Petroperú, the state-owned oil company of Peru, is actively seeking government support to address its financial challenges.
The company has requested approximately $1.15 billion from the government, a significant step to ensure its sustainability and operational efficiency.
The Talara Refinery’s costly modernization, which exceeded budget and timeframe, has intensified the financial support needs.
Pedro Chira, President of Petroperú, has clarified that this financial support is essential for the company’s recovery.
He assures that Petroperú will return to profitability and self-sustainability by 2025, aided by the new Talara Refinery.
The refinery aims to save the state around $3.546 billion annually in fuel import costs, boosting domestic production.
In response to its liquidity crisis, Petroperú is exploring various solutions, including increased credit lines from banks.
The company’s restructuring plan, developed with the assistance of consultancy firm Arthur D. Little LLC, aims to enhance governance and financial stability.
The plan follows a government decree for Petroperú’s restructure amid financial troubles and corruption issues during Castillo’s term.
Moreover, Petroperú has withdrawn from the National Society of Mining, Petroleum, and Energy (SNMPE) to focus on its recovery and strategic goals.
The company plans to adopt transparent, merit-based processes for board selection inspired by practices of other state-owned enterprises in Latin America.
Petroperú’s current phase is pivotal, as the company seeks financial stability and aims to contribute to Peru’s energy sector and overall economy significantly.
The government’s response and Petroperú’s plan execution are key to its future and economic impact.