Currently, Camisea is managed by a private consortium made up of foreign companies such as Pluspetrol, Hunt Oil, the SK Group, and Repsol.
On Sunday, Peru’s President Pedro Castillo announced that his administration would provide cheap gas to the people. In order to do so, the Peruvian largest gas field may be nationalized.
To reduce gas prices, Peruvian authorities will have to renegotiate with private actors the contract that regulates the exploitation of the Camisea natural gas field, located in Cusco.
Currently, Camisea is managed by a private consortium in which the main shareholdings correspond to the Argentinean company Pluspetrol (27 percent), the U.S. company Hunt Oil (25 percent), and the South Korean SK Group (18 percent). The consortium also has the participation of the companies Repsol (Spain), Tecpetrol (Argentina), and Sonatrach (Algeria).
"Any renegotiation will take place with unrestricted respect for the rule of law and safeguarding national interests," Castillo tweeted.
While 4.5 million people face severe food insecurity in Peru, about 12.8 million tons of food are lost or wasted annually. @PNUDperu spotlights 3 local, innovative initiatives that are advancing sustainability for Peruvian #FoodSystems: https://t.co/2S6zsTvpEZ #UNFSS2021 #UNGA pic.twitter.com/OaIwpksnZK— UN Development (@UNDP) September 23, 2021
"We call on the consortium that exploits and commercializes Camisea gas to renegotiate the distribution of profits in favor of the State. Otherwise, we will opt for the recovery or nationalization of our field," Prime Minister Guido Bellido said.
In the Peruvian congress, the bloc of the ruling party Free Peru expressed its support for Bellido arguing that the Castillo administration's proposal is not arbitrary and is in full agreement with the defense of the legitimate rights of the State.
On the other hand, right-wing parties seized the opportunity to unleash their anti-communist rhetoric and attack the Castillo administration. Lawmaker Jorge Montoya will call for the removal of Bellido.