Culmination of oil negotiations
On December 27, 1985, negotiations between the Peruvian government and foreign oil companies culminated, in the context of the review of contracts that President Alan Garcia Perez considered unduly benefited these companies with tax exemptions.
On December 27, 1985, negotiations between the Peruvian government and foreign oil companies culminated. These negotiations took place in the context of President Alan Garcia Perez's decision to terminate the oil operation contracts with Occidental Petroleum Corporation del Peru, Belco Petroleum Company and the Oxy-Bridas Consortium. The government had announced in August 1985 that these companies had unduly benefited from tax benefits. The negotiations were also related to modifications to the Kuczynski Law, which granted tax exemptions to foreign oil companies, an issue that was debated in Congress in May 1985.