Drop of 11.8% in royalties from the hydrocarbons sector in Peru during 2024.

The hydrocarbons sector in Peru has reported a notable decline in royalty revenues during the first half of 2024, according to data provided by the National Society of Mining, Oil and Energy (SNMPE). In total, companies in the sector have paid the State US$579.44 million, a figure that reflects an 11.8% drop compared to the same period last year, when royalties amounted to US$656.71 million. This decrease in payments raises questions about the current state of the sector and its impact on the national economy. The data also reveals that, despite the overall decline in the first six months, there was a slight increase in payments for June 2024. In this month, hydrocarbon companies contributed US$100.87 million in royalties, representing a 0.4% increase compared to June 2023, when royalties reached US$100.44 million. However, it cannot be overlooked that this figure is still lower than the US$173.47 million reported in June 2022. A detailed analysis of the royalties for June 2024 shows that out of the US$100.87 million, the majority came from natural gas exploitation, which contributed US$47.93 million. This figure is significant given the global energy context and the growing demand for natural gas in various markets. On the other hand, oil production contributed US$21.10 million, while natural gas liquids production generated US$31.84 million, figures that reflect the importance of these resources in the country’s energy matrix. The declines in royalty revenues may be related to several factors, including fluctuations in international hydrocarbon prices, as well as the influence of national policies that affect the operations of these companies. The figures indicate the need for a deeper analysis of how these variations impact State financing and the social development projects that depend on these revenues. The current situation in the hydrocarbons sector in Peru not only affects the operating companies but also has repercussions for the overall economy of the country. Royalties are a vital source of income for the State, and any decrease in this area can influence the government's ability to invest in infrastructure, education, and health. Therefore, the drop in royalty revenues is a concern that the government and the private sector must address together. In the context of this decline in royalties, the hydrocarbons sector faces challenges that go beyond the numbers. Investment in new technologies, environmental sustainability, and the transition to renewable energy sources are issues that are on the agenda of many companies. These matters play a crucial role in how companies approach their operations and, in turn, their contribution to the State. As companies in the hydrocarbons sector navigate this changing landscape, SNMPE has called for constructive dialogue between the government and sector stakeholders. Collaboration is essential to ensure that policies are created that not only promote investment but also provide a clear and stable regulatory framework that fosters the sector's competitiveness. Finally, the recent news about Grupo ON's agreement to sell Win to Linzor Capital Partners could have an indirect impact on the hydrocarbons sector, as the increasing participation of private capital may signal renewed interest in investments in the industry. Such market movements could indicate that, despite the difficulties, there are opportunities for growth and revitalization of the sector. In conclusion, the current situation of royalties from hydrocarbon companies reflects the challenges and opportunities faced by an industry in constant evolution. It is essential that all involved parties work together to find solutions that benefit the State and ensure the sustainable development of the sector.