Petroperú, Peru’s national oil company, is facing bankruptcy, as stated by the newly appointed Minister of Energy and Mining, Rómulo Mucho.
During a recent interview, he made it clear that the company’s financial recovery hinges on substantial management reforms.
Mucho dismissed the idea of selling Petroperú, emphasizing the significant investments and assets, including 60 properties, that the government has infused into the company over the years.
The minister underscored the need for immediate and profound changes in corporate governance to salvage Petroper.
He suggested that alterations in management and leadership are imminent, stressing that these reforms should be swift, ideally within a month.
This call to action aligns with the government’s announcement of structural reforms on February 3.
These reforms focus on altering the General Assembly’s composition to grant the Ministry of Economy and Finance more control.
Furthermore, the Prime Minister had previously emphasized plans to reform Petroper’s board for increased efficiency and professionalism.
He explicitly stated that Petroper’s requested financial support, totaling $1.15 billion, would not be approved.
This stance came despite the company’s chairman, Pedro Chira, arguing that the requested funds would yield substantial returns to the state in profits and taxes.
Petroperú’s financial woes intensified under ousted President Pedro Castillo (2021-2022).
The company aimed to complete the Talara Refinery modernization, facing delays and budget overruns.
The backdrop of financial instability and management challenges highlights the urgent need for efficient reforms.
These reforms are crucial to ensure Petroper’s viability and its ongoing contribution to Peru’s energy sector.