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Oil & Gas Alert – October 2023

ALERT – OIL AND GAS

Approval of provisions for the qualification of Natural Gas venting as unavoidable

 

By means of Resolution of the Board of Directors OSINERGMIN N°190-2023-OS/CD (the “Resolution”), published on October 28, 2023 in the Official Gazette “El Peruano”, the legal and technical provisions for the qualification of Natural Gas venting as unavoidable due to contingency or emergency, or for operational reasons, as well as its control, were approved.

In this regard, the Resolution provided, among others, the following:

– Create the Vent Qualification Management System (SIGESVAC), which is integrated to the Osinergmin Virtual Platform (PVO) and is permanently available 24 hours a day, 7 days a week. Through SIGESVAC, the holders of hydrocarbon activities will submit their requests for (i) qualification of Natural Gas venting as unavoidable due to contingency or emergency, and (ii) qualification of Natural Gas operational venting as unavoidable.

– Approve the procedures for the qualification of requests for the qualification of Natural Gas venting as unavoidable, both for contingency or emergency, as well as for operational venting.
– The procedures described above will be subject to negative administrative silence and the appeals established in the Single Ordered Text of Law 27444, approved by Supreme Decree 004-2019-JUS, may be filed against them.
Likewise, OSINERGMIN may supervise the licensees, and the following are punishable administrative infractions:
The venting of natural gas due to contingency or emergency that is not qualified as unavoidable by OSINERGMIN in accordance with the established procedure; and,
The realization of the operational venting without previously obtaining the qualification of Osinergmin according to the established procedure.

Finally, until SIGESCAV is implemented, the holders of hydrocarbon activities that need to process requests for the qualification of Natural Gas as unavoidable, may submit them through OSINERGMIN’s desk or the OSINERGMIN Virtual Window.
For further information, please contact Jorge Pérez-Taiman (jpereztaiman@estudiorodrigo.com), Carolina Noriega (cnoriega@estudiorodrigo.com), Piero Scarafone (pscarafone@estudiorodrigo.com) and/or Talía Hormaeche (thormaeche@estudiorodrigo.com).