Fee of the North Peruvian Pipeline

Given journalistic versions about an alleged reduction of the tariff for the use of the North Peruvian Pipeline (ONP) and related issues, PETROPERU reports the following:

1. The base fee that PETROPERU charges the company Perenco, operator of Lot 67, is eight (08) dollars per barrel and has been established in the Liquid Hydrocarbons Transportation Contract by the North Peruvian Pipeline of 21.09.2018, on the basis of an economic-financial study.
2. The Chairman of the Board of our Company, Mr. James Atkins, has stated that there could be a reduction in the fee for all oil companies, as the crude production increases during the next years. In this way, the fee for the transportation of crude oil by the ONP would be more competitive for the producers, benefiting the country by increasing the amount of royalties collected.
3. On the other hand, PETROPERU has contracted the execution of the "Diagnostic and Conceptual Engineering Service for the Modernization of the ONP", in which the expansion of the oil pipeline to the oil lots is considered one of the scenarios to evaluate. In case its execution is feasible, it will be previously fulfilled with the current procedures and norms.

COM-31