Petrobras in negotiations
to expand with Bolivia's new government
Petroleumworld
CARACAS
Petroleumworld.com 02 14 06
Investors may be scared off by the new proposal from Peruvian
Congress to combine Peru's energy agency Perupetro, with Peru's
oil company PetroPeru migh get some investors scared, Antonio
Cueto chief of Perupetro said Monday.
"I
think that new contracts could be affected. This law affects all
of our promotion work and oil companies are very sensitive to
changes," Cueto told Dow Jones in a telephone interview.
Late
last week Congress' permanent commission approved
The
law that would merge the both goverment agencies and would take
away PeruPetro oversight of energy sector contracts and look after
Petroperu operations was approved by congress last week and his
waiting the president approval.
In
the telephone interview, Cueto underscored that the actual scope
of the law is not clear but there is also concern that Petroperu
could seek to re-negotiate existing contracts and try to obtain
a stake in the different projects, Dow Jones reported.
According
to Cueto, the main focus of the bill is linked to the $595 million
that Perupetro received last year in royalties from oil and gas
companies.
"They
(Petroperu) are under the impression that they would have all
this money freely available, but that is not the case," he
said.
President
Alejandro Toledo has 15 days to propose changes to the bill or
to veto it, although Congress can overturn that veto.
Cueto said he was coordinating closely with the Ministry of Energy
and Mines to get the new law vetoe by the president.
"Hopefully,
this law will not go through," he said.
Petroleumworld
02/13/06
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