Peru expected to import $700 million of crude oil this year

April 3, 2003
Peru will import an estimated $700 million worth of crude oil this year, according to Peru's Energy and Mines Minister Jaime Quijandria.

By an OGJ correspondent
LIMA, Apr. 3 -- Peru will import an estimated $700 million worth of crude oil this year, according to Peru's Energy and Mines Minister Jaime Quijandria.

But, because Peru's oil production dropped in March to an average of 93,655 b/d from 98,578 b/d a year ago, Hector Taco, president of state-owned oil company Petroleos del Peru SA (Petroperu), estimates that Peru will need to import an additional 10%.

Petroperu imported $317 million worth of crude oil in 2002 to feed its 65,000-70,000 b/d Talara refinery. The former La Pampilla refinery, now Relapasa refinery operated by Spain's Repsol-YPF SA, processed the remainder.

Taco also said that Petroperu is preparing to hold an international solicitation for tenders by September to select a company to increase Talara's refining capacity to 100,000-110,000 b/d, which would require an investment of $250 million.

The immediate target is to increase refining capacity to 90,000 b/d, including heavy-grade oil that is now mainly exported, but the longer-range target is to adapt Talara to the fuel standards of the World Bank before 2005 and make it competitive with Camisea natural gas operations, which are due to come on stream by August 2004.

Foster Wheeler Ltd. completed a feasibility study for the project in 2002.