Peru approves new oil royalty plan to attract business

Peru said that it had approved two new plans for fixing oil royalties in hopes of attracting more exploration investment.
The first of two new methodologies will fix a royalty rate according to production levels across the oil lot after exploration, discovery, and extraction.

Those royalties will range between 5 % and 20 %, the ministry said. In the next, a 5 % royalty will be set for the productive stage of the field, followed by another royalty rate depending on the economic results of the lot.
The new schemes -- between which oil developers will be able to choose -- will cut out the negotiation phase between companies and the government, facilitating new contracts, the ministry added.