Private hydrocarbon companies contributed more than US$19.000 billion in Peru and benefited the national economy.

Private hydrocarbon companies invested more than US$19,000 million in Peru between 1993 and 2022, according to Arturo Vásquez Cordano, Director of Research at Gerens and former Deputy Minister of Energy at the Ministry of Energy and Mines. These investments have had a significant impact on the Peruvian economy, contributing on average 2% to the national GDP in the last 17 years. During an event organized by the National Society of Mining, Petroleum, and Energy (SNMPE), the contribution of the hydrocarbon industry in the country was highlighted. Among the mentioned benefits are S/62,763 million in royalties, S/54,775 million in Income Tax and other domestic taxes, and S/45,373 million in canon and sobrecanon transferred to the regions where companies in the sector operate. In the northwest coast and the continental shelf, investments totaling US$4,444 million have been made in exploration and exploitation activities from 1993 to 2022. These investments have generated significant income for the regions of Piura and Tumbes, with S/8,110 million and S/2,397 million in canon and sobrecanon respectively. The study also revealed the potential use of the resources generated by these contributions in the northern coast. With the S/30,580 million generated in the last 22 years, public works such as schools, medical posts, regional hospitals, and roads could have been financed. Regarding the allocation of oil lots, the need to promote competitive international bidding instead of direct negotiations was proposed, following international best practices. This would guarantee maximization of investment and benefits for the state and the regions. Finally, it was emphasized that thanks to the investments made, an additional 399 million barrels of liquid hydrocarbons have been discovered in the northwest coast and the continental shelf since 1993. This demonstrates the positive impact of private companies in the development of the hydrocarbon industry in Peru since the approval of the Organic Hydrocarbons Law.