Notice of termination of oil contracts

President Alan García Pérez announced in Tacna that he will terminate the oil operation contracts entered into with Occidental Petroleum Corporation del Peru, Belco Petroleum Company and the Oxy-Bridas Consortium. The decision was based on the fact that these companies unduly benefited from tax benefits. This measure was part of the economic policies of the new APRA government that had assumed power in July 1985. On December 27 of the same year, negotiations between the government and the foreign oil companies culminated.