PERU LNG 2021 Annual Report

ANNUAL REPORT PERU LNG 2021 CHAPTER 4 OUR ORGANIZATION CONTRACTS WITH THE PERUVIAN STATE The 12th January 2006 saw the celebration of an investment agreement for the installation, operation and maintenance of a natural gas processing plant (hereinafter the investment agreement). This agreement is governed by the legal regime that prohibits unilateral modification or amendment of its terms. The Agreement was signed by representatives of PERU LNG and the Peruvian State, represented by the Hydrocarbons Bureau (DGH) of the Ministry of Energy and Mining and the Central Reserve Bank of Peru (BCR). The agreement contains the following terms, among others: (i) PERU LNG will be the exclusive owner of the liquefied natural gas (LNG) plant and its related installations (including the gas pipeline) and shall be free to sell and export the LNG produced; (ii) provisions concerning investment by PERU LNG in the construction and operation of the LNG plant and related installations; and, (iii) guarantees to PERU LNG and its shareholders concerning taxes, import duties and foreign currency. This agreement, approved by Supreme Decree Nº 005- 2006-EM in accordance with the terms of the Promotion of Investment in Natural Gas Processing Plants Act gives PERU LNG the right to a stable tax and exchange rate regime, as well as other guarantees established in the Act, for a period of forty years. Later, on the 5th of July 2010, the investment agreement was modified by public deed to include Annex D to the agreement, known as the "Agreement to Expand and Use the Carrying Capacity of the Main Pipeline”. This was entered into by Transportadora del Gas del Peru S.A. and PERU LNG, according to the provisions of Article 81 of the Regulations for the Carriage of Hydrocarbons through Pipelines, approved by Supreme Decree Nºº 081-2007-EM. SUPPLY OF NATURAL GAS In accordance with the supply contract, the Plant will receive natural gas from the Camisea fields for eighteen years. The 6th August 2014 saw the commencement of a modified and re-drafted natural gas sales contract for Block 88, entered into by PERU LNG and the holders of the block, who promised to provide natural gas to PERU LNG solely for local consumption or when it is to be used and/or consumed in the PERU LNG production process. A Modified and Re-drafted Contract for the Sale of Natural Gas from Block 56, entered into by PERU LNG and the holders of Block 56 took effect on the same date. This contract permits the holders of Block 56 to acquire gas from the holders of Block 57 for inclusion in their obligation to supply PERU LNG. The contractual changes guarantee a firm commitment to supply 4.2 trillion cubic feet of gas to PERU LNG over the 17

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