SNMPE warns that granting lots I, VI and Z-69 without bidding violates free competition and equal conditions

This SNMPE release was published using machine translation.

The National Society of Mining, Oil and Energy (SNMPE) expressed its concern that the current Government, through PERUPETRO, will seek to deliver directly and without any bidding, the operation of Blocks I, VI and Z-69 ( current batch Z-2B) to the state hydrocarbons company.

"If this measure is implemented in the coming days, the fundamental principles of free competition and equal treatment that are constitutionally protected will be violated, affecting the transparency that must govern all government administrations," the SNMPE specified.

The mining-energy union stressed that it would be incomprehensible for PERUPETRO to insist on directly awarding said oil blocks -located in the north of the country-, even more so when it has received letters of interest from various private companies to participate in an open and competitive bidding process. .

"To date, it is unknown what is the technical, legal and economic support for which the operation of said lots would be assigned directly and through contracts and how such a decision would benefit the country," commented the SNMPE.

Likewise, it pointed out that, in accordance with current legal regulations and good transparency practice, in the face of the expression of interest of more than one actor in an oil block, it is up to PERUPETRO to carry out a tender that summons interested companies to compete. under equal conditions, and that the lots be awarded to the best offer that benefits the country.

“Nobody opposes the development of the state oil company, but it is essential that it participate on an equal footing with the other players in the national hydrocarbon industry and in accordance with the legal framework that regulates its participation in contracts for the exploration and exploitation of hydrocarbons, which establishes specific conditions whose compliance must be duly supported," he said.

The SNMPE stated that it hopes that PERUPETRO does not adopt measures that distort its role as an investment promotion agency in the sector, since it would negatively affect the future of the Peruvian hydrocarbon industry and scare away private investment.

Finally, the mining-energy union indicated that in the face of the crisis facing the hydrocarbons sector, it is urgent that the Government have a clear and determined commitment to give a new impetus to this industry, encouraging predictability for all market agents and compliance with Laws without exceptions.