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Peru Upstream Fiscal and Regulatory Report - Hydrocarbons Law and Royalty Regime Being Revised

Peru Upstream Fiscal and Regulatory Report - Hydrocarbons Law and Royalty Regime Being Revised

Summary

“Peru Upstream Fiscal and Regulatory Report - Hydrocarbons Law and Royalty Regime Being Revised”, presents the essential information relating to the terms which govern investment into Peru’s upstream oil and gas sector. The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state’s take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Peru’s upstream oil and gas investment climate.

Scope

  • Overview of current fiscal terms governing upstream oil and gas operations in Peru
  • Assessment of the current fiscal regime’s state take and attractiveness to investors
  • Charts illustrating the regime structure, and legal and institutional frameworks
  • Detail on legal framework and governing bodies administering the industry
  • Levels of upfront payments and taxation applicable to oil and gas production
  • Information on application of fiscal and regulatory terms to specific licenses
  • Outlook on future of fiscal and regulatory terms in Peru
Reasons to buy
  • Understand the complex regulations and contractual requirements applicable to Peru’s upstream oil and gas sector
  • Evaluate factors determining profit levels in the industry
  • Identify potential regulatory issues facing investors in the country’s upstream sector
  • Utilize considered insight on future trends to inform decision-making


1 Table of Contents 1
1.1. List of Tables 2
1.2. List of Figures 3
2. Regime Overview 4
3. State Take Assessment 7
4. Key Fiscal Terms- Royalty/Tax License 8
4.1. Royalties 8
4.1.1. Economic Results or Production Scaling Royalty Scheme 8
4.1.2. R-Factor Royalty Scheme 9
4.1.3. Price and Cumulative Production Royalty Scheme 9
4.1.4. OtherRoyalty Schemes 10
4.2. Annual Fees 11
4.3. Direct Taxation 12
4.3.1. Corporate Income Tax 12
4.3.2. Deductions and Depreciation 12
4.3.3. Withholding Tax 13
4.4. Indirect Taxation 13
4.4.1. Value Added Tax 13
4.4.2. Customs Duties 13
4.5. Fiscal Stabilization 13
4.6. Access to Foreign Currencies 13
5. Key Fiscal Terms - Service Contract 14
5.1. Annual Fees 14
5.2. Remuneration 14
5.2.1. R-Factor Remuneration 14
5.2.2. Cash Remuneration 15
5.3. Taxation 15
6. Regulation and Licensing 16
6.1. Legal Framework 16
6.1.1. Governing Law 16
6.1.2. Contract Type 17
6.1.3. Title to Hydrocarbons 17
6.2. Institutional Framework 18
6.2.1. Licensing Authority 18
6.2.2. Regulatory Agency 18
6.2.3. National Oil Company 18
6.3. Licensing Process 19
6.3.1. Prequalification 19
6.3.2. Direct Negotiation 19
6.3.3. Bidding Process 19
6.4. License Terms 20
6.4.1. Duration and Relinquishments 20
6.4.2. Work Obligation 20
6.5. Local Content 21
7. Outlook 22
8. Appendix 23
8.1. Contact Us 23
8.2. Disclaimer 23
1.1 List of Tables
Table 1: Regime Overview
Table 2: Peru, Royalty Rates under Production Scaling Scheme (%)
Table 3: Peru, Royalty Rates under R-Factor Scheme (%)
Table 4: Peru, Royalty Parameters for Block 192 in 2015 Bid Round
Table 5: Peru, Block XX Royalty Rates (%)
Table 6: Peru, Block II Royalty Rates (%)
Table 7: Peru, Block VII/VI Royalty Rates (%)
Table 8: Peru, Annual Fees (US$), All Regions Except Talara
Table 9: Peru, Annual Fees (US$), Talara region
Table 10: Peru, Corporate Income TaxRate (%)
Table 11: Peru, Block 192 Remuneration (% of production)
Table 12: Peru, Block Z-2BRemuneration (% of production)
Table 13: Peru, Previous Bid Rounds
1.2 List of Figures
Figure 1: Peru, Regime Flow Chart - Royalty/Tax License 5
Figure 2: Peru, Regime Flow Chart - Service Contract 6
Figure 3: Peru, Indicative NPV10/boe, IRR and State Take Comparison, Regional Onshore 7
Figure 4: Peru, Legal Framework 16
Figure 5: Peru, Institutional Framework 18

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