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The Minister of Energy and Mines in Peru announced yesterday that he will implement regulations to promote the continuity of, among others, Interoil Peru's concession in Blocks III and IV.
According the Peruvian business newspaper Gestion, the Minister of Energy and Mines, Mr. Joge Merino stated:
"On the subject of petroleum, for those agreements that are near to expire, we will boost regulations to promote their continuity, with certain conditions. Among these conditions there will be the requirement of an investment program"
IOX views the statement from Mr. Joge Merino as a positive development in our efforts to obtain a license extension for Blocks III and IV. CEO, Thomas J. Fjell comments that:
"IOX will greatly appreciate the opportunity to continue our discussions with Perupetro and Petroperu with the objective of entering into an agreement that will be mutually beneficial and secure a long term investment program in Blocks III and IV."
The Agency of the Environmental Supervision and Control in Peru has informed Interoil Peru that it will start an administrative investigation procedure against IOX due to the drilling of 4 wells outside the locations approved by the Agency. The wells were drilled within Interoil Peru's license area and have had no detrimental effects on the surrounding environment or third parties. The Agency may impose a fine or suspension of production from the relevant wells. Interoil Peru is of the opinion that the Agency has no grounds to impose a fine or to suspend production from the wells and are working closely with the Agency to resolve the issue.
A transcript of the article in Geston and an office translation is attached.
For more information please contact:
Thomas J. Fjell
CEO
Mob: +47 958 15 300
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InterOil Exploration & Production ASA is a Norwegian based exploration and production company - listed on the Oslo Stock Exchange - with focus on Latin-America. The company is operator of several production and exploration assets in Peru, Colombia and Ghana. InterOil currently employs approximately 280 people and is headquartered in Oslo.