Peru: “Either you pay more taxes, or I expropriate the gas field”. The policy of the new president
Peruvian Prime Minister Guido Bellido said on Sunday that companies exploiting natural gas in Peru will have to agree to pay higher taxes or otherwise face nationalizations of fields and plants, thus sending a strong warning from the new left government.
Bellido told Reuters in August that the government was planning to participate more deeply in major industries, including natural gas and new hydroelectric projects, and would seek to create new state-owned companies.
The Andean country, the second largest copper producer in the world, has an important gas extraction operation managed by the Camisea consortium, led by Argentina's Pluspetrol (PLUSPC.UL), with smaller stakes held by the South Korean SK group (096770. KS), Hunt Oil and Repsol (REP.MC).
“We call the gas operating and trading company Camisea to renegotiate the distribution of profits in favor of the state,” Bellido wrote on Twitter.
"If not, we will opt for the recovery or nationalization of our field".
Investors are closely watching the administration of President Pedro Castillo, a former outsider teacher who took office in July after a shocking election victory, with a focus on his government's mining policy and tax levels.
Camisea's natural gas is liquefied by a separate consortium, called Peru LNG (PELNG.UL), which includes Royal Dutch Shell (RDSa.L), Japan's Marubeni Corp (8002.T), SK Group and Hunt Oil. This decision could also lead to a rise in oil and gas prices, as the LGN market now moves on a global scale.
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The Peru article : "Either you pay more taxes, or I expropriate your gas field". The policy of the new president comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/peru-o-pagate-piu-tasse-o-vi-esproprio-il-giacimento-di-gas-la-politica-del-nuovo-presidente/ on Mon, 27 Sep 2021 10:19:14 +0000.