Peru eyes private cash for Petroperu's assets

Peru is exploring options to attract private sector investment into its state-owned oil company, Petroperu. This strategy aims to bolster the company's finances and operational capabilities. The government's investment promotion agency, Proinversion, is identifying potential private investors who could inject capital and manage key assets.

Specifically, Petroperu's $5.6 billion Talara refinery and the inactive Norperuano oil pipeline are highlighted as potential targets for private investment. The company has faced significant financial strain, partly due to the Talara refinery's cost overruns, which led to a loss of its investment grade rating. Government financing has been substantial, reaching approximately $5.3 billion between 2022 and 2024.

A primary objective of seeking private capital is to enable Petroperu to meet its financial obligations to creditors, including suppliers and international bondholders. While private entities may gain management control over certain assets, officials emphasize that this does not signify full privatization of the state-owned company.