Police surround H.Q. of U.S.-based firm

Press, 30 December 1985, Page 7

Police surround H.Q. of U.S.-based firm

NZPA-AP Lima Police with sub-machine-guns surrounded the headquarters of the New Yorkbased Belco Petroleum Corporation at the week-end after the Government nationalised the company, froze its bank accounts, and took control of its local assets.

President Garcia announced on Friday that the State oil company, Petroperu, would take charge of Belco’s work in Peru because the company had refused to accept new conditions for spending its profits on new exploration and production. Dante la Gatta, Belco’s general manager in Peru, turned over the company’s documents to Alfredo Carranza, president of Petroperu’s board of directors, in a brief ceremony at the company’s headquarters in the upper-class neighbourhood of San Isidro.

programme in Peru’s history. He said a consortium of Occidental and the Argentine firm, Bridas, would also continue in Peru but under terms of its original contract, which set the tax level for foreign oil companies at 68 per cent. The Government of the former President Terry had lowered taxes for foreign companies to 41 per cent in 1980 under legislation that required them to reinvest the savings in new oil exploration in Peru. Mr Garcia cancelled the contracts with the three companies on August 28, accusing them of misusing

profits and riUt reinvesting them as required. The official news agency. Andina said Petroperu’s general manager, Carlos Lizier, took control of Belco assets at the week-end in Zorritos.

The town in Talara province, 1240 km north-west of Lima, is the headquarters for the 111 offshore production rigs that Belco runs off the Pacific coast.