Petroperú, Peru’s state-owned oil company, may open its doors to private investors next year. Alejandro Narváez, the newly appointed chairman of the board, shared this possibility in a recent interview.
The company aims to reverse its financial losses and regain stability. Narváez revealed that Petroperú might offer a minority stake to private investors in the second half of 2025.
This move would coincide with the company’s expected return to profitability. The decision reflects a shift in strategy for the state-owned enterprise.
The chairman outlined plans to achieve profits between 200 million and 250 million US dollars next year. This goal marks a significant turnaround from the losses recorded since 2022.
Narváez hopes to reduce this year’s projected losses by at least 100 million dollars. Petroperú’s financial troubles stem from a 6.5 billion dollar investment in modernizing its Talara refinery.
This massive project led to the company losing its investment grade rating in 2022. The Peruvian government stepped in with a 1.75 billion dollar lifeline in September.
Petroperú’s Strategic Vision
Narváez addressed concerns from bondholders and creditors about further state financing. He assured them that he would make every effort to avoid requesting additional government funds.
The chairman emphasized the importance of directing such resources toward social programs instead. The company currently faces liquidity issues in its operations.
Narváez acknowledged the need to find potential lenders to address the negative cash flow. However, he ruled out issuing new bonds in the immediate future.
Petroperú aims to boost production at the Talara refinery to its full capacity by year-end. The facility can process up to 95,000 barrels per day.
Narváez plans to increase the company’s market share from 28% this year to 38% by 2025. The chairman also mentioned potential talks with neighboring oil companies.
Discussions with Colombia’s Ecopetrol and Ecuador’s Petroecuador could lead to crude oil purchases for the Talara refinery. This move would support Petroperú’s refining operations.
In recent years, Petroperú has expanded its activities beyond refining and fuel marketing. The company now produces crude oil in four fields that returned to state control in 2023.
This development marks a significant shift in Petroperú’s operations. Narváez’s approach reflects a balance between state ownership and private sector involvement.
The gradual offering of shares aims to attract investors while maintaining government control. This strategy seeks to improve Petroperú’s financial health and operational efficiency.
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