Social development fund administration boards for lots V and X are installed in Talara for project development

The following is a machine translation of a Perupetro release

PERUPETRO SA today installed the Administration Boards of the Social Development Funds for Lots V and X, located in Talara, a mechanism that will allow financing development projects prioritized by the population located in the area of the License Contract.

The Social Development Fund is established in clause twenty-four of the License Contracts entered into between the Contractor and the State. The Fund is made up of a contribution of 1.5 percent of the valuation of the inspected production, which must be made by the Contractor for each lot.

The Fund is managed by an Administrative Board made up of representatives of the population of the contract area. In the case of Lots V and X, the Administrative Boards are made up of accredited representatives of social organizations and entities of the districts and provinces of the Contract areas of said lots.

The boards of directors will be in charge of approving, executing and prioritizing development projects for the population.

The Fund will be managed by a private trust solely and exclusively intended for the execution of development projects that will contribute to closing gaps to improve the quality of life of the population in the area of each Contract.

In the case of lots I, VI and VII, also located in Talara, the Boards of Directors were installed last September.

FUND CONTRIBUTIONS

PERUPETRO reported that since the new Contracts for lots V and X began, in October 2023 and May 2024, respectively, the Contractors have begun to make contributions of 1.5 percent to the Social Development Fund. Thus, the accumulated amount as of September 2024 in both lots amounts to 1.3 million dollars.

The value of these contributions is directly related to the production of the Lot, that is, the greater the hydrocarbon production, the greater the amount allocated to the Development Fund.

Development Funds do not replace the obligations of local and/or regional governments, nor the social responsibility programs of Contractors.

PERUPETRO reaffirms its will and commitment to continue promoting the sustainable development of the population located in the area of the License Contracts.