Peru has made remarkable strides toward reforming its oil industry in the past year but now appears to be retreating from total divestiture of federal oil assets.
Daniel Hokama, minister of energy and mines, recently disclosed the government will keep a share of the stock of Petroperu, the national oil company.
Last December, Peru put a new hydrocarbons law into effect. It was designed to encourage exploration and production by foreign and domestic private companies and it has. A number of international oil companies have taken another look at Peruvian prospects, and deals continue to be signed (OGJ, May 9, p. 27).
The government had indicated it plans to sell Petroperu to private companies by the end of this year.
Apart from his ministry position, Hokama also heads Copri, the state privatization commission.
LATEST PLAN
Hokama recently told the congressional energy commission the government now plans to keep 40% of Petroperu's stock and sell the rest. He did not clarify how that would work, other than to explain that the state share will include a 10% stock option for workers.
Emilio Zuniga, Petroperu's president and head of the company's privatization committee, has not commented on the announcement.
In the past, Zuniga has predicted Petroperu would be fully privatized by the end of the year, although the North Peruvian pipeline probably would be transferred as a concession.
Hokama said Petroperu would be divided into five units for privatization.
According to unofficial reports, one unit would include the 105,000 b/d La Pampilla refinery at Lima and the 62,000 b/d plant at Talara, Peru's two major refineries.
Another segment would be Petroperu's Block 8 in the northern jungle and Block X on the north coast.
The North Peruvian pipeline would be a third unit.
A fourth package would include 21 sales terminals, of which eight are on the coast.
And the final unit would throw together minor assets such as the Malca thermal power plant, fuel sales plants at airports, LPG and lubricants plants, and Petroperu's San Isidro headquarters.
ENVIRONMENTAL CLEANUP
Hokama said Petroperu before privatization will spend $30 million to clean up environmental damage from its previous operations.
Most of the funds are earmarked for Yanayacu in the southwest corner of Petroperu's northern jungle Block 8 on the edge of the Pacaya-Samiria National Reserve.
Petroperu began drilling at Yanayacu in 1973, 9 years before the government created the reserve and long before the environment became an important issue in Peru.
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