translation of Dr Flury ( Arbitration )Arbitration
MINISTERIO DE ENERGÍA Y MINAS
DEPARTMENT OF ENERGY AND MINES Notes of press Minister Hans Flury emphasizes advance of Camisea CONTRACT OPTION OF MANHATTAN ON TAMBOGRANDE HAS ARRIVED AT ITS TERM *was signed Contract for the exploration and exploitation of the
Lot XIX in Fall Finally, the company Manhattan has been notified that the documentation presented does not gather the requirements requested, required in the Contract and, therefore, the Contract option that had to exploitMining
project Tambogrande has arrived at its term. Thus the Minister of Energy affirmed it today and Mines, doctor Hans Flury Royle, indicating that “there is not compensation by this” and that, if Manhattan to decide to respond to an
arbitration, right that can invoke this business, “Centromín will have to expose its arguments by to have arrived at the decision that all we know”. “Not it to have swum that to compensate, they received an option and time to
explore and to determine the size of the mineralización, and that is the risk that assumed”, expressed. The Minister offered statements to the press little after attend the subscription of the Contract of License for the
exploration and exploitation of hydrocarbons in the Lot XIX, located in the department of Fall, among Perupetro and BPZ Energy Inc., branch Office Peru Maintained that Manhattan had to comply with all the requirements established
in the Contract and that one of the requirements that did not comply went to show that aloneWith the participation of an associate, they had technical capacity to treat 10 thousand daily tons of mineral for day. With respect al
future of the Project Tambogrande, the holder of Energy and Mines considered that Centromín will have to seek another investor, if is that that decision is taken. It recalled that is a business that is in process of privatization
and should arrange of its assets of the best possible form. On the other hand, the Minister al to be referred to the firm of the contract by the Lot XIX, said that with it is shown that peru is a good destiny to do these
investments, that are investments of risk. “I hope we be successful, of such way that the dependence of peru in the importing of hydrocarbons be reduced and I hope disappear”, noted. Al to do a quick balance of the polite
activities in the 2003, indicated that has been a good year in which has advanced and certain investments have been consolidated. “What more it satisfies me - declared - is that it has advanced a great deal in the project
Camisea, that already has fixed date of arrival to attend the
Requests of the country. I believe that in a few years, we will see the effect that Camisea has in all we, part of our life will go changing little to little”. The president of Perupetro, engineer Antonio Cueto, indicated
that the Area of Contract of the Lot XIX has an extension of 191,441 hectares and is located in the department of Fall. The Basin Fall Progress, in the adjacent sector al Lot XIX, has produced 3.7 million barrels of
petroleum, inside which the field can be emphasized of Zorritos, the oldest one of peru and of America Southern, indicated. In the contract signed with BPZ Energy Inc., branch Office Peru, the most recent reforms of the
model of contract and of the rates are included of regalías, with which peru has improved their competitiveness to attract foreign investment of risk in the exploration of hydrocarbons. San Borja, 12 of December of 2003