Join the conversation:

Petroperu seeks private capital to turn Peru into a net oil exporter

Petroperu seeks private capital to turn Peru into a net oil exporter

Posted by PanamericanWorld on February 14, 2014

Peruvian state-owned oil company PetroPeru has found a midpoint between radical positions regarding the ownership of its capital: one asking for complete privatization and another pushing for pure public control. The new resolution turns PetroPeru into a joint venture by allowing up to 49% of private equity, of which at least 5% will be open to the general public. The decision comes at a time when the country’s oil industry has been replacing crude oil production with processed oil by undertaking large-scale projects.

PetroPeru’s investment plans are focused on the modernization of the Talara Refinery, a US $3,495MM project that will boost its refining capacity +46.15%. This takes capacity from 65,000 barrels per day (bpd) to 95,000 bpd, allowing an annual savings of US $1,500MM, resulting from lower imports. The refinery is expected to begin operations in 2017, creating around 18,000 direct and indirect jobs, contributing US $204MM in sales and US $105MM in taxes each year, and increasing value-add since it will refine heavy crude oil from the Amazonia region.

According to the US Energy Information Administration (EIA), Peru’s crude oil output fell (66.15)% from 195,000 bpd in 1980 to barely 66,600 bpd in 2012. Meanwhile, oil production doubled after 2004 from 79,900 bpd to 160,428 bpd in 2012, as refinery capacity jumped from 170,000 bpd to 198,950 bpd. The country is close to becoming a net petroleum exporter, since net oil imports have shrunk from 64,700 bpd to 11,275 bpd since 2008.

GLOBAL NEWS MATTERS

Facebook comments



Monthly newsletter featuring articles hand picked by our country managers from the best content across PanamericanWorld.



Monthly newsletter featuring articles hand picked by our country managers from the best content across the Caribbean Region on PanamericanWorld.

PANAMERICANWORLD COUNTRIES