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Peru Hydrocarbon Royalties Drop 7.5% Year to Date as October Weakens

Industry groups urge regulatory predictability to revive investment, aiming to stabilize future transfers.

Overview

  • Companies paid US$916.8 million in royalties from January to October 2025, a 7.5% decline versus the same period in 2024, according to SNMPE.
  • October royalties totaled about US$84.7 million, down 6.73% from September and 17.4% year over year, based on Perupetro data cited by SPH and SNMPE.
  • October’s disaggregated payments were US$44.4 million from natural gas, US$24.7 million from natural gas liquids, and US$15.5 million from oil.
  • Year-to-date composition shows 53% from natural gas, 30% from natural gas liquids, and 17% from oil, underscoring gas as the main revenue driver.
  • SPH and SNMPE highlight the need for a modern, predictable framework to attract investment and support future royalty flows.