Friday, April 25, 2008

A Warm Welcome; Oil and Gas in Peru

From the Economist April 10th

Peru has recently opened its country to oil and gas explorartion granting 80 exploration permits (with many more to come) encompassing an area roughly the size of France. Peru has also encouraged the modernization of a state-owned refinery valued at 1bn and the construction of a new LNG export terminal.

The Economist reports that Peru's President Alan Garcia envisions Peru becoming a net energy exporter and petrochemical industry center. By mid 2011 Garcia hopes that oil and gas industries in Peru will have attracted over 3bn in invenstment and created thousands of new jobs.

Per the norm, the Peruvian government has been accused of cutting corners in its attempt to attract investment, ignoring the environmental risks associated with exploration and development, and clashed with indigenous groups.

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