Peruvian PM warns gas sector: pay higher taxes or risk nationalization
LIMA, Sept. 26 (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 government from the left.
Bellido told Reuters in August that the government plans to participate more deeply in major industries, including natural gas and new hydropower projects, and would seek to create new state-owned companies.
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 (PLUSPC.UL), with smaller stakes held by the South Korean group SK (096770.KS ), Hunt Oil and Repsol (REP.MC).
“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 (PELNG.UL), which includes Royal Dutch Shell (RDSa.L), Japanese Marubeni Corp (8002.T), SK Group and Hunt Oil.
Report by Marcelo Rochabrun; Written by Adam Jourdan; edited by Grant McCool
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