By an OGJ Correspondent
LIMA, Nov. 5 -- Peru's energy and mines ministry is seeking management contracts, joint ventures, or similar possibilities to reorganize Petroperu, the state oil company.
But the government does not expect to sell Petroperu assets, said Energy Minister Hans Flury. Petroperu's immediate challenge is to obtain $275 million to upgrade the 62,000 b/d Talara oil refinery and meet World Bank fuel standards before 2005.
Investment also is required for the 12,500 b/d Conchan refinery south of Lima as well as for the 10,500 b/d Iquitos refinery and the 1,600b/d El Milagro refinery, both in the northern jungle area. Petroperu operates the four refineries.
Relapasa, the country's largest refinery with a 102,000 b/d installed capacity, is operated by Repsol YPF in partnership with ExxonMobil Corp. The government owns 31.2% of it.
Petroperu Pres. Alejandro Narvaez estimated losses at $7.5 million for the year. He added that the losses would have been higher except for recent austerity measures.
