Peruvian PM warns gas sector: pay higher taxes or risk nationalization

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FILE PHOTO: Peruvian Prime Minister Guido Bellido speaks during an interview with Reuters in Lima, Peru, August 7, 2021. REUTERS / Angela Ponce

By Marcelo Rochabrun

LIMA (Reuters) – Peruvian Prime Minister Guido Bellido said on Sunday that companies that exploit natural gas in Peru will have to agree to pay higher taxes or face nationalizations, a stern warning issued to the industry by the new left-wing government.

Bellido told Reuters in August https://www.reuters.com/world/americas/exclusive-perus-new-govt-eyes-natural-gas-hydroelectric-sectors-public-companies-2021-08-08 that the government was planning to participate more deeply in major industries, including natural gas and new hydropower projects, and would seek to create new state-owned enterprises.

The Andean country, the world’s second largest producer of copper, has a major gas operation managed by the Camisea consortium, led by Argentinian Pluspetrol, with smaller stakes held by the South Korean group SK, Hunt Oil and Repsol.

“We call on the gas operating and trading company Camisea to renegotiate the distribution of profits in favor of the state,” Bellido wrote on Twitter.

“Otherwise, we will opt for the takeover or nationalization of our domain.

Investors are keeping a close watch on the administration of President Pedro Castillo, a former foreign teacher who took office in July after a shock election victory, with a focus on his government’s mining policy and taxation levels.

Camisea’s natural gas is liquefied by a separate consortium, called Peru LNG, which includes Royal Dutch Shell, Japanese company Marubeni Corp, SK Group and Hunt Oil.

(Reporting by Marcelo Rochabrun; writing by Adam Jourdan; editing by Grant McCool)

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Reuters
Latin America
Peru


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