By the OGJ Online Staff
HOUSTON, Aug. 1 -- Jaime Quijandria, Peru's new energy and mines minister in President Alejandro Toledo�s government, said he expects to complete privatization of that country's petroleum and electric power sectors by the end of 2003.
Quijandria made that announcement Tuesday as he officially took office.
Some 40% of Peru's electric power sector still remains to be privatized, Quijandria said. He also is determined to privatize the government's remaining petroleum assets, although there is not yet a formula for specific cases.
Among the government-owned Petroleos del Peru SA (Petroperu ) assets to be privatized are the 200,000-b/d North Peruvian pipeline, the 60,000-b/d Talara oil refinery, and the smaller Iquitos, Conchan, and Milagros refineries.
A US firm and a Latin American company have already expressed interest in buying Petroperu's refineries, officials said (OGJ Online, June 22, 2001).
A large segment of Petroperu's assets, including oil fields, was privatized in the mid-1990s. But the state oil company continues to operate its remaining properties and recently expanded into gasoline stations that purchase fuel exclusively from the Talara refinery.
Former President Alberto Fujimori kept Talara under Petroperu's ownership to hold down petroleum product prices (OGJ Online, Aug. 22, 2000). However, Toledo is an advocate for a free market. He has said that delaying privatization indefinitely would fail to encourage the outside investment that Peru needs for its energy sector.
Privatization also may include the sale of some property assets or concessions, and management contracts, Quijandria said.
He said he has a tentative privatization schedule, although he has yet to discuss it with other government ministers at Copri, the government�s privatization commission. A new executive director for Copri will probably be appointed, officials said.
Meanwhile, Quijandria has yet to appoint his vice-ministers for the petroleum, electricity, and mining sectors. He indicated that he's evaluating possible changes at Perupetro as well.
