Friday, October 23, 2015

Peruvian Congress overrides President on oil field contract

On Thursday, the Peruvian Congress rejected President Ollanta Humala’s request for a modification to the bill approved last month by Congress giving Peruvian state oil company Petroperú a stake in the country’s most productive oil field, Lot 192. Peru’s Congress overwhelmingly passed the unchanged bill 74-10, and it will become law in a few days. Humala had requested that Petroperú have to wait two years to operate Lot 192 to wait for the expiration of the 2-year contract signed with Pacific Exploration.

Reuters noted that the defeat occurs in advance of national elections and a time of severely weakened support for the Peruvian President. High profile politicians have left Humala’s Nationalist Party of Peru in recent weeks, and it has been difficult for the party to find a viable candidate for the presidency. Congressman Manuel Dammert called the law “a triumph for the country, in particular for the workers of Petroperú, the towns linked to the oil industry like Loreto and Talara.”


In mining-related news, Chinese mining company MMG said that the massive Las Bambas copper mining project is on track to start production in the first quarter of 2016 despite recent violent protests and depressed copper prices. MMG CEO Andrew Michelmore said in a press release that, “While we have some challenges ahead yet, the Las Bambas team is to be congratulated for their commitment to deliver this flagship project on schedule and within budget.”

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