Wednesday, February 3, 2016

Peru to bail out country's oil industry

On Tuesday, Peruvian energy agency Perupetro announced a bailout of the country’s oil industry. According to Petroperu, the country plans to lower oil taxes from an already-low rate of 20% to as little as 5%, in an effort to help these oil companies survive the crisis caused by the collapse in global oil prices. Perupetro explained that the new royalties would be tailored to each individual oil field, with the additional objective of encouraging new investment in the oil fields. The country is worried that if oil companies’ operations are no longer profitable, they will simply decide to leave the country.

In mining-related news, the ex-president of the National Mining, Oil, and Energy Society, Carlos del Solar, blasted the law of Prior Consultation for needlessly restricting mining investment in the country. This law was implemented in order to protect the rights of local communities in areas where there are large mining projects. Del Solar, however, said that, “The law of Prior Consultation is stupid, we do not need it. There are just more obstacles for mining investment.”


Guillermo Valdón, an executive with Southern Perú mining company, agreed with Del Solar, jokingly adding,  “Has anyone done a consultation about whether they want to stay poor? How to find an exit out of poverty if we are not productive.” Not every mining official agreed, though. José de Echave, the ex vice minister for Environmental Management, warned that these comments belie a total disregard for the social problems and conflicts that have erupted between the mining industry and local indigenous populations.

No comments:

Post a Comment