Will the New Peruvian Royalty Regime Foster New Investment in Petroleum Exploration?
Article from: OGEL 3 (2004), in Taxation
Introduction
Peru is not currently regarded as an exciting petroleum prospect: no new commercial discoveries been made since Camisea in 1984. In view of this, the Peruvian Government has expressed concern to foster new investment in exploration activities in order to increase the potential that the Peruvian basins may have. Thus, in order to compensate for the geological risk, the petroleum royalty regime has recently been changed. This article aims at understanding the extent to which such change may attract new exploration investment. To this end, it compares the previous royalty ...