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Oil and Gas Alert – March 2020

ALERT – OIL AND GAS

Measures to ensure the continuity of natural gas service and fuel supply are established

Within the framework of the declaration of the State of National Emergency as a result of the outbreak of COVID-19 approved by Supreme Decree No. 044-2020-PCM, the continuity of natural gas service and fuel supply was guaranteed, inter alia, as well as the exercise of the right to freedom of movement of persons for the labor, professional and business provision of the above-mentioned services, including the activities of production, storage, transport, distribution and sale of fuels. It is further established that public and private entities shall identify complementary and related services for the adequate provision and access to the above-mentioned specific services.

By Supreme Decree No. 046-2020-PCM, published in the Extraordinary Edition of the Official Gazette El Peruano, on March 18, 2020, the scope of Supreme Decree No. 044-2020-PCM is specified, establishing the following with regard to hydrocarbon activities:

1.     During the validity of the State of Emergency, persons may move on public roads for the provision and access of services for the production, storage, transport, distribution and sale of fuels.

2.     The strictly necessary personnel who participate in the provision of natural gas and fuel services are exempt from the compulsory social immobilization of all people in their homes from 8:00 p.m. to 5:00 a.m. the following day.

3.     The vehicles necessary for the provision of natural gas and fuel services and their related activities are exempt from the prohibition on the use of private vehicles.

Likewise, by means of Vice-Ministerial Resolution No. 014-2020-MINEM-VMH published in the Official Gazette El Peruano, on March 19, 2020, it is established that during the term of the State of Emergency declaration, holders of Hydrocarbon Activities such as exploitation, processing, pipeline transportation, distribution of natural gas by pipeline network, among others; and Hydrocarbon Marketing Activities, at the national level, shall:

1. Activate and execute safety protocols intended to safeguard the health of its personnel, contractors and/or third parties.

2. Prioritize actions aimed at ensuring the continuity of the supply of hydrocarbons, in order to ensure the supply of the national market and the attention of public services.

3. Process for its personnel, contractors and/or third parties at the national level, before the competent authority, the necessary accreditation documents enabling them to transit and/or move by any means of transport to carry out the necessary activities, in order to ensure the security and continuity of the supply of hydrocarbons for the supply of the national market and the attention of public services.

4. Make available to the General Directorate of Hydrocarbons (“DGH”) and OSINERGMIN, the information related to the inventories of hydrocarbons that they have, the operational status of their facilities, the main means of communication used for the transport of supplies and hydrocarbons, as well as the minimum number of personnel, contractors and/or third parties required for the development of their operations, providing that said information must be sent daily and/or at the request of the DGH and OSINERGMIN.

Any query on the matter may be acquitted by doctors Jorge Pérez-Taiman (jpereztaiman@estudiorodrigo.com), Carolina Noriega (cnoriega@estudiorodrigo.com), Eduardo Ramos (eramos@estudiorodrigo.com) and/or Piero Scarafone (pscarafone@estudiorodrigo.com).