 2000). The stability provision covers: 

      • income tax and taxes that affect profit distributions arising from the contract activities (ie, dividend tax or branch profits tax);
      • indirect taxes (Value Added Tax, Municipal Promotion Tax, and Selective Consumption Tax), but only as to its transferable nature;
      • tax exemptions and other tax benefits, but subject to the term and conditions established in the provision that contain such benefits; and
      • tax recovery regimes, temporal admission regimes, export regimes and other related items.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      Peru has various tax treaties to prevent the double taxation of companies operating in Peru and elsewhere. Peru has entered into a multilateral tax treaty with the Andean Community countries (Bolivia, Colombia and Ecuador) and double tax treaties with countries including Brazil, Chile, Canada, Mexico, South Korea, Portugal and Switzerland. 

      Except for the double tax treaty with the other Andean Community countries, tax treaties entered into by Peru generally follow the OECD Model. Each tax treaty differs and companies are advised to review each relevant treaty. Peru has also signed 33 Bilateral Reciprocal Investment Promotion and Protection Agreements and 11 free trade agreements.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      Foreign investors are protected against inconvertibility, expropriation, political violence and other non-commercial risks through access to the corresponding multilateral and bilateral conventions such as the Overseas Private Investment Corporation and the Multilateral Investment Guaranty Agency.

      Peru is also a member of the International Convention for Settlement of International Disputes that provides an alternative to settle disputes arising between the government and investors.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      Peru applies various anti-corruption rules to both public and private sectors and Perupetro publish all oil and gas contracts to provide transparency. The Inter-American Convention against Corruption was adopted by Peru through Supreme Decree No. 012-97-RE and through Supreme Decree No. 075-2004-RE ratified the United Nations Convention against Corruption.

      Specific anti-corruption norms in Peru include Law No. 27806 – Law of Transparency and Access to the Public Information, Law No. 27815 - Law of the Code of Ethics, Supreme Decree No. 046-2013-PCM approving the Anticorruption Strategy of the Executive Branch, Law No. 29976 – creating the Anticorruption Commission, and recently the National Policy on Integrity and Fight against Corruption was enacted in September 2017 through Supreme Decree No. 092-2017-PCM.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      In 2014, the Peruvian Ministry of Energy and Mines announced it would promote the development of unconventionals including shale gas. While no specific legislation has been enacted in July 2017, draft Regulations for Exploration and Exploitation of Hydrocarbons were released, which defined Hydraulic Fracturing and Non-Conventional Reserves making it probable further legislation will cover this matter.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      While no specific legislation has been enacted concerning ultra-deep-water exploration or drilling activities, the draft Regulations for Exploration and Exploitation of Hydrocarbons released in July 2017 defined Ultra Deep Water making it probable further legislation will cover this matter.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

    • Peru

      As mentioned above, oil and gas legislation in Peru is currently going through a period of review and this includes the central piece of legislation, the Organic Hydrocarbons Law as well as its supporting legislation. Several proposed pieces of legislation have been published in order to receive comments and some of the updated legislation is expected to be enacted shortly.

      Answer contributed by Carlos Canales , David Auty , Roberto Redhead from Canales Auty

      Last verified on Thursday 10th May 2018

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