chapter  6
Peru’s Production-Sharing Contracts
Pages 8

The new military government shifted from the concession system to one in which exploration/ exploitation contracts were negotiated with pri­ vate companies by the government petroleum agency, Petroleos del Peru (Petroperu)— for­ merly EPF. In 1971 Petroperu signed its first contract with Occidental Petroleum for blocks in northeastern Peru. This contract followed the

The 1971 Model Contract

tor. The contractor was permitted to remit rev­ enues from the sale of his share of the output less domestic expenses free of profits and re­ mittance taxes. Such remittances included am­ ortization and interest payments on external debt of the contractor and payments for foreign ser­ vices and supplies. Foreign exchange availabil­ ity for such remittances was guaranteed by the Central Bank whether the petroleum was ex­ ported by the contractor or sold to Petroperu.