LIMA Aug 26 Peru's government is expected to
back a proposal on Thursday that would earmark all natural gas
production from the Repsol's lot 57 for domestic uses,
according to a source close to the negotiations.
Critics have put pressure on President Alan Garcia in
recent weeks to safeguard domestic gas supplies because of
worries that a plan to export the fuel could contribute to
shortages for Peruvians.
"The proposal ... is to include lot 57 of Repsol to supply
the internal market," the person said.
A Repsol (REP.MC) official could not be reached for comment
and Peruvian government officials declined comment.
Lot 57 has about 2 trillion cubic feet of gas, according to
Other pieces of the proposal, which Garcia is expected to
endorse, include leaving contracts for lots 88 and 56 of the
Camisea gas fields unchanged.
Repsol is part of the Camisea consortium led by Argentina's
Pluspetrol. The consortium's lots 88 and 56 are slated to
supply gas to the domestic market and also feed a liquified
natural gas export facility that is being built. Its main owner
is U.S.-based Hunt Oil.
"The proposal includes maintaining the contracts as they
are, because otherwise serious economic losses would be caused
and commercial pacts have already been established," the source
The consortium says it has some 14.1 tcf of proven gas
reserves that would last through 2047, though a recent study by
an energy consulting firm estimated a more modest 8.79 tcf.
(Reporting by Teresa Cespedes; Editing by Terry Wade, Leslie