Time for action: article on Peruvian Upstream industry and the need for competent governmental authorities to take effective actions to defend oil and gas investment

Abstract

Over the last few years Peru has worked hard to become an important receptor of foreign investment. The oil and gas sector in Peru considers foreign investment crucial for sustaining its development. This article explores how the lack of action attributable to key governmental entities is driving the oil and gas industry in Peru to a critical situation that over time may result in foreign investment walking away from Peru. The article presents key governmental actors' roles, regulation and the general framework of Peru's oil and gas scenery. Public sources, statistics and records released by the key governmental actors are also presented for evidencing the negative results obtained in the Peruvian oil and gas industry as a consequence of the current administration's lack of adequate action. Reference is also made to some public specific cases to serve as examples to the reader. It is hoped that this article serves to remind the oil and gas community of the relevance of the role of governmental entities not only in attracting new foreign investment to a country for the signing of new licence agreements, but also the important role that said entities have during the execution of the licence agreements. Finally, we hope that the Peruvian authorities take action and by acting jointly with the Peruvian oil and gas community reverse the current trend in Peru.