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Oil and Gas Alert – May 2020

ALERT – OIL AND GAS

Guidelines were adopted to verify compliance with the provisions of Ministerial Resolution No. 129-2020-MINEM/DM, with respect to hydrocarbon construction activities that are resumed and the continuation of hydrocarbon activities that were allowed.

Through Vice- Ministerial Resolution No. 016-2020-MINEM/VMH published in the Official Gazette “El Peruano”, on May 17, 2020 (hereinafter, the “RVM”), the guidelines for monitoring, requesting information and other actions were adopted to verify compliance with the provisions of Ministerial Resolution No. 129-2020-MINEM/DM, with respect to hydrocarbon construction activities that are resumed and the continuation of hydrocarbon activities that were allowed, in accordance with the next:

1. Hydrocarbons construction activities that are resumed

 – The holders of the construction and related construction project activities whose purpose is to increase production capacity, processing and/or pipeline transport and/or hydrocarbon storage capacity, as well as construction and related activities of network or infrastructure projects, shall submit their “Plan for the monitoring, prevention and control of COVID-19 at work” (hereinafter, the “Plan”), as a condition for the resumption of such activities.

– The Plan shall be prepared in accordance with the format provided for in Annex 4 of the RVM, and shall be submitted virtually through the Information Platform that the DGH implements (as long as this does not occur, it may be submitted to the email plandevigilanciahidro@minem.gob.pe.

 – The DGH must verify the structure and content of the Plan, and must issue a verification certificate through the Computer Platform, from which the holders of the activities that are resumed may send the Plan to MINSA, for registration in the Integrated System for COVID-19 (SICOVID-19).

 – The holders of the activities that are resumed must submit to the DGH and to OSINERGMIN information on the resumption of activities in accordance with the Activity Graduality Format provided in Annex 1 of the RVM, which shall be supervised by OSINERGMIN.

2. Hydrocarbon activities that were allowed

– The holders of the hydrocarbon activities that were allowed by exception, as provided by Supreme Decree 044-2020-PCM and amendments, and Deputy Ministerial Resolution No. 014-2020-MINEM-VMH, must submit their Plan as a condition to continue carrying out their activities.

 – The Plan shall be prepared in accordance with the format provided for in Annex 4 of the RMV, and shall be submitted virtually through the Computer Platform within the deadlines established in the format provided for in Annex 2 of the RVM. In the event of non-compliance, operations are suspended until the presentation of the Plan.

– The DGH must verify the structure and content of the Plan, and must issue a verification certificate through the Computer Platform, from which the holders of the activities that are resumed may send the Plan to MINSA, for registration in the Integrated System for COVID-19 (SICOVID-19).

3. The Computing Platform

– The RVM points out that access to the Computer Platform shall be made through a user code and password provided by MINEM, the use of which shall be the sole responsibility of the holder, noting that if inconsistencies are identified in the information submitted, activities are suspended until they are amended, which is supervised by OSINERGMIN, without prejudice to civil and/or criminal responsibilities in the event of false information being verified. The RVM does not indicate the procedure or the deadline for obtaining the username and password.

4. Hydrocarbon Reactivation Matrix

The Hydrocarbon Reactivation Matrix, referred to in Ministerial Resolution No. 129-2020-MINEM/DM, was adopted for: (i) Liquid hydrocarbon and LPG projects, (ii) Distribution Concessionaires and Natural Gas Infrastructure Projects, and (iii) Exploration Activities.

Likewise, the RVM mentions that the holders of hydrocarbon activities shall be responsible for their Plans to be drawn up in accordance with the MINSA Protocol adopted by Ministerial Resolution No. 239-2020/MINSA and amendments, as well as the MINEM Protocol adopted by Ministerial Resolution No. 128-2020-MINEM/DM and its amendments.

Finally, we mention that OSINERGMIN is empowered to supervise compliance with the provisions of the RVM, as well as to monitor and evaluate the execution of the hydrocarbon activities included therein, on which it shall keep the DGH informed.