(Adds comments from Shell and additional comments fromPeruPetro)
By Oleg Vukmanovic
PARIS, June 2 (Reuters) - PeruPetro is in dispute withAnglo-Dutch oil firm Shell over royalties related tothe export of seven Peruvian liquefied natural gas (LNG) cargoeslast year, the regulator said, adding it hoped to reach a dealsoon or would resort to arbitration.
Supplies from Peru's 4.45 million tonne per annum LNG exportplant are handled by Shell, which acquired the asset fromSpain's Repsol in 2014.
Under the terms of its contract, Shell must pay the Peruviangovernment a royalty based on the final destination price ofwhere it sells the LNG, PeruPetro's promotion and communicationsmanager Oscar Miro Quesada told Reuters in an interview earlier.
But Shell in 2014 exported seven cargoes to Mexico, payingPeru a royalty based on the U.S. gas futures benchmark, one ofthe lowest prices in the world. It then re-sold the LNG to beexported to Asia, pocketing a much bigger sum and not sharingthe proceeds with Peru, Miro Quesada said. Later, however,PeruPetro president Luis Ortigas said by telephone that Shellsold the LNG at a higher price within Mexico, because of surgingdemand and did not share the proceeds with Peru. "They did notbreak the contract," Ortigas said.
Shell declined to share specific details about itscommercial transactions, but said it believed it had met allregulatory and contractual obligations in Peru. Shell declinedto discuss any talks with partners.
"During the 2014 winter Shell was able to export LNG fromPeru outside its long-term contractual obligations to the MexicoFederal Electricity Commission (CFE)," Shell said in a statementlate Tuesday. "This helped maximize LNG production in Peru."
Ortigas said PeruPetro is meeting with Shell on Thursday todiscuss a potential payment to solve the dispute.
"In 2010 there were 10 cargoes that Repsol sold and did notshare the full royalties. Shell did something similar last year.Right now Shell and PeruPetro are talking to solve this," Miro Quesada said.
Miro Quesada could not give an indication of how much itwants Shell to pay Peru, but said the talks with Shell wereprogressing and it was hopeful a deal could be reached soon. Ifnot, PeruPetro will resort to arbitration.
Peru recently settled a similar long-standing dispute overinadequate royalty payments related to 10 LNG cargoes exportedin 2010-2011.
The World Bank's International Center for Settlement ofInvestment Disputes ruled last week against PlusPetrol, operatorof a Peruvian gas field that supplies the LNG plant.
The ruling was a victory for PeruPetro, which is set tocollect compensation for the lost royalties. (Reporting by Oleg Vukmanovic; Editing by Mark Potter and DianeCraft)
